Frequently Asked Questions

Q. What is the difference between the Inc. 500 list and the Inc. 5,000 list?

A. The Inc. 5,000 lists the 5,000 fastest-growing private companies in the U.S. The Inc. 500 is the top 500 of the Inc. 5,000. The Inc. 500 companies will all be highlighted in the September issue of Inc.. The Inc. 5,000 will be profiled on Inc.com in late August.

Q. Why should I enter?

A. The Inc. 500 and Inc. 5,000 celebrate the most dynamic private companies in the United States. Making the Inc. 500 or Inc. 5,000 distinguishes your company from the rest of the pack. You get profiled in Inc. magazine and/or Inc.com, you get covered in local and national media, and you receive attention and recognition from customers, partners, and investors. You will also gain access to an exclusive community of other fast-growing companies on IncBizNet. And you'll be invited to attend the Inc. 5,000 Conference, which will be held next September.

Q. What is the application procedure?

A. All applications for the Inc. 500 and Inc. 5,000 will be submitted through IncBizNet, Inc.com's new online community for private companies.

Q. How are companies ranked?

A. We rank companies according to the percentage growth of their revenue from 2004 through 2007.

Q. What are the basic criteria for eligibility?

A. To be eligible for the 2008 Inc. 500 and Inc. 5,000, your company must meet these criteria: 1) Your company must be privately held, for profit, and independent (not a subsidiary or a division of a larger firm with other revenue-generating operations). 2) Your company must have a full four-year sales history. That means that to be eligible for this year's list your company must have been generating revenue by the first week of 2004 at the latest. 3) Your company must be based in the United States. 4) Your company's revenue must have been at least $200,000 in 2004. 5) Your company's revenue must be at least $2 million in 2007.

Q. My firm is majority or wholly owned by a venture capital firm, a private equity firm, or an investment bank. Is it eligible?

A. Yes.

Q. Can I submit sales figures based on cash accounting?

A: No. Inc. requires that all sales and revenue figures (for both years) be converted to accrual accounting. To convert cash to accrual, start with cash receipts, subtract the beginning accounts receivable, and add ending accounts receivable.

Q. When is the deadline for submitting an application for the 2008 Inc. 5,000?

A. The deadline for submitting your IncBizNet registration with the box indicating interest in being considered for the Inc. 5,000 checked and your 2004 and 2007 revenue figures filled in has been extended to May 9, 2008.

Q. Does Inc. require supporting documentation?

A. Yes. Companies must submit backup for the revenue figures claimed for both years by May 12. Backup will consist of one of the following:

- A copy of our 2008 Inc. 5000 Revenue Certification Form, filled out and signed by the company's top financial officer. Revenue figures on this form should be precise down to the dollar if possible, or rounded to no greater extent than the nearest thousand dollars. Note: this should not be completed by the CEO, unless the CEO is the only financial officer at the company.

OR

- The first page of a corporate tax return, plus the page that indicates that accrual accounting was used to prepare the return (that page varies depending on the type of tax form used). Companies that use cash accounting for their tax returns should not submit tax returns as backup.

OR

- The cover letter and Income Statement page of an audit, compilation, or review from an outside accountant. Again, these should be for a calendar year and be based on accural accounting. Companies with fiscal years not ending in December or whose revenues were computed on a cash basis must provide a worksheet showing the conversion to the calendar years and/or accrual accounting.

Backup may be sent as soon as the application is completed. It can be saved as a .pdf file and e-mailed to Inc5000backup@inc.com , or faxed to 646-304-3157.

Q. When is the deadline for submitting backup?

A. May 12, 2008.

Q. I will not have my 2007 tax return completed or an outside accountant's report ready by then. Can I get those to you later?

A. No. In that case we will ask you to submit the Revenue Certification Form with the most accurate calendar 2007 revenue figure possible. These will be the figures on which the rankings will be based; we cannot update the rankings after May 12.

Q. If my fiscal year doesn't end in December, what sales numbers should I fill in for each year?

A. We ask all applicants to convert their revenue figures to calendar years. Companies that supply backup in the form of tax returns or statements from outside accountants -- if that backup is for a fiscal year not ending in December -- must provide a worksheet showing the conversion from the fiscal to the calendar year. Companies that use our Revenue Certification Form for backup do not need to show any worksheet; just make sure the revenue figures entered on the form are for calendar 2004 and 2007.

Q. What if my company is public?

A. Public companies are not eligible for the Inc. 500 or Inc. 5,000.

Q. What if my company is independent, but is about to be acquired or go public?

A. You are eligible as long as your company is privately held and independent as of December 31, 2007.

Q. What if my company used to be a subsidiary or a division and is now independent?

A. You are still eligible for the Inc. 500 and Inc. 5,000. Be careful, though, when submitting your net sales numbers from the years in which the company was a subsidiary or a division. Make sure the figures reflect only the net sales of your subsidiary or division, and not of the entire company. Documentation for subsidiary sales must be from an independent accountant. An internal financial statement is not sufficient.

Q. What if my company was a partnership in 2004 and is now a corporation?

A. That's fine. Your company can be structured however you want, as long as it is currently independent and meets the other criteria.

Q. How is the growth percentage calculated?

A. The equation for Growth Percentage is:

Q. Will my growth percentage be high enough to make the 2007 Inc. 5,000?

A. Number 5,000 on the 2007 Inc. 5,000 came in at 20% three-year revenue growth. We hope that this year's Number 5,000 will come in somewhat higher than that. But as long as your three-year revenue growth is above 20%, we urge you to apply.

Q. I would prefer that my outside public relations firm submit the application on behalf of my firm. Is this possible?

Or

I am a public relations representative who has several clients that may be eligible. Can I submit applications on their behalf?

A. Yes. On the first IncBizNet registration page, a PR representative should select the “A firm representing a private company” option. The representative will then be prompted to supply information for the client company, contact information for an employee at the client company who is authorized to provide information to the public, and the representative’s contact information. Correspondence regarding the Inc. 5000 application will then go to both the designated employee at the client company and to the PR representative.

Q. I head up a real estate brokerage. Can I submit the total sales volume that passed through our brokerage as our revenue figures?

A. No. You should only submit the fees and/or commissions that came to your company as revenue.

Q. My company is a franchisor. Should I submit the total sales of all of our franchisees?

A. No. Franchisors should only report the fees that come to the parent company, plus total sales from any stores owned by the parent company.

Generally speaking, companies should submit the figures they enter in box 1c of their corporate income tax forms, and the figures should conform to Generally Accepted Accounting Principles.

Q. Does my company have to be profitable to be eligible?

A. No. The Inc. 500 and Inc. 5,000 are determined solely by sales growth, and profitability does not enter into the equation.

Q. Will appearing on the Inc. 500 or Inc. 5,000 reveal information about my company to competitors?

A. We only require that you disclose your 2004 and 2007 revenue, location, number of employees, year founded, and a brief description of your company. Most of your competitors probably already know most of those things about you. You will also have a short profile of your company based on interviews with your CEO. Given the positive attention that comes with an Inc. 5,000 listing, you'll be much more likely to gain ground versus your competition.

Q. Where/When is the awards ceremony?

A. All companies that place on the Inc. 5,000 will be invited to the Inc. 500 Conference and Awards Ceremony, which will take place at the Gaylord National Resort and Convention Center on the Potomac in Landover, Md., just south of Washington, D.C., September 18-20, 2008.

Q. What if I have more questions that are not listed here?

A. If you have further questions, please contact Inc. 5,000 Project Manager Jim Melloan at jmelloan@inc.com, or 212-389-5327.

Thanks for your interest in the Inc. 500 and Inc. 5,000.