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ISSUE 22 SUMMER 2016 THE BUSINESS MAGAZINE OF NAB
LONDON CALLING ‱ PHO-NOMENAL ENTERPRISE ‱ ANIMAL KINGDOMS
THE SERVICE
REVOLUTION
–
Our blooming
service economy
Canva’s CEO on
taking on the world
Behind the scenes
with local innovators
TASK
MASTERSFrom moving house to moving millions.
The Airtasker boys explain how they did it.
AD TO COME
CONTENTS
1
SUMMER 2016
NAB.COM.AU/BV
BUSINESS VIEW 	 ISSUE 22 SUMMER 2016
04
03 WELCOME
Cindy Batchelor from NAB Business
on the service economy.
04 NUMBER CRUNCH
A snapshot of the key drivers in
Australia’s service economy.
06 EMPORIUM
A look at trade with our oldest trading
partner, the United Kingdom.
07 ALAN OSTER
The NAB Group Chief Economist on why
Australia’s service economy is booming.
08 WEALTH
The low road: balancing investment
risk and return.
10 CEO SEAT
Canva CEO Melanie Perkins on what's
behind her $230 million success.
11 BALANCE
Why mental health matters for
business owners.
12 AT YOUR SERVICE
Three entrepreneurs who are redefining
service with digital innovation.
16 TRANSITIONS
Miners are making the switch from
fly-in fly-out to small business owners.
18 INNOVATION
The Airtasker founders on how they
turned small tasks into big money.
22 FAST MOVING FASTUCAS
Hard work and hustle underlie the
Fastucas' corporate travel revolution.
24 SHIPPING SEA TREASURES
The Craig Mostyn Group has its eye on
seafoodandtheChineseweddingmarket.
26 24 HOURS WITH
 JERRY MAI
We spend a day with Jerry Mai as she
brings Vietnamese pho to the people.
29 FRISKY BUSINESS
Pets are big business and we speak to
ownerstappingintotheanimalkingdom.
32 CAMPER COMMUNITY
How social media became pivotal to
Patriot Campers.
34 VOX POP
What it takes to be a successful business
owner in today’s service economy.
36 BACK STORY
How Sean Ashby took underwear brand
aussieBum to the world.
08
“You have
to believe in
your vision
for a long time
before anyone
else will.”
MELANIE PERKINS,
CANVA
10
3229
A131040-1016
22
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NAB.COM.AU/BV
BUSINESS VIEW 	
WELCOME
T
he Economist once famously
described services as anything
sold in trade that could not be
dropped on your foot. The rise and
rise of Australia’s service economy has
been an important development in our
national economic story. Today the
services sector represents 70 per cent of
Australia’s GDP1
and continues to grow
strongly. We’re exporting $66.2 billion
in services and the value of total trade
in this sector is now sitting at $142.5
billion – up 9.1 per cent on 2015.2
In addition to this kind of growth, it’s
so encouraging to see the innovation
that’s ever-present in this booming
sector. And in this edition of Business
View, we’re showcasing some of the best
and brightest entrepreneurs who are
lighting up the services arena.
Melanie Perkins of Canva says
technology has made geography
almost irrelevant when it comes to
creating and launching a successful and
disruptive service business (page 10).
Her online graphic design platform has
become an international success story
used by more than 10 million people
in 179 countries and is a true example
of how smart young Australians are
exporting service excellence.
Important information: While care has been taken in preparing this material, National Australia
Bank Limited ABN 12 004 044 937 (NAB) does not warrant or represent that the information,
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general tax information contained in this document to determine your personal tax obligations, we
recommend that you seek professional advice from a registered tax agent. © Copyright 2016 National
Australia Bank Limited ABN 12 004 044 937. All articles are correct as of 17 October 2016
For Business View enquiries, please contact business.view@nab.com.au.
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Offset Alpine.
nabbusiness is part of National Australia Group that includes National
Australia Bank Ltd ABN 12 004 044 937 and MLC Ltd ABN 90 000 000 402
Business View
Executive Editor Simon O’Connor
Managing Editor Victoria Lea
Art Director Ollie Towning Designers Ivee Caburian, Alison Williams
Writers Nigel Bowen, Timothy Collins, Kimberley Gaskin, Tiffany Hutton, Tarnee
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nab.com.au/bv
Likewise, Airtasker’s co-founders,
Tim Fung and Jonathan Lui, are
showing us how it’s done in the new
economy (pages 18 to 21). Their business
is built entirely on the idea that there’s
a market for every service you can
imagine – from installing your TV to
chasing a possum from your roof. With
$45 million in transactions a year,
they’re living proof of the demand
for services.
The online delivery company foodora,
online furniture and homewares
superstore Zanui and virtual reality
gurus LENS Immersive (see pages 12
to 15) also show that it pays to think
differently about services and harness
the power of technology to innovate
and I believe we’ll see even more
creativity in this sector as new ways of
doing business emerge.
Reskilling from more traditional
industries to service-based business
is another trend to consider as the
service sector grows and develops.
Trent Brown, for example, made the
move from Rio Tinto’s iron ore mine to
setting up his own plumbing business
while Christine McKay, who worked as
a crane operator in the resources sector
for many years, called time on the fly-in
Cindy Batchelor
Executive General Manager
NAB Business
fly-out life and set up a Cheesecake
Shop franchise in Perth (pages 16 to 17).
It’s so exciting to see this kind of
adaptability and left-field thinking in
the services sector. It’s ultimately all
about better service for customers –
and as part of a service industry myself,
I’m looking forward to how the sector
develops in the future.
1
	Department of Foreign Affairs and Trade, Trade in Services
Australia 2015. dfat.gov.au, visited 16.10.2016.
2
	Ibid.
BUSINESS VIEW 	
NUMBER CRUNCH
BUSINESS VIEW 	
NUMBER CRUNCH
Australia’s exports
of services rose
to $66.2 billion
in 20153
WHERE WE’VE COME FROM
Since the days of Federation the services sector has accounted
for a large share of the Australian economy.
WHERE TODAY’S GROWTH LIES
Our fastest movers
(Growth over 2014-15)3
THE STATE OF PLAY FOR EXPORTS OF AUSTRALIAN SERVICES
Our biggest customers ($A millions, 2015)3
One look at the numbers confirms what we all suspected:
Australia’s service economy is booming.
Our largest services exports
(Five largest service exports in 2014-15)2
Education-relatedtravelservices
1. Butlin, N.G. 1962, Australian Domestic Product, Investment and Foreign Borrowing – 1861-1938/39
cited in Productivity Commission, Australia’s Service Sector: A Study in Diversity. pc.gov.au
The value of total
trade in services
rose to $142.5
billion in 20153
As far back as 1900-01, services accounted for the majority of Australia’s economic output.1
Today the services sector represents a significant part of the Australian economy accounting for 70% of GDP.2
26.8%
India
22.2%
Taiwan
19.8%
China
18.7%
USA
12.7%
France
$18.2
billion
$14.8
billion
$4.7
billion
$4.3
billion
$3.6
billion
Recreationaltravelservices
Professionalservices
Businesstravelservices
Financialservices
AT YOUR SERVICE
USA
$7,888
UK
$5,012
India
$3,038
NZ
$4,144
China
$9,840
54%
70%
Today
1900-01
A SNAPSHOT OF AUSTRALIA’S SERVICE ECONOMY
9.1% 10%
2. Department of Foreign Affairs and Trade (DFAT), The importance of services trade
to Australia. dfat.gov.au 3. DFAT, Trade in Services Australia 2015, dfat.gov.au
4
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5
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10,000,000
9.4%
7.0%
4.6%
4.5%
WHAT’S DRIVING GROWTH IN SERVICES?
WHO’S ON THE MARCH
(Growth in industry value added by services industry, 2013-14 to 2014-15)5
Of service sector
workers boast
post-secondary
qualifications.7
4. Budget 2016-17, Budget overview, budget.gov.au 5. ABS, Australian System of National Accounts, 2014-15, abs.gov.au
6. CEDA, Australia’s Future Workforce?, June 2015. adminpanel.ceda.com.au 7. Productivity Commission, Australia’s Service Sector: A Study in Diversity. pc.gov.au
People are employed in the services sector in Australia.6
Outsourcing of professional services
Rise of dual income households
Technological advances enabling trade
Rising Asian demand
Increased life expectancy
The low Aussie dollar
APPROXIMATELY
MORE THAN
Household and business services
jobs created in 2015.4
300,000 Information Media and Telecommunications
Accommodation and Food Services
Financial and Insurance Services
Health Care and Social Assistance
TODAY MOST AUSTRALIANS WORK IN THE SERVICES SECTOR – AND THEY’RE HIGHLY SKILLED
Of Australia’s high-skilled workforce,
including blue and white collar workers,
work in service industries.7
Workers in the social services and business
services industries boast degree qualifications.7
Of service sector
employees work in
high-skilled jobs.759%
54%
4 out of 5
2 out of 5
BUSINESS VIEW 	
EMPORIUM
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KEY RESOURCES
The United Kingdom is one of the best places
in the world to do business, according to the
World Bank’s Ease of Doing Business Index.
It has ranked 6th in the world in 2014 and
2015 thanks, in part, to the slashing of red
tape, a promise to reduce corporation tax to
18 per cent, and an increase in the number
and quality of apprentices available for hire.1
Online resources available to help Australian
businesses enter the UK market include:
‱	 British High Commission Canberra
‱	 UK Trade and Investment
‱	 HM Revenue  Customs
‱	 Confederation of British Industry
‱	 London Chamber of Commerce
‱	 Trading Standards
‱	 Intellectual Property Office2
Capital: London
Population: 65.1 million (2015)
2-way trade with Australia: $21.1
billion (2014-15)
Australian exports: $8.6 billion
UK imports: $12.6 billion
Trade rank: The UK is our 7th largest
two-way trading partner
GDP: $US 2,761 billion (2016)
GDP growth 2016: 1.9%
Sources: UK fact sheet  country brief,
Department of Foreign Affairs  Trade (DFAT),
dfat.gov.au, visited 11.10.16.
OUR OLDEST
TRADING
RELATIONSHIP
ENTERS NEW ERA
Australia has become increasingly attractive
to British investors in recent years with United
Kingdom investments accounting for the highest
growth by value of any foreign investor over
2010-14. It’s a trend that has seen the UK
become our second largest foreign investor.
T I MO T H Y C OL L I N S
DOINGBUSINESSINTHEUK
‱	 UK business culture tends to be more formal
than it is in Australia. Be mindful to not be
overly familiar with people you have just met.
‱	 The ‘old boy’ network is alive and well in many
older companies, but business culture is
becoming more progressive and egalitarian.
‱	 Only use ‘English,’ ‘Scot,’ ‘Welsh,’ or ‘Irish’
when you are certain of a person’s heritage.
The British tend to be proud of their
national heritage.
‱	 It is unusual for a UK company to agree to
a ‘cold’ meeting. Be prepared to introduce
yourself – and your proposal – a few weeks
before the meeting date.
MAJOR SERVICES EXPORTED ($A millions, 2015)
Australia’s major services exports to the UK totalled
$5,012 million in 2015, with travel ruling the roost.
1. Travel services .........................................$2,614
2. Other business services ..............................$813
3. Financial services .......................................$806
4. Transport services .......................................$287
5. Telecommunications, computer
 information services ...............................$286
6. Personal, cultural  recreational ................$78
7. Intellectual property .....................................$71
8. Government services ....................................$43
9. Insurance  pension services ......................$11
10. Construction services ...................................$1
MAJOR SERVICES IMPORTED ($A millions, 2015)
Australia’s major services imports from the UK
totalled $7,273 million in 2015, with travel at the top.
1. Travel services .........................................$3,121
2. Other business services ...........................$1,351
3. Financial services .......................................$655
4. Transport services .......................................$622
5. Insurance  pension services ....................$517
6. Personal, cultural  recreational ..............$402
7. Telecommunications, computer
 information services ...............................$318
8. Intellectual property ...................................$192
9. Government services ....................................$83
10. Maintenance  repair services ..................$11
Source: DFAT, Trade Services Australia 2015, dfat.gov.au,
visited 11.10.16.
Services trade is a key element of our
bilateral trade relationship, according to
the Department of Foreign Affairs and
Trade (DFAT), which described the UK as
Australia’s third largest services export
market in 2014-15.
And the Australia-UK trading
relationship looks set to continue its
upward trajectory: the two governments
recently committed to the establishment
of a bilateral Trade Working Group tasked
with preparing for a post-Brexit economy.
1
	Elliott, L. Britain named sixth best country for doing business, The Guardian, 28.10.2015. theguardian.com, visited 16.10.2016.
2
Australian Trade Commission, austrade.gov.au, visited 11.10.16.
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OSTER
	
OSTER
While the 24-hour news cycle may
talk down Australia’s transition from a
commodity to service economy, the figures
tell a different, and very positive, story.
A L A N O S T E R N A B G R OU P C H I E F EC ONOM I S T
T
he good news is Australia’s transition
from a commodity- to a service-
based economy is doing a lot better
than most people think. NAB’s September
2016 Business Conditions and Confidence
survey shows that while the mining sector
is contracting and retail and wholesale have
weakened in some areas, there is real strength
in domestic personal recreational services,
including local tourism. This sector accounts
for one third of the economy and it is booming.
Taking into account trading, profits and
sales, the current long-run average for
business conditions is around +5 index points.
In personal recreational services conditions
averaged +18 in the third quarter. The other
sectors doing particularly well are finance,
property and business services (or real estate)
which are sitting at about +17 index points,
and construction, at +7 index points.
BURSTING THE
MANUFACTURING
ECONOMY MYTH
If we compare jobs by industry in 2008
with June 2016, manufacturing has lost
about 160,000 jobs according to our data.
Health and social assistance on the other
hand, essentially private sector health, has
added around 480,000 jobs. This sector
is responsible for around 1.8 million
jobs nationally while manufacturing
doesn’t reach one million. Mining may
be 9 per cent of GDP but it accounts
for just 2 per cent of jobs. After health,
the next biggest job increase areas are
scientific and professionals, followed by
education and training.
EASTERN STATES RIDING
HIGH ON SERVICE WAVE
Unsurprisingly, when broken down by
states, what we see is the reverse of the
commodities boom. In 2016, New South
Wales has seen business conditions average
+16 index points. Victoria is +13 and the
other mainland states tend to be around the
+5 mark, except for Western Australia, which
is -7 index points. In Western Australia,
which is still in commodities mode, we
expect a lot of employment to go when the
liquefied natural gas (LNG) platforms are
built; the rough rule is 14 people to build a
platform and just one to run it.
NON-DISCRETIONARY
SERVICES THRIVE
The service sectors that are booming
can be divided along discretionary and
non-discretionary spend lines. Most
Australians will purchase anything they think
they have to – and often that means services
rather than ‘things’. Education and health
are the strongest performers, and it’s no
coincidence that they’re considered
non-negotiable purchases for most
Australians. Utilities are the same: you
may complain that your power bill has gone
through the roof but you will pay it.
EXPORTING HEALTH
AND EDUCATION
Our biggest exported service is still tourism,
mainly people coming from China to
Australia. However, education is in the mix
and growing with Chinese and other Asian
nationalities coming to be educated and,
while here, buying property. That trajectory
shows no sign of slowing.
Going forward, the Asian market is
particularly interested in Australian health
as well as education services. NAB’s survey
suggests conditions in consumer services are
averaging around +18 index points. However,
for those in private sector pure health,
business conditions are closer to +40.
GLOBAL COMPETITION FOR
SERVICE DOLLAR
Most Western economies are making the same
transitions as Australia. In the United States,
health is where most jobs are being created
and China is moving in a similar direction.
Broken into three sectors, China’s
primary production stands at about 10.5
per cent (Australia’s is 1.5 per cent) of
GDP. Its secondary industries, including
manufacturing and industrial production,
used to be almost 50 per cent but today are
nearer 40 per cent. And its tertiary, or service,
sector was 40 per cent but is now over 50
per cent. It’s clear that China has that same
driver out of industrial production into the
service sector as Western economies.
Here in Australia, while in some sectors
and regions there is lag and times have
been tough, the transition story is generally
working well.
Transport  Utilities
BusinessConditionsandConfidence (September 2016 Trend)
Mining
Wholesale
Retail
Manufacturing
Construction
Finance/Prop  Business
Rec.  Personal
All
-20-25 -15 -10 -5 0 5 10 15 20Conditions Confidence
MY
Source: National Australia Bank – September 2016
WEALTH
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K I M B E R L E Y G A S K I N
Corporate bonds
Considered a sound fixed-term investment
(unless you decide to sell), corporate
bonds generate regular income and will
return your principal upon maturity. You’ll
generally receive interest that can be fixed
or floating.
You can buy corporate bonds through
a public offer or through a securities
exchange. Read the prospectus carefully
to make sure you understand the key risks
and timing of payments.
Remember that although bonds are
considered less risky than shares, you
might not get anything back if the company
goes broke. They’re also unlikely to
increase in value during your investment.
Shares
If you’re looking for an ownership interest
in a company, shares can be a solid
long-term investment. As a growth asset,
shares increase in value, generate income
from dividends, and are easily traded.
Keep an eye on the market and
economy. Dividends are subject to
company performance and can rise and
fall dramatically. Buying and selling shares
requires careful analysis – there are many
ways to go about it, so talking to a broker
or financial planner should be your first
port of call.
Investment property
Property is generally considered to be
a safe capital growth investment. Even
relatively affordable properties are likely
to increase in value over time. There are
monthly rental returns and, if your property
is negatively geared, the additional
deductions may be able to offset tax on
other incomes.
Property is one of the few investments
that can be insured against risk, like fire and
damage. However, unlike other investment
options, property incurs plenty of one-off
and ongoing costs: stamp duty and other
taxes, legal fees, maintenance, rates and
rent-free periods to name but a few!
THE LOW ROAD:
BALANCING
INVESTMENT
RISK AND
RETURNEvery business owner needs a
plan for investing their profits
effectively – and in a low
interest rate environment, it’s
time to start looking for return.
W
hen your business is in growth
mode, it’s exciting to see funds
start to build in your business
account – rather than being constantly
drained away. But with success comes a
new conundrum: how should you invest your
profits to build long-term wealth?
It can be tempting to let your proceeds
accrue in a bank account – but there are other
options that combine security and wealth
building. Selecting a range of investment
options can help you manage risk and generate
income. Iain Rogers, General Manager, Wealth
at NAB, says running a successful business
involves ensuring invested capital works hard.
“This can also be true when planning to
maximise personal wealth,” he comments.
With the right research and advice – and
some strategic smarts – business owners
can afford to invest their surplus cash. And
with interest rates at a low, it’s a good time
to look at some of the other investment
structures on the market. Says Rogers:
“Investing successfully in any area requires
balancing risks, and there are numerous
options available that control the downside
while delivering higher yields. But these
options should be undertaken with advice.”
THREE INVESTMENT
ALTERNATIVES
Whether you’re thinking about investing a
little or a lot, there are a range of different
investment options to help you reach your
long-term financial goals.
BUSINESS VIEW
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NAB.COM.AU/BV
MANAGING RISK AND RETURN
As a business owner, it’s critical to have
a robust strategy in place to help shape
your investment decisions. Think about your
short-term (one to three years) and long-term
(three to five years) goals and the financial
return you’d like to achieve. Working closely
with a financial planner can really help
you identify your objectives, find the right
strategy and solutions – and stay on course.
Rogers says selecting investments is just
one element of a successful wealth plan.
“Ensuring the correct ownership structures
and asset classes are held will have a major
influence on outcomes,” he adds.
Finding the right balance of assets to
deliver the returns you need can be a
challenge. Generally, a combination of
growth assets (like shares) and defensive
assets (like bonds) is a popular way to go.
Decide how much you’re willing to invest
in the steadier, defensive assets versus
the riskier, higher growth assets. Factor in
market volatility for your stage of life, and
you should be able to determine how much
you can afford to invest.
“Understanding and sticking to investment
timeframes allows for more certainty in
investment outcomes, and can moderate the
impact of market volatility,” says Rogers.
GETTING THE BALANCE RIGHT
There are many ways to spread the level of
risk across your portfolio.
For example, perhaps you want to invest
your money across a range of growth and
defensive assets. In this case, if your growth
assets underperform, while your defensive
assets perform steadily, the impact on the
overall value of your investment portfolio will
be reduced.
Another way is to invest in a range of
markets. You could also use several different
investment managers to provide different, yet
complimentary, market insights. Comments
Rogers: “Not having all of your eggs in one
basket is still sage advice, and applies to
asset classes and countries, investment
managers and investments themselves.”
All growth assets carry varying levels of
risk, but as a general rule look for assets that
have the ability to grow in value, give you
easy access to funds, and produce additional
income over time.
“There are a range of different investment
options to help you reach your long-term
financial goals.”
Any advice contained in this
article has been prepared
without taking into account
your objectives, financial
situation or needs. Please
consider whether the
advice is appropriate for
your circumstances.
10
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BUSINESS VIEW
CEO
U
sed by more than 10 million
customers in 179 countries, including
corporate teams from Lonely Planet
and Huffington Post, Canva has attracted
$US27 million in backing from high net
worth individuals and investment funds.
The venture is Melanie Perkins’ second
foray into the startup scene – at age 19 she
launched Fusion Books, an online design
system for schools to create yearbooks, which
has become the largest publisher of its kind
in Australia.
At 29 years old you’ve already founded
two successful enterprises. Was doing
your own thing your destiny or did a more
conventional career path ever beckon?
I think I probably wanted to be almost
everything at some stage when I was growing
up. Throughout high school I interned at a
lot of different places – a PR agency, a radio
station, a sports store, through to spraying
on tattoos at carnivals. I chose my degree in
Arts and Commerce to give myself as many
options as possible.
What gave you the impetus – and the
courage – to start a business so young?
While I was studying, I was tutoring students
to use programs like InDesign and Photoshop.
Millennial entrepreneur Melanie Perkins is the powerhouse
behind Canva, an online graphic design platform which allows
anyone to create their own professional quality designs.
But I noticed most people found them hard to
learn and harder to use. It was then I realised
the future of design being entirely different –
online, collaborative and simple.
My boyfriend and co-founder, Cliff Obrecht,
and I were university students, with no money
and no engineering or business experience.
We didn’t know what a startup was, let alone
know anyone who was in one. We just had
a problem that we wanted to solve and an
absurd amount of determination.
I don’t really consider it to have been a risk
or something that needed courage. I was at
uni and thought that if things didn’t work out
I could always go back and finish my studies.
You’ve turned Canva into an international
operation that was valued at $230 million
in mid-2015. What attributes are needed
to convert a smart proposition into
a viable enterprise?
Sheer determination! I was fortunate to learn
how powerful it could be so young in life. I’ve
poured my heart and soul into everything I’ve
done and I’ve come to realise that if I work
really, really hard I’ll usually succeed – or at
least learn a lot along the way.
Canva has attracted more than $US27
million in funding from venture capitalists
who turn down hundreds of pitches each year.
What’s the secret to getting them to
get out the cheque book?
Persistence. Our first round of investment was
raised after a year of meeting investors, six
months in San Francisco and 100 revisions to
our pitch deck. We were really struggling to get
things rolling and it took an incredible amount
of willpower to see it through.
There are hundreds, if not thousands, of
rejections for anyone doing a startup: investors,
potential team members, early customers.
Every single time we experienced a rejection
we revised our offering to answer the questions
or concerns that had been raised. You have to
believe in your vision for a long time before
anyone else will.
Not so long ago, Australia was considered the
end of the earth for wannabe IT entrepreneurs.
Has this changed and is it now possible to
launch and run a global high tech company
from Down Under?
The exciting thing about technology is it has
made geography almost irrelevant. The United
States has been our biggest market since the
day we launched and we had users signing
up from all over the world very early on. We’re
available in eight languages and plan to be in 20
by the end of the year – all out of Australia.
‘SHEER DETERMINATION’
BEHIND $230 MILLION
SUCCESS
S Y LV I A P E N N I NG T ON
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BALANCE
F
or years, Leanne Faulkner was the
kind of entrepreneur the media loves to
celebrate. After a series of demanding
corporate jobs and a stint lecturing in business
at a university, she started her own business.
“One of my children suffered from eczema
and none of the standard treatments were
working,” Faulkner recalls. “So I made some
soap from goats milk, which cleared it up.
“I made some more and supplied it to
some local shops. After a while, my husband
said, ‘You should take this seriously. Write one
of those strategic plans you’ve spent years
teaching others how to create’.”
In 2004, Billie Goat Soap was officially
launched. “I went from running the business
from my kitchen table to having a factory,
employing 20 people during peak periods
and supplying 2,000 retailers,” she says.
“The company was winning awards and I
was being featured in the press as an up and
coming entrepreneur.”
Then in 2011 sales slumped and so
did Faulkner. “It seemed like the business
Leanne Faulkner was riding a wave of success building a fast-growing start-up
until the business slowed and the stress took its toll on her health. Now she’s
helping others learn how to cope with the pressure.
was failing, which I interpreted as meaning
I was a failure. I’d sit crying in my car trying
to get myself together before walking into
the office. I was obsessed with trying to turn
things around and ignored my family.
“I wasn’t sleeping. Eventually, I broke
down and couldn’t face going in anymore.
I was ultimately diagnosed with situational
depression. Luckily, my husband had a
business background and was able to take
charge for three months while I recovered.”
Faulkner sold Billie Goat Soap in early
2012. Given her experience, she then
decided to target the underserved market
of small business owners facing mental
health challenges. “I had spent lots of time
Googling late at night, looking for assistance
for those in my situation,” Faulkner says.
“There were lots of options for employees
but hardly any for business owners. Plus, a
lot of the usual solutions aren’t on the table
for those running a business. It’s often more
difficult for a business owner to take some
stress leave than an employee. Usually,
N IG E L B O W E N
they don’t have access to an employee
assistance plan.”
Faulkner observes some business owners
make things even worse by buying into the
myth that they need to be all things to all
people. “Entrepreneurs are portrayed as
always being resilient go-getters. I know I had
to spend a lot of time coming to terms with
not living up to that stereotype.”
Although there’s been little research
conducted on the mental health of Australia’s
small business owners, Faulkner believes it’s
no better and possibly worse than that of the
general population. “We know that every year
one in five Australians will confront a mental
health issue. Over half of small business
owners are males in the 30 to 50 age group
and this is a demographic that has seen an
increase in suicide rates.”
In 2013, Faulkner launched Fortitude at
Work. Since then she’s worked with those
who work with business owners – solicitors,
accountants, the Australian Tax Office.
“If a small business owner is not coping
well, everyone notices: their employees,
suppliers, customers and bank manager. My
business is about training those dealing with
small business owners. I provide education
about what they can do to help. I also spend
a lot of time lobbying for more mental health
resources to be made available to small
business owners.”
Support is available for those who may be distressed by
phoning Lifeline 13 11 14 or beyondblue 1300 224 636.
TAKE THE PRESSURE DOWN
ADVICE FOR BUSINESS PEOPLE UNDER STRESS
1. RECOGNISE THAT YOU’RE NOT ALONE
Lots of other business owners have gone through
the same thing, even if it’s something many are
reluctant to disclose.
2. REALISE THERE IS HELP AVAILABLE
You can talk to friends and family members. You
can consult your doctor. There are organisations
that devote a lot of attention to workplace mental
health, such as Heads Up and the Black Dog
Institute. There are also more general options,
such as Men’s Shed Australia and Lifeline.
3. BE AWARE THERE’S A LOT MORE AWARENESS
NOWADAYS ABOUT MENTAL HEALTH ISSUES
For example, if you contact the Australian Tax
Office and explain you’re going through a tough
time, they may be able to do things such as shift
deadlines for BAS payments. Finally, be aware
mental health challenges are survivable.
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As Australia embraces
digital, the business
services sector is
booming. Nimble and
tech-savvy service
providers are helping
businesses reach their
customers by bridging
the gaps.
Adam Turner
A
s the distinction between the physical and digital
worlds continues to blur, a new breed of business
service provider is making a significant mark ­
on the Australian corporate landscape as companies
around the country strive to meet the needs of the
21st century customer.
A number of innovative Australian businesses are
paving the way here as last-mile service providers –
whether by helping manufacturers sell furniture online,
enabling restaurants to home-deliver fine dining or
equipping businesses to reach customers through
virtual reality.
Rather than just shifting boxes or pumping data
across the country and around the world, these last-mile
service partners are redefining what service is. Instead
of tackling individual pain points in service delivery,
they’re building holistic platforms to handle every
aspect of engaging and delighting the end customer.
They’re finding success by truly understanding the
needs of their business partners and delivering them
cutting-edge services.
DIGITAL
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T OON GY SSEL S
CO-FOUNDER AND CEO, FOODORA
HAVING LIVED offtakeawaypizzaduringlatenightsin
theoffice,ToonGysselssawanopportunityforAustralian
restaurantstoofferhomedeliverytoo–buttheywould
needabusinesspartnerlikefoodorainordertodeliver
thatexperience.
Founded in Germany, foodora launched in Sydney
in 2015 with the promise of 30-minute delivery with
a flat $5 delivery rate. It has since expanded to cover
Melbourne and Brisbane, catering to restaurants looking
to offer quality meals, including catering for dinner
parties and the romantic night in.
Acting as a last-mile service provider comes with
its challenges when you’re working in a sector which
traditionally hasn’t required a business partner in order
to serve its customers. Working with food also demands
higher levels of service than if you were simply moving
parcels from door to door.
CHANGING THE PARADIGM
While the first 50 restaurants took a long time to win
over, foodora now partners with more than 1,000 across
the country and deliveries are growing 35 per cent
month on month. The company’s success required both
restaurants and customers to change the way they think
about home delivery, says Gyssels, foodora’s Co-Founder
and Chief Executive Officer.
“When you talk about food delivery it usually has bad
connotations, so a restaurant’s first response was often
‘Why would we want to look like a mediocre takeaway
pizza shop?’ and you can’t blame them,” Gyssels says.
“Their biggest concern was how it reflected on their
brand – including the quality of the experience that
home delivery could provide and whether food would be
transported the right way.”
Apart from the issue of reputation, restaurants have
also traditionally avoided home delivery due to the
complexities of managing it efficiently. This required
foodora to sell both restaurants and their customers on
the convenience of its delivery service.
UBER SERVICE
foodora’s platform consists of three main apps: one letting
customers place orders, a second letting restaurants
receive orders and a third letting drivers accept delivery
jobs similar to the Uber model. Tackling a specialist sector
like food delivery requires more than just technical know-
how, so foodora also employs ex-chefs and others with
first-hand experience in the hospitality industry.
“You absolutely need this kind of industry-specific
expertise, in whatever field you tackle, otherwise many
of your assumptions are going to be wrong,” Gyssels says.
“You might be smart and have a good idea that works
in theory, but you still need to engage people who have
experience at the front line.”
foodora’s valuepropositionforrestaurants isn’tjust
outsourcing its homedeliveryservice,it’s alsomaintaining
aneffectiveonlinepresenceincluding thecomplexities of
searchenginemarketing andoptimisation.
“We are bringing these restaurants fully into the online
world,” Gyssels says. “A lot of them already have websites
and some are really good at managing social media, but
they still struggle when it comes to things like search
engine marketing and optimisation. We have dedicated
people to handle these at foodora to ensure potential
customers find our restaurants.”
Regardless of the sector you operate in, anyone looking
to tackle business services must consider scalability from
the very beginning, Gyssels advises.
“You can’t just rely on simple spreadsheet calculations;
scalability is about more than operations and processes,”
he says.
“Your approach to scalability needs to be very practical
and hands-on, thinking about how you’ll keep the
business running smoothly once things take off and
you’re ready to take it to the next level.”
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Y OSU K E H A L L
MANAGING DIRECTOR, ZANUI
AFTER FIGHTING his way through crowded homemaker
centres on the weekend only to wait weeks for his new
sofa to be delivered, Yosuke Hall knew there must
be a better way for furniture makers to reach
their customers.
Hall joined Zanui in 2012 with the aim of changing
the way manufacturers approach retail, and helped
establish an Australian online furniture and homewares
superstore which today offers some 40,000 products
across 500 brands. Now managing director, he says
one of the biggest challenges in getting Zanui off the
ground was convincing brands to diversify away from
traditional bricks and mortar sales channels to the
advantages of online.
“When we started, online furniture retail was still in
its infancy and no-one was doing it to any sort of real
scale,” Hall says. “We had to build up a critical mass of
brands in order to make Zanui an attractive destination
for online shoppers.”
“One of the early staff members we brought on was a
buyer who had worked with one of the big retailers and
was also interested in the shift towards online. A few
people like that, who really know the industry, can
save you from spinning your wheels – especially in
the early days.”
A FULL-SERVICE RETAIL PARTNER
While some furniture and homewares makers could
already see the potential of online as a sales channel,
others were apprehensive and concerned it would
undermine business with their offline retail partners.
The key to winning them over, Hall says, was positioning
Zanui as a full-service retail partner rather than just
simply an online shopfront.
“We work with a lot of suppliers, wholesalers and
partners who have tried starting a website of their own,
so they appreciate that there’s much more to it than
simply getting up a few web pages,” Hall says.
“Search engine marketing and optimisation are a
science in themselves, but even that’s only a small part of
the total package.”
Zanui also handles logistics, arranges deliveries direct
from the manufacturer to shoppers via an online portal
open to suppliers, plus maintains its own warehouse
– buying some brands into stock as well as offering a
private label range of Zanui furniture. On top of this it
takes care of customer service and post-sales support,
such as dealing with delivery issues and returns.
QUALITY SERVICE KEY
The business has mapped out its entire process from
a customer placing an order to the parcel arriving
in their hands, Hall says, in order to offer a smooth
customer experience. It also relies on a wide range of key
performance indicators to keep its finger on the pulse
and continually improve processes.
“Above all else, customer service is one area that we
pride ourselves on,” Hall says.
“If customers have a bad experience with online
purchases they’re very quick to write about it, whether it
be on social media or on review websites.
“As an online business, we need to make sure that
our customers – manufacturers and shoppers – have a
fantastic experience because we’re in a very competitive
market and it’s a key way to differentiate ourselves.”
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DIGITAL
T R AV IS R ICE
CO-FOUNDER AND DIRECTOR OF CONTENT, LENS IMMERSIVE
COMBINING THE talents of Hollywood with cutting-
edge online video delivery, LENS Immersive ensures
businesses don’t lose their way in the brave new world of
virtual reality.
An explosion in budget headsets and 360-degree
video cameras has significantly lowered the barrier to
entry for businesses looking to employ virtual reality
(VR) to reach customers. It’s tempting for businesses to
jump in the deep end but, as with any content creation,
success requires both the tools and the talent, says LENS
Immersive Director of Content Travis Rice.
Two years ago Rice and fellow LENS Immersive co-
founder Yan Chen saw an opportunity to help businesses
deliver high-quality virtual reality experiences, from
assisting with 360-degree video production to providing
a secure and bandwidth-efficient content delivery
platform. The key to serving these businesses is to truly
understand what they and their customers need and
value, Rice says, so you can become a valued partner
rather than simply a basic service provider.
SERVICE ON STEROIDS
“VR is an emerging field and we’re still doing lots of
customer education,” Rice says. “Over time we’ve found
more and more businesses are coming to us asking how
they can save on bandwidth and deliver 4K content to
users stuck on very low internet speeds, so that’s become
our primary focus.
“They’re also looking for a secure way to deliver
content and monetise it, so we’ve pivoted to address those
needs and become a full virtual reality platform with
a compression technology which allows them to offer a
great VR experience over a slow internet connection.”
With a wide range of VR headsets hitting the market,
LENS Immersive aims to be technology agnostic –
educating businesses on the options at their disposal and
helping them choose the best tools for the job.
Rather than just helping businesses create and deliver
VR content, LENS Immersive also strives to ensure end
users have a great experience so they’ll come back
for more.
This includes addressing the issue of motion sickness
which some people experience when watching some VR
content. It’s a queasiness that’s often due to low-quality
video, headsets or delivery methods, Rice says, which
is where LENS Immersive’s production and delivery
experience can make the difference.
AHEAD OF THE CURVE
Delivering engaging virtual reality content is more than a
technological challenge, and Rice and Chen call upon their
own experience in artistic direction, curation, and movie
and videogame production. LENS Immersive also works
with film production teams and engages a wide range of
content production advisors from around the world.
Building up this global network of advisory teams from
day one has helped the business to think global – keeping
its finger on the pulse of the industry, expanding into new
territories and recognising the full value it can offer to
customers, Rice says.
“This global network alsohelpedus seethebig
pictureandcometotheearlyrealisationthatwe’re
aninfrastructurecompanyratherthanjusta content
productioncompany,”hesays.“Wearen’tjustbuilding
a platformfordeliveryof video,we’rebuilding core
infrastructureforthenextphaseof theentireinternet.
“Once you can see where you fit into the big picture it’s
easier to spot the opportunities to meet a genuine need
and become an important partner to your customers.”
STRAP
MINERS MAKE THE SWITCH
FROM FLY-IN FLY-OUT TO SMALL
BUSINESS OWNERS
Sylvia Pennington
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TRANSITIONS
T
heslowdowninAustralia’soncebooming resources
industryhasseenthousandsofmining workers
begintolookelsewhereforopportunities.The
smallbusinesssectoroffersawealthofpossibilities for
thosepreparedtobypassthecertaintyof a paychequeand
tackletherisksandchallengesofsailing theirownship.
Trent Brown has been sailing his own ship successfully
since late 2015. The 28-year-old West Australian is the
proprietor of Southwest Plumbing and Gas, a domestic and
commercial plumbing business based in Dunsborough, in
the Margaret River district south of Perth.
Brown spent the previous five years working nine days
on, five days off, as a fly-in, fly-out (FIFO) deep watering
technician for Rio Tinto at its Marandoo iron ore mine in
the Pilbara, 1,000 kilometres north east of Perth.
While the remuneration and entitlements were
attractive, the long hours and isolation took a
progressive toll.
“It got to a stage where I had to go, ‘Righto, what do I
want to do, where do I want to be?’” Brown says.
“It was a big call leaving Rio because of the salary
and package they offer – you were essentially locking
yourself into a guaranteed income, work-away scenario.
But it was pretty stressful because of the amount of time
that you actually spent away. You’re drawn away from
your mates, your hobbies, your family 
 eventually I just
said, ‘That’s enough, I’ve done it’.”
LAYING THE GROUNDWORK
Brown spent 18 months working and making contacts
during his stints back home before reaching the point
where he felt his plumbing business was sufficiently
established for him to make a go of it full time.
He says the extensive training and large project
experience he received at the mine site helped provide
him with the skills and confidence to tackle larger
contracts under his own steam.
The bulk of Southwest Plumbing and Gas’s work is in
the new housing market and industrial spheres, rather
than routine maintenance.
“I did learn a lot from working away, particularly in the
areas of safety and planning,” Brown says.
“In the mines, everything is focused on safety and there
were opportunities for further education – I completed
my Master Plumbers qualification while I was with Rio
and that’s helped me understand more about running a
business and planning and executing major jobs.”
Stepping away from a secure income for the uncharted
waters of self-employment and small business can be
nerve wracking, but once you’ve decided to do so, backing
yourself is paramount, Brown believes.
“When you start running your own business, you don’t
know – I could be busy for the next four months, or steady,
or quiet,” he says.
“Obviouslytakingthatbigstepforwardisahuge
commitmentsoyou’vegottohavethedrivetosay,‘I’mdoing
it,I’vegottomakethiswork,thisiswhereIwanttobe’.”
FROM CRANES TO CHEESECAKE
Former crane operator for the resources sector Christine
McKay shares Brown’s optimism and can-do approach.
She called time on FIFO work two years ago, after more
than a decade on mine sites across WA, and is preparing
for her next chapter in the small business sector, as
the owner of a Cheesecake Shop franchise in the Perth
suburb of Ellenbrook.
Purchased earlier in the year for around $400,000, the
store is slated to open in late 2016 and will employ up to
10 staff, as well as McKay herself.
While the scope of work will be very different from her
previous gig, the long hours and hard yakka she may be
required to put in, particularly in the early days, hold few
fears for McKay.
“I’m used to doing 12 hour days and 12 and a half day
fortnights,” she says.
“I just want to get it going because I think we’re going
to do really, really well. We’ve got the right spot and
everything in place and now we’re waiting to make
it happen.”
Purchase of the franchise was financed through NAB.
The assistance and advice provided by NAB business
banker Jason Sutherland has been helpful in the set-up
stage, says McKay.
“We’ve been with NAB for a long time as personal
customers and it was a natural choice to go with them as a
business customer,” she says.
“They’re a good team and have been very supportive
and cooperative.”
With the mining sector losing steam, the small business sector is
offering a wealth of opportunities to former workers in the industry
who see the possibilities in starting their own enterprises.
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INNOVATION
I
nJune, Seven West Media led a funding
round for Airtasker that raised $22 million.
That brought the total amount of capital the
company has raised since launching in 2012 to $32
million.1
Its co-founders, Tim Fung and Jonathan
‘Jono’ Lui, have certainly come a long way since the
days when they were ferrying customers’ fast food
orders around.
AMAYSIM GRACE
Tim Fung and Jonathan Lui met while studying
at the University of New South Wales. It wasn’t
surprising they were around the same age.
However, they were amazed to discover how much
else they had in common.
“We’ve both got two sisters. Tim’s father and both
my parents are Hong Kong Chinese. We were both
born and raised in Australia,” Lui says.
More importantly, while Fung studied
marketing and Lui telecommunications, they
were both ambitious and entrepreneurial. Post
graduation, both went to work for prestigious
corporations offering glittering career paths. But
they soon resigned themselves to becoming the
first hires at a scrappy startup.
“Tim was working at Macquarie Bank. He quit to
be the first employee at Amaysim, the Australian
telco founded in 2010 that now turns over more
than $200 million a year,” says Lui. “Then he
convinced me it was a great opportunity and
that I should leave IBM and join the team, which
soon grew to around 150 people. We both learnt
an incredible amount from the five founders of
Amaysim. Several of them are still our mentors to
this day. We helped the Amaysim guys build their
business up. Then, in late 2011, we resolved we
would try to do the same thing they had.”
The gruelling task that moving house
can be was the inspiration for the online
marketplace startup that’s now grown to
be a household name and is attracting big
investment. Business View spoke to the
co-founders of Airtasker, Tim Fung and
Jonathan Lui, about their journey.
Nigel Bowen
BIG MONEY
TURNING
SMALL
TASKS
INTO
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Airtasker's
Jonathan Lui (left)
and Tim Fung.
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INNOVATION
MOVING ON
The now legendary Airtasker origin story
involves the then 28-year-old Fung asking the
then 27-year-old Lui, along with several of his
other mates, to help him move house.
“Weallagreedtohelpoutbutwekeptsaying,
‘We’reallbusy.We’dprefertojustgiveyousome
moneysoyoucanpaysomeonetomoveallyour
stufftoyournewflat’,”saysLui.“TimandI
thought,‘Actually,that’snotabadideafor
abusiness’.”
“We did some research and discovered
nobody seemed to be offering anything like
it in Australia. There was TaskRabbit, which
had launched in 2008 in the United States, but
it was operating more as a labour hire agency,
effectively employing people then selling
their services.
“Wedidn’tviewthatasascalableproposition,
atleastnotforpeoplelikeuswithlimitedaccess
tocapital.Wedecidedtogowiththemarketplace
model.Peoplewouldposttasksonourplatform
andotherpeoplewouldbidonthem.”
Starting an online marketplace may seem a
logical enough business idea in 2016. However,
as Lui points out, that wasn't the case in a
country that was then rather less focused on
agility and innovation. “You have to remember
that this was before startups became cool,” he
says. “It was before anyone had heard of the
sharing economy. There was only eBay. That’s
how we sold our idea, as the eBay of tasks, where
we’d take a 15 per cent cut of the transaction.”
Fung and Lui tapped friends and family for
funds to turn the lights on at their new venture.
They then found their Amaysim background
allowed them, somewhat to their surprise, to
secure $1.5 million early on.
“At that point Airtasker wasn’t much more
than a PowerPoint presentation,” Lui laughs. “It
was unheard of in those days to raise that kind
of money. But there were some investors who
knew us from our time at Amaysim. They chose
to back us.”
TEETHING PROBLEMS
Airtasker’s co-founders did pretty much
everything in the early days. That included
the tasks posted on their platform. “We’d be
driving around Sydney at 2am, picking up
KFC and delivering it to people’s houses,” Lui
recalls. “That was good because it gave us an
understanding of what the pain points were
for people using Airtasker. It provided insights
into how we could improve processes, make the
experience smoother for both those posting
and providing the task.”
“We're not supplanting
a labour force. We're
creating a whole
new industry.”
JONATHAN LUI
Those insights were useful but they didn’t
provide much help with the existential threat
that soon confronted Airtasker. Lots of people
had signed up to do small jobs but few were
being posted. It wasn’t a surprising outcome
given Airtasker was a new business with a
limited marketing budget attempting to get
people to do something they had no experience
doing. Nonetheless, it led to what Fung views
as an embarrassing and costly mistake. Lui
prefers to remember it as a valuable learning
experience.
Fung and Lui decided to abandon their
original business model. They hit up large
companies, including some run by personal
friends, for work. Soon there were plenty of
jobs coming in – such as huge letterbox drops
for real estate companies – but managing them
soon turned into a nightmare.
Most of the people doing the tasks – chiefly
school and university students – were honest
and hardworking. But not 100 per cent of them.
Vetting all those entrusted with completing
tasks was impossible. When, to take just one
real-life example, boxes of pamphlets were
discovered to have been thrown in a bin
rather than delivered, Fung and Lui were left
to explain how that happened to angry clients
threatening not to pay.
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“It was a good learning for us,” Lui says.
“We went from doing single food deliveries
to co-ordinating the logistics for 40 people
doing flyer drops across Australia. I saw it
as an experiment. But, yes, it became clear
we needed to get back to being eBay rather
than trying to manage a retail store.
Still it set us up to partner with
large businesses later on in a way
that didn’t involve Tim and I taking
responsibility for ensuring tasks were
completed satisfactorily.”
HITTING ON THE MAGIC FORMULA
After its early misadventures, Airtasker
acquired a couple of Australian
competitors – Occasional Butler and
TaskBox – that had launched around the
same time. It entered into some lucrative
partnerships with other ‘digital economy’
businesses, such as EatNow, DeliveryHero
and UberX. It also joined forces with
News Corp’s CareerOne, one of Australia’s
biggest employment websites and part of
Monster Worldwide Inc, the world’s largest
job network.
“We now share the tasks advertised
on Airtasker on the CareerOne site,” Lui
says. “The people going on CareerOne are
between jobs and looking to earn some
money, so there’s an obvious synergy there.
With the likes of EatNow or
DeliveryHero, we can help supply
the labour those companies need to,
for example, provide merchandise
to restaurants or deliver food. That
sometimes involves us tweaking our
offering. We may need to offer food
delivery jobs at a set fee of $10 rather than
have people bid on them.
Nonetheless, it’s still the company and
the person delivering the food interacting
in that eBay-like way.”
ONE FINAL TASK: WORLD DOMINATION
It’s been a while since Fung and Lui have had
to deliver fried chicken or oversee leaflet
deliveries. “We recently welcomed our
600,000th registered member,” Lui says.
“We’ve got about 35 staff. We’re seeing
$45 million of transactions a year.”
In a sense, within four years of launching,
Airtasker has succeeded in establishing
itself as the 800-pound gorilla of Australian
task marketplaces.
“Yes, it would be possible for a local company
to launch a competing online marketplace.
Or for one of the big foreign players to try to
expand into Australia,” Lui says. “That’s not
something we’re complacent about, which
is why we’re always trying to stay two steps
ahead of the game. However, we’ve developed
a lot of intellectual property around how to
make this kind of online marketplace work.
“We’ve assembled a great team. We’re
building brand awareness. Plus we’ve got
more than 200,000 reviews of people who’ve
completed tasks. That helps people have
peace of mind using our platform. They can
know they’re hiring someone who has proven
themselves to be responsible. Given all that, I
think it gets a little harder for a competitor to
come into the market.”
If the big players that have invested in
Airtasker – Seven West Media, NRMA,
Australian venture capital fund Exto Partners
and Shanghai-based Morning Crest Capital
– have their way, it will enter other online
marketplaces of the world.
While Lui’s not about to show his hand about
his company’s plans for world domination,
he does admit the “blue-sky vision is to be a
global business”. “Australia is a great market
for us. It’s a wealthy country. It has a good
mix of higher-income, time-poor people and
underemployed but skilled people looking to
earn extra income. That is not necessarily the
situation in other parts of the world. Plus, if we
expanded overseas there would be language
and cultural barriers.
“We’d need to develop different services
and features tailored to local markets. But
none of those are insurmountable problems.
As you’d expect, we’re looking at the two
markets everyone gets excited about – the US
and Asia. The dream is to expand within the
next few years.”
1
	Kimmorley, S., Airtasker just raised $22 million, and now it wants to
become an Australian household name, Business Insider Australia,
07.06.2016. businessinsider.com.au, visited 16.10.2016.
CREATING A NEW INDUSTRY
As Lui sees it, Airtasker is a force for good.
“The first point I’d make is that we’re not
supplanting an existing labour force,” he says.
“What we’re doing is creating a whole new
industry. A few years ago, you couldn’t get
someone to come around to your house to
change a light fitting or chase a possum out of
your roof – not easily and at an affordable price
anyway. Now you can.
“Secondly, there are a lot of people that
find it difficult to access a conventional job.
That can be because they’re an older person
or an inexperienced, younger one. Airtasker
provides a way for those people to be part of the
workforce, to earn money and stay active.
“When we started Airtasker it was mainly
school and uni students but now we get a lot
of semi-retired people. Another interesting
development is that Airtasker isn’t just
something people do on a moonlighting basis
anymore. There are a lot of people now working
full-time hours doing tasks and making a good
living out of it.”
Airtasker has also worked with insurance
companies to minimise some of the issues
that can crop up when either business owners
or individual citizens hire independent
contractors.
“Let’s say you engage someone through our
platform to paint your lounge room or reception
area and they knock over a can of paint, ruining
your carpet,” Lui says. “Airtasker workers are
covered for third-party liability. So the people
using our platform know that if an accident
happens – and they inevitably do sometimes –
they are covered.
“We’re also liaising with insurance companies
to develop income protection products for our
workers. These kind of policies will ensure
they’re not left in a difficult situation if they, say,
fracture their wrist and are unable to complete
any tasks for a couple of weeks.”
TECHNOLOGY
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Hard work and hustle have helped
Melbourne cousins Ross and David Fastuca
secure a string of corporate customers
and win multi-million dollar backing for
Travelport Locomote, their travel platform.
Sylvia Pennington
L
aunched in 2014, Travelport Locomote aims to make
it simpler and cheaper for companies to manage the
process of approving and arranging business travel
and processing expense claims.
Demand for their software from the likes of Allianz,
Japan Airlines, World Vision and Medibank has seen the
shoestring startup of cousins Ross and David Fastuca
morph into a thriving software company employing a
staff of 65.
Travelport, a publicly-listed United States travel
technology provider which runs booking systems for
airlines and travel agents, took a majority stake in the
venture last December.
Thehardwork neededtogettheir fledglingenterprise
off thegroundandintothefacesofinvestorsand
household-namecustomers held fewfearsfor the Fastucas.
Both grew up witnessing grandparents and parents
make the sacrifices familiar to thousands of Italian
Australians whose forebears migrated after 1949, with
hungry stomachs and hopes of a better life.
FAST MOVING
FASTUCAS
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Travelport
Locomote's
David (left) and
Ross Fastuca.
buildingonlinestoresandwebsitesforothersandgetstuck
intocreatingascalableandsaleableproductoftheirown.
“We spoke to them and said, ‘We want to be a product
company. We’ve got all the right skills and a few ideas,
but we’re not sure what industry to tackle’. And they
said, ‘Hey, have a look at the travel industry and see
what you can do. I know travel companies are using old
technology’,” Ross says.
Mentored by Weinman and Sher, both foundation
investors in Travelport Locomote, the cousins developed a
blueprint for their system after the investors introduced
them to many corporates and they gained feedback from
the business community before anything was built.
“Before we even wrote a line of code, we went out and
told as many people as we could,” Ross says. “We ended
up getting an introduction into a major mining company.
We presented the solution to them and they signed the
contract to say, ‘If you build this thing, we will use it’. That
helped us, having a big organisation that encouraged
us to push the product out. We wanted to know we had
solved the right problems for corporate travel before we
began building.”
It’s a strike-it-lucky success story that was a serious
slog in the making.
“ItsoundseasynowwhenItalkaboutitbutinrealityit
wasmonthsandmonthsofeffortandtripstoSydneywhere
wedidn’thavethatmuchmoneytospendbutwedidwhat
wasneededtomakesurewecouldgetthisdone,”Rosssays.
With Travelport’s backing, the company has set its
sights on the global market, with staff numbers expected
to swell to 100 by year’s end.
“We want to be the best corporate travel platform in
the world – that’s our goal,” Ross says. “People say it’s a
big dream, but that’s fine. We aim that high. We believe
we’ve got a platform that can reshape and change the way
corporates look at their business travel.”
VALUE IN NETWORKING
A NAB business client since inception, Travelport
Locomote is a regular user of the bank’s co-working
centre in Melbourne’s Docklands, The Village.
The space is a boon to start-ups which can’t spring for
facilities of their own, says Ross.
“We’ve done all our events at the NAB Village. We go
there and have our strategic meetings and out-of-the-
office meetings. Sometimes I go there when I need to
take a day out of the office. I’ll go and sit there; I love the
creative space.
“I probably get more work done there than I do in our
office, and you always meet some other business there.
We’ve taken a few other companies to meet there and
every time people say, ‘This is great, we should use this
space – it’s a cool spot’.”
“As a child, we lived at the milk bar where my dad
worked so I’d be up in the morning at 5am and Dad would
be working,” Ross Fastuca recalls. “He’d make me a toasted
sandwich, and I’d sit on the bench with him. I’d see him
work all the way through to 9 or 10 o’clock at night, seven
days a week, and Mum worked there as well. They ended
up growing the business into a very successful one which
employed 15 people, just through sheer persistence,
hustle and hard work, building relationships and being
prominent figures in the community.
“Dad had the opportunity to build this further but chose
family first – especially to ensure he was there to help my
brother John who had muscular dystrophy. My mother and
father were amazing role models growing up, my brother
was an inspiration with his strength and my big sister
would always look out for us.”
THE ENTREPRENEURIAL PULL
The idea of toiling for wages or working 9 to 5 goes against
the grain for the next generation, say the Fastucas.
“Working 9 to 5 never made sense to David and I – we’re
not made that way,” Ross says. “As an entrepreneur, you
have that drive for something more, and seeing our
families work really hard all their lives was a big influence
in giving us that drive.”
The cousins had joined forces previously on a succession
of ventures including a graphic design agency founded
while they were still in high school, a t-shirt business, a
digital agency and a nightclub.
“We’ve dabbled in lots of things, but technology and
software development was always a passion of ours,”
Ross says.
AnintroductiontoserialentrepreneursPhilipWeinman
andCliveSheratanetworkingeventin2012providedthe
inspirationandencouragementtheduoneededtostop
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F
rom the deep blue waters of Australia’s
southern oceans, two of Craig Mostyn
Group’s (CMG) luxury seafood exports
are grown and reaped: the coveted southern
rock lobster and world-renowned Jade Tiger
Abalone. The thriving business, founded in
Australia by Craig Mostyn in 1923, today also
exports scallops, crab and other fresh and
frozen seafood to the world.
In the six years that Mark Wray was Chief
Financial Officer of CMG, turnover doubled for
the seafood division, driven by his pursuit of
local experts in China and strong marketing
efforts. Today, Wray is the group's Chief
Executive Officer. He says the business now
has annual seafood exports of more than 1,000
metric tonnes, distributed to Hong Kong, China,
CHERISHED SEAFOOD DELICACIES
CMG’s southern rock lobster is acknowledged
the world over as a unique delicacy, renowned
for its bright red colour, taste and excellent
transportability. Its trademarked Jade Tiger
Abalone has been exclusively bred for its sweet
taste, medium texture and distinctive jade
green shell.
Of China’s five sea treasures, CMG’s southern
rock lobster and Jade Tiger Abalone are two
of the most celebrated. The high-end wedding
market in China revels in the presentation and
enjoyment of these treasures as symbols of
elegance and prosperity.
Export success for the business stems
from not only having unique luxury products
but also from hiring a dedicated team with
intimate knowledge of business practices,
language and culture in niche export
markets – enabling them to build local market
knowledge and distribution partnerships.
Tight supply chain control also ensures
CMG’s Seafood Division can continue to
deliver quality products from Australia in
excellent condition onto wedding banquet
tables in China. The business has taken steps
to encourage Australian seafood farmers to
Japan, Taiwan, Singapore, Malaysia, the Middle
East and the United States.
Wray believes seafood export success
is about understanding your market and
ensuring you have processes in place to enable
freshness and consistent quality.
“The fishermen head out in wet weather gear
on their big boats in wild seas,” he explains.
“As soon as the boats come in, live seafood
is packed right there at the port into foam
cartons and onto planes bound directly for
China’s Shanghai wet markets. Numerous
sub-distributors also take them out to
restaurants having wedding parties and other
celebratory events. When export markets
want to eat the product raw, such as sashimi,
freshness is everything.”
SHIPPING AUSTRALIAN
SEA TREASURES TO ASIA
Tarnee Jacobson Igor Sapina
For the seafood division of the Craig Mostyn Group, one of Australia’s leading
food and agribusiness firms, the fastest growing pillar is the export of live
southern rock lobster and abalone into the Chinese luxury wedding market.
AGRIBUSINESS
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work amicably to operate with contractual
relationships for several years, guaranteeing
supply at the front and back end.
“Longer term export success for CMG is
about locking down boats, quotas and sales
contracts over the long-term,” explains Wray.
“You also need to understand China, where
there are lots of people who have been in
business for a long time. Understanding the
local market is what we’re focusing on at
the moment.”
CHANGING TIDES OF MANAGEMENT
Exponential growth and change in any business
requires a focused investment in talent. Today
the management team is focused on injecting
the business’ intrinsic entrepreneurial spirit,
inherited from the founders of Craig Mostyn,
into a renewed talent base for their export
business. They have recently invested in a new
breed of young talent, including ex Rio Tinto,
Master of Business Administration (MBA) and
Harvard graduates, with a breadth of export
experience, local language skills and corporate
knowledge in global markets.
Wray says CMG’s management structure
emulates a collegiate culture that gives
younger employees full accountability as well
as the freedom to get things done.
“We have a new breed of people coming
through, and it’s a renewal focus, regarding the
employee team structure,” comments Wray.
“For a diversified export business, you should
employ at least 10 per cent of the team from
corporate backgrounds, because they have
sound knowledge of process and the business
tools you need, as well as a corporate discipline.”
CMG’s relentless pursuit of local market
knowledge, coupled with a desire to exhaust the
China opportunity via genuine understanding,
are the driving platforms for seeking talent.
“We need to do more, and are doing more,
around the front end in China,” says Wray. “It’s
about understanding end-user behaviour. For
example, who are the five biggest wedding
companies in Shanghai? We are hiring ex-Rio
[Tinto] professionals who speak Chinese and
we are already penetrating new cities in the
wedding market.”
SELLING THE SEAFOOD STORY
Packaging their multiple seafood brands to tell
their brand story and steer the business into
new export markets is the firm’s next focus
area for long-term sales growth. The business
is investing in brand experts and recently
spent half a million dollars on marketing to
fine tune the brand story and market products
to different cultures.
In the age of disruption, consumers in
China are increasingly using social media to
recommend products they are using, such as
WeChat with 806 million active accounts,1
and everyone in the supply chain is aware
they need to be able to answer key consumer
questions: Did you really produce this? Is it
safe and good for you?
Looking forward, CMG aims to double
its lobster and abalone exports through
understanding the customer, ensuring
consumers are aware of their seafood
story and through operational and supply
chain efficiency.
“It’s no secret – CMG wants growth,” says
Wray. “We want to be Australia’s largest
exporter of luxury seafood. We know the
world wants our products – and CMG has
the people, structures and processes in place
to do it.”
1
Statista, WeChat statistics, Q2 2016. statista.com, visited 16.10.2016
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Igor Sapina
24 HOURS WITH

JERRY MAI
Chef Jerry Mai is co-owner of
Melbourne’s popular Pho Nom eateries
with brother David Mai. Their vision was
to bring authentic Vietnamese hawker
food to the masses, opening Pho Nom
Emporium in 2014 followed by Pho
Nom Collins Street last year.
H
aving worked for many of Melbourne’s top
Asian-inspired restaurants – including
Longrain, Gingerboy and Dandelion – as well as
at Australian chef David Thompson’s acclaimed London
Nahm restaurant (the first Thai eatery to be awarded
a Michelin star), Mai set up Pho Nom to serve premium
quality food at speed and with an affordable price tag.
As well as sharing the traditional food she grew up
eating with her family, Pho Nom is an expression of one
of Mai’s other passions: supporting local farmers and
ethically-farmed free range produce.
7.30am: I start the day with my usual: an
espresso coffee plus a Vitamin D tablet and
a Berocca.
8.00am: I head into the stores. Today it’s Collins
Street first. I like starting here because it’s nice
and peaceful when I get in. I use the time to
check on what I need to do for the day, like anything I
might need to call a farmer about. We deal directly with
our farmers a lot; it’s one of the things I’m passionate
about. For our beef, for example, we have three different
Victorian producers: Warialda Beef, who supply our
bones and brisket, Little Creek, who top up our bones
when we need them, and Sher Wagyu, who supply our
topside and rump. For our free range chickens and eggs
it’s Milawa. We’ve developed some great relationships,
1
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24 HOURS WITH 

particularly through farmers’ markets. This morning I
chat with Russell [Mickle] from Milawa and Craig
[Jenkins] from Little Creek.
When we opened Pho Nom, I was adamant these were
the kinds of producers I wanted to work with; we wanted
to support local farmers and ethically-farmed produce.
That meant we had to go to several different farmers to
get the quantities we needed – we go through a couple of
hundred kilos of beef bones a week, and the same with
our chicken bones [for our stock]. With our chickens
we use up to 120 between the two stores, and around
48 dozen eggs a week. So this sometimes takes some
juggling. If you go through stock standard producers you
can call them and get produce delivered the next day but
if you’re dealing with farmers like we do you have to stay
in close touch to make sure you can get enough supply.
9am: The staff start coming in so I always have a
chat with them to see if there any issues I need to
deal with. I have a meeting with my brother David
– he’s usually based at Collins Street – then I jump on the
tram and head down to the Emporium Melbourne store.
11am: The Emporium store is two and a half
years old so it’s very stable. My staff here know
exactly what’s needed and do it very well; at
each venue we make everything on site. The shopping
centre opens at 10am and people come in from then for
their pho and banh mi. Ten years ago when I said people
will be having pho for breakfast nobody believed me.
They said, “You’re dreaming”. I grew up eating pho for
breakfast – it’s normal for me. We now sell 100 and
something bowls of pho each day at Emporium, and
just a bit less at Collins Street.
Today as usual I help out with lunch service. It’s really
busy from 11 through to 2.30, 3 o’clock. When we were
planning Pho Nom we wanted to give people something
high quality but quick. Our waiting time is only three to
five minutes – it’s all about setting up the right processes
and training staff really well.
3pm: After service I sit down with my laptop and
get through some admin, make a few calls and
organise emails, and do some research. We’re
doing a lot of pop-up events at the moment and I do
2 3
4
1.	Jerry at Pho Nom, Collins Street.
2.	Chatting with staff.
3.	On the phone with farmers
and suppliers.
4.	A morning meeting with her
brother, David.
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24 HOURS WITH 

various shows and cooking demonstrations. For me the
shows are about the producers. I love being able to show
off great produce.
What we’re trying to do at Pho Nom is introduce
mainstream customers to a paddock-to-plate experience,
taking the idea of eating good produce mainstream. We
have customers who eat with us four, five times a week.
If you can afford to eat a bowl of pho that’s barely $12
made from free range beef and chicken, cooked with
no MSG, and if I can have people coming in every day to
eat, then hopefully they’ll say, “Hold on, I can afford to
eat free range. I should eat free range, I should support
local farmers”. That’s why we opened a quick service
restaurant – to make it ‘everyday’.
It’s all about supply and demand. If there’s a high
demand for what I do then my farmers will become in
demand and the more money goes back into my local
farmers’ pockets. The more people want it, the more
farmers grow it. That’s what we’re trying to do: show you
don’t have to go to a special restaurant to eat well. You can
eat well every day.
4.30pm: I head back to Collins Street to catch up
with David and see how service was. We work
well together. I do the food and he looks after
customer service. He’s so good at that – he’s very
charismatic and he remembers names! People will walk
in and he’ll go, “Peter, fried chicken banh mi mate?”
I have a chat to my mum on the phone. She’s been a
massive inspiration for me. She’s an amazing cook and I’ll
still call for advice, how do you do this stock or whatever.
My father was born and raised in Phnom Penh, Cambodia,
and later met my mother in Vietnam. They left Vietnam
and found refuge in a Thai camp for three years before
coming to Australia.
6pm: Ifinishupatthestore,headhomeandget
startedondinner.Tonightit’sporkchopsfroma
producerweworkwith,GreenvalePork.Some
daysit’saroast,sometimesanoodlestirfryorwhatever
Icanrummageoutofthefridgeandwhateverveggiesor
herbswe’vegotgrowinginourlittlegarden.Atthemoment
itslotsofmizuna,coriander,rocket,chili,silverbeet.
8pm: After dinner it’s recipe writing. I’m always
topping up recipes. For the last three weeks I’ve
been working towards the Royal Melbourne
Show pop-up and Women in Food and Agriculture lunch
but I also have some other possible ventures I’m working
on so I’ve been madly writing recipes for the past few
months. I pour some wine and get to it.
10pm: I finish up because I can’t stare at my
laptop anymore. I’ve been a chef for more than
22 years and if someone told me 20 years ago
that when you have your own business and are working
towards additional ventures you’ll spend so much time in
front of a computer I wouldn’t have believed them. I’d
rather be hanging out in the kitchen and cooking that’s
for sure.
5 6
5.	Jerry helps out with lunch service.
6.	An afternoon catch-up with her
brother, David.
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ANIMAL KINGDOMS
Tiffany Hutton
FRISKY BUSINESSPets are big business. It’s not that their numbers are growing – in fact, with
an increase in apartment living, numbers are dwindling or at best static – it’s
that we’re spending more on them. At last count, the Australian pet industry
was estimated at $8 billion.1
Business View looks at the changing nature of pet
ownership and talks to three businesses tapping into the trend.
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A
ustralia has one of the largest proportions of
pet owners in the world, with dogs our number
one four-legged friend, closely followed by
cats (19 dogs per 100 people and 15 cats, according to
the Australian Veterinary Association2
). We love our
furry companions and increasingly humanise them by
regarding them as family members – and spending on
them accordingly.
Just think about it. Whereas, say, a generation ago, a tin
of food from the supermarket, a couple of bones from the
butcher and a kennel outside might have been considered
perfectly good for Fido, today he’s more likely to be eating
gourmet food tailored to his dietary requirements and
sleeping inside on a bed perfectly suited to a small child.
And when we go away for a few days, instead of asking the
neighbours to drop in and feed the cat, we’re more likely
to send her to a ‘pet resort’ where she’ll be pampered and
pandered to, just like she is at home.
All these goods and services cost money, which many
of us are more than happy to spend. So what about the
businesses that provide them?
HOT DIGGIDDY
It’s no surprise that businesses have popped up to meet
(and even predict) the growing needs and demands of
pet owners. One of these is Diggiddy Doggy Daycare, an
award-winning daycare centre for dogs, established in
2008 by sisters Jeanette and Nicole Farren. Their decision
to create the business was a spontaneous one, according
to Jeanette.
“Nicole’s dog went to a local dog daycare centre at the
time. I still remember the conversation: I called her when
I was on the train to work and said, ‘Why don’t we do one
ourselves?’ It was quite random!”
While the initial idea was an impetuous one, once the
sisters had made the decision they approached it with
sound business sense, taking their time to find a location
in a high demand area, based on market research.
Today, in the new premises they moved to in 2015,
Diggiddy Doggy Daycare offers a day spa, a boutique and a
taxi service as well as day care. It even provides function
hire, to utilise (and monetise) the space on weekends
when the dogs are home with their families. Who hires
a dog daycare centre? Pet industry trainers, for one;
if they are teaching animal care to students, it can be
challenging to find somewhere with a licence for live
animals on the premises.
According to the sisters, the business is much like other
small businesses. “You’re dealing with the same things:
staff, services, products, philosophies. It’s the variants
like dealing with human beings and dogs as well that can
be challenging.”
Typically for a successful small business, the time came
where everything was running smoothly and a decision
had to be made – stay where they were or aim for a more
ambitious business model. Diggiddy Doggy Daycare
is doing the latter, and they’re currently developing a
franchise model which will launch in 2017. Expect to see
one near you soon.
PET ANGEL FUNERALS
Like Diggiddy Doggy Daycare, Pet Angel came to be
because the founder could see the need from a personal
perspective. Director Tom Jorgensen explains (while
walking his dog!) how a newly retired commercial builder
came to set up a pet crematorium:
“Need was the impetus. Need for respect, for grace and
dignity,” he says. “I’m an animal nutter – I’ve always had
dogs or cats or both. The way my last border collie, Sophie,
was treated, I wasn’t happy. I thought ‘I can do this better’
and here we are.”
1 2
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ANIMAL KINGDOMS
With a lifetime’s building and business expertise under
his belt, and a passion for what he was doing, Jorgensen
created a purpose-built facility. It includes a cremator
designed and built in Florida, a fleet of fitted-out black
vehicles, handmade caskets and urns, and what he refers
to as a chapel, a remembrance room where people can
spend time with their pet before a cremation.
It makes sense that people who treat their animals as
family members during their lives are going to want no
less at the end, and the business has been a success from
the start. Opening in March 2015, it’s now providing 50
cremations a week.
Of course, there is a darker side to the business, and
Jorgensen is frank about it.
“Staffingcanbeachallenge,becauseit’snotforeverybody.
It’ssometimesnotpretty,there’snogettingaroundit.There
isthataspecttoit.”
Nevertheless,hesayshefindsagreatdealofsatisfaction
inprovidingaservicetopeoplewhoaregrievingfortheir
pets–andthebusinessisgrowingat15percentamonth,with
anothercustomcrematoralreadyorderedandonitsway.
a vet practice, a grooming salon, a do-it-yourself (DIY)
dog wash, an adoption centre, pet insurance and a range
of other services.”
Greencross has a strong focus on the human aspect
of pet ownership, as they recognise this drives value
in the sector, even as volume is dwindling. Growth is in
premium products and services such as grooming salons,
insurance, and hotel and walking services. Hutchinson
likens our treatment of pets to how we treat small
children, and if we wouldn’t leave a small child at home
alone, why would we leave a pet?
Of course, it’s not just Australians and New Zealanders
who love their pets. The markets in the United Kingdom
and the United States are booming and it’s there
that Greencross looks for inspiration. It has strong
relationships with large players in those markets,
sharing ideas and innovations.
One of the latest trends is the use of technology,
Hutchinson adds, such as cameras that allow owners to
watch their pets at home. If their dog is doing the right
thing, owners press a button on an app and a mechanism
at home releases a treat!
What next? According to Hutchinson, what’s emerging
is Uber-style businesses designed to connect consumers
and providers with all the services pet-owners need, from
dog walking to sitting and more. Rest assured, whatever
you need for your pet is being developed right now,
even if you didn’t know you needed it.
1, 2. Diggiddy Doggy Daycare.
3. Pet Angel Funerals.
4. Pet Barn, Greencross Limited.
3 4
1
	Australian Veterinary Association, Pet ownership
statistics, ava.com.au, visited 11.10.2016
2
	RSPCA, How many pets are there in Australia?,
rspca.com.au, visited 11.10.2016
3
	Keating, E. City Farmers sale to Greencross
fetches $205 million, Smart Company,
17.06.2014, smartcompany.com.au,
visited 16.10.2016
4
	Greencross Limited, greencrosslimited.com.au,
visited 11.10.2016
ACROSS THE GREEN
Alongside the family and niche operators, pets are also
big business. When Petbarn and Greencross Vets merged
in 2013 the deal was worth an estimated $338 million3
and created the largest integrated, consumer-facing pet
care company in Australia and New Zealand.4
Today, ASX-listed Greencross Limited has over 350
business outlets across the two markets. And it’s growing
rapidly, both through acquisition of locations such as
vet practices and retail outlets and through putting new
stores on the ground.
David Hutchinson, Chief Customer Officer, says their
approach is effectively “to curate all the things that a pet
owner needs in an easily accessible way, a one-stop shop.
What we’re doing is creating locations that have a shop,
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MARKETING
The immediacy of social media that lets passion shine
through has been a key part of the success strategy of
premium camper trailer maker Patriot Campers.
Sylvia Pennington
Sharing the journey with camping enthusiasts on
social media has played a key part in the runaway
success of Queensland camper trailer manufacturer
Patriot Campers.
The company’s premium Australian-made trailers
retail for between $40,990 and $59,990 and have
amassed a following of almost 100,000 fans on
Instagram and Facebook.
TheventurehaditsgenesisthreeyearsagowhenPatriot
founderJustinMontesalvoandamatefoundthemselves
sketchingtheirdreamtrailerdesignoverafewbeers,ona
ChristmascampingtriptoQueensland’sStradbrokeIsland.
“We had bought a couple of camper trailers, the best
on the market at the time, but they were too long and too
heavy to take off road easily and they just didn’t suit what
we wanted to do. So we got talking about what we’d do
differently,” Montesalvo says.
Back home,hespentthenextthree monthsturning
theirwishlistintoa blueprintfor acompact,modular,tow-
anywheretrailerwithall thecomfortsand conveniences
of a ‘big rig’.Builtduring downtime athisBrisbane sheet
metal fabricationplant,theprototype wasready tobe put
throughits paces byJuly2014,onanother Stradbroke trip.
BUILDING A
HAPPY CAMPER
COMMUNITY
Justin and
Sarah Montesalvo
33
SUMMER 2016
NAB.COM.AU/BV
DISCOVERING SOMETHING SPECIAL
“The trailer was never meant to be a commercial product
– I was building a camper trailer for me and my mate, that
was it – so it had no branding and no name. But we were
getting stares and honks all the way up the highway,”
Montesalvo recalls.
“We pulled onto the barge and went upstairs to have
breakfast and when we came back down there was a group
of 20 or 30 people around the trailer and a couple of guys
underneath it, poking around, going, ‘What is this thing?’
“That’s when it clicked – that we’d definitely
got something.”
That ‘something’ ended up coming to the attention
of the editor of Camper Trailer Australia, who asked to
review the trailer and suggested Montesalvo enter it in
the Camper Trailer of the Year 2014 competition.
After carrying off first prize – “the judges were blown
away, the whole industry was blown away” – and taking
several orders at a trade show, Montesalvo decided it was
time to go commercial.
HITTING THE SOCIAL TRAIL
Fast forward two years and Patriot Campers has morphed
into a thriving enterprise occupying a 2,000 square metre
premises and employing 32 staff. Montesalvo has plans
to not only increase production capacity and shorten
assembly times but to expand into new overseas markets.
With a tiny marketing budget and no experience,
Montesalvo and his wife Sarah have become self-
taught social media aficionados, sharing their business
adventure and promoting their trailers to fellow lovers of
the great outdoors via Facebook, Instagram and YouTube.
Patriot was a paid Facebook advertiser for the first
six months but the business’s rapid accumulation of fans
soon made the expenditure unnecessary.
Updates are posted every day or two – frequently
enough to stay tight with Patriot’s community of campers
but not so often that they feel the company is being
rammed down their throats.
“Sarah and I are the only people who control our social
media,” Montesalvo says. “It’s been successful so far
because we’ve become the faces of the brand. I’ve never
marketed anything before but the social media traction
for Patriot has come from the fact that we’ve kept it real.
“We put up photos from our own camping trips, we
promote when things go wrong as well as right. It’s real
life stuff and people can see that we live and breathe it.”
STAYING ON TRACK
Keeping it real doesn’t mean anything goes. Patriot
aims for a family-friendly vibe and risqué photos, ripe
language and innuendo are off limits.
“We do put a lot of thought into what we post,”
Montesalvo says. “Everything’s got to be G-rated. We’re
very cautious about appealing to everybody.”
The immediacy and intimacy of the social channels
allow the family’s passion for their products to shine
through in a way traditional advertising just can’t.
“I can’t wait to get here every morning and I think that
shows through with everything we do. People meet me
when they come to pick up a trailer and they say they feel
like they already know me – I get it all the time now.”
A NAB business customer, Montesalvo says the
advice and assistance he’s received have helped the
business thrive.
“If I need something I speak to our account manager,”
he says. “He’s a great support and can help me with not
only our banking matters but can also put me in touch
with specialists from across the bank to help with our
investment needs.”
I’ve never
marketed
anything
before but the
social media
traction for
Patriot has
come from
the fact that
we’ve kept
it real.
34
SUMMER 2016
NAB.COM.AU/BV
	
VOX POP
SERVICE MAESTROS
What does it take to be a successful business owner in today’s service economy?
Business View asked the entrepreneurs interviewed in this issue and found it’s a
combination of hard work, persistence, good people – and looking to the future.
ON LEARNING THE VALUE OF HARD WORK EARLY
My parents have always been hard workers,
so seeing them work every day from sunrise to
sunset has been inspiring; they’ve become my role
models. My parents brought me and my siblings
up with the idea that hard work was part of life
since we were quite young, so we grew up with
that mentality embedded into our personalities
and lifestyles. This helped me view work as part
of life rather than as a burden, which I’ve found
really helpful throughout my professional life, and
especially in my entrepreneurial ventures.
Learning the value of hard work early helps you
realise that you need to set goals for yourself and
plan a way to achieve them. You learn that you’re
not entitled to things, but that you need to earn
what you want, and prove that you deserve it.
Developing a hard-working mindset from
an early age makes you more independent and
self-sufficient, which is a great quality to have
at any stage of life.
When you learn the importance of a good
work ethic while still young, you also learn
that making mistakes is a natural part of work
and therefore you understand their value as a
learning point.
Having my parents as role models gave me
the entrepreneurial drive to think about starting
my own company, and to realise that this wasn’t
a pipe dream but something real and achievable.
Ross Fastuca
Co-Founder and CIO,
Travelport Locomote
ON THE POWER
OF PERSISTENCE
Starting a company requires you to overcome
constant challenges. It’s very easy to give up after
being rejected, but if you keep trying, eventually
you’ll succeed. For example, when we were first
trying to get investors, our pitch deck evolved
constantly. Following each pitch, we took note of
every question an investor asked and worked out
solid answers. Sometimes it was just a matter of
articulating the strategy we had already developed,
other times it required days of brainstorming. Each
time we pitched we were able to communicate our
vision more clearly and the tough questions started
to dwindle. In fact, we ended up revising our pitch
deck more than 100 times.
Melanie Perkins
Co-Founder and CEO, Canva
35
SUMMER 2016
NAB.COM.AU/BV
BUSINESS VIEW
ONHIRINGTHERIGHTPEOPLE
Everything starts with your people and – thinking
about young, entrepreneurial companies – they
need two things: enjoyment of work and personal
growth. The only way to offer this is by having the
right values and by building your culture around
that. At foodora we work hard, challenge each other
and grow together; doing this with a passionate
group of people is the key to success.
Toon Gyssels
Co-Founder and CEO, foodora
ON LOOKING TO THE FUTURE
It’s about looking beyond service: getting to know
and understand the needs of the customer and
growing from there. What’s their motivation?
And how do we work together to get beyond
short-term goals?
Technology has an incredible reach in
2016 and we are dramatically expanding it.
Continually building on our interconnected
understanding of the tech ecosystem is key
to our growth internationally.
Travis Rice
Co-Founder and Director of Content,
LENS Immersive
ON BEING A FORCE FOR GOOD
We’re enabling people to get things done that they
never thought they could have done affordably
before. At the same time we’re enabling those
with great skills (such as making costumes,
baking cakes or even assembling flat pack
furniture) to earn an income when they might
not be able to work a conventional 9 to 5 job.
Often these workers are retired or perhaps
studying at university so Airtasker has created
new income streams for them, making it
much easier to continue using their skills
and making money in ways they never might
have been able to before.
Jonathan Lui
Co-Founder and COO, Airtasker
ON AUTHENTICITY AND HONESTY
Authenticity is critical because ultimately people
do business with people, not brands. The service
sector is built on connections, where people
help each other. We all have an innate ability to
identify when someone is not being genuine and
now more than ever message congruency is a key
element of business service. If you believe in your
service then customers will believe in you.
The second key area is honesty. How brave
are you as an entrepreneur? A successful
business owner is able to leave their ego at the
door and not hide behind the bravado that
entrepreneurial stereotypes can sometimes
perpetuate. We don’t always see the reality of
business ownership, and if we’re honest there
are many instances where it can be stressful
and just hard work. Honesty is important
because it gives the business owner permission
to reach out and ask for help when times are
tough or business is slow.
Leanne Faulkner
Founder  Owner, Fortitude at Work
BV-22 Summer 2016
BV-22 Summer 2016
BV-22 Summer 2016

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BV-22 Summer 2016

  • 1. ISSUE 22 SUMMER 2016 THE BUSINESS MAGAZINE OF NAB LONDON CALLING ‱ PHO-NOMENAL ENTERPRISE ‱ ANIMAL KINGDOMS THE SERVICE REVOLUTION – Our blooming service economy Canva’s CEO on taking on the world Behind the scenes with local innovators TASK MASTERSFrom moving house to moving millions. The Airtasker boys explain how they did it.
  • 3. CONTENTS 1 SUMMER 2016 NAB.COM.AU/BV BUSINESS VIEW ISSUE 22 SUMMER 2016 04 03 WELCOME Cindy Batchelor from NAB Business on the service economy. 04 NUMBER CRUNCH A snapshot of the key drivers in Australia’s service economy. 06 EMPORIUM A look at trade with our oldest trading partner, the United Kingdom. 07 ALAN OSTER The NAB Group Chief Economist on why Australia’s service economy is booming. 08 WEALTH The low road: balancing investment risk and return. 10 CEO SEAT Canva CEO Melanie Perkins on what's behind her $230 million success. 11 BALANCE Why mental health matters for business owners. 12 AT YOUR SERVICE Three entrepreneurs who are redefining service with digital innovation. 16 TRANSITIONS Miners are making the switch from fly-in fly-out to small business owners. 18 INNOVATION The Airtasker founders on how they turned small tasks into big money. 22 FAST MOVING FASTUCAS Hard work and hustle underlie the Fastucas' corporate travel revolution. 24 SHIPPING SEA TREASURES The Craig Mostyn Group has its eye on seafoodandtheChineseweddingmarket. 26 24 HOURS WITH
 JERRY MAI We spend a day with Jerry Mai as she brings Vietnamese pho to the people. 29 FRISKY BUSINESS Pets are big business and we speak to ownerstappingintotheanimalkingdom. 32 CAMPER COMMUNITY How social media became pivotal to Patriot Campers. 34 VOX POP What it takes to be a successful business owner in today’s service economy. 36 BACK STORY How Sean Ashby took underwear brand aussieBum to the world. 08 “You have to believe in your vision for a long time before anyone else will.” MELANIE PERKINS, CANVA 10 3229 A131040-1016 22
  • 4.
  • 5. 3 SUMMER 2016 NAB.COM.AU/BV BUSINESS VIEW WELCOME T he Economist once famously described services as anything sold in trade that could not be dropped on your foot. The rise and rise of Australia’s service economy has been an important development in our national economic story. Today the services sector represents 70 per cent of Australia’s GDP1 and continues to grow strongly. We’re exporting $66.2 billion in services and the value of total trade in this sector is now sitting at $142.5 billion – up 9.1 per cent on 2015.2 In addition to this kind of growth, it’s so encouraging to see the innovation that’s ever-present in this booming sector. And in this edition of Business View, we’re showcasing some of the best and brightest entrepreneurs who are lighting up the services arena. Melanie Perkins of Canva says technology has made geography almost irrelevant when it comes to creating and launching a successful and disruptive service business (page 10). Her online graphic design platform has become an international success story used by more than 10 million people in 179 countries and is a true example of how smart young Australians are exporting service excellence. Important information: While care has been taken in preparing this material, National Australia Bank Limited ABN 12 004 044 937 (NAB) does not warrant or represent that the information, recommendations, opinions or conclusions contained in this publication are accurate, reliable, complete or current. This publication does not purport to contain all relevant information and any statement as to any future matter is a present prediction of a possible future outcome, the accuracy of which cannot be guaranteed. Past performance is not a guide to future performance. In all cases, anyone proposing to rely on or use the information should independently verify and check the accuracy, completeness, reliability and suitability of the information and should obtain independent and specific advice from appropriate professionals or experts. The information is not intended as an offer or solicitation for the purchase or sale of any financial instrument or service. To the extent permissible by law, NAB shall not be liable for any errors, omissions, defects or misrepresentations in the information or for any loss or damage suffered by persons who use or rely on such information (including by reasons of negligence, negligent misstatement or otherwise). If any law prohibits the exclusion of such liability, NAB limits its liability to the re-supply of the information, provided that such limitation is permitted by law and is fair and reasonable. Publication of non-NAB related products or advertisements do not imply NAB endorsement of the products or services. NAB is not a registered tax agent. If you wish to rely on the general tax information contained in this document to determine your personal tax obligations, we recommend that you seek professional advice from a registered tax agent. © Copyright 2016 National Australia Bank Limited ABN 12 004 044 937. All articles are correct as of 17 October 2016 For Business View enquiries, please contact business.view@nab.com.au. Business View is printed from sustainably managed forests by Offset Alpine. nabbusiness is part of National Australia Group that includes National Australia Bank Ltd ABN 12 004 044 937 and MLC Ltd ABN 90 000 000 402 Business View Executive Editor Simon O’Connor Managing Editor Victoria Lea Art Director Ollie Towning Designers Ivee Caburian, Alison Williams Writers Nigel Bowen, Timothy Collins, Kimberley Gaskin, Tiffany Hutton, Tarnee Jacobson, Sylvia Pennington, Josephine Phillips, Rosemary Ryan, Adam Turner Legal Counsel Chris Jasek Business View is produced for NAB Business Banking by Six Black Pens. VIEW FINDER Want to receive business insights monthly direct to your inbox? Business View Connect provides online insights and economic updates to help you manage your business. Subscribe for free at nab.com.au/bv Likewise, Airtasker’s co-founders, Tim Fung and Jonathan Lui, are showing us how it’s done in the new economy (pages 18 to 21). Their business is built entirely on the idea that there’s a market for every service you can imagine – from installing your TV to chasing a possum from your roof. With $45 million in transactions a year, they’re living proof of the demand for services. The online delivery company foodora, online furniture and homewares superstore Zanui and virtual reality gurus LENS Immersive (see pages 12 to 15) also show that it pays to think differently about services and harness the power of technology to innovate and I believe we’ll see even more creativity in this sector as new ways of doing business emerge. Reskilling from more traditional industries to service-based business is another trend to consider as the service sector grows and develops. Trent Brown, for example, made the move from Rio Tinto’s iron ore mine to setting up his own plumbing business while Christine McKay, who worked as a crane operator in the resources sector for many years, called time on the fly-in Cindy Batchelor Executive General Manager NAB Business fly-out life and set up a Cheesecake Shop franchise in Perth (pages 16 to 17). It’s so exciting to see this kind of adaptability and left-field thinking in the services sector. It’s ultimately all about better service for customers – and as part of a service industry myself, I’m looking forward to how the sector develops in the future. 1 Department of Foreign Affairs and Trade, Trade in Services Australia 2015. dfat.gov.au, visited 16.10.2016. 2 Ibid.
  • 6. BUSINESS VIEW NUMBER CRUNCH BUSINESS VIEW NUMBER CRUNCH Australia’s exports of services rose to $66.2 billion in 20153 WHERE WE’VE COME FROM Since the days of Federation the services sector has accounted for a large share of the Australian economy. WHERE TODAY’S GROWTH LIES Our fastest movers (Growth over 2014-15)3 THE STATE OF PLAY FOR EXPORTS OF AUSTRALIAN SERVICES Our biggest customers ($A millions, 2015)3 One look at the numbers confirms what we all suspected: Australia’s service economy is booming. Our largest services exports (Five largest service exports in 2014-15)2 Education-relatedtravelservices 1. Butlin, N.G. 1962, Australian Domestic Product, Investment and Foreign Borrowing – 1861-1938/39 cited in Productivity Commission, Australia’s Service Sector: A Study in Diversity. pc.gov.au The value of total trade in services rose to $142.5 billion in 20153 As far back as 1900-01, services accounted for the majority of Australia’s economic output.1 Today the services sector represents a significant part of the Australian economy accounting for 70% of GDP.2 26.8% India 22.2% Taiwan 19.8% China 18.7% USA 12.7% France $18.2 billion $14.8 billion $4.7 billion $4.3 billion $3.6 billion Recreationaltravelservices Professionalservices Businesstravelservices Financialservices AT YOUR SERVICE USA $7,888 UK $5,012 India $3,038 NZ $4,144 China $9,840 54% 70% Today 1900-01 A SNAPSHOT OF AUSTRALIA’S SERVICE ECONOMY 9.1% 10% 2. Department of Foreign Affairs and Trade (DFAT), The importance of services trade to Australia. dfat.gov.au 3. DFAT, Trade in Services Australia 2015, dfat.gov.au 4 SUMMER 2016 NAB.COM.AU/BV
  • 7. 5 SUMMER 2016 NAB.COM.AU/BV 10,000,000 9.4% 7.0% 4.6% 4.5% WHAT’S DRIVING GROWTH IN SERVICES? WHO’S ON THE MARCH (Growth in industry value added by services industry, 2013-14 to 2014-15)5 Of service sector workers boast post-secondary qualifications.7 4. Budget 2016-17, Budget overview, budget.gov.au 5. ABS, Australian System of National Accounts, 2014-15, abs.gov.au 6. CEDA, Australia’s Future Workforce?, June 2015. adminpanel.ceda.com.au 7. Productivity Commission, Australia’s Service Sector: A Study in Diversity. pc.gov.au People are employed in the services sector in Australia.6 Outsourcing of professional services Rise of dual income households Technological advances enabling trade Rising Asian demand Increased life expectancy The low Aussie dollar APPROXIMATELY MORE THAN Household and business services jobs created in 2015.4 300,000 Information Media and Telecommunications Accommodation and Food Services Financial and Insurance Services Health Care and Social Assistance TODAY MOST AUSTRALIANS WORK IN THE SERVICES SECTOR – AND THEY’RE HIGHLY SKILLED Of Australia’s high-skilled workforce, including blue and white collar workers, work in service industries.7 Workers in the social services and business services industries boast degree qualifications.7 Of service sector employees work in high-skilled jobs.759% 54% 4 out of 5 2 out of 5
  • 8. BUSINESS VIEW EMPORIUM 6 SUMMER 2016 NAB.COM.AU/BV KEY RESOURCES The United Kingdom is one of the best places in the world to do business, according to the World Bank’s Ease of Doing Business Index. It has ranked 6th in the world in 2014 and 2015 thanks, in part, to the slashing of red tape, a promise to reduce corporation tax to 18 per cent, and an increase in the number and quality of apprentices available for hire.1 Online resources available to help Australian businesses enter the UK market include: ‱ British High Commission Canberra ‱ UK Trade and Investment ‱ HM Revenue Customs ‱ Confederation of British Industry ‱ London Chamber of Commerce ‱ Trading Standards ‱ Intellectual Property Office2 Capital: London Population: 65.1 million (2015) 2-way trade with Australia: $21.1 billion (2014-15) Australian exports: $8.6 billion UK imports: $12.6 billion Trade rank: The UK is our 7th largest two-way trading partner GDP: $US 2,761 billion (2016) GDP growth 2016: 1.9% Sources: UK fact sheet country brief, Department of Foreign Affairs Trade (DFAT), dfat.gov.au, visited 11.10.16. OUR OLDEST TRADING RELATIONSHIP ENTERS NEW ERA Australia has become increasingly attractive to British investors in recent years with United Kingdom investments accounting for the highest growth by value of any foreign investor over 2010-14. It’s a trend that has seen the UK become our second largest foreign investor. T I MO T H Y C OL L I N S DOINGBUSINESSINTHEUK ‱ UK business culture tends to be more formal than it is in Australia. Be mindful to not be overly familiar with people you have just met. ‱ The ‘old boy’ network is alive and well in many older companies, but business culture is becoming more progressive and egalitarian. ‱ Only use ‘English,’ ‘Scot,’ ‘Welsh,’ or ‘Irish’ when you are certain of a person’s heritage. The British tend to be proud of their national heritage. ‱ It is unusual for a UK company to agree to a ‘cold’ meeting. Be prepared to introduce yourself – and your proposal – a few weeks before the meeting date. MAJOR SERVICES EXPORTED ($A millions, 2015) Australia’s major services exports to the UK totalled $5,012 million in 2015, with travel ruling the roost. 1. Travel services .........................................$2,614 2. Other business services ..............................$813 3. Financial services .......................................$806 4. Transport services .......................................$287 5. Telecommunications, computer information services ...............................$286 6. Personal, cultural recreational ................$78 7. Intellectual property .....................................$71 8. Government services ....................................$43 9. Insurance pension services ......................$11 10. Construction services ...................................$1 MAJOR SERVICES IMPORTED ($A millions, 2015) Australia’s major services imports from the UK totalled $7,273 million in 2015, with travel at the top. 1. Travel services .........................................$3,121 2. Other business services ...........................$1,351 3. Financial services .......................................$655 4. Transport services .......................................$622 5. Insurance pension services ....................$517 6. Personal, cultural recreational ..............$402 7. Telecommunications, computer information services ...............................$318 8. Intellectual property ...................................$192 9. Government services ....................................$83 10. Maintenance repair services ..................$11 Source: DFAT, Trade Services Australia 2015, dfat.gov.au, visited 11.10.16. Services trade is a key element of our bilateral trade relationship, according to the Department of Foreign Affairs and Trade (DFAT), which described the UK as Australia’s third largest services export market in 2014-15. And the Australia-UK trading relationship looks set to continue its upward trajectory: the two governments recently committed to the establishment of a bilateral Trade Working Group tasked with preparing for a post-Brexit economy. 1 Elliott, L. Britain named sixth best country for doing business, The Guardian, 28.10.2015. theguardian.com, visited 16.10.2016. 2 Australian Trade Commission, austrade.gov.au, visited 11.10.16.
  • 9. 7 SUMMER 2016 NAB.COM.AU/BV OSTER OSTER While the 24-hour news cycle may talk down Australia’s transition from a commodity to service economy, the figures tell a different, and very positive, story. A L A N O S T E R N A B G R OU P C H I E F EC ONOM I S T T he good news is Australia’s transition from a commodity- to a service- based economy is doing a lot better than most people think. NAB’s September 2016 Business Conditions and Confidence survey shows that while the mining sector is contracting and retail and wholesale have weakened in some areas, there is real strength in domestic personal recreational services, including local tourism. This sector accounts for one third of the economy and it is booming. Taking into account trading, profits and sales, the current long-run average for business conditions is around +5 index points. In personal recreational services conditions averaged +18 in the third quarter. The other sectors doing particularly well are finance, property and business services (or real estate) which are sitting at about +17 index points, and construction, at +7 index points. BURSTING THE MANUFACTURING ECONOMY MYTH If we compare jobs by industry in 2008 with June 2016, manufacturing has lost about 160,000 jobs according to our data. Health and social assistance on the other hand, essentially private sector health, has added around 480,000 jobs. This sector is responsible for around 1.8 million jobs nationally while manufacturing doesn’t reach one million. Mining may be 9 per cent of GDP but it accounts for just 2 per cent of jobs. After health, the next biggest job increase areas are scientific and professionals, followed by education and training. EASTERN STATES RIDING HIGH ON SERVICE WAVE Unsurprisingly, when broken down by states, what we see is the reverse of the commodities boom. In 2016, New South Wales has seen business conditions average +16 index points. Victoria is +13 and the other mainland states tend to be around the +5 mark, except for Western Australia, which is -7 index points. In Western Australia, which is still in commodities mode, we expect a lot of employment to go when the liquefied natural gas (LNG) platforms are built; the rough rule is 14 people to build a platform and just one to run it. NON-DISCRETIONARY SERVICES THRIVE The service sectors that are booming can be divided along discretionary and non-discretionary spend lines. Most Australians will purchase anything they think they have to – and often that means services rather than ‘things’. Education and health are the strongest performers, and it’s no coincidence that they’re considered non-negotiable purchases for most Australians. Utilities are the same: you may complain that your power bill has gone through the roof but you will pay it. EXPORTING HEALTH AND EDUCATION Our biggest exported service is still tourism, mainly people coming from China to Australia. However, education is in the mix and growing with Chinese and other Asian nationalities coming to be educated and, while here, buying property. That trajectory shows no sign of slowing. Going forward, the Asian market is particularly interested in Australian health as well as education services. NAB’s survey suggests conditions in consumer services are averaging around +18 index points. However, for those in private sector pure health, business conditions are closer to +40. GLOBAL COMPETITION FOR SERVICE DOLLAR Most Western economies are making the same transitions as Australia. In the United States, health is where most jobs are being created and China is moving in a similar direction. Broken into three sectors, China’s primary production stands at about 10.5 per cent (Australia’s is 1.5 per cent) of GDP. Its secondary industries, including manufacturing and industrial production, used to be almost 50 per cent but today are nearer 40 per cent. And its tertiary, or service, sector was 40 per cent but is now over 50 per cent. It’s clear that China has that same driver out of industrial production into the service sector as Western economies. Here in Australia, while in some sectors and regions there is lag and times have been tough, the transition story is generally working well. Transport Utilities BusinessConditionsandConfidence (September 2016 Trend) Mining Wholesale Retail Manufacturing Construction Finance/Prop Business Rec. Personal All -20-25 -15 -10 -5 0 5 10 15 20Conditions Confidence MY Source: National Australia Bank – September 2016
  • 10. WEALTH 8 SUMMER 2016 NAB.COM.AU/BV K I M B E R L E Y G A S K I N Corporate bonds Considered a sound fixed-term investment (unless you decide to sell), corporate bonds generate regular income and will return your principal upon maturity. You’ll generally receive interest that can be fixed or floating. You can buy corporate bonds through a public offer or through a securities exchange. Read the prospectus carefully to make sure you understand the key risks and timing of payments. Remember that although bonds are considered less risky than shares, you might not get anything back if the company goes broke. They’re also unlikely to increase in value during your investment. Shares If you’re looking for an ownership interest in a company, shares can be a solid long-term investment. As a growth asset, shares increase in value, generate income from dividends, and are easily traded. Keep an eye on the market and economy. Dividends are subject to company performance and can rise and fall dramatically. Buying and selling shares requires careful analysis – there are many ways to go about it, so talking to a broker or financial planner should be your first port of call. Investment property Property is generally considered to be a safe capital growth investment. Even relatively affordable properties are likely to increase in value over time. There are monthly rental returns and, if your property is negatively geared, the additional deductions may be able to offset tax on other incomes. Property is one of the few investments that can be insured against risk, like fire and damage. However, unlike other investment options, property incurs plenty of one-off and ongoing costs: stamp duty and other taxes, legal fees, maintenance, rates and rent-free periods to name but a few! THE LOW ROAD: BALANCING INVESTMENT RISK AND RETURNEvery business owner needs a plan for investing their profits effectively – and in a low interest rate environment, it’s time to start looking for return. W hen your business is in growth mode, it’s exciting to see funds start to build in your business account – rather than being constantly drained away. But with success comes a new conundrum: how should you invest your profits to build long-term wealth? It can be tempting to let your proceeds accrue in a bank account – but there are other options that combine security and wealth building. Selecting a range of investment options can help you manage risk and generate income. Iain Rogers, General Manager, Wealth at NAB, says running a successful business involves ensuring invested capital works hard. “This can also be true when planning to maximise personal wealth,” he comments. With the right research and advice – and some strategic smarts – business owners can afford to invest their surplus cash. And with interest rates at a low, it’s a good time to look at some of the other investment structures on the market. Says Rogers: “Investing successfully in any area requires balancing risks, and there are numerous options available that control the downside while delivering higher yields. But these options should be undertaken with advice.” THREE INVESTMENT ALTERNATIVES Whether you’re thinking about investing a little or a lot, there are a range of different investment options to help you reach your long-term financial goals.
  • 11. BUSINESS VIEW 9 SUMMER 2016 NAB.COM.AU/BV MANAGING RISK AND RETURN As a business owner, it’s critical to have a robust strategy in place to help shape your investment decisions. Think about your short-term (one to three years) and long-term (three to five years) goals and the financial return you’d like to achieve. Working closely with a financial planner can really help you identify your objectives, find the right strategy and solutions – and stay on course. Rogers says selecting investments is just one element of a successful wealth plan. “Ensuring the correct ownership structures and asset classes are held will have a major influence on outcomes,” he adds. Finding the right balance of assets to deliver the returns you need can be a challenge. Generally, a combination of growth assets (like shares) and defensive assets (like bonds) is a popular way to go. Decide how much you’re willing to invest in the steadier, defensive assets versus the riskier, higher growth assets. Factor in market volatility for your stage of life, and you should be able to determine how much you can afford to invest. “Understanding and sticking to investment timeframes allows for more certainty in investment outcomes, and can moderate the impact of market volatility,” says Rogers. GETTING THE BALANCE RIGHT There are many ways to spread the level of risk across your portfolio. For example, perhaps you want to invest your money across a range of growth and defensive assets. In this case, if your growth assets underperform, while your defensive assets perform steadily, the impact on the overall value of your investment portfolio will be reduced. Another way is to invest in a range of markets. You could also use several different investment managers to provide different, yet complimentary, market insights. Comments Rogers: “Not having all of your eggs in one basket is still sage advice, and applies to asset classes and countries, investment managers and investments themselves.” All growth assets carry varying levels of risk, but as a general rule look for assets that have the ability to grow in value, give you easy access to funds, and produce additional income over time. “There are a range of different investment options to help you reach your long-term financial goals.” Any advice contained in this article has been prepared without taking into account your objectives, financial situation or needs. Please consider whether the advice is appropriate for your circumstances.
  • 12. 10 SUMMER 2016 NAB.COM.AU/BV BUSINESS VIEW CEO U sed by more than 10 million customers in 179 countries, including corporate teams from Lonely Planet and Huffington Post, Canva has attracted $US27 million in backing from high net worth individuals and investment funds. The venture is Melanie Perkins’ second foray into the startup scene – at age 19 she launched Fusion Books, an online design system for schools to create yearbooks, which has become the largest publisher of its kind in Australia. At 29 years old you’ve already founded two successful enterprises. Was doing your own thing your destiny or did a more conventional career path ever beckon? I think I probably wanted to be almost everything at some stage when I was growing up. Throughout high school I interned at a lot of different places – a PR agency, a radio station, a sports store, through to spraying on tattoos at carnivals. I chose my degree in Arts and Commerce to give myself as many options as possible. What gave you the impetus – and the courage – to start a business so young? While I was studying, I was tutoring students to use programs like InDesign and Photoshop. Millennial entrepreneur Melanie Perkins is the powerhouse behind Canva, an online graphic design platform which allows anyone to create their own professional quality designs. But I noticed most people found them hard to learn and harder to use. It was then I realised the future of design being entirely different – online, collaborative and simple. My boyfriend and co-founder, Cliff Obrecht, and I were university students, with no money and no engineering or business experience. We didn’t know what a startup was, let alone know anyone who was in one. We just had a problem that we wanted to solve and an absurd amount of determination. I don’t really consider it to have been a risk or something that needed courage. I was at uni and thought that if things didn’t work out I could always go back and finish my studies. You’ve turned Canva into an international operation that was valued at $230 million in mid-2015. What attributes are needed to convert a smart proposition into a viable enterprise? Sheer determination! I was fortunate to learn how powerful it could be so young in life. I’ve poured my heart and soul into everything I’ve done and I’ve come to realise that if I work really, really hard I’ll usually succeed – or at least learn a lot along the way. Canva has attracted more than $US27 million in funding from venture capitalists who turn down hundreds of pitches each year. What’s the secret to getting them to get out the cheque book? Persistence. Our first round of investment was raised after a year of meeting investors, six months in San Francisco and 100 revisions to our pitch deck. We were really struggling to get things rolling and it took an incredible amount of willpower to see it through. There are hundreds, if not thousands, of rejections for anyone doing a startup: investors, potential team members, early customers. Every single time we experienced a rejection we revised our offering to answer the questions or concerns that had been raised. You have to believe in your vision for a long time before anyone else will. Not so long ago, Australia was considered the end of the earth for wannabe IT entrepreneurs. Has this changed and is it now possible to launch and run a global high tech company from Down Under? The exciting thing about technology is it has made geography almost irrelevant. The United States has been our biggest market since the day we launched and we had users signing up from all over the world very early on. We’re available in eight languages and plan to be in 20 by the end of the year – all out of Australia. ‘SHEER DETERMINATION’ BEHIND $230 MILLION SUCCESS S Y LV I A P E N N I NG T ON
  • 13. 11 SUMMER 2016 NAB.COM.AU/BV BALANCE F or years, Leanne Faulkner was the kind of entrepreneur the media loves to celebrate. After a series of demanding corporate jobs and a stint lecturing in business at a university, she started her own business. “One of my children suffered from eczema and none of the standard treatments were working,” Faulkner recalls. “So I made some soap from goats milk, which cleared it up. “I made some more and supplied it to some local shops. After a while, my husband said, ‘You should take this seriously. Write one of those strategic plans you’ve spent years teaching others how to create’.” In 2004, Billie Goat Soap was officially launched. “I went from running the business from my kitchen table to having a factory, employing 20 people during peak periods and supplying 2,000 retailers,” she says. “The company was winning awards and I was being featured in the press as an up and coming entrepreneur.” Then in 2011 sales slumped and so did Faulkner. “It seemed like the business Leanne Faulkner was riding a wave of success building a fast-growing start-up until the business slowed and the stress took its toll on her health. Now she’s helping others learn how to cope with the pressure. was failing, which I interpreted as meaning I was a failure. I’d sit crying in my car trying to get myself together before walking into the office. I was obsessed with trying to turn things around and ignored my family. “I wasn’t sleeping. Eventually, I broke down and couldn’t face going in anymore. I was ultimately diagnosed with situational depression. Luckily, my husband had a business background and was able to take charge for three months while I recovered.” Faulkner sold Billie Goat Soap in early 2012. Given her experience, she then decided to target the underserved market of small business owners facing mental health challenges. “I had spent lots of time Googling late at night, looking for assistance for those in my situation,” Faulkner says. “There were lots of options for employees but hardly any for business owners. Plus, a lot of the usual solutions aren’t on the table for those running a business. It’s often more difficult for a business owner to take some stress leave than an employee. Usually, N IG E L B O W E N they don’t have access to an employee assistance plan.” Faulkner observes some business owners make things even worse by buying into the myth that they need to be all things to all people. “Entrepreneurs are portrayed as always being resilient go-getters. I know I had to spend a lot of time coming to terms with not living up to that stereotype.” Although there’s been little research conducted on the mental health of Australia’s small business owners, Faulkner believes it’s no better and possibly worse than that of the general population. “We know that every year one in five Australians will confront a mental health issue. Over half of small business owners are males in the 30 to 50 age group and this is a demographic that has seen an increase in suicide rates.” In 2013, Faulkner launched Fortitude at Work. Since then she’s worked with those who work with business owners – solicitors, accountants, the Australian Tax Office. “If a small business owner is not coping well, everyone notices: their employees, suppliers, customers and bank manager. My business is about training those dealing with small business owners. I provide education about what they can do to help. I also spend a lot of time lobbying for more mental health resources to be made available to small business owners.” Support is available for those who may be distressed by phoning Lifeline 13 11 14 or beyondblue 1300 224 636. TAKE THE PRESSURE DOWN ADVICE FOR BUSINESS PEOPLE UNDER STRESS 1. RECOGNISE THAT YOU’RE NOT ALONE Lots of other business owners have gone through the same thing, even if it’s something many are reluctant to disclose. 2. REALISE THERE IS HELP AVAILABLE You can talk to friends and family members. You can consult your doctor. There are organisations that devote a lot of attention to workplace mental health, such as Heads Up and the Black Dog Institute. There are also more general options, such as Men’s Shed Australia and Lifeline. 3. BE AWARE THERE’S A LOT MORE AWARENESS NOWADAYS ABOUT MENTAL HEALTH ISSUES For example, if you contact the Australian Tax Office and explain you’re going through a tough time, they may be able to do things such as shift deadlines for BAS payments. Finally, be aware mental health challenges are survivable.
  • 14. 12 SUMMER 2016 NAB.COM.AU/BV As Australia embraces digital, the business services sector is booming. Nimble and tech-savvy service providers are helping businesses reach their customers by bridging the gaps. Adam Turner A s the distinction between the physical and digital worlds continues to blur, a new breed of business service provider is making a significant mark ­ on the Australian corporate landscape as companies around the country strive to meet the needs of the 21st century customer. A number of innovative Australian businesses are paving the way here as last-mile service providers – whether by helping manufacturers sell furniture online, enabling restaurants to home-deliver fine dining or equipping businesses to reach customers through virtual reality. Rather than just shifting boxes or pumping data across the country and around the world, these last-mile service partners are redefining what service is. Instead of tackling individual pain points in service delivery, they’re building holistic platforms to handle every aspect of engaging and delighting the end customer. They’re finding success by truly understanding the needs of their business partners and delivering them cutting-edge services. DIGITAL
  • 15. 13 SUMMER 2016 NAB.COM.AU/BV T OON GY SSEL S CO-FOUNDER AND CEO, FOODORA HAVING LIVED offtakeawaypizzaduringlatenightsin theoffice,ToonGysselssawanopportunityforAustralian restaurantstoofferhomedeliverytoo–buttheywould needabusinesspartnerlikefoodorainordertodeliver thatexperience. Founded in Germany, foodora launched in Sydney in 2015 with the promise of 30-minute delivery with a flat $5 delivery rate. It has since expanded to cover Melbourne and Brisbane, catering to restaurants looking to offer quality meals, including catering for dinner parties and the romantic night in. Acting as a last-mile service provider comes with its challenges when you’re working in a sector which traditionally hasn’t required a business partner in order to serve its customers. Working with food also demands higher levels of service than if you were simply moving parcels from door to door. CHANGING THE PARADIGM While the first 50 restaurants took a long time to win over, foodora now partners with more than 1,000 across the country and deliveries are growing 35 per cent month on month. The company’s success required both restaurants and customers to change the way they think about home delivery, says Gyssels, foodora’s Co-Founder and Chief Executive Officer. “When you talk about food delivery it usually has bad connotations, so a restaurant’s first response was often ‘Why would we want to look like a mediocre takeaway pizza shop?’ and you can’t blame them,” Gyssels says. “Their biggest concern was how it reflected on their brand – including the quality of the experience that home delivery could provide and whether food would be transported the right way.” Apart from the issue of reputation, restaurants have also traditionally avoided home delivery due to the complexities of managing it efficiently. This required foodora to sell both restaurants and their customers on the convenience of its delivery service. UBER SERVICE foodora’s platform consists of three main apps: one letting customers place orders, a second letting restaurants receive orders and a third letting drivers accept delivery jobs similar to the Uber model. Tackling a specialist sector like food delivery requires more than just technical know- how, so foodora also employs ex-chefs and others with first-hand experience in the hospitality industry. “You absolutely need this kind of industry-specific expertise, in whatever field you tackle, otherwise many of your assumptions are going to be wrong,” Gyssels says. “You might be smart and have a good idea that works in theory, but you still need to engage people who have experience at the front line.” foodora’s valuepropositionforrestaurants isn’tjust outsourcing its homedeliveryservice,it’s alsomaintaining aneffectiveonlinepresenceincluding thecomplexities of searchenginemarketing andoptimisation. “We are bringing these restaurants fully into the online world,” Gyssels says. “A lot of them already have websites and some are really good at managing social media, but they still struggle when it comes to things like search engine marketing and optimisation. We have dedicated people to handle these at foodora to ensure potential customers find our restaurants.” Regardless of the sector you operate in, anyone looking to tackle business services must consider scalability from the very beginning, Gyssels advises. “You can’t just rely on simple spreadsheet calculations; scalability is about more than operations and processes,” he says. “Your approach to scalability needs to be very practical and hands-on, thinking about how you’ll keep the business running smoothly once things take off and you’re ready to take it to the next level.”
  • 16. 14 SUMMER 2016 NAB.COM.AU/BV Y OSU K E H A L L MANAGING DIRECTOR, ZANUI AFTER FIGHTING his way through crowded homemaker centres on the weekend only to wait weeks for his new sofa to be delivered, Yosuke Hall knew there must be a better way for furniture makers to reach their customers. Hall joined Zanui in 2012 with the aim of changing the way manufacturers approach retail, and helped establish an Australian online furniture and homewares superstore which today offers some 40,000 products across 500 brands. Now managing director, he says one of the biggest challenges in getting Zanui off the ground was convincing brands to diversify away from traditional bricks and mortar sales channels to the advantages of online. “When we started, online furniture retail was still in its infancy and no-one was doing it to any sort of real scale,” Hall says. “We had to build up a critical mass of brands in order to make Zanui an attractive destination for online shoppers.” “One of the early staff members we brought on was a buyer who had worked with one of the big retailers and was also interested in the shift towards online. A few people like that, who really know the industry, can save you from spinning your wheels – especially in the early days.” A FULL-SERVICE RETAIL PARTNER While some furniture and homewares makers could already see the potential of online as a sales channel, others were apprehensive and concerned it would undermine business with their offline retail partners. The key to winning them over, Hall says, was positioning Zanui as a full-service retail partner rather than just simply an online shopfront. “We work with a lot of suppliers, wholesalers and partners who have tried starting a website of their own, so they appreciate that there’s much more to it than simply getting up a few web pages,” Hall says. “Search engine marketing and optimisation are a science in themselves, but even that’s only a small part of the total package.” Zanui also handles logistics, arranges deliveries direct from the manufacturer to shoppers via an online portal open to suppliers, plus maintains its own warehouse – buying some brands into stock as well as offering a private label range of Zanui furniture. On top of this it takes care of customer service and post-sales support, such as dealing with delivery issues and returns. QUALITY SERVICE KEY The business has mapped out its entire process from a customer placing an order to the parcel arriving in their hands, Hall says, in order to offer a smooth customer experience. It also relies on a wide range of key performance indicators to keep its finger on the pulse and continually improve processes. “Above all else, customer service is one area that we pride ourselves on,” Hall says. “If customers have a bad experience with online purchases they’re very quick to write about it, whether it be on social media or on review websites. “As an online business, we need to make sure that our customers – manufacturers and shoppers – have a fantastic experience because we’re in a very competitive market and it’s a key way to differentiate ourselves.”
  • 17. 15 SUMMER 2016 NAB.COM.AU/BV DIGITAL T R AV IS R ICE CO-FOUNDER AND DIRECTOR OF CONTENT, LENS IMMERSIVE COMBINING THE talents of Hollywood with cutting- edge online video delivery, LENS Immersive ensures businesses don’t lose their way in the brave new world of virtual reality. An explosion in budget headsets and 360-degree video cameras has significantly lowered the barrier to entry for businesses looking to employ virtual reality (VR) to reach customers. It’s tempting for businesses to jump in the deep end but, as with any content creation, success requires both the tools and the talent, says LENS Immersive Director of Content Travis Rice. Two years ago Rice and fellow LENS Immersive co- founder Yan Chen saw an opportunity to help businesses deliver high-quality virtual reality experiences, from assisting with 360-degree video production to providing a secure and bandwidth-efficient content delivery platform. The key to serving these businesses is to truly understand what they and their customers need and value, Rice says, so you can become a valued partner rather than simply a basic service provider. SERVICE ON STEROIDS “VR is an emerging field and we’re still doing lots of customer education,” Rice says. “Over time we’ve found more and more businesses are coming to us asking how they can save on bandwidth and deliver 4K content to users stuck on very low internet speeds, so that’s become our primary focus. “They’re also looking for a secure way to deliver content and monetise it, so we’ve pivoted to address those needs and become a full virtual reality platform with a compression technology which allows them to offer a great VR experience over a slow internet connection.” With a wide range of VR headsets hitting the market, LENS Immersive aims to be technology agnostic – educating businesses on the options at their disposal and helping them choose the best tools for the job. Rather than just helping businesses create and deliver VR content, LENS Immersive also strives to ensure end users have a great experience so they’ll come back for more. This includes addressing the issue of motion sickness which some people experience when watching some VR content. It’s a queasiness that’s often due to low-quality video, headsets or delivery methods, Rice says, which is where LENS Immersive’s production and delivery experience can make the difference. AHEAD OF THE CURVE Delivering engaging virtual reality content is more than a technological challenge, and Rice and Chen call upon their own experience in artistic direction, curation, and movie and videogame production. LENS Immersive also works with film production teams and engages a wide range of content production advisors from around the world. Building up this global network of advisory teams from day one has helped the business to think global – keeping its finger on the pulse of the industry, expanding into new territories and recognising the full value it can offer to customers, Rice says. “This global network alsohelpedus seethebig pictureandcometotheearlyrealisationthatwe’re aninfrastructurecompanyratherthanjusta content productioncompany,”hesays.“Wearen’tjustbuilding a platformfordeliveryof video,we’rebuilding core infrastructureforthenextphaseof theentireinternet. “Once you can see where you fit into the big picture it’s easier to spot the opportunities to meet a genuine need and become an important partner to your customers.”
  • 18. STRAP MINERS MAKE THE SWITCH FROM FLY-IN FLY-OUT TO SMALL BUSINESS OWNERS Sylvia Pennington 16 SUMMER 2016 NAB.COM.AU/BV
  • 19. 17 SUMMER 2016 NAB.COM.AU/BV TRANSITIONS T heslowdowninAustralia’soncebooming resources industryhasseenthousandsofmining workers begintolookelsewhereforopportunities.The smallbusinesssectoroffersawealthofpossibilities for thosepreparedtobypassthecertaintyof a paychequeand tackletherisksandchallengesofsailing theirownship. Trent Brown has been sailing his own ship successfully since late 2015. The 28-year-old West Australian is the proprietor of Southwest Plumbing and Gas, a domestic and commercial plumbing business based in Dunsborough, in the Margaret River district south of Perth. Brown spent the previous five years working nine days on, five days off, as a fly-in, fly-out (FIFO) deep watering technician for Rio Tinto at its Marandoo iron ore mine in the Pilbara, 1,000 kilometres north east of Perth. While the remuneration and entitlements were attractive, the long hours and isolation took a progressive toll. “It got to a stage where I had to go, ‘Righto, what do I want to do, where do I want to be?’” Brown says. “It was a big call leaving Rio because of the salary and package they offer – you were essentially locking yourself into a guaranteed income, work-away scenario. But it was pretty stressful because of the amount of time that you actually spent away. You’re drawn away from your mates, your hobbies, your family 
 eventually I just said, ‘That’s enough, I’ve done it’.” LAYING THE GROUNDWORK Brown spent 18 months working and making contacts during his stints back home before reaching the point where he felt his plumbing business was sufficiently established for him to make a go of it full time. He says the extensive training and large project experience he received at the mine site helped provide him with the skills and confidence to tackle larger contracts under his own steam. The bulk of Southwest Plumbing and Gas’s work is in the new housing market and industrial spheres, rather than routine maintenance. “I did learn a lot from working away, particularly in the areas of safety and planning,” Brown says. “In the mines, everything is focused on safety and there were opportunities for further education – I completed my Master Plumbers qualification while I was with Rio and that’s helped me understand more about running a business and planning and executing major jobs.” Stepping away from a secure income for the uncharted waters of self-employment and small business can be nerve wracking, but once you’ve decided to do so, backing yourself is paramount, Brown believes. “When you start running your own business, you don’t know – I could be busy for the next four months, or steady, or quiet,” he says. “Obviouslytakingthatbigstepforwardisahuge commitmentsoyou’vegottohavethedrivetosay,‘I’mdoing it,I’vegottomakethiswork,thisiswhereIwanttobe’.” FROM CRANES TO CHEESECAKE Former crane operator for the resources sector Christine McKay shares Brown’s optimism and can-do approach. She called time on FIFO work two years ago, after more than a decade on mine sites across WA, and is preparing for her next chapter in the small business sector, as the owner of a Cheesecake Shop franchise in the Perth suburb of Ellenbrook. Purchased earlier in the year for around $400,000, the store is slated to open in late 2016 and will employ up to 10 staff, as well as McKay herself. While the scope of work will be very different from her previous gig, the long hours and hard yakka she may be required to put in, particularly in the early days, hold few fears for McKay. “I’m used to doing 12 hour days and 12 and a half day fortnights,” she says. “I just want to get it going because I think we’re going to do really, really well. We’ve got the right spot and everything in place and now we’re waiting to make it happen.” Purchase of the franchise was financed through NAB. The assistance and advice provided by NAB business banker Jason Sutherland has been helpful in the set-up stage, says McKay. “We’ve been with NAB for a long time as personal customers and it was a natural choice to go with them as a business customer,” she says. “They’re a good team and have been very supportive and cooperative.” With the mining sector losing steam, the small business sector is offering a wealth of opportunities to former workers in the industry who see the possibilities in starting their own enterprises.
  • 20. 18 SUMMER 2016 NAB.COM.AU/BV INNOVATION I nJune, Seven West Media led a funding round for Airtasker that raised $22 million. That brought the total amount of capital the company has raised since launching in 2012 to $32 million.1 Its co-founders, Tim Fung and Jonathan ‘Jono’ Lui, have certainly come a long way since the days when they were ferrying customers’ fast food orders around. AMAYSIM GRACE Tim Fung and Jonathan Lui met while studying at the University of New South Wales. It wasn’t surprising they were around the same age. However, they were amazed to discover how much else they had in common. “We’ve both got two sisters. Tim’s father and both my parents are Hong Kong Chinese. We were both born and raised in Australia,” Lui says. More importantly, while Fung studied marketing and Lui telecommunications, they were both ambitious and entrepreneurial. Post graduation, both went to work for prestigious corporations offering glittering career paths. But they soon resigned themselves to becoming the first hires at a scrappy startup. “Tim was working at Macquarie Bank. He quit to be the first employee at Amaysim, the Australian telco founded in 2010 that now turns over more than $200 million a year,” says Lui. “Then he convinced me it was a great opportunity and that I should leave IBM and join the team, which soon grew to around 150 people. We both learnt an incredible amount from the five founders of Amaysim. Several of them are still our mentors to this day. We helped the Amaysim guys build their business up. Then, in late 2011, we resolved we would try to do the same thing they had.” The gruelling task that moving house can be was the inspiration for the online marketplace startup that’s now grown to be a household name and is attracting big investment. Business View spoke to the co-founders of Airtasker, Tim Fung and Jonathan Lui, about their journey. Nigel Bowen BIG MONEY TURNING SMALL TASKS INTO
  • 22. 20 SUMMER 2016 NAB.COM.AU/BV INNOVATION MOVING ON The now legendary Airtasker origin story involves the then 28-year-old Fung asking the then 27-year-old Lui, along with several of his other mates, to help him move house. “Weallagreedtohelpoutbutwekeptsaying, ‘We’reallbusy.We’dprefertojustgiveyousome moneysoyoucanpaysomeonetomoveallyour stufftoyournewflat’,”saysLui.“TimandI thought,‘Actually,that’snotabadideafor abusiness’.” “We did some research and discovered nobody seemed to be offering anything like it in Australia. There was TaskRabbit, which had launched in 2008 in the United States, but it was operating more as a labour hire agency, effectively employing people then selling their services. “Wedidn’tviewthatasascalableproposition, atleastnotforpeoplelikeuswithlimitedaccess tocapital.Wedecidedtogowiththemarketplace model.Peoplewouldposttasksonourplatform andotherpeoplewouldbidonthem.” Starting an online marketplace may seem a logical enough business idea in 2016. However, as Lui points out, that wasn't the case in a country that was then rather less focused on agility and innovation. “You have to remember that this was before startups became cool,” he says. “It was before anyone had heard of the sharing economy. There was only eBay. That’s how we sold our idea, as the eBay of tasks, where we’d take a 15 per cent cut of the transaction.” Fung and Lui tapped friends and family for funds to turn the lights on at their new venture. They then found their Amaysim background allowed them, somewhat to their surprise, to secure $1.5 million early on. “At that point Airtasker wasn’t much more than a PowerPoint presentation,” Lui laughs. “It was unheard of in those days to raise that kind of money. But there were some investors who knew us from our time at Amaysim. They chose to back us.” TEETHING PROBLEMS Airtasker’s co-founders did pretty much everything in the early days. That included the tasks posted on their platform. “We’d be driving around Sydney at 2am, picking up KFC and delivering it to people’s houses,” Lui recalls. “That was good because it gave us an understanding of what the pain points were for people using Airtasker. It provided insights into how we could improve processes, make the experience smoother for both those posting and providing the task.” “We're not supplanting a labour force. We're creating a whole new industry.” JONATHAN LUI Those insights were useful but they didn’t provide much help with the existential threat that soon confronted Airtasker. Lots of people had signed up to do small jobs but few were being posted. It wasn’t a surprising outcome given Airtasker was a new business with a limited marketing budget attempting to get people to do something they had no experience doing. Nonetheless, it led to what Fung views as an embarrassing and costly mistake. Lui prefers to remember it as a valuable learning experience. Fung and Lui decided to abandon their original business model. They hit up large companies, including some run by personal friends, for work. Soon there were plenty of jobs coming in – such as huge letterbox drops for real estate companies – but managing them soon turned into a nightmare. Most of the people doing the tasks – chiefly school and university students – were honest and hardworking. But not 100 per cent of them. Vetting all those entrusted with completing tasks was impossible. When, to take just one real-life example, boxes of pamphlets were discovered to have been thrown in a bin rather than delivered, Fung and Lui were left to explain how that happened to angry clients threatening not to pay.
  • 23. 21 SUMMER 2016 NAB.COM.AU/BV “It was a good learning for us,” Lui says. “We went from doing single food deliveries to co-ordinating the logistics for 40 people doing flyer drops across Australia. I saw it as an experiment. But, yes, it became clear we needed to get back to being eBay rather than trying to manage a retail store. Still it set us up to partner with large businesses later on in a way that didn’t involve Tim and I taking responsibility for ensuring tasks were completed satisfactorily.” HITTING ON THE MAGIC FORMULA After its early misadventures, Airtasker acquired a couple of Australian competitors – Occasional Butler and TaskBox – that had launched around the same time. It entered into some lucrative partnerships with other ‘digital economy’ businesses, such as EatNow, DeliveryHero and UberX. It also joined forces with News Corp’s CareerOne, one of Australia’s biggest employment websites and part of Monster Worldwide Inc, the world’s largest job network. “We now share the tasks advertised on Airtasker on the CareerOne site,” Lui says. “The people going on CareerOne are between jobs and looking to earn some money, so there’s an obvious synergy there. With the likes of EatNow or DeliveryHero, we can help supply the labour those companies need to, for example, provide merchandise to restaurants or deliver food. That sometimes involves us tweaking our offering. We may need to offer food delivery jobs at a set fee of $10 rather than have people bid on them. Nonetheless, it’s still the company and the person delivering the food interacting in that eBay-like way.” ONE FINAL TASK: WORLD DOMINATION It’s been a while since Fung and Lui have had to deliver fried chicken or oversee leaflet deliveries. “We recently welcomed our 600,000th registered member,” Lui says. “We’ve got about 35 staff. We’re seeing $45 million of transactions a year.” In a sense, within four years of launching, Airtasker has succeeded in establishing itself as the 800-pound gorilla of Australian task marketplaces. “Yes, it would be possible for a local company to launch a competing online marketplace. Or for one of the big foreign players to try to expand into Australia,” Lui says. “That’s not something we’re complacent about, which is why we’re always trying to stay two steps ahead of the game. However, we’ve developed a lot of intellectual property around how to make this kind of online marketplace work. “We’ve assembled a great team. We’re building brand awareness. Plus we’ve got more than 200,000 reviews of people who’ve completed tasks. That helps people have peace of mind using our platform. They can know they’re hiring someone who has proven themselves to be responsible. Given all that, I think it gets a little harder for a competitor to come into the market.” If the big players that have invested in Airtasker – Seven West Media, NRMA, Australian venture capital fund Exto Partners and Shanghai-based Morning Crest Capital – have their way, it will enter other online marketplaces of the world. While Lui’s not about to show his hand about his company’s plans for world domination, he does admit the “blue-sky vision is to be a global business”. “Australia is a great market for us. It’s a wealthy country. It has a good mix of higher-income, time-poor people and underemployed but skilled people looking to earn extra income. That is not necessarily the situation in other parts of the world. Plus, if we expanded overseas there would be language and cultural barriers. “We’d need to develop different services and features tailored to local markets. But none of those are insurmountable problems. As you’d expect, we’re looking at the two markets everyone gets excited about – the US and Asia. The dream is to expand within the next few years.” 1 Kimmorley, S., Airtasker just raised $22 million, and now it wants to become an Australian household name, Business Insider Australia, 07.06.2016. businessinsider.com.au, visited 16.10.2016. CREATING A NEW INDUSTRY As Lui sees it, Airtasker is a force for good. “The first point I’d make is that we’re not supplanting an existing labour force,” he says. “What we’re doing is creating a whole new industry. A few years ago, you couldn’t get someone to come around to your house to change a light fitting or chase a possum out of your roof – not easily and at an affordable price anyway. Now you can. “Secondly, there are a lot of people that find it difficult to access a conventional job. That can be because they’re an older person or an inexperienced, younger one. Airtasker provides a way for those people to be part of the workforce, to earn money and stay active. “When we started Airtasker it was mainly school and uni students but now we get a lot of semi-retired people. Another interesting development is that Airtasker isn’t just something people do on a moonlighting basis anymore. There are a lot of people now working full-time hours doing tasks and making a good living out of it.” Airtasker has also worked with insurance companies to minimise some of the issues that can crop up when either business owners or individual citizens hire independent contractors. “Let’s say you engage someone through our platform to paint your lounge room or reception area and they knock over a can of paint, ruining your carpet,” Lui says. “Airtasker workers are covered for third-party liability. So the people using our platform know that if an accident happens – and they inevitably do sometimes – they are covered. “We’re also liaising with insurance companies to develop income protection products for our workers. These kind of policies will ensure they’re not left in a difficult situation if they, say, fracture their wrist and are unable to complete any tasks for a couple of weeks.”
  • 24. TECHNOLOGY 22 SUMMER 2016 NAB.COM.AU/BV Hard work and hustle have helped Melbourne cousins Ross and David Fastuca secure a string of corporate customers and win multi-million dollar backing for Travelport Locomote, their travel platform. Sylvia Pennington L aunched in 2014, Travelport Locomote aims to make it simpler and cheaper for companies to manage the process of approving and arranging business travel and processing expense claims. Demand for their software from the likes of Allianz, Japan Airlines, World Vision and Medibank has seen the shoestring startup of cousins Ross and David Fastuca morph into a thriving software company employing a staff of 65. Travelport, a publicly-listed United States travel technology provider which runs booking systems for airlines and travel agents, took a majority stake in the venture last December. Thehardwork neededtogettheir fledglingenterprise off thegroundandintothefacesofinvestorsand household-namecustomers held fewfearsfor the Fastucas. Both grew up witnessing grandparents and parents make the sacrifices familiar to thousands of Italian Australians whose forebears migrated after 1949, with hungry stomachs and hopes of a better life. FAST MOVING FASTUCAS
  • 25. 23 SUMMER 2016 NAB.COM.AU/BV Travelport Locomote's David (left) and Ross Fastuca. buildingonlinestoresandwebsitesforothersandgetstuck intocreatingascalableandsaleableproductoftheirown. “We spoke to them and said, ‘We want to be a product company. We’ve got all the right skills and a few ideas, but we’re not sure what industry to tackle’. And they said, ‘Hey, have a look at the travel industry and see what you can do. I know travel companies are using old technology’,” Ross says. Mentored by Weinman and Sher, both foundation investors in Travelport Locomote, the cousins developed a blueprint for their system after the investors introduced them to many corporates and they gained feedback from the business community before anything was built. “Before we even wrote a line of code, we went out and told as many people as we could,” Ross says. “We ended up getting an introduction into a major mining company. We presented the solution to them and they signed the contract to say, ‘If you build this thing, we will use it’. That helped us, having a big organisation that encouraged us to push the product out. We wanted to know we had solved the right problems for corporate travel before we began building.” It’s a strike-it-lucky success story that was a serious slog in the making. “ItsoundseasynowwhenItalkaboutitbutinrealityit wasmonthsandmonthsofeffortandtripstoSydneywhere wedidn’thavethatmuchmoneytospendbutwedidwhat wasneededtomakesurewecouldgetthisdone,”Rosssays. With Travelport’s backing, the company has set its sights on the global market, with staff numbers expected to swell to 100 by year’s end. “We want to be the best corporate travel platform in the world – that’s our goal,” Ross says. “People say it’s a big dream, but that’s fine. We aim that high. We believe we’ve got a platform that can reshape and change the way corporates look at their business travel.” VALUE IN NETWORKING A NAB business client since inception, Travelport Locomote is a regular user of the bank’s co-working centre in Melbourne’s Docklands, The Village. The space is a boon to start-ups which can’t spring for facilities of their own, says Ross. “We’ve done all our events at the NAB Village. We go there and have our strategic meetings and out-of-the- office meetings. Sometimes I go there when I need to take a day out of the office. I’ll go and sit there; I love the creative space. “I probably get more work done there than I do in our office, and you always meet some other business there. We’ve taken a few other companies to meet there and every time people say, ‘This is great, we should use this space – it’s a cool spot’.” “As a child, we lived at the milk bar where my dad worked so I’d be up in the morning at 5am and Dad would be working,” Ross Fastuca recalls. “He’d make me a toasted sandwich, and I’d sit on the bench with him. I’d see him work all the way through to 9 or 10 o’clock at night, seven days a week, and Mum worked there as well. They ended up growing the business into a very successful one which employed 15 people, just through sheer persistence, hustle and hard work, building relationships and being prominent figures in the community. “Dad had the opportunity to build this further but chose family first – especially to ensure he was there to help my brother John who had muscular dystrophy. My mother and father were amazing role models growing up, my brother was an inspiration with his strength and my big sister would always look out for us.” THE ENTREPRENEURIAL PULL The idea of toiling for wages or working 9 to 5 goes against the grain for the next generation, say the Fastucas. “Working 9 to 5 never made sense to David and I – we’re not made that way,” Ross says. “As an entrepreneur, you have that drive for something more, and seeing our families work really hard all their lives was a big influence in giving us that drive.” The cousins had joined forces previously on a succession of ventures including a graphic design agency founded while they were still in high school, a t-shirt business, a digital agency and a nightclub. “We’ve dabbled in lots of things, but technology and software development was always a passion of ours,” Ross says. AnintroductiontoserialentrepreneursPhilipWeinman andCliveSheratanetworkingeventin2012providedthe inspirationandencouragementtheduoneededtostop
  • 26. 24 SUMMER 2016 NAB.COM.AU/BV F rom the deep blue waters of Australia’s southern oceans, two of Craig Mostyn Group’s (CMG) luxury seafood exports are grown and reaped: the coveted southern rock lobster and world-renowned Jade Tiger Abalone. The thriving business, founded in Australia by Craig Mostyn in 1923, today also exports scallops, crab and other fresh and frozen seafood to the world. In the six years that Mark Wray was Chief Financial Officer of CMG, turnover doubled for the seafood division, driven by his pursuit of local experts in China and strong marketing efforts. Today, Wray is the group's Chief Executive Officer. He says the business now has annual seafood exports of more than 1,000 metric tonnes, distributed to Hong Kong, China, CHERISHED SEAFOOD DELICACIES CMG’s southern rock lobster is acknowledged the world over as a unique delicacy, renowned for its bright red colour, taste and excellent transportability. Its trademarked Jade Tiger Abalone has been exclusively bred for its sweet taste, medium texture and distinctive jade green shell. Of China’s five sea treasures, CMG’s southern rock lobster and Jade Tiger Abalone are two of the most celebrated. The high-end wedding market in China revels in the presentation and enjoyment of these treasures as symbols of elegance and prosperity. Export success for the business stems from not only having unique luxury products but also from hiring a dedicated team with intimate knowledge of business practices, language and culture in niche export markets – enabling them to build local market knowledge and distribution partnerships. Tight supply chain control also ensures CMG’s Seafood Division can continue to deliver quality products from Australia in excellent condition onto wedding banquet tables in China. The business has taken steps to encourage Australian seafood farmers to Japan, Taiwan, Singapore, Malaysia, the Middle East and the United States. Wray believes seafood export success is about understanding your market and ensuring you have processes in place to enable freshness and consistent quality. “The fishermen head out in wet weather gear on their big boats in wild seas,” he explains. “As soon as the boats come in, live seafood is packed right there at the port into foam cartons and onto planes bound directly for China’s Shanghai wet markets. Numerous sub-distributors also take them out to restaurants having wedding parties and other celebratory events. When export markets want to eat the product raw, such as sashimi, freshness is everything.” SHIPPING AUSTRALIAN SEA TREASURES TO ASIA Tarnee Jacobson Igor Sapina For the seafood division of the Craig Mostyn Group, one of Australia’s leading food and agribusiness firms, the fastest growing pillar is the export of live southern rock lobster and abalone into the Chinese luxury wedding market. AGRIBUSINESS
  • 27. 25 SUMMER 2016 NAB.COM.AU/BV work amicably to operate with contractual relationships for several years, guaranteeing supply at the front and back end. “Longer term export success for CMG is about locking down boats, quotas and sales contracts over the long-term,” explains Wray. “You also need to understand China, where there are lots of people who have been in business for a long time. Understanding the local market is what we’re focusing on at the moment.” CHANGING TIDES OF MANAGEMENT Exponential growth and change in any business requires a focused investment in talent. Today the management team is focused on injecting the business’ intrinsic entrepreneurial spirit, inherited from the founders of Craig Mostyn, into a renewed talent base for their export business. They have recently invested in a new breed of young talent, including ex Rio Tinto, Master of Business Administration (MBA) and Harvard graduates, with a breadth of export experience, local language skills and corporate knowledge in global markets. Wray says CMG’s management structure emulates a collegiate culture that gives younger employees full accountability as well as the freedom to get things done. “We have a new breed of people coming through, and it’s a renewal focus, regarding the employee team structure,” comments Wray. “For a diversified export business, you should employ at least 10 per cent of the team from corporate backgrounds, because they have sound knowledge of process and the business tools you need, as well as a corporate discipline.” CMG’s relentless pursuit of local market knowledge, coupled with a desire to exhaust the China opportunity via genuine understanding, are the driving platforms for seeking talent. “We need to do more, and are doing more, around the front end in China,” says Wray. “It’s about understanding end-user behaviour. For example, who are the five biggest wedding companies in Shanghai? We are hiring ex-Rio [Tinto] professionals who speak Chinese and we are already penetrating new cities in the wedding market.” SELLING THE SEAFOOD STORY Packaging their multiple seafood brands to tell their brand story and steer the business into new export markets is the firm’s next focus area for long-term sales growth. The business is investing in brand experts and recently spent half a million dollars on marketing to fine tune the brand story and market products to different cultures. In the age of disruption, consumers in China are increasingly using social media to recommend products they are using, such as WeChat with 806 million active accounts,1 and everyone in the supply chain is aware they need to be able to answer key consumer questions: Did you really produce this? Is it safe and good for you? Looking forward, CMG aims to double its lobster and abalone exports through understanding the customer, ensuring consumers are aware of their seafood story and through operational and supply chain efficiency. “It’s no secret – CMG wants growth,” says Wray. “We want to be Australia’s largest exporter of luxury seafood. We know the world wants our products – and CMG has the people, structures and processes in place to do it.” 1 Statista, WeChat statistics, Q2 2016. statista.com, visited 16.10.2016
  • 28. 26 SUMMER 2016 NAB.COM.AU/BV Igor Sapina 24 HOURS WITH
 JERRY MAI Chef Jerry Mai is co-owner of Melbourne’s popular Pho Nom eateries with brother David Mai. Their vision was to bring authentic Vietnamese hawker food to the masses, opening Pho Nom Emporium in 2014 followed by Pho Nom Collins Street last year. H aving worked for many of Melbourne’s top Asian-inspired restaurants – including Longrain, Gingerboy and Dandelion – as well as at Australian chef David Thompson’s acclaimed London Nahm restaurant (the first Thai eatery to be awarded a Michelin star), Mai set up Pho Nom to serve premium quality food at speed and with an affordable price tag. As well as sharing the traditional food she grew up eating with her family, Pho Nom is an expression of one of Mai’s other passions: supporting local farmers and ethically-farmed free range produce. 7.30am: I start the day with my usual: an espresso coffee plus a Vitamin D tablet and a Berocca. 8.00am: I head into the stores. Today it’s Collins Street first. I like starting here because it’s nice and peaceful when I get in. I use the time to check on what I need to do for the day, like anything I might need to call a farmer about. We deal directly with our farmers a lot; it’s one of the things I’m passionate about. For our beef, for example, we have three different Victorian producers: Warialda Beef, who supply our bones and brisket, Little Creek, who top up our bones when we need them, and Sher Wagyu, who supply our topside and rump. For our free range chickens and eggs it’s Milawa. We’ve developed some great relationships, 1
  • 29. 27 SUMMER 2016 NAB.COM.AU/BV 24 HOURS WITH 
 particularly through farmers’ markets. This morning I chat with Russell [Mickle] from Milawa and Craig [Jenkins] from Little Creek. When we opened Pho Nom, I was adamant these were the kinds of producers I wanted to work with; we wanted to support local farmers and ethically-farmed produce. That meant we had to go to several different farmers to get the quantities we needed – we go through a couple of hundred kilos of beef bones a week, and the same with our chicken bones [for our stock]. With our chickens we use up to 120 between the two stores, and around 48 dozen eggs a week. So this sometimes takes some juggling. If you go through stock standard producers you can call them and get produce delivered the next day but if you’re dealing with farmers like we do you have to stay in close touch to make sure you can get enough supply. 9am: The staff start coming in so I always have a chat with them to see if there any issues I need to deal with. I have a meeting with my brother David – he’s usually based at Collins Street – then I jump on the tram and head down to the Emporium Melbourne store. 11am: The Emporium store is two and a half years old so it’s very stable. My staff here know exactly what’s needed and do it very well; at each venue we make everything on site. The shopping centre opens at 10am and people come in from then for their pho and banh mi. Ten years ago when I said people will be having pho for breakfast nobody believed me. They said, “You’re dreaming”. I grew up eating pho for breakfast – it’s normal for me. We now sell 100 and something bowls of pho each day at Emporium, and just a bit less at Collins Street. Today as usual I help out with lunch service. It’s really busy from 11 through to 2.30, 3 o’clock. When we were planning Pho Nom we wanted to give people something high quality but quick. Our waiting time is only three to five minutes – it’s all about setting up the right processes and training staff really well. 3pm: After service I sit down with my laptop and get through some admin, make a few calls and organise emails, and do some research. We’re doing a lot of pop-up events at the moment and I do 2 3 4 1. Jerry at Pho Nom, Collins Street. 2. Chatting with staff. 3. On the phone with farmers and suppliers. 4. A morning meeting with her brother, David.
  • 30. 28 SUMMER 2016 NAB.COM.AU/BV 24 HOURS WITH 
 various shows and cooking demonstrations. For me the shows are about the producers. I love being able to show off great produce. What we’re trying to do at Pho Nom is introduce mainstream customers to a paddock-to-plate experience, taking the idea of eating good produce mainstream. We have customers who eat with us four, five times a week. If you can afford to eat a bowl of pho that’s barely $12 made from free range beef and chicken, cooked with no MSG, and if I can have people coming in every day to eat, then hopefully they’ll say, “Hold on, I can afford to eat free range. I should eat free range, I should support local farmers”. That’s why we opened a quick service restaurant – to make it ‘everyday’. It’s all about supply and demand. If there’s a high demand for what I do then my farmers will become in demand and the more money goes back into my local farmers’ pockets. The more people want it, the more farmers grow it. That’s what we’re trying to do: show you don’t have to go to a special restaurant to eat well. You can eat well every day. 4.30pm: I head back to Collins Street to catch up with David and see how service was. We work well together. I do the food and he looks after customer service. He’s so good at that – he’s very charismatic and he remembers names! People will walk in and he’ll go, “Peter, fried chicken banh mi mate?” I have a chat to my mum on the phone. She’s been a massive inspiration for me. She’s an amazing cook and I’ll still call for advice, how do you do this stock or whatever. My father was born and raised in Phnom Penh, Cambodia, and later met my mother in Vietnam. They left Vietnam and found refuge in a Thai camp for three years before coming to Australia. 6pm: Ifinishupatthestore,headhomeandget startedondinner.Tonightit’sporkchopsfroma producerweworkwith,GreenvalePork.Some daysit’saroast,sometimesanoodlestirfryorwhatever Icanrummageoutofthefridgeandwhateverveggiesor herbswe’vegotgrowinginourlittlegarden.Atthemoment itslotsofmizuna,coriander,rocket,chili,silverbeet. 8pm: After dinner it’s recipe writing. I’m always topping up recipes. For the last three weeks I’ve been working towards the Royal Melbourne Show pop-up and Women in Food and Agriculture lunch but I also have some other possible ventures I’m working on so I’ve been madly writing recipes for the past few months. I pour some wine and get to it. 10pm: I finish up because I can’t stare at my laptop anymore. I’ve been a chef for more than 22 years and if someone told me 20 years ago that when you have your own business and are working towards additional ventures you’ll spend so much time in front of a computer I wouldn’t have believed them. I’d rather be hanging out in the kitchen and cooking that’s for sure. 5 6 5. Jerry helps out with lunch service. 6. An afternoon catch-up with her brother, David.
  • 31. 29 SUMMER 2016 NAB.COM.AU/BV ANIMAL KINGDOMS Tiffany Hutton FRISKY BUSINESSPets are big business. It’s not that their numbers are growing – in fact, with an increase in apartment living, numbers are dwindling or at best static – it’s that we’re spending more on them. At last count, the Australian pet industry was estimated at $8 billion.1 Business View looks at the changing nature of pet ownership and talks to three businesses tapping into the trend.
  • 32. 30 SUMMER 2016 NAB.COM.AU/BV A ustralia has one of the largest proportions of pet owners in the world, with dogs our number one four-legged friend, closely followed by cats (19 dogs per 100 people and 15 cats, according to the Australian Veterinary Association2 ). We love our furry companions and increasingly humanise them by regarding them as family members – and spending on them accordingly. Just think about it. Whereas, say, a generation ago, a tin of food from the supermarket, a couple of bones from the butcher and a kennel outside might have been considered perfectly good for Fido, today he’s more likely to be eating gourmet food tailored to his dietary requirements and sleeping inside on a bed perfectly suited to a small child. And when we go away for a few days, instead of asking the neighbours to drop in and feed the cat, we’re more likely to send her to a ‘pet resort’ where she’ll be pampered and pandered to, just like she is at home. All these goods and services cost money, which many of us are more than happy to spend. So what about the businesses that provide them? HOT DIGGIDDY It’s no surprise that businesses have popped up to meet (and even predict) the growing needs and demands of pet owners. One of these is Diggiddy Doggy Daycare, an award-winning daycare centre for dogs, established in 2008 by sisters Jeanette and Nicole Farren. Their decision to create the business was a spontaneous one, according to Jeanette. “Nicole’s dog went to a local dog daycare centre at the time. I still remember the conversation: I called her when I was on the train to work and said, ‘Why don’t we do one ourselves?’ It was quite random!” While the initial idea was an impetuous one, once the sisters had made the decision they approached it with sound business sense, taking their time to find a location in a high demand area, based on market research. Today, in the new premises they moved to in 2015, Diggiddy Doggy Daycare offers a day spa, a boutique and a taxi service as well as day care. It even provides function hire, to utilise (and monetise) the space on weekends when the dogs are home with their families. Who hires a dog daycare centre? Pet industry trainers, for one; if they are teaching animal care to students, it can be challenging to find somewhere with a licence for live animals on the premises. According to the sisters, the business is much like other small businesses. “You’re dealing with the same things: staff, services, products, philosophies. It’s the variants like dealing with human beings and dogs as well that can be challenging.” Typically for a successful small business, the time came where everything was running smoothly and a decision had to be made – stay where they were or aim for a more ambitious business model. Diggiddy Doggy Daycare is doing the latter, and they’re currently developing a franchise model which will launch in 2017. Expect to see one near you soon. PET ANGEL FUNERALS Like Diggiddy Doggy Daycare, Pet Angel came to be because the founder could see the need from a personal perspective. Director Tom Jorgensen explains (while walking his dog!) how a newly retired commercial builder came to set up a pet crematorium: “Need was the impetus. Need for respect, for grace and dignity,” he says. “I’m an animal nutter – I’ve always had dogs or cats or both. The way my last border collie, Sophie, was treated, I wasn’t happy. I thought ‘I can do this better’ and here we are.” 1 2
  • 33. 31 SUMMER 2016 NAB.COM.AU/BV ANIMAL KINGDOMS With a lifetime’s building and business expertise under his belt, and a passion for what he was doing, Jorgensen created a purpose-built facility. It includes a cremator designed and built in Florida, a fleet of fitted-out black vehicles, handmade caskets and urns, and what he refers to as a chapel, a remembrance room where people can spend time with their pet before a cremation. It makes sense that people who treat their animals as family members during their lives are going to want no less at the end, and the business has been a success from the start. Opening in March 2015, it’s now providing 50 cremations a week. Of course, there is a darker side to the business, and Jorgensen is frank about it. “Staffingcanbeachallenge,becauseit’snotforeverybody. It’ssometimesnotpretty,there’snogettingaroundit.There isthataspecttoit.” Nevertheless,hesayshefindsagreatdealofsatisfaction inprovidingaservicetopeoplewhoaregrievingfortheir pets–andthebusinessisgrowingat15percentamonth,with anothercustomcrematoralreadyorderedandonitsway. a vet practice, a grooming salon, a do-it-yourself (DIY) dog wash, an adoption centre, pet insurance and a range of other services.” Greencross has a strong focus on the human aspect of pet ownership, as they recognise this drives value in the sector, even as volume is dwindling. Growth is in premium products and services such as grooming salons, insurance, and hotel and walking services. Hutchinson likens our treatment of pets to how we treat small children, and if we wouldn’t leave a small child at home alone, why would we leave a pet? Of course, it’s not just Australians and New Zealanders who love their pets. The markets in the United Kingdom and the United States are booming and it’s there that Greencross looks for inspiration. It has strong relationships with large players in those markets, sharing ideas and innovations. One of the latest trends is the use of technology, Hutchinson adds, such as cameras that allow owners to watch their pets at home. If their dog is doing the right thing, owners press a button on an app and a mechanism at home releases a treat! What next? According to Hutchinson, what’s emerging is Uber-style businesses designed to connect consumers and providers with all the services pet-owners need, from dog walking to sitting and more. Rest assured, whatever you need for your pet is being developed right now, even if you didn’t know you needed it. 1, 2. Diggiddy Doggy Daycare. 3. Pet Angel Funerals. 4. Pet Barn, Greencross Limited. 3 4 1 Australian Veterinary Association, Pet ownership statistics, ava.com.au, visited 11.10.2016 2 RSPCA, How many pets are there in Australia?, rspca.com.au, visited 11.10.2016 3 Keating, E. City Farmers sale to Greencross fetches $205 million, Smart Company, 17.06.2014, smartcompany.com.au, visited 16.10.2016 4 Greencross Limited, greencrosslimited.com.au, visited 11.10.2016 ACROSS THE GREEN Alongside the family and niche operators, pets are also big business. When Petbarn and Greencross Vets merged in 2013 the deal was worth an estimated $338 million3 and created the largest integrated, consumer-facing pet care company in Australia and New Zealand.4 Today, ASX-listed Greencross Limited has over 350 business outlets across the two markets. And it’s growing rapidly, both through acquisition of locations such as vet practices and retail outlets and through putting new stores on the ground. David Hutchinson, Chief Customer Officer, says their approach is effectively “to curate all the things that a pet owner needs in an easily accessible way, a one-stop shop. What we’re doing is creating locations that have a shop,
  • 34. 32 SUMMER 2016 NAB.COM.AU/BV MARKETING The immediacy of social media that lets passion shine through has been a key part of the success strategy of premium camper trailer maker Patriot Campers. Sylvia Pennington Sharing the journey with camping enthusiasts on social media has played a key part in the runaway success of Queensland camper trailer manufacturer Patriot Campers. The company’s premium Australian-made trailers retail for between $40,990 and $59,990 and have amassed a following of almost 100,000 fans on Instagram and Facebook. TheventurehaditsgenesisthreeyearsagowhenPatriot founderJustinMontesalvoandamatefoundthemselves sketchingtheirdreamtrailerdesignoverafewbeers,ona ChristmascampingtriptoQueensland’sStradbrokeIsland. “We had bought a couple of camper trailers, the best on the market at the time, but they were too long and too heavy to take off road easily and they just didn’t suit what we wanted to do. So we got talking about what we’d do differently,” Montesalvo says. Back home,hespentthenextthree monthsturning theirwishlistintoa blueprintfor acompact,modular,tow- anywheretrailerwithall thecomfortsand conveniences of a ‘big rig’.Builtduring downtime athisBrisbane sheet metal fabricationplant,theprototype wasready tobe put throughits paces byJuly2014,onanother Stradbroke trip. BUILDING A HAPPY CAMPER COMMUNITY Justin and Sarah Montesalvo
  • 35. 33 SUMMER 2016 NAB.COM.AU/BV DISCOVERING SOMETHING SPECIAL “The trailer was never meant to be a commercial product – I was building a camper trailer for me and my mate, that was it – so it had no branding and no name. But we were getting stares and honks all the way up the highway,” Montesalvo recalls. “We pulled onto the barge and went upstairs to have breakfast and when we came back down there was a group of 20 or 30 people around the trailer and a couple of guys underneath it, poking around, going, ‘What is this thing?’ “That’s when it clicked – that we’d definitely got something.” That ‘something’ ended up coming to the attention of the editor of Camper Trailer Australia, who asked to review the trailer and suggested Montesalvo enter it in the Camper Trailer of the Year 2014 competition. After carrying off first prize – “the judges were blown away, the whole industry was blown away” – and taking several orders at a trade show, Montesalvo decided it was time to go commercial. HITTING THE SOCIAL TRAIL Fast forward two years and Patriot Campers has morphed into a thriving enterprise occupying a 2,000 square metre premises and employing 32 staff. Montesalvo has plans to not only increase production capacity and shorten assembly times but to expand into new overseas markets. With a tiny marketing budget and no experience, Montesalvo and his wife Sarah have become self- taught social media aficionados, sharing their business adventure and promoting their trailers to fellow lovers of the great outdoors via Facebook, Instagram and YouTube. Patriot was a paid Facebook advertiser for the first six months but the business’s rapid accumulation of fans soon made the expenditure unnecessary. Updates are posted every day or two – frequently enough to stay tight with Patriot’s community of campers but not so often that they feel the company is being rammed down their throats. “Sarah and I are the only people who control our social media,” Montesalvo says. “It’s been successful so far because we’ve become the faces of the brand. I’ve never marketed anything before but the social media traction for Patriot has come from the fact that we’ve kept it real. “We put up photos from our own camping trips, we promote when things go wrong as well as right. It’s real life stuff and people can see that we live and breathe it.” STAYING ON TRACK Keeping it real doesn’t mean anything goes. Patriot aims for a family-friendly vibe and risquĂ© photos, ripe language and innuendo are off limits. “We do put a lot of thought into what we post,” Montesalvo says. “Everything’s got to be G-rated. We’re very cautious about appealing to everybody.” The immediacy and intimacy of the social channels allow the family’s passion for their products to shine through in a way traditional advertising just can’t. “I can’t wait to get here every morning and I think that shows through with everything we do. People meet me when they come to pick up a trailer and they say they feel like they already know me – I get it all the time now.” A NAB business customer, Montesalvo says the advice and assistance he’s received have helped the business thrive. “If I need something I speak to our account manager,” he says. “He’s a great support and can help me with not only our banking matters but can also put me in touch with specialists from across the bank to help with our investment needs.” I’ve never marketed anything before but the social media traction for Patriot has come from the fact that we’ve kept it real.
  • 36. 34 SUMMER 2016 NAB.COM.AU/BV VOX POP SERVICE MAESTROS What does it take to be a successful business owner in today’s service economy? Business View asked the entrepreneurs interviewed in this issue and found it’s a combination of hard work, persistence, good people – and looking to the future. ON LEARNING THE VALUE OF HARD WORK EARLY My parents have always been hard workers, so seeing them work every day from sunrise to sunset has been inspiring; they’ve become my role models. My parents brought me and my siblings up with the idea that hard work was part of life since we were quite young, so we grew up with that mentality embedded into our personalities and lifestyles. This helped me view work as part of life rather than as a burden, which I’ve found really helpful throughout my professional life, and especially in my entrepreneurial ventures. Learning the value of hard work early helps you realise that you need to set goals for yourself and plan a way to achieve them. You learn that you’re not entitled to things, but that you need to earn what you want, and prove that you deserve it. Developing a hard-working mindset from an early age makes you more independent and self-sufficient, which is a great quality to have at any stage of life. When you learn the importance of a good work ethic while still young, you also learn that making mistakes is a natural part of work and therefore you understand their value as a learning point. Having my parents as role models gave me the entrepreneurial drive to think about starting my own company, and to realise that this wasn’t a pipe dream but something real and achievable. Ross Fastuca Co-Founder and CIO, Travelport Locomote ON THE POWER OF PERSISTENCE Starting a company requires you to overcome constant challenges. It’s very easy to give up after being rejected, but if you keep trying, eventually you’ll succeed. For example, when we were first trying to get investors, our pitch deck evolved constantly. Following each pitch, we took note of every question an investor asked and worked out solid answers. Sometimes it was just a matter of articulating the strategy we had already developed, other times it required days of brainstorming. Each time we pitched we were able to communicate our vision more clearly and the tough questions started to dwindle. In fact, we ended up revising our pitch deck more than 100 times. Melanie Perkins Co-Founder and CEO, Canva
  • 37. 35 SUMMER 2016 NAB.COM.AU/BV BUSINESS VIEW ONHIRINGTHERIGHTPEOPLE Everything starts with your people and – thinking about young, entrepreneurial companies – they need two things: enjoyment of work and personal growth. The only way to offer this is by having the right values and by building your culture around that. At foodora we work hard, challenge each other and grow together; doing this with a passionate group of people is the key to success. Toon Gyssels Co-Founder and CEO, foodora ON LOOKING TO THE FUTURE It’s about looking beyond service: getting to know and understand the needs of the customer and growing from there. What’s their motivation? And how do we work together to get beyond short-term goals? Technology has an incredible reach in 2016 and we are dramatically expanding it. Continually building on our interconnected understanding of the tech ecosystem is key to our growth internationally. Travis Rice Co-Founder and Director of Content, LENS Immersive ON BEING A FORCE FOR GOOD We’re enabling people to get things done that they never thought they could have done affordably before. At the same time we’re enabling those with great skills (such as making costumes, baking cakes or even assembling flat pack furniture) to earn an income when they might not be able to work a conventional 9 to 5 job. Often these workers are retired or perhaps studying at university so Airtasker has created new income streams for them, making it much easier to continue using their skills and making money in ways they never might have been able to before. Jonathan Lui Co-Founder and COO, Airtasker ON AUTHENTICITY AND HONESTY Authenticity is critical because ultimately people do business with people, not brands. The service sector is built on connections, where people help each other. We all have an innate ability to identify when someone is not being genuine and now more than ever message congruency is a key element of business service. If you believe in your service then customers will believe in you. The second key area is honesty. How brave are you as an entrepreneur? A successful business owner is able to leave their ego at the door and not hide behind the bravado that entrepreneurial stereotypes can sometimes perpetuate. We don’t always see the reality of business ownership, and if we’re honest there are many instances where it can be stressful and just hard work. Honesty is important because it gives the business owner permission to reach out and ask for help when times are tough or business is slow. Leanne Faulkner Founder Owner, Fortitude at Work