FGC_10 Years

FROM THE ACCOUNTANTS
Technology paving the way for
Corridor's Fastest Growing Companies
We are excited to once again partner with the Corridor
Business Journal for this year’s Fastest Growing
Companies awards program. For 10 years we
have been honored to be part of this competitive
and prestigious award. Year over year, Corridor-area
businesses continue to adapt and grow to the rapidly
changing world we live in, and it’s been fun to
watch these exceptional companies as they travel
along their journey.
Each year, we review the applicants’ financial
statements and tax returns for the past three years
to determine their overall percentage of growth,
and the numbers have been amazing. We have seen
greater than 400 percent growth in some cases, and
companies have come within a decimal of a percentage
point from each other to take the top spots.
Most impressive are the companies who have made
the list multiple times, which is an amazing accomplishment.
If a business continues to make the top
five or 10 each year, it means their revenue is effectively
doubling annually, which is pretty powerful.
One of the biggest trends we have seen over the
years is the growth of technology and web-based
companies. This comes as no surprise considering
the mobile and digital world we live in, but the way
these companies are successful is where it really gets
interesting. Nearly every traditional industry has had
to adapt to be more mobile and web-based, and that
has in turn opened the door for entrepreneurs to
step in and use their technological acumen.
Rather than create new products or try to compete
in traditional industries themselves, entrepreneurs
are developing ways to help those industries
perform more efficiently. For example, we already
have companies that develop and manufacture
heavy equipment; those companies that fall in the
fast-growing category are instead coming up with
ways to digitally manage the diagnostics on the
equipment and provide better insight on its performance.
Likewise, our health care systems have established
staff, equipment and facilities, but entrepreneurs
are coming up with better ways to manage
their data and patient information so doctors can
make better, more informed decisions.
We also have seen an uptick in web-based retailers
who have gone off the physical grid and exclusively
operate online. These retailers are essentially
like a mini-Amazon – they order products and resell
them to the consumer. Without the overhead
of a traditional physical location, these retailers can
grow at a faster rate and meet their customers wherever
and whenever they are online. It’s a game that
people with a good sense of technology, distribution
and marketing have jumped on,
and it’s working here in Eastern Iowa.
Furthermore, the growth we have
seen has been encouraged and supported
through some excellent economic
stimulus programs such as
tax incentives and historical districts.
Growing companies in need of more
space can make the investment to
expand and build what they need,
thanks to strong working partnerships
with local and state economic
development initiatives. More than
half of all the entries over the course
of the program have come from the Cedar Rapids
metro area, while the rest have been fairly evenly dispersed
throughout the Corridor, indicating that economic
partnerships and overall community support
has been strong for companies looking to expand.
Moving into the next 10 years, based on the
trends, we anticipate more entrepreneurs developing
technologies and solutions to support industries
and companies that already exist here in Eastern
Iowa. Industries like health care, manufacturing,
education, investments and services, and engineering
are all going to need mobile and web-based
solutions to support their operations and systems.
Those who can find their niche and can figure out
how to solve problems using technology, data and
algorithms are the ones who will continue to grow
and succeed in today’s digital world.
As a fastest growing CPA firm in the U.S. for the
past seven years, we can relate to these companies,
which have found ways to carve out a niche, grow
and sustain their business. Many of these are people
we work with daily. We get it, and we understand
where they’re headed. Their success is inspiring and
the support locally is encouraging. We look forward
to being a part of the next 10 years of this program,
and we can’t wait to see what these companies come
up with next.
Kyle Kunz, CPA.CITP
Partner
Honkamp Krueger PC
CBJ’s Fastest Growing Companies 10th Anniversary 5