Neighbour’s basic inquiry leads to a global business

CLIVE White’s business Ensitech started when his neighbour yelled at him over the fence: “Are you an engineer?”

Clive White of Ensitech at Emu Plains is the case study for Ross Greenwood's column. Some pics with their TIG Brush product. Pics Ian Svegovic

CLIVE White’s business Ensitech started when his neighbour yelled at him over the fence: “Are you an engineer?”

From those basic words — but plenty of time and heartache later — a business was born that has won Australia’s major export awards and which is now a truly global business.

The neighbour’s inquiry was very basic. He wanted to know whether Clive could develop a system to get rid of the discolouration that occurs when stainless steel is welded.

The neighbour’s problem was immediate. He’d won a contract with McDonald’s to supply coin trays under the drive-through window to accept charitable donations. But McDonald’s was not happy because of the discolouration of the weld.

“It took us four years to solve the problem,” Clive says. “At the start it was an intellectual curiosity to see if we could solve the problem.” But like so many inventions, it soon became an obsession.

“I ended up working in a petrol station to make ends meet because every now and again there were cashflow problems. So there I was, working Saturdays in a Shell service station to make ends meet.”

In 2004 they finally cracked the problem, but cracks were also starting to show in the partnership. They had no money to develop the product. The low point was when one partner failed to renew their patent over the process because they didn’t have the necessary $20,000.

Clive White of Ensitech / Picture: Ian Svegovic

Clive walked away, and went back to repairing the electronics in CNC machines. A year later, Clive’s partner Frank called and wanted him back. He needed Clive to develop the electronics for a prototype machine to see in their crazy idea to get rid of welding stains on stainless steel would actually work.

They built 10 machines and gave them to local factories around Penrith to trial. It is essentially a metal-brush that is electrically charged and dipped in a solution.

They called it a TIG Brush.

Shortly afterwards they started receiving urgent calls saying the prototypes had broken down and the whole factory had stopped. Unbeknown to Clive and Frank, their invention was so good the prototypes had became integral to the production system.

Clive decided to set up the business full-time. There were still problems. First, he didn’t tell his wife. For three months she thought he was still fixing counting machines. Happily, they are still married.

The second problem was the patent. The third was they didn’t have enough money to start manufacturing.

They had just $5000 in the bank when Frank made a massive call. He convinced Clive they should spend all the money they had in the bank to exhibit at the 2009 National Manufacturing Show in Darling Harbour. “We spent our last cent,” Clive says.

But at the show, with just a prototype that had no price-tag (because they hadn’t worked that out yet) an amazing thing happened. “People just queued up outside our stand to see the thing work,” Clive says.

“One man cried. He said that in five minutes we had solved a problem he spent 20 years of his life working on. Another man threw his credit card at me.”

From that one show they got 200 customers and distributors for their product.

From those beginnings in 2008 the business started growing. In 2009 it moved into a factory in Penrith; in 2010 it exported to the UK; in 2011 it created 12 overseas distributors; in 2012 it started selling in the Middle East; in 2013 they opened an office in the US and, as Clive says: “In 2014 we’re trying to keep it all together.”

Ensitech has won an Australian Export Award, a NSW Premier’s Export Award and two NSW Business Chamber awards.

Clive White of Ensitech / Picture: Ian Svegovic

CLIVE’S LESSONS

Endurance is everything. The TIG Brush idea could have gone broke a dozen times before it was “discovered”. But because Clive was determined they had discovered something unique, they stuck at it.

Try your luck overseas. Australia is an affluent market for many products, but the real opportunities lie beyond our shores. After losing their patents, Clive was forced to enter foreign markets to compete. It took them out of their comfort zone, but opened up opportunity.

You have to market your product. You might have the most creative invention in the world, but if nobody knows about it you will go broke. By taking a punt on a single trade show, Clive and Frank were putting all their chips down. But it was a specialist show, and their audience was clearly in attendance. Perhaps if it had not been their last $5000 … it might fit with the strategy better.

If possible, try to have a product or suite of products that span different industries. That way your business will be more resilient if one of those industries turns down.

As Clive would tell you, “think big and don’t be dissuaded”. In other words be prepared to dream. “There will always be people who will tell you that you are an idiot. But don’t (let) that turn you off if you really believe.”

Try to keep control. At one point Clive’s accountant encouraged him to get venture capitalists in, but he persisted in obtaining a $300,000 bank loan. He was helped by his flush of business awards, and it meant holding control of the business — so long as he paid back hisloan and interest. It also fitted his bank’s model of being more supportive of small business.