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12/1/2004, Utah's Star Performers

Published in Utah Business Magazine

By Brent Wilhite

And the Oscar goes to...? Okay, they didn't win Oscars. But based on the dazzling performances given by these Utah businesses, they deserve to be honored, applauded and perhaps given standing ovations. Minus the red carpet, that's just what they were given at this year’s Utah 100 Awards.

MountainWest Venture Group (MWVG) has been sponsoring this event for the past nine years to honor Utah's 100 fastest-growing companies, top 15 revenue growth companies and 15 “Emerging Elite” companies. While you may not be familiar with the Utah 100 award, you're probably familiar with many of the winners. That's why they made the list. For at least five years these Utah-based companies have been gobbling up market share in their respective industries.

In order for small- and mid-sized companies to compete with behemoths, winners are selected by sales growth percentages. The envelope, please: This year's top honor goes to Overstock.com—a deserved distinction, as the company posted a sales increase of more than 10,000 percent from 1998 to 2002.

If you're focused solely on the bottom line, the Top Revenue Growth category honors companies based on total revenues. Zions Bancorporation garnered that top position—for the fourth consecutive year.

Only three companies have been in the winner's circle since 1995, when the awards began. Dentrix Dental Systems, Inc. has nine Utah 100 awards, while The Layton Companies and R.C. Willey have been a fixture in the Top 15 Revenue Growth category every year. Other Utah 100 longevity awards go to Christopherson Travel Group, an eight-time winner, and Body Firm Aerobics, Inc., a seven-time winner. Consistent Revenue Growth companies include Zions Bancorporation and Macey’s Inc., for eight years’ in the Top 15.

Companies such as iBoats.com and Breathe Day Spa might not be household names, but they could be soon. Hailed as up-and-comers with future potential in the “Emerging Elite” category, these companies and 13 others are poised for future growth and success.

Since everyone wants to know the secrets of success, here's a behind-the-scenes look at a few top performers.

‘The Big O’

In October 1999, Patrick Byrne launched Overstock.com, an online “closeout” retailer selling excess inventory over the Internet. By December, The Salt Lake Tribune had run an article citing Byrne's company as the fastest-growing Internet site in the country—not too shabby, considering it was the heyday of the dot-com movement.

At the Utah 100 awards ceremony, Byrne said, “[Four years ago] I was turned down by 55 VCs, and I was probably the only guy turned down in the fall of 1999.” Since then, he noted, “[Overstock.com has] liquidated 18 dot-coms funded by the same guys who turned me down.” Byrne says the company exploded, using simple, obvious tactics. For example, his team tracked the source his visitors were arriving from. “We just cut off the bottom 80 percent of sources, and doubled up our spending on the top 20 percent. Then we did that each month. That's all it took—it was that simple,” he explains. “To me, I don't think I'm very smart. The technique we used is something that could be explained to any eighth-grader. But it's possible for people to be so smart they don't see what's in front of their eyes anymore.”

Engineering Success

Sometimes following others can turn you in to a leader. This is the route Blake Kirby, president and CEO of Logan-based Inovar, Inc., took—and it paid off in rapid growth. Inovar was ranked 21st on the Utah 100 list.

“Five years ago, we put in a business model that mirrors the big manufacturers, in terms of equipment, facilities, people and systems. It's just that we're in a smaller shell,” says Kirby. “There's the guys that build for the IBM and Nokias of the world, then there's guys like us who build for companies that are spending one to two million dollars a year on outsourcing, instead of one to two billion a year. But if you look at our business, we look much the same, just smaller,” he adds.

Kirby also cites customer service as facilitating the company's rapid growth. “We recognize that even though we're a manufacturer, the product we sell is service. That service permeates every person at Inovar, from engineering to shipping and receiving. They all understand that that's what the customers are paying for. That's where we've been able to beat our competition.”

In those five years, Kirby has taken the company from 15 employees to 120 employees. Following the leader isn't a bad strategy at all.

Soap Stars

Who would have guessed that selling soap-making supplies on the Internet could become so popular? Pamela Love Black, director of Salt Lake-based Soap Crafters, started her venture in a spare bedroom in her apartment with a free web site, free e-mail and $50. Today, she has a stronghold on her industry and ships her products to Japan, South Africa, Australia, New Zealand—people are making soap all over the world, thanks to Soap Crafters. Her company was ranked 13th on the Utah 100 list.

Citing “customer service” as the primary reason for her rapid growth, Black says it outshines quality. “You would think quality of product would be the most important thing to people. It's not. It's customer service,” she explains.

If you're looking for a unique gift for the holidays, drop by the Soap Crafters web site (www.soapcrafters.com), where Black offers up free instructions on how to make soap products. She claims that offering freebies is another reason why her company outgrew her apartment, a 3,000-square-foot location, and has almost maxed out her 6,000-square-foot building. “Where our competitors want to charge people for consulting, our customers can just go on our web site and find out how to make soaps from scrap with pictures and support. Our competitors don't do that. They just don't take good care of their customers.” Brent Wilhite is a Layton-based freelance writer and communication professional. 2003 Utah 100 Fastest Growing Companies

1. Overstock.com, Inc.
2. United Underwriters
3. 4Life Research, LC
4. Axiom Financial, Inc.
5. IKANO Communications
6. Rubicon Medical
7. Media Source, Inc.
8. Innovative Systems Architect Corporation
9. ChartLogic, Inc.
10. The Local Pages, Inc.
11. DieCuts with a View
12. InterMountain Lodging and Reservation Center, Inc.
13. Soap Crafters Company
14. Steton Technology Group, Inc.
15. Stake Center Locating, Inc.
16. Raumland Systems, Inc.
17. FatPipe Networks
18. MyFamily.com, Inc.
19. Wolf Electronix, Inc.
20. Cafe Rio, Inc.
21. Inovar, Inc.
22. Process Instruments, Inc.
23. Omniture, Inc.
24. Viranim Technologies, Inc.
25. SBI and Company
26. Bullfrog International
27. Minds i
28. Pyra's Fine Antique Furnishings and Interiors LLC
29. Stoker Architecture, Inc.
30. Back to Basics Products, Inc.
31. FutureVision Technologies, L.L.C.
32. Q Comm International, Inc.
33. Dexter's Party Ice, LLC
34. SN Custom Railing, Inc.
35. Career Step LLC
36. Linux Networx
37. Coaching Institute, Inc.
38. Sportsman's Warehouse
39. McKinnon-Mulherin, Inc.
40. All Surface
41. Wasatch Aero Services
42. The Logo Shop, Inc.
43. ATA Services
44. Making Memories Wholesale, Inc.
45. Quality Excavation, Inc.
46. Riverwoods Mill, Inc.
47. PC Consulting, Inc.
48. InfoTrax Systems
49. Body Firm Aerobics, Inc.
50. The Spa Club
51. Prime Holdings Insurance Services, Inc.
52. Opticare of Utah
53. NetVision, Inc.
54. Paradigm Medical Industries
55. Document Control Systems, Inc.
56. ConsultNet, LLC
57. JBA Research
58. BRG Research Services, Inc.
59. Arena Communications
60. GoEngineer, Inc.
61. Med One Capital, Inc.
62. Ascend HR Solutions
63. Softwise, Inc.
64. Automated Business Products
65. Gold Systems, Inc.
66. American Pioneer Financial Services, Inc.
67. Real Property Management, Inc.
68. O'Currance Teleservices
69. Focus Services, Inc.
70. Utah Trailways
71. Zeal Optics
72. Dentrix Dental Systems, Inc.
73. Design to Print LLC
74. Security National Financial Corporation
75. 1-800 Contacts, Inc.
76. Wencor West, Inc.
77. CompHealth Group
78. SkyWest, Inc.
79. Dental Select
80. Stampin' Up!
81. SymbolArts LLC
82. Park City Lodging Connection, Inc.
83. Prototyping Management Corp.
84. Jacobsen Construction Company, Inc.
85. Thread & Ink Designs
86. Tuff Country, Inc.
87. Pallets By Hadley
88. Myriad Genetics, Inc.
89. ZEVEX International, Inc.
90. Employer Solutions Group
91. Cooper Roberts Simonsen Architecture
92. Christopherson Travel Group
93. Lincoln Financial Advisors Corporation
94. SliceX, Inc.
95. Diamond Rental, Inc.
96. Mikado Restaurants
97. Precision Assembly, Inc.
98. Million Air
99. Heritage Financial Group, Inc.
100. Hightech Signs, Inc.