There’s no entrepreneurship without risk

When founder Frank Witowski was diagnosed with cancer in 2014, he knew he’d have to make serious lifestyle changes. 

Two years later, with an operation impending, he sold his Solar PV installation business to his partner and started looking into cycling to stay healthy. Living at the top of a hill, he realised he needed an e-bike but was unable to find one that met his standards. Immediately, he saw a gap in the market. 

Having “no clue” about e-bikes, he consulted with bike dealers and devised a wish list for his ideal bike – which is still pinned to his wall today. He also brought on Jim Matthews – a Nelson-based cycle mechanic, who once serviced bikes for Olympic athletes, and retired bike store owner – to help on the mechanical side. 

The result is Hybrid Bikes: a range of e-bikes that, because of their carbon fibre frame, weigh three to five kilograms less than the average e-bike. Parts are manufactured in China, but the bikes are built and customised in Witowski’s Nelson garage. Matthews is now Hybrid Bikes’ business development manager.

Witowski says the startup has grown 800 percent since it sold 56 bikes in its first year, 2018. 

Having spent the last few years designing a range of new bikes, and with increasing interest from customers in Germany, the UK and Australia, Witowski has global intentions. He’s recently set up a factory in Germany, which he says will give Hybrid Bikes the capacity to produce 30,000 e-bikes a year. 

In July, he will also attend the EUROBIKE show – a leading global trade show for the bike business – to display his world-first carbon-fibre full suspension step-through frame. 

With plenty of plans ahead, he discusses his founder journey with Caffeine, at the heart of which lies a dedication to customers. 

‍What do you wish you knew starting out? 

The fundamentals of money management – knowing how to sell something and knowing the customer is the most valuable asset you’ve got. 

When I started Hybrid Bikes, I didn’t know if the product would sell because I had never done anything like it. I had to validate the idea and realise that just because I loved it didn’t mean everyone else would. 

To validate, talk to people you trust, ideally people with experience in your area, and do your research. You’ll never know if it will work, but you can give yourself the best chance. 

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What went wrong along the way? 

The e-bike industry has been strong in the past two years – you didn’t have to do any marketing because people were knocking on your door wanting to buy things. 

Then things stopped – the whole economy stopped. Look at the New Zealand dollar, for example. In 2022, it suddenly fell to 56 cents to the US dollar, and because it had never happened before, no one was prepared for it. Freight costs went from $1,000 to $11,000. 

Many people thought the sun would shine forever, but that’s not how it goes. After every high comes a low. I realised you always need to have a plan B. 

I used the lull as an opportunity to keep innovating, weathering it out in my little garage with my mechanic two days a week. 

When things pick up again, a company with a few new products to offer is a lot more attractive than the guy who just woke up after a deep sleep.

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Who have you worked with that’s been helpful to your success? 

When I first started with Hybrid Bikes, I went to my accountant. He knew the sector was something I hadn’t a clue about, so he directed me to Jim Matthews. 

Jim was a competitive cyclist and mechanic for the New Zealand Olympic cycling team. He also ran a bike shop in Nelson for 29 years, so he knew his stuff. 

Now, if somebody I trust gives me a tip, I go for it. I cold-called Jim and said, ‘You don’t know me; my name is Frank, and I do carbon-fibre e-bikes. I would like you to have a look, and I’m happy to pay for advice.’

He said, ‘Come round and show me what you’ve got.’ 

We’ve worked together ever since, and he’s helped me tremendously. If I have an idea, he quickly tells me if I’m dreaming or not. Then, with his knowledge, we move forward. 

What is the best advice you received? 

I’m a big fan of Nick Mowbray, the Zuru founder, who is worth something like $3 billion. His philosophy is to never borrow money. He’s all self-funded. 

I like that because if the economy suddenly slows, you’re less on the knife’s edge. 

The last thing I want is waking up in the morning thinking, ‘shit, how do I pay my mortgage or my debt?’ That distracts you from building your business because your focus is on making enough money. You are always in survival mode.

So, I’ve just bootstrapped my way through whatever obstacle. Of course, I could have run bigger and faster had I borrowed money, but that would have been higher risk. 

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What advice would you give another entrepreneur? 

I once attended an Icehouse Ventures event where Peter Beck was one of the speakers. 

In the talk, he said when he had this idea to build rockets out of [New Zealand], he went to his father, who said, ‘Well, in the Beck household, there are no limitations. Think big, don’t think small.’ 

Now, he’s left behind a footprint. Rocket Lab will be around long after Peter Beck. 

If you’re an entrepreneur, you have to take a risk. Otherwise, it’s not entrepreneurship. Take the risk, validate your ideas and have a backup plan if your venture fails.

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