Accounting software firm Omni Accounts aims to increase its client base this year by targeting smaller companies.
Managing member Andy Kudla says the company operates in a market dominated by Softline Pastel. Omni, which develops spoke-and-hub software packages in-house in Durban, sells its products directly and through a channel system.
He says the company has achieved a client list of 10 000 sites or end-users. The company aims to increase this to 15 000 by year-end. It is seeing pickup from larger firms through value-added sellers. "I'd love to double the client base this year, but I'd be happy with 50% growth."
Omni, which has been in existence for 20 years, changed focus in mid-2003, when it relaunched its accounting software for a Windows platform. "We're starting to feel the snowball effect," says Kudla of increasing sales.
Barriers to entry
Kudla says barriers to entry in the accounting software market are high. The company, which decided to create a demand for its product instead of pushing it, will focus on the SME market by pitching products at three defined segments in the year ahead.
Kudla says the company will aim products specifically at start-up firms, companies with turnover of between R5 million to R15 million, and medium establishments, with turnover of between R20 million to R100 million. He says 80% of all South African firms fall into these brackets.
Kudla says start-up - or micro - companies cannot afford many off-the-shelf products, but need greater functionality as they expand. However, expansion places capital constraints on companies, pricing many packages out of their reach. The company, as a result, provides packages suitable for each stage of a company's life cycle, but these can be added to as required.
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