by Marty Kaszubowski, President of General Ideas, a Norfolk-based technology venture consultancy
Most people who read this space have likely heard of the INC 500, the list of rapidly expanding small companies published annually in Inc. Magazine. Here’s a link to this year’s list: http://www.inc.com/inc5000/list.
The list is fun and useful, and I check it out every year if only to imagine what it must be like for the company owners and staff to be experiencing the alternating exhilaration and panic of hyper growth. Number 500 on this year’s list, for example, grew by 600% over the last three years, while the number 1 company, Ambit Energy in Dallas, grew by more than 20,000% !
Each year, the INC 500 companies are selected and ranked according to their percentage revenue growth over three years. Naturally, a lot of the winners are very new companies starting from a small revenue base (a few hundred thousand dollars, or so) and expand to a few million in revenue over the three year period. Going from handful of founders to a staff of a few hundred is difficult but, as long as the company matures its internal process and attracts professional management along the way, it’s a good problem to have, and well worth the exhilaration and panic.
And, as you might expect, it’s rare for a company to show up on the list more than once and, in any given year, only a handful are repeat winners. Let’s face it, even the best “better mouse trap” won’t generate three-fold growth more than a few years in row.
All the companies that appear on the list are to be congratulated. But this year, my interest is somewhat different than simply celebrating successes. In case you missed it, there are four companies from Hampton Roads in the INC 500 this year. They are #29, Insignia Technology Solutions (http://www.insigniatechnology.com) headquartered in Newport News, and three companies from Virginia Beach: #227, Andromeda Systems, Inc. (http://www.androsysinc.com); #338, GSS Gear (http://www.gssgear.com); and #466, Marathon Consulting (http://www.marathonconsulting.com). All four should be extremely proud of their success.
But one of them is particularly interesting this year, not because of what it is and what they’ve done, but because of what it’s not. The regional strategic economic development plan titled “Vision Hampton Roads” includes a description of the three economic pillars our region has historically depended upon: (1) tourism, (2) the port, and (3) the military. Well, one of the four Hampton Roads companies on this year’s INC 500 list has nothing whatsoever to do with those three pillars.
Instead, Marathon Consulting (#466) is a technology-based company that is NOT a government/military contractor, NOT associated with either the Port or the tourism industry and is, thus, a potential poster child for the “fourth pillar” that is also discussed in Vision, which is all about innovation, new markets and economic diversification.
For too long, Hampton Roads has been forced to let economic and policy decisions made elsewhere drive the success or failure of our local businesses. We’ve been subject to the changing priorities at the Pentagon, the whims of travelers, or the unpredictable need to transport other people’s products to other region’s consumers. But, if we pay it some attention, we can see companies starting here, growing here and, because they are at the beginning of the innovation chain instead of at the end, finding themselves in much better position to control their own destinies over time.
As the leaders in our region focus on the potential loss of Joint Forces Command, it’s important to also recognize and celebrate the new generation of innovative companies that are not dependent on what happens at the Pentagon, the White House, or Afghanistan, and make sure the programs and support mechanisms are in place so companies like them continue to be established and grown right here.
Marathon Consulting is one high-profile example. Others include the guys at xTuple in downtown Norfolk, Perfect Commerce in Newport News, and Doma Technologies and IssueTrak in Virginia Beach. All feature strong, professional management, innovative technical teams, diverse markets, and growing suites of broadly applicable products and services.
So let’s trumpet the success of the region’s INC 500 companies this year. And let’s also use it as way to point out that there are alternatives to our region’s historical reliance on military, the port, and tourism, and to think about what we can do as a region to encourage, support, and celebrate the successes of another ten, twenty or even one hundred companies like Marathon Consulting.
More on entrepreneurialism in Hampton Roads:

I happened to be in Baku, Azerbaijan, the other day, talking to a roomful of entrepreneurs, and realized that their needs are very much like those of entrepreneurs here in Hampton Roads.
Baku is a city of about 1.5M people, their economy is based on three pillars: their port (on the beautiful Caspian Sea); a large contingent of military and government workers; and a growing tourism trade. Their traffic is terrible and getting worse. They have construction clogging up downtown, and they’re trying to preserve a number of historic buildings while also creating a world-class row of hotels, conference centers, and the like. Their winters are mild, their summers brutally hot and, they speak a highly accented version of English.
Read more.