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Friday, January 29th, 2010

Social Entrepreneur Changing Lives via Food Redistribution

j0444563After 20 years in hospitality, Ronni Kahn was sickened by the amount of wasted food generated by her industry. She knew that there were people going hungry but when she tried to contact a reputable organisation that could consistently collect the large amounts of leftover food she discovered there was no such charity. Dedicating her time to help others, she set up her own food rescue charity.

Kahn founded OzHarvest, a food rescue charity that collects food from places like function centres, caterers, corporate offices, restaurants, cafes and tourist operators, and provides that food to charities. The charities employ a trickle-down effect and feed the disadvantaged, including homeless people, youth at risk, single parents with no support, marginalised indigenous men, women and children, refugees, those recovering from addictions, and women escaping domestic violence. The only common thread to their charity list is that all of their recipients are either disadvantaged or at risk and being provided with food helps them gain confidence in their ability to survive.

The fact that food is inevitably going to be leftover from most hotels and restaurants means that the menu is varied, much to OzHarvest’s delight. They may get sandwiches one day or eggs and milk the next, or even a whole pie for an entire family. The only perishable food rescue charity in Sydney that delivers on a daily basis, they have touched literally thousands of lives.

OzHarvest has consistently met its goal of delivering a meal at a cost of 99c. Their funding is from varied sources: 50% from corporate entities; 35% from a few select private foundations, with only 10% from government and 5% from individual donors. Their program is also reducing the hospitality industry’s massive impact on the environment by turning waste into a resource and saving thousands of kilograms of food from being dumped as landfill each year.

Caroline Bateson, the manager of PCYC in South Sydney, says the donations of food from OzHarvest are invaluable to her community. They are now able to help with snacks for after school programs benefiting the youth of the area, as well as occasionally send home whole meals for families. Due to the fact that PCYC is a charity and has limited funds, the fact that OzHarvest is able to deliver nutritious meals on a daily basis at no cost whatsoever to either the donor or the charity and the final recipient is a huge shot in the arm for Bateson, and in turn the young people in the Redfern and Waterloo area.

From 20 years of watching good food go to waste to the founder of a food redistribution service that is helping the disadvantaged gain confidence in their future, Ronni Kahn certainly fits the definition of a social entrepreneur.

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Wednesday, January 27th, 2010

Entrepreneurship Celebrated in Australia

Business start up awards encourage fresh thinking

j0384719120 companies from around Australia representing a broad spectrum of industries showed just how diverse entrepreneurship can be. Whether it is new products and services, simply a great new business idea, or even an old idea revamped with a new twist, the inaugural SmartCompany Crown Lager Business Start Up Awards showcased the lot and brought to light the entrepreneurial spirit of modern Australia.

According to SmartCompany they did not want to showcase just the fastest growing start up company, but the entrepreneurs who were really trying to do something different or new and making a difference in the community. They maintain that the common denominator in the competition is the entrepreneur’s passion for their business and their willingness to do things differently. And it seems that the younger the business owner the more adventurous they seem to be. The statistics show that the average age of the business owner entered into the Start Up awards is 36 (23 of them are under 30).

The vigour of youth mixed with the determination to succeed balanced with inherent entrepreneurship is a formidable force and Australia is at the forefront of the new driven entrepreneur.

Although many may bemoan the fate of a lost generation to Playstation and Xbox, the determination shown by these young business minds is nothing short of inspiring.

MediaPoint founders 26 year old Jason Xuereb and 21 year old Jamie Xuereb got their start-up capital of $500 to start a business making stickers for their friends. Jamie was barely 18 at the time and he got his share of the start-up capital working in a bottle capping factory.

Their old printing machine broke down soon after they began their business so instead of giving up they got a loan, purchased a new  machine and launched a highly competitive printing company that had the fastest turnaround times in industry history. They expanded into banners and larger scale printing and have not looked back.

This refreshing do-it-yourself take on business is an interesting new development for young entrepreneurs. Instead of following the herd and lining up for either angel investors to finance a great new idea or simply never doing it at all, they showed a new spirit of entrepreneurship. And, it is these fresh new business minds that will help the economy recover.

These days instead of relying on expensive market research, the younger entrepreneurs are using social networking to survey their potential customers and in some cases start whole new ventures. Adam Penberthy is a 25 year-old who started Fresh Marketing because he was tired of not being able to wear jeans, shorts and thongs to work. He has 7 people on his payroll and they are all under the age of 27. Their business? Youth marketing. He and his employees access a specific market and turn away clients that they believe are not in line with their vision or sphere of influence. By creating a niche and specialising in it they have managed to grow a thriving business out of a desire to wear shorts and beach sandals.

The encouraging signs of out-of-the-box thinking and a dedication to new and vibrant ideas is a positive step in business growth.  As entrepreneurship moves into the forefront of the minds of the youth of Australia the future is growing ever brighter for the country.

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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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Wednesday, November 11th, 2009

Australians Achieve Success with Video Games

Achieve success In Australia alone, the video games industry is worth about $1.5 billion a year, a figure estimated to rise to $2.2 billion by 2013. As computer games migrate from the pricey games consoles (Microsoft’s XBox, Sony’s Playstation and Nintendo’s Wii) to the mobile phone, Australian developers are in the perfect position to achieve success from the industry’s worldwide explosion.

More than 2 billion applications have been purchased from the digital store since it opened for business in July last year creating a huge market virtually overnight. The technological advances in home computing means, an entrepreneur with a great idea and some creative vision, can create a multi-million dollar idea from their bedroom.

The reason Australian gaming entrepreneurs are making more money than ever before?

They no longer have to work through middlemen, the publishers, to market and distribute their games. A lot of local developers started out with a fee-for-service arrangement with international companies and consequently Australian developers didn’t own the rights to the games, nor did they stand to benefit substantially financially.

The launch of the App Store, which allows developers to publish their own games, has revolutionised the games world. An online user rating system markets the product and through social networks like Facebook and Twitter the word of mouth factor is boosted guaranteeing major earning potential if it gains popularity.

According to Film Victoria Chief Sandra Sdraulig, online and wireless games are growing exponentially, especially in the Asia-Pacific region. So much so, Sdraulig hosted an international conference at Federation Square last month dedicated to digital distribution – the selling of games online or on mobile phone networks, rather than in stores.

And Film Victoria is fanning the flames of the gaming gold rush by announcing at last month’s conference the $500,000 Downloadable Games Initiative, which will provide funding of up to $75,000 per project to support the development of prototype games for online and wireless distribution.

The fact that a user has to be committed to a game to pay the $50 or so a typical console game costs, has put the new breed of gaming entrepreneur ahead of the existing pack from the outset.   Thanks to smart technology, buying a game for an interactive phone is relatively easy. A few taps on the touchscreen keypad and within moments you’re shooting zombies or landing aeroplanes to the sound of “GoodShow!” and racking up high scores. By survey it is a far more entertaining and spontaneously rewarding experience for the user than a trip to a shop.

Jeremy Ray, presenter of ABC-TV’s cult show Good Game, is of the opinion that while the Australian development scene has had a rollercoaster of ups and downs in the past few years, digital distribution opens brand new exciting doors and opportunities. According to Ray the greatest recent success story comes out of Melbourne in the form of video game developer Infinite Interactive. Steve Fawkner’s team created the worldwide hit Puzzle Quest, and it’s with the smaller, casual games that there’s massive potential.

But it’s not only the small guys who are exploding. Tony Lay, the chief of Southbank-based IronMonkey Studios, says that despite the economic downturn they have more than doubled their staff in three months from 20 to 44 positions.

IronMonkey’s sucesses include work on Sims 3, one of the App Store’s highest grossing games, and Lay expects more to follow, both for IronMonkey and other Australian developers to achieve success. And as the market expands and technology advances, the gaming gold rush grows.

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Thursday, November 5th, 2009

Australian Business Entrepreneurs Inspired by iphone App Store

Image by Apple

Image by Apple

Apple’s iPhone App Store has led to the creation of an entire industry – and a new breed of entrepreneurs.  Apps can be anything from a fun game to a useful application one can use on the iPhone.  They are marketed through the App Store with the developers splitting the revenue with Apple 70/30 (in the developers’ favour).   The App Store launched with about 500 applications available, but now there are 75,000 applications available with over 800 million downloads recorded.

In Australia, a small group of business entrepreneurs have been able to cash in on the iPhone craze by developing their own applications and selling them around the world. From full-time software developers to IT workers tinkering in their bedroom, they span the gamut of entrepreneurial ingenuity.

Although novelty downloads make a lot of money they are usually disposable, whereas the applications with a specific use are proving to be invaluable for some iPhone users.  Australian developer Graham Dawson of OzPDA developed the OzWeather application that allows users to customise Bureau of Meteorology data to their local area. The OzWeather application has recorded 34,638 downloads providing him with an income of AU$60,374 so far this year, for that app alone. The app reached the number one spot in the Australian App Store, and has consistently remained in the top 10 since its release last year.

Some apps have made the big cross over into the US market. MoGeneration has created applications across a range of genres, its most popular being a game designed for children called “MooShake”. The AU$1.19 app reached the number two spot for kids’ games on the Australian App Store, and hit number four on the US charts.

However, it is not just money that makes the App Store platform so attractive to business entrepreneurs. Another major factor is that developers can avoid huge advertising and marketing budgets. The App Store has a user rating for each app and, according to Dawson, if they rank highly in the app store they don’t have to do much marketing – the consumer does it for them.

The application craze has now spread beyond Apple, with BlackBerry, Windows Mobile, Google and Nokia all launching their own application stores to cash in on the trend.  This opens a whole new market for the savvy business entrepreneurs who can provide the next killer app for mobile smartphones.

And that’s only the beginning according to Steve Fawkner of gaming development group Infinite Interactive.  Fawkner believes that the mobile market is going to grow the gaming industry to undreamt of heights.

Between games and applications, and the ingenuity of a new breed of entrepreneur, Australia looks set to supply a new demand that is growing exponentially. Developers and analysts predict the application market will eventually become a major industry in its own right.

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