Enigin Close the Door on Popular “Biz-Op”

From its initial inception Enigin has been synonymous with the company who offers a “Business Opportunity” to anyone who wants to get into the energy saving business, regardless of whether they had any previous business experience.

The company believed it was possible to take an individual with no previous business experience and provide the training they need to start a new business from scratch in this new emerging marketplace.

When the company started, I was appointed as MD of Enigin and as such I was primarily responsible for bringing this business model to the company, however in 2011 it was unanimously agreed that my son Troy would take that mantle and allow me to focus my time and efforts on providing a technical interface and all-important commercial perspective to the R&D team.

More importantly it brought a fresh new vision to the company as Troy was primarily concerned about long-term sustainable growth (he’s a lot younger than me) and the “Biz-Op” model we had been promoting was becoming counter productive and potentially holding the company back from reaching its true potential and creating a real breakthrough in the marketplace.

Why did Enigin adopt this model and keep it going for several years?

For a number of reasons in hindsight; firstly in 2006 the Clean-Tec sector was a very new emerging industry with only a relatively small handful of existing businesses to target as potential distributors conversely, there seemed to be a constant flow of applicants ready, willing and able to pay the company handsomely to avail of this opportunity. It seemed like a good plan at the time.

In all cases potential distributors were alerted to the high risk associated with any new start up business (statistically most new businesses fail even in more established marketplaces) and the company encouraged (this was part of the contract) all potential distributors to seek professional help and guidance BEFORE entering into a Distributor Agreement.

Still many fell in love with the romantic notion of owning their own business and optimistically went ahead confident they could achieve what they wanted or hoped for themselves. The team at Enigin, mostly who are employed to train, coach and support distributors worked tirelessly to try to help these distributors get established in their territories. Some succeeded – but many sadly failed despite our best efforts.

The company now realises it is a fundamental mistake to try to build a business primarily on the back of a raft of new start up business. Most banks and finance houses are very cautious about lending to new start-up businesses because of the high risk of failure, especially when the applicant has very limited experience in the specific field of operation. If you want to lease a car in the UK you would normally need three years accounts showing profitable trading.

I wholeheartedly support the decision that with Immediate effect Enigin no longer wish to be associated with the Biz-Op market, instead the company is now pro-actively targeting established businesses, with a proven track record, preferably from directly within the Clean-Tec sectors.

From September 2013 Enigin ceased all of its advertising campaigns that had been formally targeted at the Biz-Op market restricting as much as possible to the areas where experience has shown we attract only the best quality distributors.

Furthermore, we no longer charge a distributorship ‘fee’ for new applications, requiring only a nominal investment in stock as a sign of commitment.

Will the company still consider an application from a new start-up business?

Our top performing distributors require the least amount of time and involvement from us. All they require is a good quality product, supported technically and made available at a competitive price and thereafter they take responsibility for their business decisions. In contrast new start-ups can be incredibly demanding on our management time and in some instances they are so ready to blame the company for their shortcomings.

So, from this day forward we only wish to work with individuals and companies who are already running a successful business or those who can demonstrably prove a high level of business acumen.