Patrick Broadbent & Jamie Bennett. Photo / Supplied.
Patrick Broadbent & Jamie Bennett. Photo / Supplied.
For ground-breaking car rental start-up, ambition plus mentor’s advice equals business success.
In a couple of years, Snap Rentals could be a $10m company, says business coach Ken Leeming.
That's not enough, say Snap Rentals' co-founders Jamie Bennett and Patrick Broadbent: "Oh no, we want to get to $100m after that and $500m after that," says Bennett.
He isn't joking. But, to get there, they have accepted advice which sometimes felt like a bit of a handbrake was being applied - but is designed to take their business to the next level.
All this talk about a company worth millions of dollars comes after Broadbent and Bennett entered the Bank of New Zealand's Supersize SME programme - launched in conjunction with Newstalk ZB to find ambitious SMEs to be mentored to reach the next level of business success.
Four years ago, Snap Rental's "fleet" consisted of a 20-year-old Nissan Sunny. Now they have 500 cars and want to re-write the book when it comes to the car rental industry - through market-leading customer service, an innovative focus on electric cars, like the exciting $120,000 Tesla S and new Tesla 3 models, plus a new app which Bennett and Broadbent say will "upset the industry".
That's where Leeming - a coach and advisor with business enabler The Icehouse - came in, along with Icehouse CEO Andy Hamilton. It's part of the bank's long association with Icehouse; BNZ were a founding partner 16 years ago and the two companies have helped many Kiwi businesses and business owners grow.
One practical gain already has been Snap Rentals, with help from their mentors and BNZ, securing the rights to airport premises - a vital site for any car rental company. They have also opened a branch in Auckland's CBD.
However, after several mentoring sessions, the focus has largely been on systems and processes protecting the company from the syndrome of growing too fast, too soon and too loose.
Leeming says: "These two guys are fantastic - they have achieved a lot in a short time in revenue and asset terms. They have the ambition to be a $10m business in a couple of years, pretty substantial in New Zealand terms."
However, Leeming also says Snap Rentals is getting to a familiar stage in the evolution of a start-up: "Like a lot of start-ups, the guys have got to a stage in the business where they have real passion and enthusiasm for what they are doing; what normally happens after that is they hit the wall."
Tesla Model 3. Photo / supplied.
It's a time when the structural side of business needs attention - putting in place systems like governance, strategic plans and various processes to ensure the business can grow without strains that can hamper that very growth.
"We talked about understanding what is driving behaviour and the systems and processes they need to be good managers, able to engage with staff and the market," Leeming says.
"It's really a matter of corporatising their business without losing their entrepreneurial spark."
Strategic plans were formed to take them to 2021, with milestones to tick off on the way to maintain their growth.
"They could still succeed without this," says Leeming, "but it would be a struggle, harder than it needs to be.
"They are very smart guys, with an eye to the future but one of the things about starting a business is you tend to be head down and bum up - and you have to be able to put your head up occasionally to see what is happening, to see if you are falling behind or getting ahead. That's the value of a mentor."
Electric vehicles are one way Snap Rentals aim to get ahead; they claim to be the first to introduce EVs to the market here and believe they are about to pull off a world first: by next year all of their airport shuttles will be all-electric.
"It's something we are really passionate about," says Broadbent. "We like the environmental element and the technology - soon you'll be able to drive from Auckland to Wellington with zero petrol...it will cost you about $20 to make the trip.
"Soon after that, it will be possible to drive an electric car the length of the North Island and the South Island. We think zero-emissions cars are a great fit with New Zealand tourism and our tourism clean and green image."
Bennett says the value of "a wise old head" like Leeming's was that "Pat and I know guidance like this is really, really crucial. Ken has such a lot of experience in areas like strategy, business compliance and other areas - making us think more about why we are doing things rather than rushing into them."
One area Bennett and Broadbent have delayed is their entry into the tough Australian market: "We will still get there but we know now there is still incredible potential in the New Zealand market so we will expand our network here first - and not take the risk of jeopardising quality in New Zealand by going to Australia too soon."
They are also still working on their app, which Bennett is loath to discuss but says is "an exciting concept which we feel will turn the industry on its head and will give outstanding flexibility to the customer."
Maybe that $500m company is closer than we think...
Follow the journey on The Mike Hosking Breakfast on Newstalk ZB and at SupersizeSME.co.nz
