From zero to multi-million dollar enterprise in 3 years

RURAL FIT

When an Australian public servant decided to give up his secure income to set up his own business 3 years ago, his vision wasn’t particularly clear. And he had no idea that his conversation with an MaxMyProfit at a short seminar would result in a winning relationship that would lead him to develop a multi-million dollar award winning enterprise in just 3 years.

THE CHALLENGES

The challenges along the way were many, but there were three substantial ones.

BACKGROUND

Our team met Andrew Mahony at a short seminar some 3 years ago. At the time, Andrew had decided he wanted to give up his secure job and become involved in something positive that would help people improve their lives.

As a young man Andrew had qualified in the field of exercise physiology however, with the profession still in its infancy at the time, there were few jobs available and his working life took a different path and he worked as a NSW Police crime scene investigator and as a rehabilitation consultant with CRS. Starting his own business wasn’t on the cards when he set out – he’d seen his parents work long hours and experience the financial challenges of being in business and decided it was a stressful lifestyle he didn’t want. However, when he experienced stroke symptoms himself, he decided it was time for a change.

When Andrew first met with MaxMyProfit he’d decided he’d like to start a business that helped people in rural areas to improve their fitness and physical mobility.

1. No experience and no business

Andrew had no experience in developing or running a business and was a sole practitioner just starting out. Technically, there was no business.

 

Solution: Andrew joined one of MaxMyProfits program, a 1 day a month course that ran over 12 months, to gain the knowledge he’d need. Andrew learnt about the difference between operating a business as a sole practitioner and creating a profitable business that could run and provide income without his presence. Andrew says this required a substantial shift in mindset for him – he wasn’t motivated by money and it wasn’t until his coach pointed out how many more people he could help with a larger enterprise that his vision changed.

 

2. Long hours and a fast growing business without suitable business systems

Solution: As the revenue increased quickly, engaging a manager became not only a possibility, but almost an emergency – someone had to establish and maintain the systems that would sustain the business as it continued to grow rapidly. Andrew was eventually convinced and Peter Annis-Brown (now a co-owner and director) was engaged. Andrew increased his coaching to one-on-one level and his MaxMyProfit worked with Peter and Andrew to take Rural Fit to the next level. Systems for sales, marketing, recruitment and other important processes were establish. This change had the added advantage of freeing up Andrew’s time and allowing him to do more of what he enjoys.

 

3. Cash flow

As a fast growing business, it was a case of needing to invest in personnel ahead of time to ensure the business could keep up with demand. This is a common situation for accelerating businesses and one that creates the risk of the business becoming insolvent. In the case of Rural Fit, costs were higher than they should have been because of the delay in establishing systems that would streamline the work and reduce expenses.

 

Solution: Andrew obtained an overdraft which partially alleviated the problem. As systems were set up, costs began to reduce.

OUTCOMES

The transformation in just 3 years has been substantial:

  • Rural Fit turned over around $200,000 in its first year. Last year the figure was almost $2 million.
  • The business developed from a sole practitioner’s enterprise into a profitable business with a team that includes practitioners and administrative support staff totalling about 50. The business services about 500 clients per week
  • Andrew worked around 90 hours a week after starting the business – he now works about 3 hours a week, and deals with only a few calls and emails a week. The day to day requirements are looked after by others
  • Rural Fit won ESSA Business of the Year in 2013 and the NSW Business Chamber’s 2013 Award for Excellence in Small Business.
  • Andrew has not only successfully made the transition from wage earning public servant to successful business owner, he has created a lifestyle that allows him to spend his time with his wife and children, enjoy life and assist some of the causes he’s passionate about.

Andrew couldn’t be happier with the outcomes and credits MaxMyProfit with correcting his original limiting belief about what it meant to be a business owner – a belief which may otherwise have resulted in him working as a sole practitioner with a limited income forever