Vivianne Gravel
Vivianne Gravel, President & CEO
Company: LIPSO Systems Inc., Montreal, Quebec
Contact Info: Tel: (514) 499-0210, ext. 207; e-mail: vivianne.gravel@lipso.com
Description: A technology company specializing in software to send text messages over wireless networks, LIPSO includes all the major cellphone carriers among its clients. Its big breakthrough came when Rogers and Star Académie, a French version of television program Canadian Idol, signed a deal in 2003 to utilize LIPSO software so that viewers could vote for contestants via their cell phones. This was the first application of internet and TV voting in Quebec and was highly successful, leading the way for LIPSO to provide its technology to CBC to send Olympic Games alerts in the summer of 2004. The tech company's revenues of $1 million in 2005 are projected to more than double to $2.5 million in 2006.
Background: After studying industrial relations and law, Vivianne Gravel worked in strategic business management for large consulting firms in Canada, France, England and Brazil for over 15 years. It had always been her dream to start a business, so she jumped at the opportunity to create an information service for mobile devices with content about weather, news and sports when approached early in 2000 by her former partner. "What appealed to me was IT technology and the intellectual challenge of an emerging market." Love money from family and friends helped get the business up and running, but the tech downturn and then 9/11 nearly bankrupted it. The pair created a strong Board of Directors made up of prominent industry figures who advised them to reposition into text-messaging routers and applications, invested in the business and helped them attract venture capital. In 2003, Vivianne's partner left the company. Despite the challenging environment of telecommunications, characterized by fierce international competition and myriad technologies, she has turned LIPSO into the top mobile-messaging firm in Canada in a short period.
Honours
- Jeune Chambre de commerce de Montréal (JCCM) ARISTA Award for Young Entrepreneur in Quebec - Small Business, 2004
- OCTAS award for Personality of the Month, October 2003, presented by FiQ, le Réseau des TI au Québec (the IT network in Québec)
"Although I originally did not want to take the time to apply for these awards, winning them increased our visibility inside and outside Quebec and it was good, not only for me but for our team."
Unique Aspect: Flexibility...LIPSO develops and builds its own technology and software that can transport any kind of data on any mobile carrier network and can manage billings. The technology smoothly integrates with what clients already have in place, avoiding duplication and decreasing costs for customers. "Our competitive edge is not only having the technology, but also a profound knowledge of the market, the players, and a clear vision of the future and the credibility to lead the market in that direction."
Biggest Risks: Although text messaging is popular with youth, it hasn't caught on with consumers to the same extent as in Europe where local phone calls are expensive. That's why LIPSO is working on software for secure online transactions and bill payments over cell phones. "It's tough developing a technology company in Canada because of competition coming from all over the world, particularly from the U.S. And it's risky being connected to telcos and dependent on their goals; we have to be sure to develop our technology in sync with their vision and to maintain strong relationships." Another risk Vivianne faces is losing her best talent to a competitor and therefore she works hard to keep them. "I try to treat people the way I would like to be treated myself, with recognition and respect."
Growth Plans: "I want to continue to grow by providing mobile solutions not only in the marketing field but also in the mobile commerce segment. The next phase is to focus more on developing unique software products that we can commercialize not only in Canada but around the world. Being in a niche, we want to be the best in that niche and be able to sell in other countries. Next year, our revenues should reach $2.5 million, and two years after that, I am targeting $10 million with the new products. There are two kinds of entrepreneurs - those who want to sell the business they started and those who want to grow it. I want to be the latter kind - to grow the company to $100 million or more."
Strategies for Rapid Growth:
Good Advisors. Vivianne and her strong Board of Directors of eight industry pros regularly analyze how much capital investment they need for the R&D and commercialization that they would like to do in the future. She initially attracted their talent four years ago by offering options in the business and met almost monthly with them. "I met with my Board more frequently in that early stage because starting a company is like having a baby who needs lots of support, but then the business grows into adolescence and adulthood." Vivianne is a firm believer in seeking out mentors with more experience - not only to learn from them but to realize that what you are experiencing as a growing entrepreneur is normal.
Growth Capital. In 2003, venture capitalists and private investors invested $1.5 million into this small company. Vivianne concedes that it is often difficult for entrepreneurs to give up the independence and control that comes with using venture capital to fuel growth. "You have to live with that, accept it, and then work to become better every month and every year. If you're not able to learn from your experience, you will not be able to go through the next phase and take your company where it must go." Vivianne has also tapped into the National Research Council for advice and financial support through its Industrial Research Assistance Program (IRAP). "The fact that IRAP has been with us for over four years has contributed a lot to our success. They will continue to invest in our new projects that will be more international."
Great Talent. "We have experienced people - good developers, good Board members. When you want to be number one in the new economy, you have to work with number one people."
Strong Partnerships. By hooking up with prestigious partners and customers, LIPSO gained credibility and is well-positioned to compete in the global marketplace. "We have always focused on developing the relationship with our customers. It's more than just being a technical provider. We also work with them and make sure that we will achieve their objectives."
Exporting. Vivianne would like LIPSO to penetrate the U.S. in the next few years. "Our first objective is to consolidate our leadership in Canada and then develop commercial partnerships in the U.S. and other countries."
How RBC Royal Bank Has Helped: "I choose a partner based on the talent and the human side of the professional. It's really because of my account manager that we selected RBC Royal Bank. She was fast, professional and creative…not to mention her genuine interest in my company and its growth. Quality of service is always there."
Growth Tips:
Find mentors. "As entrepreneurs, sometimes we see through rose-coloured glasses, so my coach and my mentor help me analyze the business realistically year after year. All entrepreneurs should have a good coach and a number of mentors who are the best in their field. When you have very good people around you, you will learn and learn."
Retain control. "Try to keep your percentage of ownership in the business as high as possible when you have to give up some equity in order to get financing so that you don't lose all control."
Biggest Growth Challenges: "When landing a big customer, you often have to spend a lot upfront, but don't see payment until after the contract is finished. Growing is tough because you need the money to grow…you need growth capital. And you want to make sure that you accept it under the right conditions because you don't want to give away too much."
Lesson Learned: "Adversity teaches you a lot and helps push you to do better. There are challenging times when you may have to approach someone to help you survive and you will never forget that moment when you get help."
Greatest Rewards: Vivianne reaps her greatest rewards from working closely with customers to create a new market and from having a talented team of 15 employees as well as directors, investors and partners. "You can deliver more when you have a team that is complementary and likes to work together - you will be more productive, more profitable…and it's also more fun." It's also rewarding for her to reach the goals that she sets for herself and to deliver on the promise that she made to the people around who invested money, time or their talent into the company. "I want to be a millionaire and I want the people who believe in the company to make money, too. That's the measure of success - cash is king." But that's not the be all and end all for her - "I would not go through all the challenges that I have if it was only for money; I could work for someone else and earn five times the salary. What's important is being really passionate about what you do and liking the people around you."
Personal Interests: "Starting and growing a company takes a lot of your energy and time - your mind always seems to be on resolving something." After five years in business, Vivianne is looking for more balance and is trying not to work weekends anymore. "I have reconnected with my friends and family, am spending more time with my husband and want to start a family. I also exercise more, including cycling to work during the summer, and am trying to travel more."
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