Medisoft is a Leeds based health software company whose mission is to transform hospital eye departments by proving electronic tools allowing them to work faster and more safely, and to see immediately which treatments are most effective.
In 2012 Medisoft was offered a Connect Yorkshire Springboard session with entrepreneurs in residence Graham Bowland (CEO of Surgical Innovations, a surgical device manufacturer with a significant export market) and Sean Riddell (CEO of EMIS, the UK’s leading supplier of software to GP surgeries). This was a golden opportunity to share experiences with much larger companies which had already encountered and overcome some of the ‘growing pains’ being faced by Medisoft.
The management Board was keen to diversify into other products and markets but progress was slow and annual turnover had effectively flatlined at £950k. Graham and Sean were asked to advise on 4-5 potential growth strategies, some of which were already underway and some of which were being considered.
The Advice Given
The first thing that the Springboard panel was able to offer was reassurance. Around half of the initiatives that Medisoft was exploring were quickly validated and endorsed by Sean and Graham. However, Medisoft was urged to be cautious about attempting to break into new markets before all opportunities in its home market, the NHS, had been exhausted. In addition, the company was advised to:
Drop its distributorship of various third-party software tools
Prioritise ‘upselling’ software modules to current customers over selling new modules
Consider a renewable software licence model, ensuring a longer-term revenue stream
Following consideration by the Board, the company implemented nearly all of the suggestions discussed during the Springboard session.
The approach was transformative. By the following year, turnover had leapt to £1.15m, net profit increased 107% from £173k to £359k without introducing any new members to the team, and a new licence model allowed us to collect renewal revenue much more effectively.
Money cannot buy experienced, impartial advice of this quality: the value we gained from the session was greater than we would expect even from a non-executive Director.
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