The former high school music teacher developed a website based around selling children’s products and now sells using a party plan/direct selling model. Gudmunson is now able to give other mothers the opportunity to build their own business and get back into the workforce on their terms, rather than in a traditional office setting.
“It is very satisfying knowing that you can provide opportunities like this to other mothers and help them establish a career without any pressures imposed on them,” she says.
They’re not giving up their day job
One interesting trend we can see from the awards is the rise of the part-time start up entrepreneur.
There are three typical models for this. There’s the entrepreneur who starts their own business at home after hours; the entrepreneur who works part-time and uses their days off to build a new entity; and the couple who start a business while one partner continues to work.
The internet – which allows a business to be “open” 24-hours a day, regardless of whether the company founder is actually sitting at their computer – appears to have helped push the part-time trend along.
Andrew Gideon, founder of online fashion accessories business Tiesandcuffs.com.au, was still working in a corporate setting when he and his wife launched their business. One of his funniest memories is rushing home each night to see how the site had performed during the day.
Today, Tiesandcuffs.com.au is Gideon’s full-time passion and a strong business with $700,000 in annual revenue.
The average age of the founders of the businesses that entered the SmartCompany Crown Lager Business Start Up Awards is 36, but it should be noted that there are 23 founders under the age of 30.
The dedication of these young people is impressive. Take MediaPoint founders Jason Xuereb (aged 26) and Jamie Xuereb (aged 21) who used $500 to start a business making stickers for their mates.
When the sticker machine broke down, they got a loan, bought a machine and turned their business into a printing business specialising in stickers and banners and beating competitors with one of the fastest turnaround times in the industry.
“My partner and I put a few hundred dollars each into the business and a lot of time,” Jamie says. “I was barely 18 at the time so I got the cash working in a bottle capping factory.”
Or take 25 year-old Adam Penberthy, who started Fresh Marketing because he was “sick of not being able to wear jeans, shorts and thongs to work”. All of his firm’s 10 employees are under the age of 27, and they specialise in youth marketing.
His secret?
“Really zooming in on our niche and rejecting work that wasn’t in line with the market we consulted in. I found it very difficult to swallow my pride and say no to work that just wasn’t in our core interest, being youth related. However reflecting now, it’s been the best thing for our business and is the reason we are still in business now.”
They’re leveraging the outsourcing trend
There is a clear bias towards the service sector among the award entrants, with 13 of the 50 fastest growing companies from the property and business services sector and another 11 companies from outsourcing-driven sectors such as education, transport, personal services and communications.
As the economy improves and skills shortages increase, expect this trend to grow.
It’s the eternal story of the start up – there’s simply never enough money around. The founders of electronics accessories company E3 Style were forced to turn down orders in order to preserve cashflow, while consultant Rob Nixon funded his business on credit cards until it was profitable.
The amount of start up capital varied wildly, from as low as $300 to as much as $1 million, although most entrepreneurs start out with between $20,000 and $50,000. Not surprisingly, more than half of the entrants started their business from home to save money.
Now, we know it’s hard for banks to support start up companies with no track record, but as the great companies in the SmartCompany Crown Lager Business Start Up Awards show, all some great entrepreneurs need is a little support.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
