Archive for November, 2009


Monday, November 30th, 2009

Wealth Creation Through Fertilizer?

wealth creationMining industry entrepreneur Joseph Gutnick is hoping that a new phosphate joint-venture with a Chinese company will launch a fertilizer company in Australia to eventually rival Incitec Pivot. His idea for wealth creation is gaining ground fast.

Gutnick’s U.S.-listed Legend International entered into a deal with Chinese fertilizer supplier Wengfu Group last week to determine the feasibility of the development of a phosphate mine and plant near Mount Isa in Queensland.

Wengfu has great experience, expertise and export connections, and was ideally placed to build a beneficiation plant (the process of reducing ore to particles then separated into mineral and waste) and phosphoric acid plant. Legend International will mine the phosphate rock.

The mining entrepreneur is of the opinion that the deal is a company-maker, and he believes it has tremendous potential.

The idea is to export fertilizer globally. According to Mr Gutnick, Legend International has boosted the possibilities for wealth creation by also establishing links with IFFCO, the largest fertiliser consumer in India.

Given the huge populations of China and India, and their demand for food, fertilizer was enormous. Wealth creation is only a hop skip and a jump away then, since they should be able to export to china and India and eventually around the world.

Mr. Gutnick is hoping to list Legend International in Australia in the first quarter of next year.

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Friday, November 27th, 2009

Bragging Rights a Success Strategy for Tourism

entrepreneurTravellers ‘want to brag’ about holidays. Or so says accommodation entrepreneur Grant Hunt who told the Global Eco Conference at Alice Springs on Monday that businesses had to start treating tourism as a “fashion brand”. His success strategy is to shift his focus towards specific new and exciting destinations.

Mr. Hunt, a director of Tourism Australia, explained that travellers were increasingly looking for different out-of-the-ordinary experiences they could brag their friends about, and a lot of this destination had an eco-theme. He admits that bragging is possibly not the right word but is adamant that people want a story to tell.

It seems that travel, specifically international travel is one of the first luxury purchases to be left by the wayside of the recession and is the last to pick back up. So what is it that will get people on a plane or in a hotel?

The Gen Y and baby boomers are now being targeted with new and wonderful experiences. Hunt says the success strategy is about wowing your customer and competing in the luxury purchase market. He wants to make a spectacular trip stand up against a flat screen TV or fashion accessory.

And while the buying public may not pay much attention to advertising, instead sticking to word of mouth from friends about spectacular destinations, he put forward many ideas for changing the face of travel

- Nightclubs in Amsterdam and the U.S. with dance floors that generate electricity from dancing;

- Eco-accommodation in tree houses in Germany;

- Bird’s nest-like dining pods for couples that can enjoy dinner with treetop nature views.

So next time you are thinking of taking a trip, remember you may want to dine in the treetops or go on safari, or even dance the night away in a nightclub. And perhaps a travel entrepreneur’s success strategy will take you to the stars.

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Wednesday, November 25th, 2009

Archaeology Leads to Personal Success

archaeologyIndiana Jones is the image that springs to mind when one is talking archaeology. Harrison Ford in a hat hanging off a biplane desperately clutching an artefact is far from the reality of fossil hunters in Victoria, however, they are making not only a name for themselves but are expanding fast. This new personal success is a welcome change to their past reality.

Many real-life archaeologists in Victoria are undergoing a popularity surge of their own, leading to personal success that before now was unattainable.  Due to the tightening of state legislation in 2007, which affects developers or government agencies working on land deemed culturally significant, the amount of work has skyrocketed, providing a huge workload for archaeologist Dr. Vincent Clark of Melbourne.

The legislation is very specific regarding sites of Aboriginal significance, where artefacts from hundreds or thousands of years ago, like stone tools used by Aborigines, may be recovered.

While Aboriginal people have been in Victoria for about 30,000 years, Dr. Clark maintains it’s rare to find anything that old. Sites up to 5000 years have recently been discovered in Gippsland. Anything found by archaeologists, which could include fire remains, tools, sacred trees, or more rarely, cave paintings, is noted in the plan and either given to the Aboriginal community, used for education, left alone or filed in a report.

Beginning his archaeological career in his 20s in Jordan due to the fact that his interest was not catered for in Australia, Dr. Clark eventually started his own business after being made redundant from his public service job in the mid-90s, working mostly on his own from his garage. Then in 1998, he took on more staff for his first big project, undertaking archaeological studies of the land that about 40 kilometres of the Calder Freeway was about to be built on.

He has in the past two years expanded his one-man operation in his garage, more than doubling in size to nine-full time employees, plus casual workers.

The relatively new personal success means Dr. Clark often spends more time managing employees and juggling the finances than getting out in the field, however, his years of sifting through historic treasures have given him a particularly interesting look at life. He says people would be surprised to know what lies under the suburbs and under the CBD as well.

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Wednesday, November 25th, 2009

Do You Have To Be Crazy To Achieve Success?

Crazy John'sJohn Ilhan founded a company called Crazy John’s, one of the largest privately held mobile phone companies in Australia. The Turkish-Australian entrepreneur grew up in the working class suburb of Broadmeadows in northern Melbourne. His parents migrated to Australia when he was just five years old. Before turning 40, he was one of the few entrepreneurs to achieve success, ranked the richest young person in Australia by the BRW magazine. Tragically, in 2007, Ilhan was walking not far from his home in Brighton, Victoria when he collapsed and died from a suspected heart attack. The very same year, BRW magazine ranked Ilhan as the 126th richest man in Australia, with a net worth of $310 million.

John Ilhan had succeeded in a competitive industry and overcome the challenges of growing up in a poor migrant family to become a wealthy businessman and respected leader in his community and across Australia. Ilhan got his start in 1991 when he opened his first mobile phone store called “Mobileworld” in the Melbourne suburb of Brunswick, offering crazy deals like $1 phones while his competitors were selling the same products for $200. His unusual marketing methods influenced the name change from “Mobileworld” to “Crazy John’s.”

The young entrepreneur worked long hours and overcame numerous challenges to achieve success and become a phone retailer with more than 120 stores and 600 employees in Australia.

Although John Ilhan may have given off the aura of a happy-go-lucky businessman, behind his achievements in building up the Crazy John’s empire was a person who always knew how to close a deal. He was street smart and hungry, and had honed his talent selling cars at Ford Credit, becoming Strathfield’s top mobile phone salesman in his early 20s. All at a time when mobiles were as big as heavy bricks and cost more than $5000 – hardly today’s easily affordable fashion accessory.

A remarkable entrepreneur success story, John began Crazy John’s in the depths of the 1991 recession, when he leased a small shop in Melbourne’s cosmopolitan suburb of Brunswick. All he could afford were a few trestle tables and a stack of brochures to try and sell phones. He had to borrow money from his father just to afford the lease so to stock his store he would buy second-hand phones and pagers from ads in the Trading Post – and re-sell them well below the prices offered by competitors selling new phones. The key was to slash margins and work towards sales volume.

John was the first in Australia to introduce the $1 phone and the first to bundle accessories with a phone. He broke the rules to create a brand that was fun and irreverent – and completely revolutionised the Australian mobile telecommunications model.

Another coup was recognising Australians love for sport – a passion he happened to share– so he aligned the brand with AFL and rugby league. Starting with so little focused his mind in what the customer really wanted.
Better deals. He knew store location was everything and so was a headline grabbing deal that captured the imagination of the customer.

When he began expanding in Sydney he found a site that was a hairdressing salon, so John and his close friend Brendan Fleiter simply arranged to fly to Sydney to meet the owner, did the deal on taking over the lease on the spot and left a deposit on the owner’s EFTPOS machine as an act of good faith. Apparently, the hairdresser’s bank later contacted the owner querying who paid for a $5000 haircut!

John Ilhan was also a generous philanthropist and regularly gave to various charities. He started the “Ilhan Food Allergy Foundation” with a starting $1 million dollar donation after learning that his daughter Jaida had a severe allergy to peanuts.

That’s why Crazy John’s became Australia’s biggest independent mobile phone sellers and how John became one of the pioneers in developing Australia’s mobile phone industry. A man who arrived as a child from Turkey and was able to achieve success as an entrepreneur by building an empire, based on “being Crazy.”

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Tuesday, November 24th, 2009

Achieving Success Even If You are a Snob

EntrepreneursThe young, glamorous and spoilt members of Sydney’s social set are achieving success by shooting a TV show about them.

“Snobs” is being touted as an Australian version of “Sex and the City” and “Gossip Girl,” but in “reality” it is closer to the U.S. show “The Hills.” The new series co-stars Gracie Otto and Amber L’Estrange, girlfriend of one of the city’s richest young men, entrepreneur Justin Hemmes.

Along with Augusta Miller, daughter of filmmaker George Miller, and NIDA graduate Ashley Ricardo; the women play – wait for it…. – privileged eastern suburbs 20-somethings.

While the show has elements of U.S. hits like “Sex and the City,” the idea was to ramp it up a bit by stepping away from the existing style of local Aussie shows like “Home and Away” and explore the new generation of Sydney city dwellers.

The storylines parallel the real lives of the women involved and are shot on location at venues like the Ivy (which is owned by Hemmes) and Oxford St nightspot De Nom.

Producer Joe Corrigan hopes to attract the interest of international broadcasters. Pay-TV’s Foxtel is rumoured to be circling the eight-part series, meaning if it does “go” it will be huge and the people involved will not only be princesses of the social scene but will be achieving success in their own right.

The new style of TV is obviously taking hold. “Snobs” is not the only production to explore the lives of the eastern suburbs set. Fremantle Media Australia is rumoured to be in the process of producing a local reality series mirroring MTV’s “The Hills,” to be filmed in and around Bondi.

So perhaps being a self styled princess is a new way of earning a living. Achieving success is no different whether you are a small business start-up or a Sydney princess. You have to get people to buy your product. Now let’s wait and see if Australia tunes in to watch “Snobs”.

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Monday, November 23rd, 2009

Entrepreneur Launches Innovative Hotel

entrepreneurTravelling on a budget? Try a 20-cent hotel room in a No-star hotel. That’s right, 20 cents. If you’re into swinging cats around – this hotel’s not for you, however with rooms from as low as $A0.20 cents a night (in a package), it is worth leaving the moggy at home. The brand new 222 room Tune Hotel is a hop, step and a jump away from Kuala Lumpur’s Low Cost Terminal and is the brainchild of AirAsia boss, entrepreneur Tony Fernandes.

Mirroring Sir Richard Branson’s business model, Malaysian entrepreneur Fernandes moved from music exec to low cost airlines and then branched out into hotels and more.

The no-frills hotel seems to be catching on with loads of their ilk popping up across Asia. The hotels are simple and are the definition of budget … anything above the basics will cost you. Tune’s rooms are small but clean and modern and despite having a no-star rating, a standard room comes with a 5-star queen bed, a hot “power shower” and a ceiling fan.

Tune communications manager Biresh Vrajlal remarked most Aussies who have stayed in the hotel describe the size by saying: “You can’t swing a cat in the room.”

The room has no television, refrigerator or kettle and any extras such as towels, a kettle and air conditioning, will cost you. And air conditioning is a necessity for the small room, which can quickly heat up in the muggy Malaysian climate.

Tune hotels, similar to low-cost airlines, employ a self-service online booking system keeping costs low by catering to travellers on a budget and tourists who don’t spend long hours at the hotel, but rather get out into the city. Booking online and far in advance guarantees super low rates.

The entrepreneur has also made sure the rooms are available for three-hour stopovers, which the hotel calls its refresher pack.

The first Tune hotel opened in May 2007 in downtown Kuala Lumpur and the chain now operates in Bali and throughout Malaysia, with one set to open in India. The company plans to have 150 hotels around the world by 2012 and Australia and the UK are in their sights. So whether you are looking for a quick refresher between flights or a good nights rest, leave the cat at home and grab forty winks at a hotel for 20 cents.

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Friday, November 20th, 2009

Entrepreneur of the Year off to Monte Carlo

Entrepreneur of the Year Greg Roebuck has been named entrepreneur of the year in the annual awards run by accounting firm Ernst & Young. Roebuck, who hails from a software background, founded Carsales.com in 1997 after shopping for a car for his wife. He became increasingly frustrated with the online buying experience and most importantly, the quality of information in classified ads.

Carsales now dominates the online car classifieds market. Just months after leading his company to a spectacular billion dollar float, Roebuck managed to beat out a strong field that included E3 founder Vanessa Jordan, Sumo Salad’s Luke Bayliss and Paladin Energy founded John Borshoff, to win the award.

The Carsales entrepreneur will jet off to Monte Carlo next year to represent Australia at the 2010 World Entrepreneur Of The Year.

After the massive float, conservative estimates valued Roebuck’s stake at over $30 million. Quite a way to come for a guy who was disgruntled with online classifieds. In 2002 he was responsible for what would become a big change in the pricing model used by classified advertisers when he introduced new pricing models, whereby car sellers could pay for every lead they got or pay a one-off fee until their car sold.

The head of awards judging panel, BridgeClimb founder Paul Cave, declared that Roebuck had taken car advertising into a whole new space.

So, as with all entrepreneurs, Roebuck recognised a need and built a business based on customer satisfaction, and after reinventing the system he succeeded beyond anyone’s wildest dreams.

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Thursday, November 19th, 2009

How to Succeed with Shocking

Achieving successLaurence Eales knows how to succeed. He is the owner of one of Australia’s largest equipment hire firms, EA Hire, and he is celebrating after upstaging some of the wealthiest thoroughbred owners in Australia to win the Melbourne Cup with his horse Shocking.

Eales, 37, was born in Cairns, and is now based in Melbourne.
The entrepreneur has a classic rags-to-riches story. He dropped out of high school early to go and work in his father’s butchers shop and later became an apprentice tiler. He was learning how to succeed through life experience.  Moving to Sydney, he decided to diversify and get into the earthmoving business after buying a single excavator. He built EA Hire into a thriving business with more than 150 staff.

Eales contends he worked hard at his business and set it up so he could have a little bit of a dabble with the horses. His philosophy is you’ve got to do what you like.

Four years ago he took a share in his first racehorse, named Rednex. It managed to place first at a minor Victorian country meeting, not a terribly auspicious start, but for the long-time punter, the ownership bug had bitten.

As an owner he has his own particular system and way about him, echoing his entrepreneurial skills. Most owners rely on others to help fill their stable, whereas Eales picks horses from the sales himself. He also concentrates on the progeny of imported stallion Street Cry.

Two years ago, he sent two Street Cry horses to trainer Mark Kavanagh. The first was Whobegotyou, who is apparently raising eyebrows and thought of as a potential champion. The galloper has already won more than $2.2 million in prize money.

And the second was Shocking, who has now earned more than $3.8 million after his Cup victory. At a total cost of $83,500 for both horses, the return on investment is almost staggering. They have now earned more than $6 million! Now that’s how to succeed with Shocking.

Shane Krider- Polaris Media Group

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Wednesday, November 18th, 2009

Achieving Success through Your Personal USP

achieving successA USP (unique selling point) is not something only marketers have to worry about. Achieving success is not necessarily only about your product. T.S. Elliot didn’t fit in as a poet or as a banker. He was good at both but didn’t have the time or energy to succeed at either one or the other.

In a letter in the current British Library exhibition, T.S. Eliot the Publisher, Geoffrey Faber is explaining why Eliot was the ideal candidate to take charge of poetry publishing at Faber and Gwyer, the firm that eventually became famous under the name Faber and Faber.

“In you we have found a man who combines literary gifts with business instincts, who has a wide circle of literary friends, and who is quite as much at home on the lower levels as on the lonely peaks.” — Geoffrey Faber

Ironically it was Eliot’s ability to understand and operate in two worlds at once, as both poet and businessman that made sure he was an outsider among his literary circle of friends.

A pivotal moment in Eliot’s career, it allowed him to escape his day job at Lloyds Bank, and set his literary reputation in stone by achieving success and becoming the pinnacle of poetry publishing in Britain. He was instrumental in publishing writers such as W.H. Auden, Steven Spender, Louis MacNeice and Ted Hughes.

As Frans Johansson explains in The Medici Effect, creativity is often the result of combining existing concepts into a large number of extraordinary new ideas and that is how T.S Eliot continued achieving success with Faber and Faber. His separate talents combined to turn an entrepreneur opportunity into a reality.

Shane Krider- Polaris Media Group

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Tuesday, November 17th, 2009

Leadership Development in Sydney

Leadership development in SydneyThe Benevolent Society – a 186-year-old charity better known for helping the old and the poor – took a huge gamble launching its Sydney Leadership Program in 1999. It diverted $200,000 from its budget to bring together leaders from diverse, often clashing worlds in the hope of mutual enlightenment. The program imparts a particular philosophy of leadership development- adaptive leadership – designed to encourage people to make a difference through collaborative action.

In bringing leaders from different worlds together, Sydney Leadership has demonstrated time and again that greater understanding comes when people take the time to know each other at a deeper level, whether ”the other” is a man in a suit, an immigrant resource worker, an alienated Muslim boy, or a prisoner.

The leadership development program, took more than 350 people from business, government and not-for-profit organisations and exposed them to social issues through speakers, directed reading and experiences such as visits to jails, homeless shelters, mosques and outback towns. And they were introduced to each other: banker and migrant resource worker, venture capitalist and children’s charity directors…all have participated, and for some the experience has been overwhelming.

A typical North Shore white male corporate suffered heart palpitations and a panic attack when handcuffed in the back of a prison van as part of a jail visit. But it isn’t all riding around in police vans. They are given the opportunity to meet prisoners, meet staff, and see a much more complex picture.

Year after year, Sydney Leadership showed that fixed views and stone hearts can melt with personal experience of “the other”. Leadership development is sometimes about realising that there are many other realities out there and by experiencing things from someone else’s vantage point or gaining an insight into their lives, you can grow as a person.

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