Emendo on a growth curve

That makes it essential to be clever with the cash we have. I’ve seen companies that anticipate a good year start to spend money before it comes in.

If things fall over, or even just get delayed, it can put a start-up under extreme pressure. It’s important to have growth plans that you know you can fund, even in a worst case scenario.

New Zealand Trade and Enterprise connected my angel investment company Holliday Corporation with Emendo in 2006 and my business partner, Phil Holliday, and I bought in.

It’s fair to say that the capital we provided was Emendo’s key concern, but it wasn’t only about money.

Emendo recognised that it would benefit from our general business expertise and our experience in taking businesses to international markets.

The resulting mix of health sector expertise and business growth experience has resulted in growth for Emendo and allowed us to eye the horizons we are now aiming for.

Knowing what you are trying to do and maintaining focus is crucial. For Emendo that’s providing software solutions for hospitals. When we came on board, Emendo was also selling a sister product targeting the contact centre market.

We all agreed to close that down pretty quickly.

It’s tempting to continue with supplementary products that bring in revenue to keep the business afloat or provide cash for growth, but ultimately it dilutes your focus and can hinder long-term growth.

One of the biggest challenges in the health space is getting your first client. Hospitals buy because other hospitals have already proven the product. Emendo’s relationship with Canterbury District Health Board has been important.

It’s been using our software for more than five years and acts as a referee.

It’s also introduced us to colleagues in National Health Service Trusts in the United Kingdom which have bought CapPlan.

Our strategy is to have a respected health organisation as a cornerstone customer.

In new markets we actively target an appropriate provider and work closely with them to install our product and ensure they get the best out of it. In return, they help us promote CapPlan.

Building this relationship takes time – we spend 18 months or more planning and preparing for entry into a new market.