#31, Cotton Machinery Co.-2,355%

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Back in 1976, FMC Corp., a $3.3-billion conglomerate, was trying to get rid of a monster it had created. The monster was a cotton module builder, a giant machine that compacts cotton into bales 32 feet long by 7 feet high by 8 feet wide.

Jeff Johnson was manager of FMC's new-business venture group and one of the few people who believed in the machine. When he learned that FMC was going to scrap plans for building it, he volunteered to try to sell the idea to other companies. When that didn't work, he decided to buy it himself. He and another FMC colleague set up shop as Cotton Machinery Co. (CMC) in Livermore, Calif. (Nowadays, 75% to 80% of the cotton grown in the United States comes from California, Arizona, and Texas.)

"When we started in 1976," says the 42-year-old Johnson, "we believed we had a viable product. But we had no idea it would be this viable. Sales this year will top $11 million."

CMC's success, says Johnson, stems in part from manufacturing equipment that helps farmers store and transport large quantities of cotton at low cost. But it also stems from Johnson's insistence on keeping the company trim and flexible. He maintains a minimal inventory, farming out almost all parts manufacturing, and he cuts his work force during the winter and spring, when almost no manufacturing takes place.

Long lead times for purchasing and fabrication force the company to plan the production of their machines a full year in advance. "It's always tense, planning a year ahead, knowing you can't turn back," says Johnson. "But like a fire horse going to the fire, you get used to it, and, fortunately, our bank believes in our projections.