New IT platform targets small traders

TWO former construction industry veterans have developed a new software platform designed to improve efficiencies for small traders and building businesses.

Alex Reid and Graeme Cook, owners of Glasgowbased Apsis Business Components, say their cloud-hosted software enables a small business to accurately estimate a job by planning projects, analysing costs, and managing procurement, suppliers and productivity.

The platform, which represents an investment of nearly £1 million so far, also provides quantity surveyor and commercial management functions, as well as the ability to assess business performance.

Mr Reid and Mr Cook previously operated Hamilton-based Avonhill Timber Frame, a £17m-turnover construction and building services company. The duo closed that business, which started with just five employees and latterly employed more than 200, because of failed payments by several clients during the recession.

Mr Reid embarked on a Masters in Construction Management at Glasgow Caledonian University then a PHD at The School of Engineering and

Built Environment.

Meanwhile, Mr Cook, a chartered accountant, joined a Scottish semiconductor company as executive director and vice-president while also managing a property portfolio. He joined Mr Reid at Apsis in 2014.

Admitting that losing the Avonhill business was a “terrible experience”, Mr Reid said that having time to reflect on what happened led them to identify “missing gaps” that might have helped although “we could never have planned for not being paid a significant bill”.

“In the construction industry the impact that has – and still has – on the supply chain is far-reaching, and it wasn’t just happening to us,” he said. “Throughout the UK, failing companies were having a knock-on effect on lots of other trades. We realised, for example, that we had no control of data on our sub-contractors and sometimes we were at

the mercy of them in our ability to complete a job.”

During his Masters and PHD research, Mr Reid identified that it takes 2.4 managers to run a micro-business.

“But the reality is that the owner just works longer hours and ends up becoming less productive,” he said.

Mr Cook added: “When you’re a small business you can’t really employ ‘0.4’ of a person so you either have to do it yourself and sacrifice holidays and family time or employ an individual who you can’t really afford at that particular point in your business cycle.

“There are more than 340,000 SMES in the construction sector, with an estimated 142,000 based in Scotland – and over 60% of privatesector employment is driven by SMES.

“The more data a business can have, the more likely it is to be successful.”

The Apsis system, which can purchased for just £100 for a lifetime licence and provides access to more than150 training videos, uses algorithms to tell the user how their business is performing, highlights deficiencies, and optimises resources.

A key component of the Apsis platform is access to an online community – One Stage – where experiences can be shared, along with a library of resources.

Apsis, which launched its new software platform in January, will continue to develop it over the next two years.