How an Aussie publican turned a $100 backyard bar into a $100 million pub empire — and his top 5 tips when choosing a business idea…
I have to be honest. I didn’t set out to become a publican. Growing up in a middle-class suburban home with two rugby-loving brothers (and two equally sporty sisters), I was a sports-mad jock with a grand goal to play rugby for Australia. I did make several representative rugby union and league teams, represented my school in 11 different sports and was captain of the swimming team. Unfortunately, my talent did not quite match my ambitions and, as a result, I had to find another career. But as a 17-year-old, fresh out of school, I had no idea what I wanted to do.
I was too busy mucking around with my mates, playing footy, drinking beer and having fun — which is kind of how my business began. As they say, from little things big things grow. My pub empire started as a very small operation — it started in my backyard. It was a concrete monstrosity with a built-in chimney, removeable grills, cast-iron hotplates and more. I decked out the area with second-hand armchairs, eskies, a tarpaulin tent to keep out the rain, a tape deck and speakers so we could listen to music and a string of party lights dripping off the trees so we didn’t trip over in the dark.
It worked. I spent most of my weekends down there, hanging out with my high-school buddies. I’d invite them all over after the footy, we’d get a few girls from school to come along and before you knew it, every teenager in the street would be popping over to see what the noise was all about. Everyone was welcome — even the teachers. It wasn’t unusual on some weekends to have 100-plus people down the back of the yard, partying away, with me at the helm. My parties got so popular, I rallied my mates to help me manage the logistics. One took care of the food, the other bought the grog, another manned the gate to deter any undesirables from dropping in… We were a well-oiled team.
One night we ran short of beers so my mate said, “Just charge them $2 for the beer you’ve got left in the esky.” So I did. I took that money, went down to the pub, bought more beers, came back, sold those and made $100. I was stoked. Not only had I made a few bucks, I had enabled the party to carry on late into the night. I looked around at the faces of my friends laughing, joking, dancing, drinking… I could see the joy they were experiencing, feel the happiness they were exuding and it was exhilarating. I had brought together this disparate group of people from many walks of life, and they were all having a great time because of me. I was having a ball, too, but what I really enjoyed was watching other people have a good time. In that moment, my mate Paul turned to me and he said, “Steve, I reckon you should do this for a living.” “So do I, mate. So do I.” And now I do.
I’ve now got seven pubs worth over $100 million. Saying it like that makes it sound like it was easy to achieve. It wasn’t. It’s taken me 30 years to learn the formula for how to find, build and scale a bricks and mortar business. In the early days, I made many mistakes. In fact, I made so many I nearly went bankrupt before I had even begun.
I started out making $100 at my backyard bar and gradually worked my way up, managing bars all over Sydney, London and Europe, working for some of the biggest and best names in the business. I was a sponge, absorbing everything around me, just waiting for that day when I could do it for myself and be my own boss.
HOW TO FIND YOUR PASSION
Everything happens at the pub. It’s where the locals go to celebrate, commiserate, congratulate and communicate, and I love being at the centre of what’s happening. I’m the guy at the side, gently nudging the proceedings along by tweaking the dials to create the right mood and atmosphere — the music, food, lights, colours, scents, décor, drinks — these are the levers that bring a party to life. That’s what I do. And I bloody love it. I’ve been doing it since I launched my backyard bar and I’ve been in the industry ever since.
I don’t know it all, but I know what it takes to succeed. Fortunately, my passion for pubs connects with my ability to turn a profit, but it’s worth remembering this: it’s one thing to have a passion for a business idea. It’s quite another to make it profitable, and just because you like something doesn’t mean you can make money from it. You might enjoy making pottery, but it doesn’t mean you should build a business around it. Do you like the business of selling pottery, or do you just like making pottery? It’s an important distinction to make because not everything you love is commercially viable. There’s a lot that goes into running a business, much of which you may not like, be good at or know how to do. So you need to ask yourself some questions to find a passion that you can cash in on.
THE TOP 5
Here’s five questions to ask yourself when choosing a business idea…
1. Is what you love relevant to other people?
Do people love what you have? I happen to love pubs, and people love pubs, so it’s a good match. People need to want what you have.
2. Will the customer pay you for what you have?
What problem do you solve? You’ll get paid if you help people solve their problem. In my world, people will always pay for a pint, a parma, a punt or a party.
3. If everyone else is already doing it, can you do it differently?
Beware of unwarranted optimism — that is, believing that just because you offer it, people will come. You need to have a clear point of difference and the ability to communicate that to a market who value that difference.
4. Can you find a customer?
You don’t need hundreds of customers to validate your business idea. You need one. The minute someone pays you for what you have (at market rates) you have a business idea worth exploring.
5. Is it profitable?
Selling it for a fee is one thing. Making a profit is another. If it costs so much to make it that you can’t make a profit, you need to find a cheaper way to make it or find a different business model.
If you don’t want to lose money by making a poor decision, think carefully before you buy or launch a business. I didn’t, and I nearly lost my entire life’s savings. Fortunately, I was able to turn it around, but many can’t, or don’t, and what starts out as exciting can quickly become overwhelming or downright terrifying. Don’t let this happen to you. ■
ABOUT THE AUTHOR
Stephen is the founder of Hunt Hospitality and a leading publican with a portfolio of properties valued at over $100 million dollars and employs over 300 people. He was the 2021 winner of the Outstanding Business Leader Award. His book Find. Build. Sell. by Stephen J. Hunt (Wiley, $29.95rrp) is out now. For more info visit www.stephen-hunt.com.au
By STEPHEN J. HUNT
For the full article grab the April 2022 issue of MAXIM Australia from newsagents and convenience locations. Subscribe here.
