The 2000 Inc. 500 Almanac: Location

The Inc. 500 by State

Alaska: 1
Alabama: 5
Arkansas: 0
Arizona: 5
California: 69
Colorado: 17
Connecticut: 7
Delaware: 4
District of Columbia: 1
Florida: 27
Georgia: 26
Hawaii: 0
Idaho: 1
Illinois: 27
Indiana: 7
Iowa: 1
Kansas: 4
Kentucky: 8
Louisiana: 3
Massachusetts: 26
Maryland: 12
Maine: 2
Michigan: 14
Minnesota: 11
Missouri: 4
Mississippi: 1
Montana: 1
North Carolina: 12
North Dakota: 1
Nebraska: 0
New Hampshire: 2
New Jersey: 20
New Mexico: 3
Nevada: 3
New York: 24
Ohio: 17
Oregon: 7
Pennsylvania: 21
Rhode Island: 2
South Carolina: 3
South Dakota: 0
Tennessee: 6
Texas: 39
Utah: 8
Virginia: 31
Vermont: 1
Washington: 7
Wisconsin: 6
West Virginia: 0
Wyoming: 0

Location, Location, Location

State with biggest gain in companies since 1999: Florida, up 9 companies to 27

State with biggest drop in companies since 1999: Maryland, down 8 companies to 12

Top five metro areas by number of companies
Washington, D.C. 37
New York City 34
Los Angeles 28
Atlanta 25
San Francisco 24

Top five states by number of companies per million residents*
Delaware 5.4
Virginia 4.5
Massachusetts 4.2
Colorado 4.2
Utah 3.8

*Based on January 1, 1999, population estimates from Market Statistics, a division of Claritas Inc.

The CEOs

Personal profile

Median age at time of company's founding 32

Median age now 40

Percentage of CEOs born outside the United States 15%

Highest level of education completed
Four-year college 47.4%
M.B.A. 18.2%
Other advanced degree 17.6%
Two-year college 8.4%
High school 8.4%

Economic background
Middle class 58.4%
Working class 29.5%
Affluent 8.6%
Poor 3.5%

Caucasian 85.0%
Asian/Pacific Islander 10.9%
Hispanic 1.9%
Black/African American 1.6%
Native American/Alaskan native 0.5%

Marital status
Married 85.4%
Single, never married 7.3%
Divorced 6.5%
In other long-term relationship 0.8%

Percentage of CEOs who changed their marital status while growing the business who
Got married 59.2%
Got divorced 22.5%
Got divorced and remarried 18.3%

Median number of vacation days taken in 1999 10

The future

Percentage of CEOs who started their company with an exit strategy 32%

Percentage of those CEOs whose plan was to*
Go public 42%
Sell out to another company 39%
Bring in an outside majority investor 7%
Pass on the company to the next generation 7%
Use other strategies 4%

*Does not add up to 100% because of rounding.

Percentage of all CEOs that, in the foreseeable future, plan to
Acquire other companies 68%
Sell the company 43%
Go public 43%
Participate in a roll-up 21%

The bottom line

Median annual compensation $200,000

Number of CEOs who had compensation of $1 million or more in 1999 26

Number of CEOs who had no compensation in 1995 22

Political leanings

CEOs' views on the federal law that bars imposition of a sales tax on Internet commerce
Pro 57%
Con 21%
No opinion 22%

CEOs' views on whether the United States should have permanent normal trade relations with China
Pro 62%
Con 17%
No opinion 21%

CEOs' views on whether federal law should provide a patient's bill of rights governing Americans' relationship with health insurers, such as HMOs
Pro 53%
Con 23%
No opinion 24%

CEOs' views on whether the United States should strengthen environmental laws to prevent global warming
Pro 64%
Con 21%
No opinion 15%

CEOs' views on whether U.S. workers should have the right to invest some of their Social Security money in the stock market
Pro 75%
Con 17%
No opinion 8%

The Companies

Top employers

Number of full-time employees
Accord Human Resources 8,500
Excell Global Services 3,500
Jamba Juice 3,000
Pemstar 2,927
Applied Card Systems 2,770


Average sales growth from 1995 to 1999 1,632%

Median 1999 sales $10,604,000
Collective 1999 sales $11,015,458,000


Median number of employees 64
Collective number of employees 84,258
Percentage increase in the collective number of employees, versus the collective number for the 1999 Inc. 500 25%

The HR policies

Percentage of companies that offer
Flextime 69%
Job sharing 22%
Telecommuting 59%

Percentage of companies that offer full-time employees
A bonus plan 69%
Profit sharing 47%
Disability insurance 70%
Retirement plan 83%
Health insurance& 97%

Percentage of companies that offer stock options to*
All employees 33%
Upper management only 28%
Founders only 26%
Longest-serving staff only 6%
Top recruits only 6%

*Does not add up to 100% because of rounding.

Median starting salary of the companies' nonhourly employees $40,000

Percentage of companies with employees who have an annual compensation package greater than the CEO's 31%

Most likely recipient of a pay package greater than the CEO's VP of sales

The three most difficult kinds of employees to recruit Technical/IT, sales, senior management

Percentage of companies at which the biggest factor limiting growth is recruiting enough people 50%


Percentage of companies whose main source of business is
Fortune 1,000 businesses 48.1%
Small to midsize businesses 30.8%
Consumers 10.4%
The government 9.3%
Nonprofits 1.4%

Global trends

Percentage of companies that had international sales 38%

Median percentage of revenues that came from abroad at those companies 7%

Online action

Percentage of companies that had Internet sales 29%

Percentage of companies with Internet sales that reported those sales as profitable 95%

Percentage of all companies that think an aggressive E-commerce strategy is critical to their long-term survival 61%


Number of companies that also made the Inc. 500 last year 156

Number of companies that broke $100 million in sales 22

Number of companies that are only five years old 76

The Launch

Home is where the start is

Percentage of the 1995 Inc. 500 that were started in the founder's home 39%

Percentage of the 2000 Inc. 500 started in the founder's home 61%

Median age of those 2000 Inc. 500 companies when they moved to their next location 15 months

Percentage of those 2000 Inc. 500 companies that had five or fewer full-time employees at the time of that move 64%

The Inc. 500 by sector

Computer software and services 38%
Diversified services 17%
Materials and construction 6%
Telecommunications 6%
Computer hardware 5%
Electronics and miscellaneous technology 4%
Financial services 3%
Health products and services 3%
Consumer products (durables) 3%
Consumer products (nondurables) 2%
Manufacturing 2%
Transportation 2%
Specialty retail 2%
Other 7%

Money, money, money

Percentage of companies that had initial start-up capital of
Less than $1,000 16%
$1,000 to $10,000 26%
$10,001 to $20,000 16%
$20,001 to $50,000 10%
$50,001 to $100,000 11%
More than $100,000 21%

Percentage of CEOs that raised start-up capital by tapping
Personal assets 92%
Cofounders' personal assets 36%
Assets of family and friends 33%

Percentage of companies that received venture capital as seed money 4%

More money

Median amount of additional financing raised (after start-up) $1,500,000

Percentage of companies that received additional financing whose primary source was a bank line of credit 83%

Percentage of companies that received additional financing that got venture capital 20%

Percentage of all companies that have received angel investments 12%

Average overall debt of all companies $5,674,607

Median overall debt of all companies $813,000

Top 10 fastest starts (Fastest growers among companies formed in 1995)

Company (rank) Growth Business description
Parson Group (1) 27,992% Provides accounting, finance, risk-management, and insurance services
Keystone RV (2) 17,117% Manufactures recreational vehicles
Lakeshore Staffing (6) 7,903% Provides temporary and permanent staffing
Access Direct Telemarket (8) 7,178% Provides direct-marketing services
VMS (10) 6,761% Operates and maintains roadways and transportation facilities
Ahead Headgear (11) 6,667% Designs and markets branded hats for golf shops
Support Technologies (14) 6,070% Offers help-desk services
Meritage Technologies (15) 5,376% Provides E-business consulting and professional services
Ascend HR Solutions (17) 5,203% Provides off-site human-resources services
Product Development Technologies (22) 4,814% Provides product-development, engineering, and tooling services

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