The Pitch: Fortunes and challenges of our featured entrepreneurs
They crafted everything from loud-coloured leggings to artisan curry pastes and DIY luggage wrapping, so how did the Victorian entrepreneurs profiled last year in our series, The Pitch, fare on the business front? Claire Heaney checks in.
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They crafted everything from loud-coloured leggings to artisan curry pastes and DIY luggage wrapping, so how did the Victorian entrepreneurs profiled this year in our series, The Pitch, fare on the business front?
Passel
In March, we met Mr Hughes — the mastermind behind crowdsourced delivery service Passel. Now his enterprise is going international.
Mr Hughes said the Melbourne-based business had been invited to apply for a grant from government agency Enterprise Ireland.
“They were looking to solve a whole lot of problems, such as congestion on roads due to delivery vehicles, and we were invited to apply for the program,” he said.
The business was flattered to be named among six companies that will be helped to launch in Dublin and Belfast.
Under the Passel model, people collect and deliver parcels as they go about their daily routines, receiving payments of $10 in cash or kind for their time.
Mr Hughes said the technology developed to operate the delivery service could be applied anywhere.
He said that in late November, Passel closed a funding round with $300,000 from angel investors.
The business was still very much in the start-up phase but had signed up 3200 “passers” and had contracts to deliver for a range of businesses, including clothing retailer Pure Baby and giftware specialist Pookipoiga.
Applelachia
Like many innovators, Caroline Chang created her product in a bid to solve a problem she faced.
After months of experimentation using apple cider vinegar, she came up with a beverage that included flavourings to take the bitter taste away.
She said the drink, which she called Applelachia, had helped her manage debilitating gut issues.
When we met Ms Chang, she was ramping up the business, hoping to add to her stockists. Months on, she has launched her products at select Woolworths stores in Melbourne and Sydney.
She says being approached by venture capitalists was also a highlight.
“Being the very first and original apple cider vinegar drinks brand, I am extremely flattered to see other big player brands now replicating the concept by using apple cider vinegar,” she said.
PAT GUARNACCIA
SecureTravla
Friends Pat Guarnaccia, Joe Cristiano and Vince Mustica came up with the idea for SecureTravla after being concerned about the security of their luggage when travelling.
Their do-it-yourself plastic luggage wrap is priced under $20, including postage, for 100m.
Based on typical volumes, four bags can be wrapped in the film for a return holiday.
Mr Guarnaccia said the product was more convenient and budget-friendly than many of the options available at airports.
Luggage would only be opened by security when prohibited items were found by X-ray, he said.
Mr Cristiano said the business, which was run by the trio as a side venture, was ticking over. But, he said, early inquiries for it to be stocked by major companies fell flat.
“It wasn’t worth our while for what they wanted to pay us,” he said. The business was working with some smaller retailers, he added.
Mr Cristiano said there was a misconception around the price of the wrap, which cost $8.60 to post. “When people get to the airport and realise it is $14.95 to wrap one bag, they realise that it (SecureTravla wrap) is cheap,” he said.
NADJA BETTIN AND BARBARA WHITTLE
House of Handmade
Based in Richmond, House of Handmade is a shop that sells a collection of products from 60 artisans — everything from candles and soap to toys, ceramics and socks.
While the Bridge Rd store continued to struggle, Ms Bettin said it was becoming a destination for people who valued homemade, exclusive goods. “We have a very good return rate of people coming back to buy — it is around 30 per cent,” she said.
Some people find out about the business by word of mouth and social media.
Others learn about it from the stockists, who promote House of Handmade to people who can’t get to the markets where many of the stockists also sell their wares.
Ms Bettin said she and Ms Whittle were planning a website launch in February so people could buy goods even if they could not visit the shop.
Madlegs
In July we met Madlegs — a business built around a range of leggings for women and girls.
Ms Lancaster, the owner, was doing it all, making and selling the leggings on high rotation. “I am still doing what I am doing. The leggings range is kicking along as it was,” she said.
People from across Australia order the high-quality leggings, including many schools.
A range of giftware supplements the core business as makers of those products pay a fee to be stocked.
That offering had continued to grow, Ms Lancaster said.
“I am doing a lot more marketing. I am doing a couple of posts a day,” she said.
“People are still coming in to get their leggings but they might stop and pick up something else, too.”
Ms Lancaster said that since her business was featured in The Pitch series, many people had been in touch and said they planned to visit her Balwyn North shop.
SALLY AND MARCUS JOHNSON
We Rock the Spectrum
A lack of opportunities for her son, Digby, who is on the autism spectrum, to enjoy playgroups and activity centres prompted Ms Johnson to open We Rock the Spectrum.
Teaming up with her brother, Marcus, they brought the children’s play centre concept from the US.
Taking on the local master franchise, they have opened their first centre in Preston, with plans for more.
Four months on, Ms Johnson said the business was doing well. “We had an amazing opening with overwhelming enthusiasm for the business from the local community and the special-needs community around the country,” she said.
She and her brother were swamped by more than 200 franchise inquiries over the past few months.
“By the end of 2018, we will have signed four franchises and after commencing project management with them, will be engaging more territories,” she said.
Ms Johnson said they were delighted with the progress of the play centre and looked forward to more children being able to use it.
Il Baronello Vinocotto
Founder Angela Galtieri is continuing to spread her love of Italian dressing vinocotto with her product, based on an age-old recipe.
“Business has grown significantly in terms of online sales. Word of mouth is always my best marketing tool,” she said.
In recent months, her sales with stockists have increased, too.
“I am in discussion with a large stockist with the possibility of taking on my products,” she said.
Ms Galtieri said that in the run-up to Christmas, she signed up for more community maker markets such as the Sisters’ Market in Brunswick. Like many people who create food products, she finds that would-be customers often buy once they taste the wares.
“I am working in collaboration with another chef and hopefully producing more food products together in 2019,” she said.
On the digital front, she has increased her social media activity and will launch a new website early in the new year.
Curry Favour
Since we met Ms Francis in October, the chef has launched new packaging for her Curry Favour range.
It’s bright and engaging with suggested recipes and a wealth of information about how to use the pastes. She believes that with the new packaging, the products will stand out on the shelf.
As well as running regular market stalls, she has signed up a stockist, called Leaf, in Elwood.
“We have spoken with several other stores who are interested in stocking the fresh curry pastes in the New Year,” Ms Francis said.
“We have picked up several wholesale accounts who are using our curry pastes for catering, a take home meal delivery service and even for popcorn production.”
Ms Francis said the business was also working on an online store to help give interstate customers access to the pastes, which are made without preservatives, refined sugar, emulsifiers and other “nasties”.
Reground
These mates are behind an innovative approach to recycling coffee waste.
Instead of cafes and roasters having the waste collected for landfill, Reground collects it and donates it to people for use in gardens.
The business has also been collecting soft plastics from the cafes where they collect coffee waste.
Ms Larsen said Reground has just delivered its first bales of plastics to a Laverton company that will use them to make new products.
“We don’t get paid for the plastics but if we sort them better, we will,” she said.
At the moment, income is generated through payments by cafes for collections.
The cafes would otherwise have to pay rubbish contractors to collect their waste, but can ensure it stays out of landfill by working with Reground instead.
Ms Larsen said many of the cafes simply wanted to embrace sustainable practices. As a side venture, they also are conducting waste audits for companies.
Urban Hiking
We only met Ms Brown last month as she was moving back into full-time employment and focusing on developing Urban Hiking as a weekend and after-work venture.
A keen walker, Ms Brown has been sharing her love of Melbourne’s “hidden places” by hosting group walking tours. The business offers fun outings with compelling titles such as “Canoe N Brew”, “Walking and Wine Tasting”, “Hike and Yoga” and “Urban Overnight Adventures”.
The outings include visits to small businesses.
Melanie is also hosting “humpday hikes”, where she leads a group on a walk each Wednesday night. She said the hikes appealed to people who were looking to try new things and meet others.
Business Daily thanks small business mentors Vivian Vo, of Melbourne Innovation Centre, John Downes, from Acorro.com.au, and Bruce Hall, from the Small Business Mentoring Service, for their contribution to The Pitch, providing invaluable feedback to our entrepreneurs.
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