Growth Squared: The 2014 SD&I Fast50

The 3rd Annual SD&I Fast50, honoring the fastest-growing security dealers and integrators in North America


World Wide Security, No. 46 “Our growth over the past five years has been driven by both organic sales and strategic acquisitions,” explains CFO Mark Simpson. “The company has used a wide array of creative sales and marketing programs to help generate organic growth. We viewed the acquisitions as the potential to increase overall growth through while leveraging our existing infrastructure.”

American Video and Security Ltd., No. 47 “I would attribute our firm’s rapid growth to focused weekly sales and operations meetings,” says President Larry Folsom. “We set sales, revenue, profit and RMR goals each year and make a plan to achieve them. These are fairly normal business principles — the key is the execution of the plan to achieve these goals.”

All Systems, No. 49 “We focus on finding clients, not pursuing opportunities that are only what we would consider to be one-time ‘projects,’” says VP Kourtney Govro. “Projects don’t allow us to build long-term meaningful relationships.”

 

How the Fast50 is Calculated

The companies ranked in the SD&I Fast50 are recognized and ranked based on percentage growth and revenue growth — with their overall ranking balancing those two considerations using a simple but effective algorithm. If we ranked companies purely on revenue growth, it would tend to favor larger companies — this way, the playing field is level for all entrants. 

We also balance the equation by studying three years of financial change to ensure that high-growth companies aren’t just “flash in the pan” types of businesses, but are able to sustain themselves. It also balances ups and downs. For example, a company on our list could have had negative growth in its first year but then achieved such strong growth in year two that the average was powerfully in the positive.

To enter, companies confidentially report to us their most recent fiscal years worth of gross revenues. Using those numbers, we compute the revenue growth and percentage growth for each of their three most recent fiscal years. We average the growth numbers to generate an average revenue growth for the company, and we do the same for the company to create an average percentage growth.

Ties result simply because of the formula average of the revenue and percentage ranks — it is a product of one being higher for dollar increase and one being higher in percentage increase. 

Companies may enter as long as one of their key business efforts is the installation of security solutions (e.g., video, intrusion, access control, perimeter detection, biometrics, etc.). It doesn’t have to be your sole business effort, but it does need to be a definitive part of your firm. 

 

 

Paul Rothman is editor-in-chief of SD&I magazine (www.secdealer.com). For more information on the 2013 and 2014 Fast50 rankings, visit www.securityinfowatch.com/sdifast50.