This story appears in the
August 2005 issue of
Entrepreneur.
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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."
