Champing at the bit

The results of the 2009 SmartCompany Awards are in and I would have to kill you if I listed the winner, which will be revealed on September 17.

There were a few nervous moments this year, as very few entries dribbled in at the start and we were concerned the downturn would mean we would not even get 50 eligible entries!

The list is made up of 50 fast growing and innovative companies, based on their revenue between 2006 and 2009 and it’s tough to get on as you have to have grown substantially every year for three years.

Given how hard it was to grow in 08-09, we were worried, but then in the last week the entries poured in, with the usual last minute pleas for more time!

When I looked at the results I was surprised. I had assumed the list would be made up of companies from industries that are either recession proof or are growing – like aged care and online retail. While companies in those industries appear on the list, it was actually dominated by companies in industries that did feel the affects of the downturn.

But the downturn did not stop them: they saw it coming and adjusted their strategy early. They hired less people, put on hold capital acquisitions, delayed making acquisitions and focussed hard on margins and cash. They also refocussed on new plans and projects and have come through with fast growth rates for this financial year.

Their stories on how they grew in tough times makes for fascinating reading (on September 17). But what really struck me about these winners is that while these are Australia’s fastest growing companies, the owners have been held back. You can feel their pent up frustration as they comment they did not grow as fast as they wanted. They were not able to raise the capital they needed, had to hold back on expansion plans, turn down acquisition opportunities and couldn’t hire all the staff they wanted.

In other words, what we have here is a group of highly ambitious entrepreneurs, hell bent on making up for lost time. They are already out of the starting gates, beginning to put in place detailed expansion plans and need staff, money, services, acquisitions and opportunities to make the most of the upturn.

All downturns produce Australia’s best entrepreneurs because their crash-course in difficult business management sets them up for the future. Which is what makes the 2009 SmartCompany 50 particularly exciting.