I love stories about entrepreneurs. I’ve sure you’ve figured that out by now. It always amazes me how much some entrepreneurs will put it all on the line to turn their business dreams into reality. It’s not just the financial commitment, it’s the stress and sleepless nights that go with it. So when I heard John Allen and Mitch Fraser’s story, I wanted to share it.
John Allen and Mitch Fraser know what it’s like to fail. Three years ago, their entrepreneurial dreams were dashed and they almost walked away from what has now become successful home loan comparison site, Tomorrow Finance.
Allen, 28 and Fraser, 29, learnt a hard lesson after investing a combined $80,000 into a business that they thought would disrupt the home loan industry.
Tomorrow Finance works in a similar way to a mortgage broker. But while mortgage brokers often receive trailing commissions (which they receive for the life of the loan), Fraser and Allen negotiate one-off fees with the banks. Because the banks don’t have to pay ongoing fees for the life of the loan, Allen says this results in a cheaper home loan for consumers.
Taking the plunge
The pair had so much faith in their new idea, they plunged headfirst into the business at the end of 2009 and spent the next four months negotiating arrangements with banks. Allen quit a job at professional services firm PwC and moved back home with his mum. Fraser scaled back his own web development business in order to focus on the new venture.
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