Smart50 rank: 1
Revenue: $72,302,357
Growth: 453%
Founders: Cameron Ferguson, 36, Amber Ferguson, 33
Head Office: New South Wales
Employees: 50
Industry: Wholesale trade
Website: www.carbonmanagement.com.au
Imagine taking a company from $1 million to $72 million in five years. And with the majority of that growth - a growth rate of 453% - during the last three years when the economy was struggling under the weight of a global financial crisis.
Actually, the founders of Carbon Management Solutions can barely believe it themselves. Cameron Ferguson, 36, and Amber Ferguson, 33, were like many other Australian couples. Amber was a TAFE teacher and Cameron, who had a background in electronics, worked for the Sydney Water Board.
But he always had an interest in solar power and when he noticed the growing interest in renewable energy on rooftops, he set off around the world on a field trip to study how they were installing solar panels.
He returned convinced that not only did Australia lag in solar technology but also was behind in upgrades to electricity distribution. He installed solar panels for a few years and then set out to look for a broader product range.
"We found that niche groups would only sell to franchisees or through a distribution agreement."
That gave them the idea for the business. Amber then set up a wholesale business and Cameron began to source the products from overseas.
The first five years was very challenging, as solar power was not a mainstream purchase. And the pair continued to work at their jobs part time, from their home until 2007.
Then the industry began to take off fuelled by government rebates. As it got busier the pair resigned from their day jobs and began to travel all over NSW installing panels.
"We had to adapt to rapid growth and the political changes that had an immediate impact on the business," she says. "Sometimes we hear announcements on the ABC radio in the morning and we have to change our marketing and business plans from that day on."
The website drove 99% of sales to their door. "The other 1% came from my mother," Amber says.
Lack of funding was a major issue. 'We could see the potential but we could not provide a history of trading."We became very good at funding the first few containers and today we don't need to use any finance for overseas purchases. That lack of funding make us very creative and changed the way we think about finance."
They were also ill prepared for the financial crisis as they were new to overseas trading. When the dollar crashed they found they had presold goods at a higher Australian dollar rate than the purchase amount. "We were essentially paying people to take our stock," Amber says.
They managed to swallow the loss because they had built up the ability to sell and install a large amount of stock quickly. The average order is about $10,000.
"We learned a lot about the market and booking of rates and have out in place processes to shield us from the direct impact of another large fall in financial markets," she says.
The solar industry is now doubling in size annually, creating new opportunities for the Fergusons who are planning to launch new products into Australia to reduce carbon emissions. However Amber is well aware of the danger such fast growth brings.
"We have a consultancy company that acts as a board, she says. The consultants are an integral part of the company and provide an outsiders view. They are also helping us restructure and one of our goals is to implement an exit strategy.
What she learned? Be prepared to change the company. Never let it stay the same for long and always introduce new things, new ways of doing things and new products. Know exactly why you are doing this and believe in your abilities.
"You are allowed to hate your job some days but you need to wake up the next day ready to get stuck into it."
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