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From a pipe dream to a half-pipe

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It was a way to pay the mortgage. An offshoot of an adrenaline junkie's passion for extreme sport. But then it became a multimillion-dollar global business.

"It spins me out to think where it's come from," Evolve Skateboards founder Jeff Anning says.

"I never had intentions of trying to turn it into a big company. That was never the mindset behind it."

But that's exactly what's happened. Since launching in 2011, Evolve has grown to the point where turnover reached $5.5 million last financial year and is predicted to soar to $10 million in 2017-18.

With sales across the US, Europe, Asia and New Zealand, the electric skateboard company has gone from strength to strength. However it hasn't come without growing pains, says Anning.

"We're trying to meet demand and get our manufacturing and supply chain right. Keeping quality at the same time is a big balancing act. That's the biggest challenge we're having."

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Anning was an enthusiastic, but struggling landscaper before hatching Evolve with his wife, Fleur. Business had slowed during the lean years of the global financial crisis, making it harded by the day to a young family and meet mortgage repayments.

So when Anning, a surfer and snowboarder, first saw an electric skateboard, it symbolised a new beginning.

"I had this new passion and it was an exciting feeling of trying something new," he says.

"We were struggling with money and the biggest challenge was that transition of do we just have a hobby or do we try and turn it into a business?

"So we just went with our gut and said, 'Let's go on a new adventure'."

The couple sold their house and invested $40,000 into designing their own electric skateboards.

We were struggling with money and the biggest challenge was that transition of do we just have a hobby or do we try and turn it into a business?

Jeff Anning

Refining the design took 12 months and required more cash. Anning's father lent $35,000 and his mother gave $20,000. With that, the first production of 50 boards was underway.

This was quickly followed by orders from distributors in Germany and Malaysia. "The next minute instead of making 50 we're at 250 and I'm like, 'Holy moly," Anning says.

The company now has a dedicated factory in China and employs nine full-time staff in Australia, seven in the US and 11 across Germany, France and the UK.

Evolve's skateboards, which cost between $1489 and $2159, are mostly sold through distributors outside Australia. But last December, the Annings launched sales in New Zealand under their own company's arrangements.

Sidestepping distributors could be on the cards for this growing company, particularly as the couple targets  China.

"We've discussed continuing our model with distribution agreements or do we look at actually controlling the market ourselves and setting up our own company like we've just done recently in NZ," Anning says.

"That way we know what we're getting and it's working really well at the moment."

Non-skateboarders could be forgiven for thinking electric skateboards are a fad, much like hoverboards or Segways. But Judy Anderson, innovation consultant at Inventium, says there's a lot of growth in the sector.

"I think they're definitely capitalising on a macro-mobility trend, which is the last mile," she says.

"It's essentially for commuters who are using public transport to get to the office and have this last mile to travel."

Growth beyond what Evolve has already achieved will be determined by demand from consumers with little or no skateboarding experience, Anderson says.

"For it to really go for market adoption of non-skateboarders, will there be a skills gap? Will people feel comfortable not knowing how to get on it, to balance and to steer?" she asks.

"Is that skills gap too high for real market adoption outside of their existing customer base? I would say yes."

The cash injections from Anning's parents remain the only outside investments Evolve has received. This is somewhat of an anomaly when compared with other successful businesses listed alongside Evolve in the 2016 Deloitte Technology Fast 50 and the 2016 The Australian Financial Review Fast Starters.

But private equity and an ASX listing are not on Anning's agenda. For now, he just has his sights set on keeping up with the growth.

"I guess we went from small business to medium business and maybe soon we could be in that other category, which is hard to believe we're at that stage and if we get to that stage there's going to be more rules," he says.

"Anyway, we'll just keep moving forward and not think about the nitty-gritty too much.

"I just want to keep moving the business forward and make rad boards."

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