2 of 4
BACKNEXT
Choose the right clients
Name: Incredible Foods
Industry: Food
Employees: 6
2007 revenues $2.2 million

Like many entrepreneurs, Jim Christy set out to boost revenues by reaching a bigger market. But the founder and CEO of Incredible Foods, a dessert delivery service in Gibsonia, Pa., soon found that bigger sales don't necessarily equal better business.

Christy, 55, launched Incredible Foods to sell a San Diego bakery's cheesecake to local food vendors in Pennsylvania. The business soon expanded beyond its flagship product, and in 1998 landed one of the biggest accounts of all: Starbucks. Christie's revenues reached $3.4 million in 2005, but the cost of fuel, employee benefits, insurance, and workers' comp made the whole thing completely unprofitable.

That year, Christy decided to cut the cord. The account generated 48% of Incredible Foods' annual revenues, but Christy believed that he could run a stronger company without Starbucks. So he shrank the staff from 13 to six, eliminated one of his two offices, and focused his marketing attention on local customers who closed deals with a handshake, generally without resorting to squadrons of lawyers and accountants.

It paid off. Last year Incredible Foods posted an 11% increase in profits on revenues of $2.2 million, and Christy expects a 22% revenue increase this year.

NEXT: Form strategic partnerships

LAST UPDATE: Oct 16 2008 | 9:05 AM ET
Sponsored by
More Galleries
Secrets to success from Smalltown USA Utah State professor Michael Glauser cycled 4,000 miles this summer, visiting 100 entrepreneurs across the country. Here's a snapshot of how they grew their businesses. More
Commuting is getting easier. Here's why The MobiPrize, conducted by SMART at the University of Michigan, recognizes innovation in global transportation. From microcars to auto rickshaws, these six startups are some of the standouts. More
A sampling of beers being made with traditional Latin flavors A small but growing number of craft breweries are including passion fruit, Mexican cinnamon and other traditional Latin flavors. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.