Rural startup founders share their stories and tips for growth

From dairy farmers to interior designers, we spoke to a diverse bunch of founders about how they’ve grown their businesses.

By Hanna Marton

12 November 2024

Woman with two sheep and a dog in a field.
  • Katie Hennessy shares how she juggles livestock and her rural clothing brand, Black Colt
  • Mandy and Mike Hartnig reveal the purpose behind their interior design and retail business, The Living Space
  • Steve Ronalds and Sallie Jones share the story behind Gippsland Jersey

Running a business in regional Australia can be tough. There’s the rising cost of goods and services, funding challenges and the tyranny of distance, as well as climate events such as drought and flood. But rural small business owners are a resilient lot, employing creativity, tenacity and humility to solve problems and stay afloat when life on the land gives them lemons. Which is just as well, given that almost one-third of small businesses in Australia are in regional areas1

From dairy farmers to interior designers, we spoke to a diverse bunch of founders who, backed by CommBank, have grown their businesses organically and found purpose in what they do.

Katie Hennessy, Black Colt

She may have never anticipated a career in fashion, but Katie Hennessy is now juggling livestock and a rural clothing brand on an outback station in Queensland.

Woman with black horse in field. Katie Hennessy used her savings to launch her clothing business, Black Colt.

Katie: In 2018, I was working as a vet nurse in Toowoomba when I started designing my own clothes. Back then, work shirts were heavy cotton but when you work in 45-degree heat, you want light and breathable clothes. I wanted affordable, quality blouses that were different to what everyone else was wearing. Friends and family would say, ‘Oh, that’s nice, can I buy one?’ And orders slowly got bigger. The online business grew from there. I called it Black Colt after a horse I owned named Truce. 

Three years ago, I met my partner, Drew, and moved to his family’s 60,000-acre station. We’re about 100 kilometres south of Cunnamulla in Queensland and run merino sheep as well as some cattle and goats. We also have several horses, six kelpies and a Jack Russell that keeps me company at trade shows. Moving to the station was scary because I was leaving a full-time job but putting time and energy into my side hustle has given so much back to me. Black Colt now has men’s and kids’ ranges. 

I launched the business with my savings and early on, each order just paid for the next. Eventually, I sought finance to scale up and called into CommBank, because it was the closest branch. Within a week I had a loan. Fashion was always in the back of my mind. I loved putting outfits together for the races but never really considered a career in the industry. I was just winging it. I still am some days!

Katie’s tips

  1. Learn from your failures – don't beat yourself up; look for ways to improve.
  2. Set up different bank accounts – it makes business much easier, especially when it comes to paying your business activity statement at the end of the quarter.
  3. Stay true to your clientele – I tried to sell apparel that wasn’t very “rural” and struggled to move that stock. Give your market what it wants.

Mandy and Mike Hartnig, The Living Space

Community is everything to Mandy and Mike Hartnig. After decades spent refurbishing five-star resorts, travelling the globe and raising three kids, the couple opened their interior design and retail business, The Living Space, in Orange, and Blackheath, New South Wales. 

Woman and man standing in the doorway of a retail store. Connecting to the community is a big focus for Mandy and Mike Hartnig.

Mandy: Interior design is a big part of what we do at The Living Space, as well as stocking products. Whether it’s plumbers, builders or other tradespeople, we have a great network of trades. We support Australian brands where we can – this has always been a key passion, even when we were doing large-scale hotel and resort fit-outs for brands like Peppers and Meriton. 

We’re planning to franchise our business and are testing the market now. Most people looking for a franchise want a cookie-cutter or plug-and-play situation, but for us, connecting to the community is a big focus. Our Orange store has a coffee shop, which brings people in and allows them to connect with others. We run workshops, such as upholstery and cooking, which supports local trades, too. If someone new to the area comes into the store, we’ll introduce them to everything and everyone. The Living Space is a gateway to the community and a way to help revitalise country towns.

Mike: We’ve always lived in rural areas, even when we lived in England. When we were doing big hotel projects, we lived in Carcoar in Central West NSW, population 300. No two resorts are going to be built in the same town, so it didn’t matter where we lived, we always needed to travel for work. I’d put a notice in the Carcoar pub stating the number of men and women I needed for a three-month project. They’d turn up with utes and dogs and god knows what else and off we’d go. 

We’re all about educating and empowering people. It’s all well and good to sell house paint to a customer, but we want to teach them how to paint. We’ve been in Blackheath for 13 years and we don’t ever try to ‘sell’ to anyone. We’ll happily give them advice, which costs us nothing, and they come back. Our philosophy is: a life is wasted if you don’t pass on something learnt. We’re not in business to become gazillionaires and if we can help someone move up in life and do something for themselves, we’ve won.

Small black dog on a brown leather lounge. The couple are planning to franchise their interior design and retail business.

Mike and Mandy’s tips

  1. Incorporate eco-friendly practices. More than ever, consumers want to get behind businesses that care about sustainability and their impact. 
  2. Embrace word of mouth. You can do as much marketing as you want but referrals are your best friend. 
  3. Don’t hide your cards. Business isn’t a poker game. You’re there to facilitate and complete a project so discuss the problems and fees openly.

Steve Ronalds and Sallie Jones, Gippsland Jersey

Steve Ronalds and Sallie Jones created Gippsland Jersey in Victoria, after financial hardship and tragedy upended their worlds.

Man and woman walking in a rural landscape with cows behind. Steve Ronalds and Sallie Jones crowd-funded to start their business, Gippsland Jersey.

Steve: We started Gippsland Jersey with my dairy farm and as we’ve grown, other farmers have supplied milk. A tanker goes to farms, consolidates the milk and takes it to the factory to be processed. Then it goes out to shops. 

In 2016, a couple of big dairy co-ops dropped their milk prices overnight in the middle of the financial year, saying they’d been overpaying for months. It hurt the industry. The only positive was that the Australian Competition and Consumer Commission has ensured it won’t happen again – minimum prices are now set for each financial year.

When we started the business, we didn’t have money or a credit rating so we crowd-funded and then financed an old refrigerator van, which gave us a credit rating. Then we built our factory. Now, bank managers put themselves on the line for us because they believe in what we’re about. 

Sallie: Steve and I didn’t know each other well when we went into business but three months after we first talked about it, we had milk in a bottle. 

After 2016, we needed to bring some positivity back to the industry. The pressure was so high that a few dairy farmers had taken their own lives, including my dad. He worked 18 hours a day and nothing could keep him down, but his world started crashing. 

Steve wanted to control milk prices and I was full of grief and wanted to honour Dad. He’d built a dairy factory in the ’80s but by 2016, it was run-down. Steve spent a year reviving the factory and we’ve been there six years now. We’re about to buy a cheese factory with the support of CommBank, which will double our business. 

Our business has three pillars: pay farmers a fair price;, build social change around mental health;, and promote kindness. Each year, I publish a calendar with farmers’ stories and people have told me they were brave enough to seek mental health support after reading the stories. It gives me goosebumps.

Man and women sitting in grassy field with cows behind. The founders are about to buy a cheese factory with the support of CommBank.

Steve and Sallie’s tips

  1. Don’t go it alone. Share the load with a business partner who understands deeply what’s going on and can prop you up when you’re feeling down. 
  2. Use a CRM from day one. Get customer relationship management (CRM) software. They work for a while, but Excel spreadsheets and notepads won’t cut it forever. 
  3. Be authentic. Know who you are, identify the ‘“why’” in what you’re doing and stick to your values.

Visit CommBank’s small business hub to find out more about how CommBank backs small businesses.

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Things you should know

Australian Small Business and Family Enterprise Ombudsman, Location of Australia’s small businesses - regional and metro areas, https://www.asbfeo.gov.au/small-business-data-portal/location-australias-small-businesses-regional-and-metro-areas

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