Briox develops and sells internet-based ERP system to small and medium-sized enterprises. The offering include software for accounting, bookkeeping, CRM, invoicing, sell-support and time accounting. The company’s programme is completely internet-based, which results in accessibility from anywhere at any time. In addition to this, all data is stored on Briox own servers. Hence, customers do not need to worry about archiving or backing up the data. Commercialization is done through its own website, as well as through accounting firms. Primary markets are Finland, Germany and Great Britain. Furthermore, Briox is limited to selling its products to countries outside of Sweden.
The digital transformation for small companies should result in a strong demand for Briox’s products. Each new customer is paying a monthly or quarterly fee, in line with the SaaS model, which entails recurring revenues for as long as the customers are using the products. There is also limited variable costs associated with additional customers, which results in a business model with high scalability. In addition, the market is immature and there is consequently good potential for further growth.
The most critical element is Briox’s ability to increase its customer base. A slower customer growth than anticipated would hurt sales, and therefore prolong the time until break-even due to the high scalability in the business model. Even though the market is immature, there are other competitors looking to exploit this fast growing market. Consequently, this could affect the company’s development going forward.