SNAPSHOT: Bartlett Precision Manufacturing: small,
but big in its own way
Ever wondered what type of machine makes the plastic cards you have in your purse or wallet? Well, Troy Bartlett
of Bartlett Precision Manufacturing is the person to ask, for his business makes the intricate dies that punch out the
distinctive card shapes.
Ever since year nine, Troy wanted to be an engineer, and dreamt of one day owning and operating his own business.
After leaving school, Troy gained an apprenticeship with Rheem Australia Pty Ltd and undertook four years of
study at Meadowbank TAFE. Upon completion of his apprenticeship, Troy decided to start his own business, and
Bartlett Precision Manufacturing began operation in 1999.
As with most small businesses, Troy experienced some start-up problems, especially when one major customer
failed to pay their considerable account, but Troy thrived on the challenges. In the next few years, Troy consolidated
his customer base and developed a network of reliable suppliers.
With the enthusiastic support of his wife Suzanna, who undertook a part-time accounting degree to assist with the
business's financial records, the business slowly developed and became recognised as one of the best in the industry.
Troy invested in computerised numerically controlled (NC) equipment, which allowed him to specialise even
further.
Although many small businesses are keen to expand, Troy wants his business to remain small. ‘I often wonder
whether I should grow or not, but the more the business expands, the more I'll lose control. I want to keep the
personal contact with my customers’, he says thoughtfully. ‘When a customer comes in with a problem, I can design
and manufacture to their specific requirements. This is my business's main competitive advantage; I take a personal
interest in the project from beginning to end. This means that I keep control of the whole process, so that the high
levels of engineering are maintained’, he says.
Troy works long hours, especially when a customer imposes a tight deadline, but he does not want to lose what
gives him most satisfaction from the business.
‘I like being on the machines. I'm very much a hands-on type of business owner. I get enormous satisfaction from
working on a job from beginning to end’, he says caringly. Actually, it's for that honest reason that he rejects so
many suggestions for expanding his business to match the competition. ‘I just want to continue doing what I do.
Bigger is not always better’, he quips.
Snapshot questions
1.
Identify the strengths of Troy Bartlett's business.
2.
Outline what gives Troy his competitive advantage over his competitors.
3.
Explain why Troy prefers to keep the business small.
4.
Predict what might happen to Troy's business over the next three years.
SNAPSHOT: SMEs — global customers via the
internet
Over the past decade, the number of SMEs who are exporting has rapidly increased. Today, 97 per cent of
Australian exporters are SMEs, and they earn almost 50 per cent of export revenue. The main cause of this (besides
easier entry to many countries through trade agreements) is the rapid expansion in electronic business (e-business),
which has largely been brought about by the development of the internet.
E-business has opened the door for many SMEs to sell direct to consumers across national borders. For example,
Vetafarm, Australia's leading innovator in companion animal health and welfare products, supplies its products
worldwide via an extensive network of distributors and resellers. Based in Wagga Wagga in New South Wales,
Vetafarm's significant markets are the United States, Japan, the Middle East, the Philippines and Indonesia. Since
commencing business in 1990, Vetafarm has designed and marketed over 450 products.
Slim Secrets, a private company owned and operated from home by Sharon Thurin, markets and distributes a
healthy snack alternative. While involved with a health and wellness clinic, Sharon spotted a gap in the market for
tasty, healthy snack products that are wheat free, high in protein and fibre, and have a low glycemic index (GI).
With support and advice from Austrade (the Australian Trade Commission, the Australian Government's trade and
investment development agency), Sharon has turned this niche market product into a global success story. Originally
Sharon intended to sell the product locally but now the business's global markets include Singapore, New Zealand,
the United States, Canada and China.
Research by Austrade has identified five trends for the next generation of exporters:

many will be small in size

they will be knowledge based, providing goods and services that use innovation and knowhow

they will have been in business for only a few years

they will be in small towns as well as capital cities

they will use new ways of going global.
The strongest growth is likely to be among knowledge-based service exporters who work in areas such as film and
video production, accounting services, and tourism.
Weblink
Austrade
Snapshot questions
1.
2.
3.
a.
b.
Recall the factors responsible for the rapid growth in e-business.
Outline the effect the internet has had on Vetafarm and Slim Secrets.
Use the Austrade weblink in your eBookPLUS to examine the role and function of the Australian Trade
Commission and answer the following questions.
State the role of Austrade.
Identify three specific Austrade programs designed to help business.
SNAPSHOT: Extreme Solutions International —
making big waves overseas
Weblink
Use the Success stories weblink in your eBookPLUS to discover more about the success story of Rod MacKay and
Chris Gray's Extreme Solutions International.
One example of a small business that is a skilful exporter, due to the success of ‘Spindek’— a rotating traction
surface that can be attached to a surfboard, is the Western Australian company Extreme Solutions International.
Owned and operated by former IT managers Rod McKay and Chris Gray, Extreme Solutions International created
‘Spindek’, which allows the surfer to use their feet to give them more power and to turn more sharply without
exerting as much physical effort. It took four years to perfect ‘Spindek’, but now the business has its own factory
and sells to the world. What gives the business its major competitive advantage in overseas markets is that it can
produce its deck grip products in one-tenth the time of its competitors.
It was their passion for surfing that motivated these young entrepreneurs to develop a range of high-quality surfrelated products that they sell under the brand name Soggy.
Prior to exporting, they obtained advice and assistance from the Western Australian Government's Small Business
Development Corporation (SBDC). The corporation's TradeStart officer supported Rod and Chris and assisted them
in realising their full export potential. Since these early beginnings, Rod and Chris now supply the largest range of
deck grip options in the world.
Drawing upon their IT experience, Rod and Chris established a website for online sales. The site averages about 15
000 hits per month and online sales generate approximately 30 per cent of total revenue.
The two main target markets are Japan and the United States. Surprisingly, the Japanese are currently the world's
leading purchasers of surf-related products. TradeStart promoted their products in Japan, which resulted in a young,
surfing-enthusiast entrepreneur agreeing to promote, distribute and retail their products. Japanese consumers are
discerning consumers, particular about what they buy, but are prepared to pay a premium price for high-quality
products. Extreme Solutions International aims to capture 1 per cent of the Japanese surf market within two years.
Encouraged by their initial export success, Rod and Chris are hoping to eventually export their full range of surfrelated products to the United Kingdom, South Africa and Indonesia.
Snapshot questions
1.
Identify Extreme Solutions International's main competitive advantage.
2.
Outline the support offered by the Western Australian Government.
3.
Discuss the advantages and disadvantages of exporting as an expansion strategy for small business.
4.
Account for the Western Australian Government wanting to provide such support.
5.
Predict what might happen to Extreme Solutions International over the next three years.
SNAPSHOT: Great Aussie inventions
How would you describe a country that has invented the following products? Victa lawn mower, Esky, Hills Hoist,
Speedo swimwear, StumpCam, wine cask, surf life saving reel, insect repellent. You might describe it as a sportsloving nation that enjoys an outdoor lifestyle. Of course, it's Australia! However, if we examine another list of
inventions — penicillin, IVF freezing technique, the cochlear implant, ultrasound technology, flu vaccine — then
Australia could be seen as a nation of scientists, not sports lovers.
What these two lists reveal is that Australians are very innovative. In fact, we have the highest number of inventors
per head of population of all countries.
Innovation and invention can lead to the establishment of a business based on the development of new or improved
products or services. Converting an innovative idea into a successful business concept often requires the creativity
and risk taking of an entrepreneur. Success is something the following Australian small business owners achieved.
1.
Trevor Murphy and Ken Harrison from Coolum in Queensland have developed a shower timer called the Aqualim,
which works on volume of water used, rather than time in the shower. The Aqualim measures out 40 litres of water
for each shower. Near the end, the flow is reduced as a warning, and the person in the shower can then decide
whether to reset the device to continue their shower or finish at the conclusion of 40 litres of usage. The inventors of
the Aqualim have estimated that it can save up to 50 per cent of water usage in showers, contributing to considerable
household water savings.
2.
Entrepreneur John Parselle developed a system called Fingerscan, which allows people to make electronic
transactions or gain access to high security areas by pressing a finger on a flat piece of glass. Everyone has a unique
set of fingerprints, and Fingerscan can identify individual customers or employees.
3.
About 15 years ago, Gary Leech started toying with the idea of producing hand-cooked potato chips. Using a
domestic deep fryer, he experimented with varieties of potatoes, different oil temperatures and different slice
thickness. From this humble beginning sprang the enormously successful Kettle Chips. When Gary Leech and his
partners sold the business to Arnott's Biscuits, Kettle Chips had a turnover of $18 million.
Weblink
Use the AquaLim, Fingerscan and Kettle Chips weblinks to discover more about these Aussie innovators and
businesses.
Snapshot questions
1.
2.
Identify what these three products have in common.
Explain why it often takes a long time from thinking of the original concept to having the final product ready
for sale
SNAPSHOT: Alex Gillan — Stonker Boards
‘The Stonker competition team gives me feedback — shorter, wider, more flexible — while I lead the construction.
We are always trying new materials, new chemicals and new construction techniques. Work comes first. Then we go
surfing,’ says Alex Gillan. Alex founded Stonker, an Australian manufacturer of kite boards and surfboards, in 1998.
Alex produced a board on his own in a garage in Port Melbourne, using the skills he already had in making
surfboards. He made another one for a friend and put a website together. Then Stonker received an order from a
French distributor for 50 boards. Alex was not in a position to match the order — he had managed to make fewer
than 10 boards at that point.
He initially hoped to outsource the manufacture of boards locally. But the quality of the product locally was
substandard, so he found a large Thai manufacturer who sold boards to retailers in the United States and Europe.
Because Stonker was a small business, the orders did not receive a high priority and there was little opportunity to
negotiate on price. The result was long lead times on orders, which created cash flow problems. The business was
losing money.
After evaluating the performance of Stonker, Alex decided to produce his boards in Torquay. This became a sea
change for him and his family. The decision to move enabled Alex to extend the Stonker brand. Stonker now has a
retail shop (with a factory behind it) selling handmade boards, imported kite accessories and its own label of locally
made and imported clothing and accessories.
Today, Stonker earns annual revenue of over $500 000, selling hundreds of boards (at about $750 each) and kites
($1000 to $2000) a year through local surf shops. Stonker employs four people and exports represent 50 per cent of
sales. In the beginning, kite boarding was a new sport. Stonker now has many competitors, mostly from overseas.
He must constantly evaluate the business's performance and be innovative to remain competitive.
Alex believes that it is vital to keep up with the latest trends in graphic designs and board shapes. He takes careful
note of customer tastes. Stonker put together a team-rider program that helps young people take part in kite boarder
competitions. Alex is also planning to launch an online store, which will help Stonker achieve significant growth in
the future.
Weblink
Use the Stonker weblink in your eBookPLUS to visit the website of Alex Gillan's Stonker boards.
Snapshot questions
1.
2.
3.
Outline the challenges faced by Alex Gillan's business.
Identify the personal qualities of Alex Gillan that help make his business a success.
Explain the meaning of the statement: ‘He must be constantly evaluating the business's performance and
being innovative to remain competitive.’