Smart50 rank: 21
Revenue: $8,523,243
Growth: 79.84%
Founders: Geoff Neate, 44, Joe Tigel, 51, Mike Allen, 52
Head Office: Victoria
Employees: 11
Industry: Telecommunications
Website: www.spirit.com.au
Dealing with suppliers is a tricky business and shaky relationships can often threaten your business.
That’s precisely what happened to the three founders of Spirit Telecom, Geoff Neate, Joe Tigel and Mike Allen.
The trio worked with a supplier that reportedly misled them as to its capabilities and after having promised a particular solution to a customer, they found that it couldn’t be delivered.
The problem was eventually solved by ditching the supplier and working with the customer to manage future expectations and it reinforced the company’s main approach to business – “be prepared to change everything”.
“Your number one priority will never be anyone else’s. If you want to know the problems with your company get on the phone to your customer and ask,” Neate says.
The business started in 2004 when the founders identified a gap in the market for telco services to be provided to SMEs.
With Telstra missing the market the founders adopted a vision to remain small – “we are not a big telco nor do we act like one”.
There have been troubles along the way.
Early on a person was hired who ended up trying to undermine the company, leading the trio to adopt a “people like us” culture and each time a new hire comes along the question is asked – “is this a PLU?”
Part of that culture includes having a one-hour meeting each week to ensure that employees have their presence felt and can generate ideas.
The business grew by 79% last year with revenue of $8.5 million and as the business heads towards an eventual public listing the founders said they have a number of challenges ahead of them, including the construction of the National Broadband Network, possible acquisitions and the ability to control costs and grow at the same time.
“All areas of the business can improve. However the hot buttons are around sales channel development and some of our customer care processes,” Neate says.
