Coffee Makers Kitchenaid

Invermay entrepreneur launches product with grant of $5, 000 & access to capital

After years of working in caf's, Manfred and Clare Jokuszies spotted a small, but potentially lucrative, potential in the clean-up of used coffee grains from espresso machines.

"During the hectic days spent in the cafe, we would often curse the inefficient, cumbersome and often messy ways in which coffee grinds were disposed, " says Manfred.

There had to be a better way. And Manfred spent much of his spare time at his desk and in his workshop trying to find a solution.

"A common feature in many successful designs is they address a need by providing a simple solution to a common problem, " he says. "I knew from experience there was definitely a common problem and I also knew the market for coffee around the world was huge. Therefore, if I could find a simple solution of funding, the potential demand for this product would be enormous."

After working through a number of prototypes, he developed a model that was simple and very easy to use - allowing the barista to dispose of the grinds into a self-standing tube in one easy operation, removing the grinds receptacle for disposal when full. And with no moving parts, it's easy to clean and maintenance free.

He called it the Coffee's Been Knock Tube, and he formed Compact Designs with his wife in 2002. The company has gone on to produce a variety of accessories for both home and commercial espresso machines, in a variety of stylish colours.

Compact Design's growth is attributable to its export success, which began early on.

"New Zealand provided a testing ground for our products in the exports market, " says Manfred. "We began exporting there in 2004. It's like the Australian market - of very high standard."

Early on, the company received a small $5, 000 grant for communications expenses, and more recently, Export Finance and Insurance Corporation (EFIC) kicked by ensuring access to working capital.

One of Compact Design's most lucrative clients is Kitchen Aid, the electrical company and largest white goods manufacturer in the world. But in order to fulfil the sizeable KitchenAid contract, the company needed additional working capital funds.

EFIC provided a Headway working capital guarantee to Compact Design's bank to help the company fund its export growth. The EFIC Headway guarantee enables eligible SME exporters to access additional working capital from their bank without the need for further security.

Compact Designs exports currently to New Zealand, Singapore, Hong Kong, the UK and to Scandinavian countries including Sweden. They have also exported to Germany, Greece, Fiji, Bali, Spain and the US.

Manfred Jokuszies credits the Australian government with standing behind them when many international companies dismissed their idea. "I spoke to people, including coffee companies, about the knock tube, but they claimed there was no demand for it because there was nothing like it on the market, " he told the EFIC website. "Austrade not only helped us to identify potential international customers, they also told us about EFIC Headway, which enabled us to access funds for our export expansion."

Would you like to get funding to develop your business idea? There's money available now for qualified existing and start-up businesses. Phone toll-free 1800 813 863.