Just add water

A look at the history of Smith Software Development is a trip down technological memory lane. The company was founded as Tri-State Data Processors in 1970 by brother- and sister-in-law Joan and Andrew Smith. Joan’s son, Noel Smith Sr., now 55, began working for the company in 1975 but left to join the Navy. He and his wife, Nannette, now 49, opened Alabama Business Computers in 1979, the year he returned from Navy service. The company had offices in Montgomery and Mobile.

In 1999, Noel Sr. developed an autoimmune disease that left him unable to run the company. Nannette and her son Noel Jr., now 26, decided to launch a new software company that wouldn’t be encumbered by the complex array of business arrangements that Noel Sr. had negotiated. The family’s existing companies were closed down, and all of their business endeavors were restructured as Smith Software Development.

The business transitioned from hardware sales to software development and partnered with hardware companies specializing in niche markets to develop industry-specific solutions.

A turning point occurred in 2003, when Nannette got a call from a local boat dealer. The panicked owner of the dealership—also a family-run business—said he needed an inventory management software system quickly or one line was going to pull his status as a dealer. Within a month, the Smiths had installed some features from their company’s Beyond 2000 inventory management system and modified them for the dealer’s needs. It was their first marine-industry job.

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The Smiths worked closely with several boat dealers to fine-tune the system. As the family learned more about the marine industry, what they saw appealed to them. Most marine dealers are family businesses; even more important, existing software for the industry was expensive and inefficient, Nannette says.

For the Smiths, it was also a marriage of passion and profit. “We’d never been involved in boating as a business,” Nannette says, “but my family has always loved boating.”

The Smiths added features to the software, which they renamed the Beyond 2000 Marine Management System. They received help from major manufacturers in the industry, which recognized the need for their dealers to have efficient and affordable dealer management and inventory tracking systems.

Nannette says working primarily with family businesses “leads to a good mutual understanding. You understand that when they’re passionate about things, they’re not being rude or angry. Their life revolves around the business.”

Son Josh, 23, who works in technical support and product development, says a strong level of trust has developed between Smith Software and its clients. “It lets us communicate better with them,” Josh says, “because we understand what it’s like when everyone has something invested in the project, more than just an hourly wage.” Another son, Ryan, 20, lends a hand on the finance side.

Noel Jr. says he’s been inspired by some of his customers who have instilled solid business values and a strong work ethic in their families’ succeeding generations. Through their example, he says, he’s recognized the importance of building on the core business rather than insisting on growth for growth’s sake.

From that first client, Smith Software Development has grown its customer base to more than 1,000 dealers. In late 2007, Honda Marine recommended the software in a newsletter sent to dealers. As a result, Nannette anticipates exponential revenue growth in 2008.

Gwen Moran is a freelance writer based in New Jersey.

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