At just 28 years-old, Tobi Skovron knows what it takes to turn an idea into a multi-national business – hard work, determination and a really great product. His idea? “A backyard in a box” called The Pet Loo.
In 2006, Tobi and his wife Simone formed Pup-Pee Solutions Pty Ltd which manufactures The Pet Loo and a line of pet waste management products. They launched their hero product, The Pet Loo, the same year. The invention received a kick-start from Australian national television show 'The New Inventors' when the public voted it Australia's favorite new product.
Pup-Pee Solutions is now Australia's leading designer and manufacturer of pet products which it exports to more than 75 countries, including the United States. In 2009 Tobi moved to Los Angeles with his wife Simone and dogs Subii and Coopa to grow Pup-Pee Solutions’ U.S. business.
Direct Marketing Digest: What was your life like when you were young? Were your parent’s business owners, or show other entrepreneurial traits?
Tobi Skovron: I was born and raised in Sydney Australia. My parents were hard workers that wanted to ensure their kids (my sisters and I) didn’t go without. My dad was an entrepreneur who changed the landscape of his industry and some twelve years after his passing, his products and ideas still lead the automotive industry –www.asnu.com.
My inspiration is my father for doing things his way and my main motivation is to make my family (wife, mum, sisters and extended family) proud. It is the support of my immediate family that drives me and without their support and encouragement I wouldn’t be half way to where I’m right now. I value my support structure and it’s a large part of who I am.
DMD: Were there any business people you looked up to, or wanted to be like?
TS: Not really business people, more athletes.
It takes hard work, not just talent, to become the best in your field. Michael Jordan was my childhood hero, not only because he was the best in his era but because he was a competitor, a hard worker and the kind of person who was in the gym first and last to leave. He didn’t just happen; it was the years of hard work that made him into the Michael Jordan the world knows!
DMD: What was your first work experience?
TS: I was a Junior Basketball coach at my school and local club. The lessons I learnt doing layups and playing defense still guide the way I run my day-to-day business.
DMD: Why did you want to start your own business?
TS: For anyone that knows me personally, they know I am a highly motivated individual. While I respect corporate structures and the 9-5 grind, it’s just not for me.
I love to conceptualize, create, package, sell, deliver, expand and everything that goes along with running your own business. Working for someone is not even a consideration – I need to do my own thing, my way, from beginning to the end, it makes me tick!
DMD: Were you entrepreneurial at an early age? For instance, did you sell lemonade on the corner, shovel sidewalks or deliver newspapers? And if so, did your parents push you that way, or was it more part of your DNA?
TS: Yes, it is in my blood, it’s in my family and I believe I’m a born leader!
My parents didn’t push me, but my mum certainly gave me the support I needed. She has been on the sideline from day one, cheering me on. Recently, my father-in-law has been a great mentor and supporter even coming with me on round the world trips.
DMD: Were you involved in another business before you started the business you're in now? If yes, What happened with it?
TS: I was involved in a corporate health company and on the side ran private sessions as a personal trainer. Personal training was never a long term career, but is certainly built my skill set and gave me experience in strategic planning and setting goals. It also taught me how to deal with people, take care of those people and ensure they achieve their goals – I believe these are the basic skills of any CEO.
DMD: Did you ever have a business idea you didn’t act on?
TS: No, never. I do what I say and say what I feel.
DMD: How did you get into the "business you're in now"? How did the “Big Idea” come to you?
TS: It all came about from “need” from there it evolved into “if I need this, who else does”. Simone, my wife and I moved into an apartment with our dogs – we were both working long hours and needed a solution to those in between times when we couldn’t take our dogs outside to “do their business”.
DMD: Did you layout a detailed business plan for it, or was it more a napkin-sized outline?
TS: Everything is detailed, but I’ve moved away from the “business plan” and focused on the “strategic plan”. I believe it’s the daily strategy that delivers the results. I see the “strategic plan” as the short terms goals – as in what is on today and the “business plan” is the long term program – as in this year’s goal!
DMD: How did you finance your start up? i.e. Savings, Family, Mortgage, Loan, Angel, Private Investors?
TS: I borrowed some money from a family member. This gave me enough to register patents, and get some samples made up. From there, I sold, sold, sold. For the first year and a half I didn’t take a salary, and put everything we made back into the company. I worked two jobs and some ridiculous hours to make it happen.
Today, there is no debt in the company, we are cash flow positive and self sustaining. The initial loan was paid back almost overnight after generating fantastic interest and sales.
DMD: What are your thoughts about having and/or dealing with business partners? Some businesses partnerships seem to thrive, while it destroys others. If you had partners, how did you decide on an exit strategy?
TS: We established an exit strategy before we entered into the agreement. I believe it is important to stick to what you’re good at and allow others to do what they are good at.
Pup-Pee Solutions has three shareholders; everyone brings different skills to the company so in our case we’ve thrived. Early on we established that during business hours, it’s strictly business and nothing personal. Just like “white line fever” in sport – once you cross that line, you do what you have to do to win the game (in an ethical manner, of course) but at the end of the day it’s great to celebrate successes together.
DMD: Did you have a detailed spending plan in place for the money you started with? If so, in ballpark percentage terms, how was the money spent; (product/inventory, marketing, employees, tools/equipment, location of operation.) Or was it more, I have this much money to start and I’m going to wing it the best I can?
TS: Our start-up money was spent protecting intellectual property and creating some off-tool samples. From there the business had to stand on its own. Our first sales allowed us to manufacture inventory, do more marketing and promotion, then hiring new people. After a year we could better forecast growth, we added structure, more people and more inventory.
DMD: As your business progressed, was your growth self-financed through its own success? Or, did you need to raise outside money to grow? If you needed outside capital, how did you get it?
TS: Totally self financed. I don’t like to be in debt, so our aim is to sell, sell, sell, and reinvest revenue into expanding the company. We don’t spend what we don’t have, or borrow to make things happen.
DMD: What worked the best for you when you start promoting your company?
TS: The concept of The Pet Loo was great in theory but we needed to demonstrate this to retailers who reluctant to carry a new product, unproven in the market. I backed my products by giving well-known retailers The Pet Loo on consignment for 30 days. On the back end, I invested in PR to gain exposure in the media, drive traffic to my website and stores.
DMD: What DID NOT work for you?
TS: Giving payment terms to retailers. Some retailers early on took advantage and dodged paying bills when they became due.
DMD: Was there any big break that really got you off the ground?
TS: I applied to go on an Australian television show called The New Inventors and received a letter thanking me for my application and informing me that if my invention was chosen I’d hear back from them within 8 months. I got the call within three days, the following week we were in Sydney filming the show which went to air two weeks later. During that two weeks I recruited a PR firm to ensure every media contact they had watched the show. After that we were inundated with interest, sales and media opportunities.
DMD: What is the smartest thing you’ve done while running your company?
TS: I recognized very quickly that while I have the drive and hunger to succeed, it is so important to seek the advice and assistance from mentors and accomplished business people. I believe that we’ve been so successful because I’m not shy to ask questions.
DMD: What was the toughest time or “unexpected challenge” you experienced when you started your business, and how did you get through it?
TS: I have met a lot of honest, hardworking people but I’ve also come into contact with some very dishonest and unethical people. Unfortunately, you often find out who’s who the hard way. We had to see out the contractual arrangements we had with one of these people which put us behind, but it taught us an important lesson about forming relationships with the right people for the right reasons.
DMD: What do you think was/is the key factor that made YOU successful, when so many others have failed in starting and building a business?
TS: My approach is to deliver innovative products with first class customer service. From day one to date, that’s exactly what I’ve done.
I’ve focused on building relationships with key customers and delivered quality products on time, every time. This builds credibility and encourages word of mouth promotion. The biggest obstacle is to form the first relationship; from there you earn people’s trust and respect and expand your opportunities. People do business with people they like – I’d like to think I’m a likable person and if not, a very hard working, honest one!
DMD: When you’re making business decisions, are you more likely to go with your head or your gut?
TS: There is a fine line, I often go with wearing my heart on sleeve but with time learning to create a balance between both – It definitely comes with experience.
DMD: When do you do your best thinking?
TS: If it’s not at 3am when I wake with a rush of ideas then it’s definitely when out on my bike at 5:30am.
DMD: How have things changed in marketing since you started, and how has it stayed the same? What do you think the future holds for marketing your company?
TS: Right now I’m still doing what I did to get this business to where it is today. Our operations out of Australia are well established. This year I relocated to join my US-based team - I often think to myself “what did I do to get Pet Loo Australia to where it is today” then I work out a strategy for a population 10-times the size.
DMD: Do you have any worries about the future that may affect your company? And if so, what are you doing now to be prepared?
TS: When you have a successful product you are bound to become a target for counterfeiters. While we have very strong registered intellectual property (Patents, Copyrights, Trademarks, Design Protection etc.) and plan to protect our rights when threats surface, this causes me the most anxiety.
DMD: How educated do you think you have to be to start and build a business? Do you think you need a college education to be successful? Or do you think any average person can start and build a business in today’s world, if they work hard and are persistent?
TS: If you’re passionate, strategic and apply yourself accordingly you’re off to a good start! At Pup-Pee Solutions we have employees with and without degrees. Education is important but if you don’t love what you’re doing it doesn’t matter how many degrees you have. Surround yourself with people who have been successful in their time (advisors), people with common sense, drive, and determination.
DMD: Which is more important, talent or experience?
TS: I have drive, energy and vision BUT still have a lot to learn. I’ve implemented a board of directors to advise me and channel my energy – it’s this mix that has put Pup-Pee where it is today.
DMD: What is better, Money or Ideas?
TS: In 2003, Simone and I had a fantastic idea – The Pet Loo, being 22 & 23 years old at the time our access to cash was limited. We obviously needed money to bring our “idea” to life and then to market. While money certainly allowed us to get to market I think it’s far more important to understand “profit and loss”. You categorically need to be able to sell product and make a margin on it to make your business sustainable.
DMD: What’s the best advice you’ve received?
TS: Don’t live beyond your means. Put simply, if it’s not in the bank, I’m not buying.
DMD: What most impresses you about a person?
TS: Passion, efficiency, attention to detail and initiative.
DMD: What’s one thing they should have told you, about being a business leader?
TS: There is no such thing as a 9-5 job. If you have to work all night to meet deadlines – then that’s what you have to do. And, never compromise your values.
DMD: In your experience and opinion, is there any industry/business you would advise people to stay away from today. If so, why?
TS: No. Follow your dreams and passion! Do what makes you happy.
DMD: Are there any areas you see right now that you think offer great opportunity to get into today?
TS: Certainly. There are many companies in the industry that are folding. I see that as an opportunity to buy brands or companies and incorporate them into our corporate structure. I don’t want to dilute our existing brands but I know that it’s smart to diversify.
DMD: Who inspires you now?
TS: So many different people from all areas: Family, my Mum – her strength and determination will rival anyone. Extended Family, my father-in-law – cool, calm and collected in his approach to everything. Sportsman, Michael Jordan – he’s the best there ever was and potentially ever will be at what he did. Business, Richard Branson – I just love his approach and “out of the box thinking.” Immediate circle, Mark Stern – former president of United Pet Group, a global pet industry KING!
DMD: What’s the most overlooked secret to success?
Answer: Hard work! Nothing happens over night and sacrifices need to be made along the way. Some people who walk into a pet store will see our products and assume “that guy is making big bucks” but the effort to get it into stores is underrated.
DMD: Do you have any pointers or words of wisdom to give Entrepreneurs and small businesses that want to follow in your footsteps?
TS:
1. Surround yourself with people that have been there and done that. Understand where you’re at as a professional and don’t be shy to ask questions and learn.
2. Make sure you get advice from people who aren’t emotionally involved and can be objective about your business idea.
3. Protect yourself and your ideas. Discuss your ideas under confidentiality. If product related, register patents. These are invaluable when dealing with the big customers.
4. Back yourself. Don’t let anyone tell you can’t do it. This only comes into effect after points 1, 2 & 3 have been ticked!
DMD: Do you have any words to live by?
TS: Activity leads to results!
Personal and Company details if public:
Year Company founded: 2006, after 3 years of Research & Development
Number of employees: 12
Short Company Description: Pup-Pee Solutions are pursuing their goal of being a worldwide solution in the category of pet waste management. Pup-Pee has proven their success in multiple markets worldwide with their product range. More info:www.thepetloo.com
Interviewee’s age: 28
Hometown: Sydney, Australia. Relocated to Los Angeles, California in 2009.
Family: Wife Simone, two dogs Subii & Coopa.
Article written by: Direct Marketing Digest
http://www.directmarketingdigest.com/node/15
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Your Backyard in a Box