Smart50 rank: 26
Revenue: $2,350,000
Growth: 69.07%
Founders: Ariana Hendry, 30; Anthea Hendry, 27
Based: New South Wales
Employees: 7
Industry: Personal and other services
Website: www.hypoxi.com.au
Ariana Hendry admits that Hypoxi Australia evolved out of complete self-interest.
"At the age of 25, I was posted to work in a London law firm for a year. Overworked, away from family and living on a diet of fast food and beer, I gained weight - fast. I was extremely unfit and unhappy."
She began looking for a solution to what she calls her "increasing bulges" and stumbled across Hypoxi, a compression therapy that encourages weight loss through improved circulation, all in a quick 30 minute session.
After trying the treatment at one of the 2,000 Hypoxi treatment studios across Europe and Britain, she became convinced the idea could work in Australia. When she returned home to Sydney in 2005, she began eight months of negotiations with the company's Austrian manufacturer. Eventually, she won the Australian and New Zealand distribution rights and set out to start the business with the help of her sister, Anthea.
It was a hard slog and capital was difficult to find. Their lack of experience in the fitness and beauty market did not help. "Two banks we approached suggested our numbers were ambitious and were reluctant to commit," says Ariana.
They eventually relied on contacts made during their previous careers, who invested around $150,000 to help set up the first studio in Sydney.
"We learnt a great deal from these people, which I guess was a great lesson - there is nothing wrong in admitting you don't know the answer as long as you are prepared to draw from the experiences of those who do."
The Sydney studio went well, with the help of some positive press and a strong word-of-mouth marketing campaign, which involved rewarding existing customers for referring new business.
Three years on, the network has grown to 38 full service studios across Australia, with the sisters bringing on new investors who set up their own studios after buying machines from Hypoxi Australia (prices start from just under $35,000, according to the company's website).
In 2008-09, revenue hit $2.35 million, having grown at an average annual growth rate of 69.1% over the past three years. The sisters are now joint managing directors of the Hypoxi distribution business and have grown their head office support staff to a team of seven.
While the downturn has not affected demand from fitness lovers, Ariana admits it has slowed the company's growth plans, with potential operators unable to get finance to buy equipment. With this in mind, the sisters have focused on rolling out more marketing support services to existing operators.
"We see exceptional long-term benefits in helping our existing operators to survive and grow in these uncertain times. It is our view that if these operators can thrive even through the GFC, they will provide compelling evidence to new potential operators that Hypoxi is a viable model."
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