PROFIT magazines's 8th annual HOT 50 ranking illustrates the diversity,
ambition and intelligence of the next generation of entrepreneurial
stars. On newsstands starting today.
TORONTO, Sept. 17 /CNW/ - Pop-up trade-show exhibits. Hard-to-find
concert tickets. Audiobooks, bison meat and Net-age portable classrooms.
Software consulting. Land development. Masonry construction and
direct-marketing services. Diversity exemplifies the great growth businesses
of the 2007 PROFIT HOT 50.
Although all the firms in PROFIT magazine's 8th annual ranking of
Canada's Emerging Growth Companies are less than five years old, they embody
the business savvy of companies several times their age. More important,
they're in demand: from 2004 to 2006, the average HOT 50 firm achieved revenue
growth of 675%; last year, their sales averaged nearly $10 million. And the
vast majority (72%) are turning a profit during hypergrowth - a remarkable
achievement, given that most companies die before their fifth birthday.
The hottest provinces
Some provinces are more conducive to startup success than others. But
given the headlines about Central Canada's malaise, you'll be surprised to
learn that almost three-quarters (74%) of Canada's Emerging Growth Companies
call Ontario home, whereas only 14% reside in Alberta - still enough to
outpace other provinces by a wide margin. Ontario leads the way with 37 HOT 50
companies, while 7 hail from Alberta, 4 from B.C., and Quebec and Manitoba
round out the list with one apiece.
The formula for success
The HOT 50's diversity suggests that success is more about execution than
anything else. In fact, just 46% say that having a truly unique product has
been critical to their growth. Still, it's worth noting that more than half
(54%) of this year's winners sell business services - proof that the
outsourcing trend is still going strong. For instance, this year's first-place
firm, Toronto-based Medical Telecom Corp., allows busy family physicians to
outsource the billing of uninsured services, such as prescription renewals by
phone.PROFIT HOT 50, TOP 5:
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Rank Name Location Industry revenue
growth %
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1. Medical Telecom Toronto, Ont. Billing services 5,214
Corp./Healthscreen for Doctors
Solutions Inc.
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2. Simcoe Canada Land Thornhill, Ont. Land development 3,134
Development Inc.
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3. Direct Sales Markham, Ont. Face-to-face 2,219
Force Inc. marketing and
promotions
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4. Holey Soles Richmond, B.C. Designs and produces 1,613
Holdings Ltd. foam footwear
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5. PlateSpin Ltd. Toronto, Ont. Data-centre 1,243
software development
-------------------------------------------------------------------------A complete ranking of the PROFIT HOT 50 companies, can be found in the
newest issue of PROFIT magazine, at www.profitguide.com/hot50 or through the
contact below.
How we found them
Entries were solicited through a self-nominating entry form in PROFIT's
May and June issues, on the Internet at PROFITguide.com and in our
e-newsletter PROFIT-Xtra. The nomination drive was also promoted through
Canadian Business and MoneySense magazines, by business organizations across
Canada and through targeted direct mailings to Canadian growth companies.
Entrants were ranked by two-year revenue growth, with revenue and net income
verified through financial statements.
PROFIT HOT 50 SNAPSHOT
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AVERAGE 2-YEAR REVENUE GROWTH: 675%
AVERAGE REVENUE, 2006: $9.6 million
MEDIAN REVENUE, 2006: $2.8 million
AVERAGE NUMBER OF EMPLOYEES: 32
PROFITABLE FIRMS: 72%
What Canada's Emerging Growth Companies do
------------------------------------------- Business services (27 total)
- Marketing-related: 9
- IT-related: 8
- HR-related: 3
- Transportation: 2
- Other: 5
- Software development 8
- Wholesale/distribution 5
- Construction 4
- Manufacturing 4
- Consumer services 2
- Retail 1About PROFIT Magazine
PROFIT: Your Guide to Business Success offers news, strategies, tips,
interviews and other resources to entrepreneurs leading Canada's
fastest-growing companies. Each year PROFIT - which currently reaches more
than 300,000 readers nationally - hosts a number of events that bring together
business leaders in the fast-growth segment and champions the interests of
those leaders. PROFIT was founded in April 1982 as Canada's first national
magazine geared to entrepreneurs. Visit PROFITguide.com.