Foundry in Conversation with Sonja Bernhardt, Founder and former CEO of ThoughtWare/ionMy
“By investing in our brand, we went from a 6-figure offer for our business three years ago to an astonishing offer this year. It helped us achieve our dream goal.”
Business rebrand a shining beacon for buyers
Selling her successful software business had always been a dream goal for inspirational business leader Sonja Bernhardt OAM. A pioneering woman working in the technology field, Sonja founded her own Queensland-based IT consultancy, ThoughtWare, in 1999. Within a few years she had added product development, designing the award-winning governance, risk and compliance platform, ionMy. And that’s where our paths crossed, a little over two years ago. I meet Sonja and her core team to work through Foundry’s Strategic Marketing Workshop. At that meeting, Sonja confided her dream goal to me: selling her business within two years. Sonja had recently been offered a 6-figure sum, but that didn’t feel right. Sensing there was more to be done, we set sail on a course to grow the business and attract a better, higher bidder. When I caught up with Sonja this week, she had just sold her business for a final sum that was beyond her wildest dreams.
Plan for a successful business exit
“People running a business need to think in advance, so that when opportunity meets you, you have some form of readiness.”
El: Sonja, a business exit strategy is probably not top of mind when young business entrepreneurs start out. Should a successful exit be given the same attention as your business start-up strategy?
Sonja: Yes, but I have to admit, we totally ignored it – I think that would be the same for most people running a business – they just don’t think about it – but they should. People running a business need to think in advance, so that when opportunity meets you, you have some form of readiness.
Many entrepreneurs will be completely focused on multiple successful exits. But I was driven by the ambition to have one successful company. I started my business because the company I was working for made my position redundant, and I never wanted that to happen again – so I started ThoughtWare as a consultancy. Within a few years, I decided that, to sustain the business, we needed a product. I assessed the market and, after three months of planning and research, came up with the idea for ionMy, a ‘governance, risk, compliance’ software platform.
El: Why do you think ionMy was so successful?
Sonja: Well my philosophy in business has always been to surround yourself with smart people who have better ideas and inputs. But also, I think we were successful because we were adaptable – and willing to listen to our clients’ needs. The product was originally designed for the childcare sector, but we soon moved to the aged care market, where the take-up rate was significantly greater. We were the first named Governance and Risk product. We worked with clients who loved the product, we listened to their feedback and incorporated product development based on their input. Some tech companies make the mistake of thinking that they know what the market wants – and of course the difference between our original product and what it is now is quite significant because of our clients’ input.
Embrace the value-add of rebranding
El: Well, you are certainly flexible in your thinking. We met at one of my Strategic Marketing Workshops … and, I have to say, I think you were sceptical.
Sonja: Well, we had spent time and money on marketing in the past … and sometimes when it’s your company, you might think ‘what do these marketing people know about us and what we do?’ But Michelle, our Client Success Manager works out in the field with our clients and she thought it was a good idea, that the product could be lifted in terms of its brand. So, we thought, let’s do it – and we were really pleased with the workshop outcomes. I think it’s very important, regardless of your own ego or your own experience, that you adopt an open mind to listen and take on board ideas and suggestions, because you are likely to be delighted by what somebody’s fresh eyes will reflect back to you.
El: We had our first marketing workshop and you said ‘El, let’s get one thing straight: I’m not going to do a rebrand!’, and yet that became our first priority.
Sonja: I think many CEOs would be in the same position as me – why focus on branding, when we should really be out there selling product? I was wrong: marketing does matter. And what I found out is that the added value of a brand refresh is not only the physical refresh of the view of the logo and the collateral that comes with that – but it’s the internal company refresh as well – we all totally fell back in love with our company and our product. We’d been in operation for a while, and we had a really effective team, but you can sometimes lose those connections back to your core fundamentals. And by taking the time out in your workshops, it’s like plugging in the electricity and sparking you back up again.
And the quality level lifted too – I got messages from people who had known us for years, praising the professional level of the new videos and advertising that Foundry produced for us. To them it was extremely noticeable and significantly improved. We were proud of and happy with all our previous marketing – we thought they were a good standard – but to achieve the end goal we had to step up. And I guess that helped to attract a different calibre of buyer too.
We also looked seriously at our goals – we increased our marketing, and our operations from that moment onwards went up to a higher level. And we can quantify the outcome: By investing in our brand, we went from a 6-figure offer for our business three years ago to an astonishing figure. It helped us achieve our dream goal.
Help the buyer find you
“It is clear that the rebranding was the trigger that brought a shining light to potential buyers relooking at us.”
El: When we first talked about marketing – what stands out so clearly is that you said, ‘I’d love to sell my business in the next two years.’ So, we sat down and thought about how we were going to make that happen. How did you find your buyer?
Sonja: Well, I think the buyer finds you – and I firmly believe that our buyer found us because of the visibility and spark of the rebrand, and the professional level of our additional marketing. And it’s not just me – our buyer has said: “We like the name – it’s really smart – but we love the branding!”
For years, I had wanted to achieve this sale, but hadn’t got there – it is clear that the rebranding was the trigger that brought a shining light to potential buyers relooking at us. I think the rebranding helped to alert the buyers visibly to our presence – and from there it is a combination of right product, right place, right time. Our product was stable and robust, and it was also about goodwill and the fact that our clients trusted and valued the brand. Which leads to sustainability for the business into the future. However, I genuinely believe that, without the spark of the rebranding, we might have kept on stumbling on trying with failed efforts.
Continue to live your dream
El: So, is retirement the plan now?
Sonja: Definitely – I am looking forward to retirement! But you know me, I won’t be sitting around. When I can, I’ll continue with my business speaking engagements and cruises. And I will be setting up a fund to provide ‘angel investing’ for female technology companies. From my own business journey, I know that there can be lots of assistance when you are starting a company, but it’s that bit in the middle where you need help, and that can make the difference in taking a business to a different level. And I’ll probably focus on women in technology, because that’s where I’m from – and ionMy is nearly an all-female team of data developers, coders, testers and trainers. So, I’d like to continue to support that area.
El: Sonja – your career has been amazing: what a wonderful way to begin, what a fabulous middle period, and what a great way to finish! Congratulations again on the sale of your business – I can’t wait to see what you get up to next.