Small business

You are here: ninemsn > Money > Small business

Fit kids: business success

From Money Magazine, March 2005

A young entrepreneur has achieved a win-win situation with a career that shifts kids from the TV couch to a 'healthy, active lifestyle' writes Anthony O'Brien.

Amy Wilkins at 24 is already a four-year veteran of television and partner in a business turning over $150,000 annually. She starred in the ABC's afternoon program Active Kidz with business partner Scott Ehler, from Active Star Productions, the company that produces children's health and fitness programs.

Wilkins, from Pymble in Sydney, says the ABC contract recently ended, but she doesn't seem too fazed given the series has been sold to New Zealand and the Disney channel in Asia. The committed double act is already talking with commercial television about a new series.

Wilkins says her motivation is "to encourage kids to lead a healthy, fun and active lifestyle with their friends outside, rather than sitting in front of PlayStations and other computer games". She says the competition is thin on the ground. "We are completely different to Hi-5 [on Channel Nine]," Wilkins says. "They do education and we focus on [children's] fitness."

Wilkins built Active Star Productions with Ehler from a program she designed at university — she studied human movement. They started with a live stage show for children but decided early that television would be useful for them commercially. With the help of a licensing agreement with the ABC, the pair has branched into other mediums including CDs ($14.95), DVDs ($19.95), board games (from $29.95) and colouring books ($9.95). Active Star Productions receives a cut of the profits generated by the licensing agreements.

While university gave Wilkins health and fitness industry knowledge, she has no background in small business or television. "There's been a lot of trial and error and gut instinct," she says. This included the onerous task of negotiating contracts with television stations and, more recently (since splitting with the ABC), licensing agreements for the use of the Active Kidz brand on soccer balls, boogie boards, skipping ropes and so forth. "We've also had to learn to write scripts, music and lyrics. We weren't taught these skills at uni."

Wilkins and Ehler used their savings to start the business with around $23,600. Her parents Joy and Jeff also helped. "I had a savings account in primary school," Wilkins says. As she got older, she earned money coaching junior sporting teams and put it into online savings accounts. By the time of her university graduation Wilkins had accumulated a tidy $10,000.

Building a support team early contributed to Active Star Productions' success. They found a decent accountant, entertainment and music lawyers, a bookkeeper and a manager — although they now manage themselves. "We know what we are doing and like to represent ourselves and have 100 percent control," Wilkins says.

She says her biggest error was letting herself get too emotionally attached to the business. "You have to understand it's not you and that decisions taken are purely business." The young entrepreneur found negotiating TV contracts particularly difficult. "You need to detach yourself and get good and objective advice."

Wilkins says the partnership works because she takes care of the details while Ehler attends to the business meetings and networking. There isn't an exit strategy because they don't feel it's required. Costs and profits are shared equally.

Apart from a return to television, Wilkins says Active Productions is planning an assault on the US and UK markets, as well as launching a kids' magazine this year. Wilkins still lives at home but is buying a townhouse on Sydney's North Shore.

Three tips for success: Amy Wilkins

1. Every time you walk out your front door, you have an opportunity to meet people and network. Look for these opportunities and always smile — first impressions count.
2. Have other interests apart from the business. Amy enjoys many sports and time with friends and family.
3. Stay on top of your bookwork. If you can't, then outsource it.

Start-up costs Active Star Productions

• Laptop (they owned a printer) $3000
• Broadband connection $29.95 a month
• Mobile phone $59 a month
• Sound system $5000
• Props $1500
• Accreditation (Dept of Education) $220 per annum
• Registration of business name $100
• Headset and mike $3000
• Set up company structure $1500
• Legal fees (TV, music and management contracts) $7500
• Accounting fees $1200pa
• Marketing (printed stickers and business cards) $500

For the complete story see Money Magazine's March 2005 issue. Subscribe now.