Technology

Risk-taker

By Abby Cymerman

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TechniGraphics was a prime contractor, providing digital mapping to federal agencies, but then it lost one contract and was too intimidated to compete with larger companies, says Dee Vaidya, TechniGraphics’ president and CEO.

As a result, his company went from being a prime contractor to a subcontractor for five years, but found it difficult to be consistently profitable. Then, after Sept. 11, Vaidya found the courage to bid again, and TechniGraphics won a 10-year federal contract.

From 2004 to 2006, the company grew revenue from $10.8 million to nearly $30 million. Today, the company has nearly 400 employees with offices in the U.S., The Netherlands and India.

Looking ahead to when the federal contract ends, TechniGraphics has acquired three companies and is expanding into the three-dimensional CAD industry.

Smart Business spoke with Vaidya about how he recognizes a good deal.

Q: How can other CEOs grow their companies the way you’ve grown yours?

Even though a contract might seem so large you feel like, ‘How are we ever going to win this? We better not even bid because it’s just a waste of time,’ you have to have the courage to take a shot at it.

You have to stick to your knitting, in that sense, and once you know that you’re good, don’t be afraid to bid on really large opportunities. That long shot might actually come in.

Q: What can prevent a company from growing?

If somebody is not willing to take the risks, then very likely, they are not rewarded by the growth. In the five years when we didn’t take the risks, we hardly grew.

Q: How do you communicate the importance of taking risks?

We always say yes first and then make sure we put in place whatever resources are necessary to carry out the job. Whether it’s making the proposal or delivering a certain product at a certain time.

It expands your capabilities because you step up to do all kinds of things you didn’t know you were capable of doing.

Q: How can companies stay motivated?

This CAD software activity of ours is only $10 million this year, and we want it to be $100 million activity by the end of 2012, when our big contract comes to an end. When you have a big, hairy audacious goal, that leads to a lot of motivation.

(Employees) get all kinds of opportunities for upward-mobility, profit-sharing and promotions. When people can see they’re growing because this company grows, that motivates people very well.

Q: What advice would you give another CEO trying to grow his or her company?

The most amazing thing I’ve learned — and it’s one of the toughest — is always have a long-term focus. Because we are privately owned, we don’t have to report to Wall Street analysts, and we really don’t care what somebody on the outside thinks about us and how we’re doing.

If you are a closely held company, you can afford to have that long-term focus of what you want to be five or 10 years hence. That really pays off the most. Of course, you have to do the payroll every two weeks — you can’t lose sight of that — but you have to have a big chunk of your focus on the long-term.

Q: What happens if you don’t?

You start going zigzag if you chase after every little thing that comes your way. When you have that long-term focus, you tend to go after the big opportunities, which will carry you to your long-term goals.

Q: How do you recognize opportunities?

Opportunities are like butterflies. You better net them while they’re fluttering by because, if not, they’ll be gone forever.

Like Jack Welch [former chairman and CEO of General Electric Co.] says, every day, come in looking for deals and opportunities that you may be able to hang your hat on, a new order from a customer who’s a little bit outside the norm, or some type of work that’s a little bit outside your usual work but might help you enter into a whole new field.

You have to be on the lookout for what’s happening outside your company. It requires a lot of talking with customers and other industry people.

The other thing I’ve learned is, some of the best opportunities we have landed have been when large companies are trying to divest small portions of their activities. They’re not so concerned about how much money they get. They have all kinds of other considerations, such as their customers and their people are treated well. The money they get for that sale is usually a secondary or tertiary consideration so, a lot of times, you can get these for a very reasonable price.

HOW TO REACH: TechniGraphics Inc., (800) 832-8779 or www.tgstech.com