A Penchant for Profits
This story appears in the August 2005 issue of Entrepreneur. Subscribe »
Revenue at software provider Avidian Technologies in Bellevue, Washington, has grown 400 percent annually for the past two years--and 2005 promises more of the same. Co-founder and CEO James Wong knows that such growth can be dangerous, and he's doing all he can to control it carefully.
That means vigilantly watching cash flows and bottom-line profits. Wong, 33, has strong policies regarding both: Avidian never ships a product until payment is received and never lets net profits dip below 15 percent of sales. With cash on hand and profits to reinvest, Avidian fuels its growth with no significant debt and no outside investors.
Avidian now has over 7,000 registered users of its software, and sales are approaching $5 million. Still, profits are always on Wong's mind.
"I've learned that profitability takes conscious effort," he says. "If you just keep growing for growth's sake, you won't be nearly as profitable."
