2017 was another good year to be one of Orange County’s largest women-owned businesses.
This year’s group of 103 companies on the Business Journal’s list reported total revenue of $3.6 billion, a 5.7% year-over-year increase that bested the national performance of both women-owned businesses and all businesses. Nationally, revenue among women-owned companies grew 2.5%, while gains averaged 4.1% for all companies, according to an annual research report commissioned by American Express OPEN, a small-business unit of the Fortune 100 company.
The national study found that women start an average of 849 businesses per day, up 3% from 2016.
Fifth-ranked ad agency Rauxa in Costa Mesa sees its power in its female leadership.
“Rauxa has always been unique, in that we’ve been woman-owned and women-led since our inception in 1999,” said President and Chief Executive Gina Alshuler. “Over 70% of our executive team is female, and we believe in diversity and inclusion at all levels.”
The agency jumped three spots with $104 million in revenue, up 19%. Local employment declined 42% to 56 while it boosted its ranks companywide by 7% to 270.
Alshuler said it’s focusing on growing its Orange County business with new clients like Califia and CareCredit, as well as existing clients, such as Allergan. One of its big wins happened this year at its Seattle office, which was named the agency of record for Alaska Airlines’ loyalty marketing program.
“We have always had a growth mindset and will continue to pursue new opportunities, especially as we expand our client roster in markets like the Pacific Northwest and Dallas area,” Alshuler said.
The list ranks companies with a minimum of $5 million in annual revenue and at least 51% female ownership, a standard for certification by the Women’s Business Enterprise National Council.
Forty-seven companies reported revenue increased, 16 said sales were down, 11 were flat, and the remaining 29 are Business Journal estimates. Close to 20 companies dropped off the list, citing a myriad of reasons, from no longer being majority women-owned to moving headquarters out of Orange County.
The OC contingent has now kept pace with sales gains by all U.S. women-owned businesses since at least 2005. The American Express report cites a 20-year average sales gain of 3.9%.
The 40 largest women-owned firms here posted sales of roughly $2 billion in 2005. This year’s OC top 40 on our list rang up sales of about $3 billion, roughly a 50% spike over 12 years and a 3.8% annual growth rate. It was also the eighth year in a row that the local group grew its top line following down years in 2008 and 2009 during the Great Recession.
Zooming In
Ranked companies employed 7,405 people in Orange County, essentially flat from the 12-month period ending in May. But the combined workforce grew slightly to 33,434 workers from last year’s 33,295 jobs.
Job growth at women-owned companies nationwide also increased fractionally at 0.1% in the past year, according to the Amex study, which uses U.S. Census Bureau statistics and adjusts by Gross Domestic Product data.
The top companies here cover a wide range of industries, from advertising and automotive to technology and finance. And for as many years as we can remember, a restaurant chain shall lead them.
• In-N-Out Burgers Inc. in Irvine kept the top spot with an estimated $908 million in revenue, up 5.4%. Its local workforce is about 2,350, and it employs 25,324 companywide.
Owned by 36-year-old Lynsi Snyder, granddaughter of the company’s late founders, the burger chain prides itself on serving high-quality food. Last month, it abruptly closed 36 stores in Texas for almost two days, not over food-safety concerns but because hamburger buns didn’t meet company standards.
• Mercedes-Benz of Laguna Nigel, owned by Lorelei Pingree, moved up one spot to second place, replacing Irvine-based Technologent, which dropped off the list because it reported that Chairman Tom Gallaway now owns 100% of the company. Sales at Pingree’s luxury dealership dipped 4.8% to $230 million as employment grew 3.6% to 259.
• No. 3, Systems Source Inc. in Newport Beach, boosted sales nearly 10% to $131 million. The number of local employees dropped by one to 82; total staff stands at 169, up 2.4%. Chief Executive Rosemarie Smith founded the commercial furniture dealership in 1991. Customers include Microsoft Corp. in Redmond, Wash., and eHarmony in Santa Monica.
• Irvine-based electronic parts distributor and supply-chain solutions firm Rand Technology leapfrogged 11 spots to No. 7 as it more than doubled sales to $97 million, up 110%. It also boosted its local workforce by 54% to 43 and expanded its companywide roster from 115 to 147.
• One firm is looking across the pond to boost revenue this year. No. 26, iBASEt in Foothill Ranch, said sales were flat last year at $31 million but that it hopes last week’s opening of a European headquarters will drive growth for the software designer. Chief Executive Ladeira Poonian started her career as a registered nurse but took over the business after her husband and founder, Amrik, died in 1998. The company employs 84 in Orange County, up 2.4%, and 220 workers overall, down 4%.
There were nine list newcomers, a majority of them reporting double-digit growth. Santa Ana-based marketing agency Smarty Social Media squeezed onto the ranking at No. 103, but it was one of the biggest gainers with a 71% jump in revenue to $4.9 million. No. 24, waste and recycling service Ware Disposal Inc. in Santa Ana, reported sales just shy of $33 million, up about 18% over 2016.
Shari Gold, founder of list newcomer Gold PR in Irvine, said female entrepreneurship has grown since she started the company in 2001.
“I think more and more women are searching for a path to what they want to achieve personally and professionally and are looking to shape their own futures. And based on the growing numbers of role models and positive examples of women doing it well, it’s not surprising that more women are starting their own business.”
Gold PR, which ranks 51st, pivoted from specializing in automotive clients to building a more diverse customer base. It reported $14.2 million in revenue, up 41%. Gold credits the growth to adding clients in healthcare and consumer goods while getting more work from firms including Nestlé Skin Health’s pharmaceutical company, Galderma S.A. in Switzerland, and San Carlos, Calif.-based genetic testing company Natera Inc. She said it also expanded operations last month when it opened a New York office.
