Success Stories

The BRW lists shine a light on the most successful parts of the economy. With our focus on entrepreneurialism and our unashamed pride in success and wealth creation, it’s no surprise that in a year of doom and gloom, those that made the BRW lists in 2010 had a very different tale to tell.

In our flagship Rich 200 issue, for example, total wealth was up 23 per cent to $167.25 billion and for the first time a woman, mining magnate Gina Rinehart, took out the top spot with a $10.3 billion fortune. Her rise to the top spot is an indicator of how the mining boom is creating great personal wealth – the mining fraternity has surged to the top of the Rich 200 on increasing iron ore and coal prices.

In another big BRW list this year – the Young Rich – a resurgent sector was responsible for a number of fortunes. The combined wealth of this group of 100 multimillionaires aged 40 and under grew to $7.25 billion, up from $6.3 billion last year and the technology sector was the driving force. The dotcom boom 2.0 has driven up valuations of young technology companies and businesses with only a few years’ track record are now worth millions. Undoubtedly the Facebook effect – where the high financial numbers around the social network are pulling up valuations across the sector – is having an impact. It’s expected that next year’s sharemarket listing of the network will mark the high point of the current boom, so expect to see some young entrepreneurs cashing in early on the goodwill.

The Fast lists – the Fast 100, Fast Starters and Fast Franchises – mark an earlier point in the wealth-creation cycle. The Fast 100 and Fast Starters both reported glowing revenue figures. For the Fast 100, combined revenue hit $4.1 billion, up 13 per cent on the previous year, and no amount of economic uncertainty could dim their enthusiasm, with 97 saying they expect further growth this financial year.

It was the same story for the 100 start-ups in the Fast Starters where combined revenue grew to $668 million from $546 million the previous year. This is another group of positive people, and also a group in which 42 of the founders were born overseas. Fast Franchises proved that franchising was a tough market for the previous financial year. Fast Franchises was the only one of the lists where revenue and the number of participants went backwards. The heavy weighting of this sector towards retail dragged it down and some high-profile names such as Souvlakihut and the Australian arm of US doughnut retailer Krispy Kreme were both placed into administration. There are no signs of any relief for the sector with the recent news that Young Rich lister Wayne Ormond’s franchised operations, Refund Home Loans, has also been placed in administration.

However, despite the pressures facing the retail market – and in part because of them – this year BRW launched a new event with AMP Capital Shopping Centres. This was a national search for outstanding retailers and the results are in this issue. Lorna Jane, the womens’ active-wear retailer took the top prize and her focus on exemplary customer service was commended by the judges. The event proved that no matter what structural or cyclical pressures a sector faces, there always will be leaders in the field that defy the downwards trend. Our role at BRW is to identify those businesses and highlight them in a way that inspires others.

Kate Mills

BRW

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