My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

A Penchant for Profits

Surviving rapid top-line growth requires a bottom-line focus to keep things under control.
- Magazine Contributor
1 min read

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."