Entrepreneurs


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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Monday, December 7th, 2009

Personal Freedom Created with an Internet Business

personal freedomNow I know you have heard work at home stories before, but here’s a good one.  Andrew Gideon, founder of an online fashion accessories business was still working at his corporate job when he and his wife launched their business website. The personal freedom of being one’s own boss was very attractive but felt impossible.

Because the net is an “always open” store, they didn’t have business hours per se, and quickly came to enjoy the fact that they were making money whether they were sitting at their computer, or not.

One of Andrew’s funniest memories is rushing home each night to see how the site had performed during the day. The excitement of an expanding business took hold of them both, and as their business grew so did their personal freedom.

They have now grown their business to a full online store with a plethora of colourful cravats, links, ties, and all sorts of accessories. Today, Tiesncuffs.com.au is Gideon’s full-time passion and a burgeoning business with $700,000 in annual revenue. The personal freedom they so long dreamed of is finally here as they are now entrepreneurs with cash in their pockets and time to pursue new opportunities. And Andrew is probably wearing a really cool tie, too.

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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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Friday, November 13th, 2009

Entrepreneur Skills Requires Inventive Thinking

Entrepreneurial skillsWhen you start a new venture, you may be tempted to sink all your energy into it. And in most cases you would be right. However, your entrepreneur skills need to be wider and more varied than ever before especially if you are married or have a family.

Line up other sources of income in case of emergencies. The working partner may be able to cover monthly expenses, such as food and housing. But when the roof needs replacing or the kids are sick, it can play havoc on the family’s financial well-being.

Be prepared to be creative with finances and don’t bring a spouse onboard immediately. By working full time, spouses usually provide the family’s medical insurance and other important benefits. Not having to buy these is a significant advantage for fledgling entrepreneurs, who don’t have the cash flow to afford benefits large companies provide.

Small businesses get hammered on health care so while the one spouse is gainfully employed at least that scary prospect is taken care of.

But as small businesses grow and new employees are needed, some couples believe it makes sense to put the working spouse on the payroll. This requires the business to shell out needed cash for medical insurance and puts both partners at risk if it fails. So your entrepreneur skills are sometimes know that the reality of starting a business is that there is rarely cash flow to begin with.
So putting all your eggs in one basket is not the best solution. Family support is vital and after the rough patches of the start out period it will be all the more special, because you did it together.

Shane Krider- Polaris Media Group

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Thursday, November 12th, 2009

How to Achieve Success as a Spouse

Image by nuttu

Image by nuttu

For many entrepreneurs, the support of a spouse is invaluable and for most, the only reason their business made it in the first place. To achieve success by starting up a new venture and leaving your previous employment while you are married means you have responsibilities and that means you can’t just drop everything and follow a dream without discussing it with the person whose future you will affect.

Without open and honest communication, not only will the venture fail but so will the marriage. Dylan Ross and his wife, Helen, worked on their plan for about a year before they were satisfied. They didn’t expect to make money and achieve success immediately when he started Swan Financial Planning, a financial advisory firm, in December 2005. With no money coming in initially Mr. Ross, 32 believed having a business plan that showed concrete success milestones was critical. And it was imperative Helen sign off on it because, as an operations vice president at Merrill Lynch & Co., she would be the family’s primary breadwinner.

To complicate matters further, the couple was expecting twins when Mr. Ross started his business. The babies were due six months later, and he wanted to be available to help. So, the plan for the business was based on his working no more than 40 hours weekly.

Mr. Ross says they have continued to modify their plan to meet continuing and developing needs and are happy with the progress of the business so far.

When the Levinson’s were struggling to make ends meet, they sometimes turned to family members for short-term loans. Even their dentist allowed them to delay payments.  The couple repaid every loan, and now Mr. Levinson, 45, earns more from his company, Brand Blueprint, than he did as an executive.

If you are married and considering embarking on an entrepreneurial journey, set limits on financial and time investments. The spending limit sometimes is coupled with a timetable showing how long the entrepreneur has to devote to the new venture. That way the budding entrepreneur has a goal in their sights and the spouse has a framework in which to work and manage their expectations and limitation. That way, when things get tough, the entrepreneur can say, we agreed I would have this much more time to achieve success. And perhaps that will give you the breathing room to reach your goals.

Shane Krider – Polaris Media Group

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Wednesday, November 11th, 2009

Education Helping Australian Entrepreneurs Stay Ahead

entrepreneurial coursesA belief in the strength of education is common among Australian entrepreneurs. Some 37 per cent of business founders here have degrees, against 33 per cent in the US. Compared with their American equivalents Australian start-ups on average appear somewhat more sophisticated or ambitious according to Per Davidsson, a professor from Queensland University of Technology.

Davidsson is a member of a team working on a long-term study of entrepreneurs. He says the research shows that while Australia is behind the US for business start-ups, entrepreneurial activity here is quite high compared with other Western countries. That aspiring entrepreneurs are educated tends to incline them to further study.

And while many universities are trying to jump on the education bandwagon, most entrepreneurs are keen to study further by learning from either the practicality of doing or through learning form real business people.

What is it about education that sets the Australian market apart?
It appears that the entrepreneur down under has a vibrant mind that is locked into solving problems and seeing things from a different perspective.

The more one reads and challenges oneself the more one is able to succeed because the mind has been unlocked in a certain way.

For this very reason it is incredibly important, as an entrepreneur, to keep learning.

The New York University research team reported last month that taking entrepreneurial courses significantly increases self-reported skill in identifying new business-related opportunities.

It matters little whether you decide to be an entrepreneur or not. Just know that it is a way of life and once you start it is very very difficult to stop. The world changes and you begin to see things from a different perspective. Things become possible and problems become solvable. As they say, knowledge is power and it is yours for the taking.

Shane Krider- Polaris Media Group

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Monday, November 9th, 2009

Academics Shunned for Entrepreneur Training

Entrepreneur TrainingAustralians are keen to have a go at creating new ventures and these days there is an army of academics happy to say they have the tools to show them how.

However, some programs are run by people who not only admit, but adamantly state that they want practitioners doing the teaching and that academics are the last people they want in front of their students.

Entrepreneur training is essential if they are to succeed and they will need guidance and coaching from people who have been there and done it. A book or course is no match for life experience.

But all agree there is a demand to educate aspiring entrepreneurs in the skills necessary to build a business, launch a product or create a non-profit program.

Entrepreneur training is not a sure thing for universities looking for a discipline that is cheap to teach and packs the students in. Universities regularly start courses that struggle to find enough students because they are not well designed or do not appeal to the market. People are smarter today and the potential student market is far more informed due to the net and technology.

More than half of Australia’s universities offer courses of some sort in entrepreneurship, teaching everything from short-courses to doctoral programs and everyone from 18-year-old undergraduates to serial entrepreneurs with years of business experience.

And just as they all march to their own drum, so do the people who teach them. Some universities provide programs that look like MBAs with a couple of units on new business development added on, while others have courses with entrepreneur training that prepares students to be entrepreneurs in all aspects of their lives rather than focusing on building a business. So perhaps this is one case where a uni degree can’t trump experience, and the kids know it.

Shane Krider- Polaris Media Group

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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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Tuesday, November 3rd, 2009

Personal Freedom of Entrepreneurs on the Rise

home based businessesMore than half of all U.S. businesses are based at home. While often dismissed as quaint hobbyist ventures, an estimated 6.6 million home-based enterprises provide at least half of their owners’ household income generating a personal freedom hitherto unimagined. Together these “homepreneurs” employ one in 10 private-sector workers, and by many measures they’re just as competitive as their counterparts in commercial spaces.

Stephen Labuda is the 35-year-old president of Agency3, a Web development firm he runs from his home in Cambridge, Mass. A former programmer at Deutsche Bank (DB), Labuda started building Web sites as a side job in 2003 and expanded the venture into a full time business three years later. Agency3’s revenue is in the millions, and Labuda is about to hire his fifth employee, who will work remotely, like the rest of the staff and the contractors he taps. He is not even thinking about renting office space because his business is founded on his personal freedom.

You can trace the rise of home-based businesses to the early days of telecommuting in the 1980s and the mass adoption of the Internet in the 1990s. Cloud computing, online collaboration, and smartphones have accelerated the trend, and recent research clarifies the economic significance of companies like Labuda’s. The personal freedom of being able to be anywhere and still be able to do business has changed the face of the entrepreneurial world forever.

Shane Krider- Polaris Media Group

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Monday, November 2nd, 2009

Entrepreneurs Grow Self Reliance

self relianceKeith Agoada has a young company, Sky Vegetables. A kid with a vision, he takes underutilized space in urban areas and grows food there, creating green jobs, providing access to fresh produce, increasing self reliance, localizing the economy, and creating a better life by building communities through growing vegetables.

The idea came to Agoada just before his senior year at the University of Wisconsin, Madison, which he graduated from last year. The vision is both simple and elegant: green rooftops, not just as gardens, but as urban agriculture hubs for herbs and edible greens, utilizing off-the-shelf hydroponics and aquaponics equipment in greenhouses to grow food to sell for profit within the community.

He saw the community gardens in Chicago and thought that it was fantastic that they were building community by growing food and doing it in the city. So he went back his senior year at Wisconsin and received three credits for doing a feasibility study to see if rooftops could be commercial farming locations, quickly learning that it was possible to generate self reliance and grow a myriad of things in the middle of a Wisconsin winter, when it’s below zero and covered in snow.

That led to a business plan competition, which he won, garnering local press coverage and investor interest.

Amid all this, Agoada remained a reluctant businessman. He studied entrepreneurship in school and learned that he didn’t want to be an entrepreneur.  He was afraid of the gut-wrenching roller coaster .
He eventually took on investors and business partners, based in the Boston area, a continent away from Agoada’s Berkeley, Calif., base. And Sky Vegetables was born.

Now he is not only going green but is encouraging self reliance in communities and changing the face of the modern urban landscape. Sky Vegetables has unlimited potential to feed all of our appetites for creative and conscious capitalism.

Shane Krider- Polaris Media Group

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