David Karlgaard Found A Way Strategy For Success: PEC Solutions' co-founder capitalized on his experience.(LEADERS & SUCCESS)

Byline: MIKE ANGELL

Before its initial public offering and the resulting media attention, PEC Solutions Inc. had "Founder's Day."

Every couple of weeks, the three founders of PEC, which builds and designs information systems for government agencies, would put their paychecks in a drawer instead of cashing them. They then went to a bar and had a few beers in lieu of a salary.

It was a cost-saving measure, to be sure. But not one that Chief Executive David Karlgaard minded. He took the long-term view that the action would pay off in the end. It has.

PEC's sales and earnings have grown more than 40% annually the last six years. The founders' original $50,000 investment is now worth $450 million.

Karlgaard's success came through focusing on business fundamentals. He knew the market well and kept an eye on the details of his business. Karlgaard also made sure employees knew their work was important to the country.

"Be optimistic and always be looking for the next level by working and planning ahead," Karlgaard said. "When you're a three-person shop, be ready to become a six-person shop. Then be ready to become a 12-person shop."