Turning your passion into profit

• Bernard Tanner
• 23 June 2009
• Page 1 of 2 : single page

At 21, Brad Smith has already achieved a level of success that many older business owners might envy.

Over the last five years he has created Braaap, an award-winning manufacturing and retail business that employs 16 people and turns over millions of dollars each year. Now Braaap is getting ready to invade the mainland from its Tasmanian base, with a combination of company-owned and franchise stores.

And it all started with a passion for racing dirt bikes.

Start your engines

“Motocross has been my passion ever since I could ride a pushbike,” says Smith.

As a 15-year-old, he was riding 250cc and 450cc bikes when he discovered mini-motocross.

“It just got me really pumped because it was everything we do on a full-sized bike scaled down to a really intense pack,” he says. “It was just awesome racing.”

Best of all, mini-motocross bikes were light and inexpensive, so his friends could handle them and afford to ride them.

But there was just one problem. While well-established overseas, mini-motocross was in its infancy in Australia, and virtually unheard of in Tasmania. From that moment, Smith made it his mission to promote and develop the sport he loved.

The birth of the Braaapster

One year later, Smith had saved enough money mowing lawns to import his first shipment of 10 mini-motocross bikes from China.

“At the time there was no mass-produced bike,” he says. “The Americans were riding bikes they’d built themselves.”

Unfortunately, those first 10 bikes did not live up to expectations. “Basically I got ripped off like nothing else… I definitely lost my money. It was a great learning experience, though.”

That first shipment took Smith a year to sell. But it also helped him make some invaluable contacts, including a Tasmanian business owner with links to a factory in China. A second batch of bikes followed, this time manufactured to strict specifications – and the Braaapster was born.

The teenage entrepreneur

Smith supported himself by trading shares with CommSec while he built the business. At the first opportunity, he took a plane to China.

“A soon as I turned 18 I got on a plane and went over there,” he says. “I basically just shared my story and my vision with the manufacturing plants.

“Most of them didn’t want to know me, but we found two who really wanted to get behind what we were doing. We still work with those two manufacturers today.”

Soon Smith was supplying Braaapsters to bike dealerships around Tasmania. But, while his bikes were selling well, the sport still wasn’t getting the traction he wanted.

Jumping in the deep end

“I needed to build a sport, so I needed a dealer who loved our product, loved our sport and shared the same vision as us,” says Smith.

His existing retailers didn’t fit the bill.

“I had to make a tough decision about whether to continue down the wholesaling path and make a good amount of money selling bikes, or whether to put myself on the line and open up shops.”

Smith decided to take the risk. Two years ago, he opened his first shop in Launceston. It was a steep learning curve.

“I had to learn how to manage staff, I had to pay rent, learn about marketing, and I really got thrown in the deep end,” he says. “I loved it. It was excellent!”

Creating the Braaap experience

Today, Braaap has stores in Hobart and Launceston, with a third store soon to open in Frankston, Victoria. According to Smith, they’re more than just bike shops.

“We’ve got mechanics, we do coaching nights and workshop nights… we’ve got all the spare parts, the accessories – your helmets, your gloves, your boots, casual gear like your T-shirts and jeans, shoes, sunglasses, DVDs, tyres, wheels – everything!

“When you walk into a Braaap store, everyone gets treated like a mate because at the end of the day if you buy a Braaapster bike you’re more than likely going to be coming riding with us. Most of our customers turn into our riding buddies and it’s just a whole lifestyle. Everyone who works at Braaap loves what they do.”

Braaap also has a big online presence, with its own website, plus content on YouTube and MySpace, even a chat room. Smith says the web has been hugely important to his business.

“One thing I love is seeing a good video of a Braaapster rider doing something cool on their bike,” he says. “It gives our customers bragging rights when they get a photo or video online!”

Welcome to Braaap Club

Smith has also created a not-for-profit organisation, Braaap Club, and built two dedicated riding tracks near his Launceston and Hobart stores. The track at Launceston includes an exact replica of the Las Vegas supercross track where the mini-motocross world championships are held.

Braaap Club helps Smith promote the sport and give something back to the community.

“We’re working with community groups, schools and the police to use our tracks to benefit young people,” he says. “The goal is to help these kids who are having a hard time create a whole new network of friends.”

Learning from the experts

One of the secrets of Smith’s success is his willingness to find and learn from the experts.

“My whole philosophy is that if you don’t know how to do it yourself, find someone who has done what you want to do and model yourself on them,” he says. The support of his family has also made a big difference.

“My parents have never been in business, but they said to me from the start, ‘We don’t know a lot about business, so what we want you to do is to get a great group of people around you’.”

Now his parents and his sister work for him at Braaap. “It’s turned into a family business, which is awesome!”

Working the numbers

At first, Smith was able to fund Braaap’s growth out of cash flow.

“The first 10 bikes paid for the next 15, and they paid for the next 20. It just grew from there,” he says.

But after a while, Braaap’s rapid growth started to catch up with him. “Growing fast is one of the most dangerous things,” he says. “It seems you’re going really well and you’re selling a lot of product, but you’ve got to remember that cash flow is an important part of the business.”