If you are anything like me, than you are probably getting a little tired of all the bad financial news, lousy earnings reports and corporate downsizing. That's why this issue, which contains our annual Seven Small Jewels, is such a breath of fresh air. In an economy that most consider the worst we've seen in a generation, the 2009 Small Jewels really set themselves apart.
Let's consider some numbers: In 2008, the last year for which we have complete reporting, the Seven Small Jewels averaged 68 percent revenue growth. One firm, Impact Advisors (story on page 21) grew at 209 percent in 2008 and is projecting another 75 percent this year. In just two years, co-owners and brothers Andrew and Peter Smith took Impact Advisors from a $2.2 million firm to what they anticipate will be a $12 million firm by year's end. Now, that's a Small Jewel!
It may not be surprising to discover Impact Advisors focuses on the healthcare IT space, a sector that's poised for growth. However, it probably would surprise you to hear about a Small Jewel that does all of its advisory work in financial services. Alas Consulting (story on page 18) grew 67 percent in 2008 and says it will grow another 38 percent in 2009. And this is a financial services firm.
In fact, that projected growth—38 percent—is the average growth rate of this year's Small Jewels. No, that's not a typo. That's 38 percent growth—in this economy.
And there's not a layoff in sight. The Seven Small Jewels are adding staff. In 2008, they hired, on average, 13 new consultants. And this year they say they'll hire another 15 consultants each. Keep in mind, their average staff size is just 47 billable consultants. So, not only are they growing revenue, they're growing in size, scope and importance. Sure, previous Small Jewels winners have racked up substantial revenues and headcounts, but that was back in the good old days of 2004 and 2005—when a niche firm could ride the wave of a rising tide created by the behemoths of the industry. We know that's not the case right now.
This year, many Small Jewels actually are crediting the economy for their success. Well, maybe "crediting" is too strong a word, but they sure aren't cursing it either. The hard times have leveled the playing field and affirmed their leaner and more nimble business models. Tough times tend to favor niche firms that have carved
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