Tobi Skovron has lived what many see him as the entrepreneurial dream. Wine up with an idea, began with a loan of $20,000, and over 10 years built a multi-million dollar business that sold. But it was a slog: it survived a distributor who undermined him, not to mention a sudden drop of 40 percent in its capital of expansion (he financed his family life in credit cards and a check of the equity of the House after another).
Skovron comes from a family of entrepreneurs in Australia. He remembers his father, a "boy ragingly successful", taught him two things: "1) If you want something well done, do it yourself" and "2) they don't ask why or how, go there and make it happen."
It starts with an Idea
In 2003, he and his then girlfriend (now wife) Simone lived in a two bedroom apartment in Melbourne. She bought a dog and immediately faced the problem of having to walk the dog regularly, as insignificant-training seemed unreal. "It needs to be a better way of living with a dog but only an apartment could afford," Skovron thought. Simone said, "if they could only do a patch of grass on the balcony."
Bingo! Skovron invented the pet Loo. Two years of R & D presentations as well as patent and trademark and was time. He had taken nothing out of business and had small jobs to help keep things together. Simone, a social worker, covered their expenses. "We went,' Wow, that would be better to do something here or die wondering." "
It was in an Australian show called the new inventors. Similar to Shark Tank, a panel voted the best idea and, then, the public came to speak. A week later and pet bath was Meow of cat, so say it. In a 24-hour period, he sold 500 units. That 1.2 million a year business became an AUS$. Skovron had a real wage. But what he really wanted was to build a global brand.
"In Spain we have 7 million cats and dogs combined," he says. "In the United States, has 200 million. "I wanted to be in the biggest market and the best on the market".
Getting the attention of some big
Things continued to see. In 2008, in a European domestic animal show, met with the CEO of PetSafe, a major manufacturer of pet-related products. Skovron flew to the headquarters of the company in Tennessee. The Executive Director said "I believe you, but going to try it. They grow quite large and we are going to buy." Quite large, as in $10 million a year in sales.
He and his wife now moved with their two dogs to Los Angeles to expand the company. The day that he did, the financial crisis caused the Australian dollar and $300,000 in seed money that had been saved, down 42 per cent in value. "We are entering the world's largest consumer market and I have odd $ 160,000 to throw at it," he says. "It is not enough."
Then dropped the other shoe. He had a U.S. distributor that sent back about $300,000 a year in sales to the Australian company and was to work with retailers. Only, not the man. All sales were made directly from the company's web site. Skovron business plan had been to work with the country's largest pet stores.
To fight
The two parted ways, Skovron thus went on their own. He used credit cards, a line of home equity in his home in Australia that rose up to $500,000 by the end of one year and the occasional night of eating cereal for dinner, to finance the company. Sales grew, but the business was hard.
"I was 31 years old," he says. "This could not go. Would you consume, so it must find another route." They took the decisions on debt, something was raised to avoid, in private equity investment and all that may be required, or that acquired. The company's revenues had hit the mark of $10 million. He called PetSafe CEO.
They met and he sounded as if he was to receive an offer. But at the last moment, received a phone call: "for reasons I can not reveal today, we will not make an offer." It hit him hard, but he didn't give up. More time, a new line of "cool cats", and went back again.
Ship comes
It turned out that the last time, Skovron had been shot in the foot by insisting that all its staff, 12 at the time, would be brought to the company as part of the acquisition. But two of the employees were not a fit. By chance, who had left for their own reasons from and the cast, big one, spent in 60 days.
Skovron now works for PetSafe. "I put my family in a position where you don't have to worry as we used to worry, if it's food on the table, keep the lights on or a two day vacation," he says. In addition, arrives to continue growing was responsible for product lines.