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Kauffman funded the company's expansion through cash flow and made sure that he had new accounts before he hired people.

The capital infusion is part of Kauffman's plan to make Accuship the biggest player in its field this year, adding new Fortune 1,000 clients and expanding to new countries every week. To that end, Kauffman invested heavily in the company's staff, technology, and Web site in 2000.

All those changes represent a marked departure from the CEO's earlier mantra of growing cautiously. Why so aggressive, and why now? "Timing," Kauffman says. In the past year, most Fortune 1,000 companies have gotten enough bandwidth -- and enough confidence about data security -- to feel comfortable about handling internal business on the Web. At the same time, with the economy contracting, many companies have scrutinized expenses and discovered that they have been literally wasting a fortune on shipping.

By mid-2001, "somebody will lead this market," Kauffman says. He'd like it to be his company. So that made 2000 just the right time to invest in the fuel needed to propel Accuship to the top of the heap. And an impressive heap it is: online logistics, currently a $42-billion market, could reach $274 billion by 2004, according to Bear Stearns & Co. In fact, electronic logistics "will ultimately determine which old- and new-economy companies will survive and prosper and which companies will fail in their ability to distribute their product and services to an increasingly 'plugged-in' marketplace," Bear Stearns analysts wrote in a June 2000 report on the industry.

Bear Stearns praised Accuship in particular for its exclusive business-to-business focus and its customer roster, which includes names like Verizon Communications and Reebok International Ltd. "If Accuship continues to demonstrate shipping savings for such large companies, its customer list could grow substantially," analysts wrote in the report.

Accuship also won top marks from Armstrong & Associates, a logistics consulting firm in Stoughton, Wis. In a 2000 report titled Who's Who in Logistics Web Sites, the consultants gave Accuship an A, its highest rating, which indicated that the company had "a high probability of survival," says company vice-president Evan Armstrong. The firm based its rating on Kauffman's FedEx background, his strong management team, his ability to get funding, and his company's powerful Web site. Also, Armstrong says of Accuship, "they have a solid customer base, they have a real revenue stream, and if they do need additional funding, they're likely to get it."

Kauffman says that as he expands his customer list, he doesn't want to do it all at once. "This year is going to be a very big one for us," he predicts. "But growth can kill companies. So I'm reminding everyone that we can't be in every country tomorrow and we can't be in every company tomorrow. Timing is everything."

Anne Stuart is a senior writer at Inc. Technology.

With no fanfare and little venture money, the companies profiled here are delivering real stuff to paying customers and making a buck in the process. There may not be any "new rules," but there are rules, and we suspect every one of them will look familiar.

DVD Empire: The Bootstrapper
SitStay.com: The Mom-and-Pop
Shoebuy.com: The Scorekeepers
Accuship.com: The Traditionalist
Fashionmall.com: The Conservative
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