The U.S. logistics industry may be slumping, but CEO Liz Lasater isn't letting tough conditions hurt her Issaquah, Wash. firm Red Arrow Logistics, founded in 2003. The profitable 12-employee company, which manages shipping and logistics for large consumer products companies, the defense sector and other clients, built sales to $7 million in 2010 -- up from $3.4 million in 2007 -- by diversifying beyond domestic transportation. It has done this by following big customers into growth markets like Asia, Africa and the Middle East and finding ways to serve their needs in these new locations. "It's really about building relationships with companies we have proven ourselves with, saying `Where are you going and how can we go there together?'" says the logistics industry veteran.
Another smart strategy: Lasater avoids unstable cash flow by working only with clients who pay her within 30 days.
NEXT: Use valuable freebies to hook customers
