Issue No 152 September 2005

Expansion help for entrepreneurs exists

A new pilot initiative called Connect Canterbury is designed to help Canterbury businesses by fostering key relationships with leading people and organisations. Recently launched, it is a collaboration between the Canterbury Development Corporation and New Zealand Trade and Enterprise. We look at how it can help Canterbury businesses.

Connect Canterbury, launched in June this year, is based on a model originally developed by San Diego University. Due to the model’s success it is now operating in seven countries and is being piloted in Auckland and Canterbury.

A key service of Connect Canterbury is Springboard, a business development programme that helps to accelerate the growth of high potential companies. It is widely known that companies tend to fail to grow because they lack expertise, are undercapitalised or simply can’t access appropriate market channels. Springboard is designed to identify and overcome these hurdles.

Springboard has fostered a network of experts to advise companies on their strategic — as distinct from their operational — issues. “We’re finding that usually these issues are market related, says Phillip Ridge, Connect Canterbury’s business development manager.

“It might be the appropriate business model, the pricing and distribution strategy or advice around a licensing strategy, a joint venture or identifying the gaps so that companies become attractive to potential investors.

“Ultimately we build partnerships by connecting companies to the the key relationships that will add most to their growth; the people who can identify where a company should focus its efforts and the partners necessary to access national and international markets.

Phillip likens Springboard to a cross between a dream team and a New Zealand Idol panel. “We form a dream team of some of New Zealand’s most successful entrepreneurs, business leaders, seasoned investors around a company. It is also like New Zealand Idol in that the experts are not afraid to call it as they see it. They will challenge a company on its assumptions based on their own experience and knowledge. It is not for the faint-hearted and is essential that companies are prepared to listen and take advice and recommendations onboard, stresses Phillip.

Connect Canterbury draws upon the expertise of volunteers, so the financial cost is minimal for the developing company. “They volunteer because they enjoy working with people and get a buzz from working with their peers and the opportunity to test and refine their own thinking around a particular issue or subject. They also get to access these new developing companies, explains Phillip.

He also points out that the power of hindsight is a valuable thing — these new companies don’t face new issues, they get coached through the issues other companies have already encountered.

Companies exhibiting the potential for significant growth are invited to approach Connect Canterbury to join Springboard.

An exciting opportunity exists in November when the Springboard Conference takes place in Auckland. Held in conjunction with the annual New Zealand Venture Capital Association Conference, companies will be able to present their business cases to the New Zealand investor community. “It’s an amazing audience — it's a rare opportunity, a chance to present to a range of investors in one hit. If anyone is interested in taking part we encourage them to contact us now.

Connect Canterbury is also developing some research and development initiatives. The aim will be to broaden and deepen the interaction that takes place within research and development communities and between research communities and industry. A symposium on biotechnology and a series of seminars showcasing sensor technology are currently being organised. “Canterbury is a leader in sensor technology and there have been some exciting developments in this field, adds Phillip.