HMS Software
About the Company
HMS Software, led by Chris Vandersluis, is a Montreal-based software company that specializes in project-oriented tools. The company's flagship product, TimeControl, is designed to handle various functions such as project management, payroll, job costing, and compliance. HMS Software has been a self-funded, privately held firm for 38 years, maintaining a robust client base that includes prominent organizations across different sectors.
Idea Behind Company
The inception of HMS Software was driven by a contract with Philips Electronics in the mid-1980s. The task involved creating a timesheet system that could cater to both project management and finance needs. Initial attempts to meet these requirements faced challenges, but persistence led to the development of a unique timesheet solution. This experience highlighted the need for a versatile tool, setting the stage for TimeControl’s creation in 1994.
Creating the Company
Initially, HMS operated as a consulting and distribution firm before transitioning into software publishing in 1994. The development of TimeControl was rooted in responding to evolving client needs and technological advancements. From a DOS-based interface to a modern SaaS offering, the evolution of TimeControl reflects the company’s adaptability. The company’s early marketing efforts were focused on trade shows and direct outreach, with a significant shift towards digital presence as technology advanced.
Launching the Business
The launch of HMS Software’s TimeControl in 1994 marked a pivotal shift from consulting to software publishing. Early marketing strategies included physical mailers, trade shows, and establishing an online presence. Despite challenges like the tech crash of 2000, HMS continued to grow organically. The company’s approach involved careful financing, primarily through bootstrapping, and eventually saw the introduction of advanced features like a browser-based version and a SaaS model.
Earnings
HMS Software generates between $2 million and $3 million in annual revenue, with a profit margin of 20-30%. The company’s financial health is bolstered by a strong client base and effective marketing strategies. Despite early setbacks, such as a poorly timed investment during the tech bubble, HMS has maintained steady growth. The introduction of premium products and a focus on direct sales and client referrals continue to contribute to its financial success.
