Smart50 rank: 24
Revenue: $3,924,562
Growth: 79.57%
Founders: Justin Simpson, 35; David Nelson, 37
Based: New South Wales
Employees: 23
Industry: Internet
Website: www.inoviaip.com
WINNER: Top Innovator
Inovia IP began when patent attorney Justin Simpson became frustrated with parts of the official patent approval process. The solution was to automate the process of filing different patents in separate countries, reducing prices for inventors and patent attorneys by consolidating a complicated process.
The company uses web-based technology to manage the business, operates in both Australia and the US, and recorded $3.9 million revenue during 2009 with average growth of 79.5%.
But Simpson says the company has been hit by the downturn and a changing industry at the same time. As more companies begin to rely on outsourced providers, services are now facing more scrutiny about the type of the work they do and their fees.
But he says Inovia is continuing to grow by focusing on an offering that saves people time and money."The legal industry, and in particular Intellectual Property services, have been hard hit by the global financial crisis and the industry changes have been amplified by this. Clients are demanding greater accountability and value for money and this is squeezing law firms with many seeing large lay-offs and others even failing."
"For inovia, our key benefit to clients is significant cost savings in a high-cost process (patent filing) and so in the downturn we have seen even greater demand for our services, reflected in annual revenue growth of around 80%."
The firm attempts to cut costs within its own operations as well, using Skype as a "key business tool" for instant messaging and voice communications across 60 countries.
But Simpson reminds other businesses that merely cutting costs won't help a business in trouble, and encourages other entrepreneurs to focus on what their business does best in order to survive.
"There comes a point at which heroic efforts by the founder is no longer enough and that is where you need people (and systems) that can take your business to the next level. Focus. Don't be distracted by the new and exciting opportunities that come along and which can knock you off course. Understand where you have a true competitive advantage and push it for everything it's worth to build a valuable and sustainable business."
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