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When Jason Abbott got a call from a friend asking him to pack his bags and go travelling for four months, he didn't hesitate.
The then 23-year-old had been toiling away as a sales associate at a shipping company for nearly two years and knew he was ready was for a change. "I'd just gotten a promotion for more hours and less money and it just didn't add up for me," says the Manitoba native. "I realized I didn't want to be part of a super large organization and needed a job that would enable me to have much more influence over my future."
But Abbott put any plans to shift career gears on the backburner and set off on a journey that would take him to New Zealand, Malaysia, Vietnam and Greece.
It was while in New Zealand that the idea of starting his own tour company back home came to him. "New Zealand has a lot of the same geography as Canada and Manitoba but they do a much better job of marketing it," he says. "I wondered if it was possible to do this at home and if anyone else had already done it." He was thinking of a handful of destinations near Winnipeg in both Manitoba and Ontario, such as Grand Beach, Minaki and Kenora, which he felt were beautiful places to visit in themselves, but were also attractive because they offer a host of outdoor activities. "I wondered if people even knew we had these great places," he says.
By the time he was back his home turf in the summer of 2004, he was ready to start investigating the possibility. But first, he got a job in business development at Cocoon Branding in Winnipeg, dedicating his off time to market research.
Abbott began by conducting a survey of 100 hostel guests, travellers passing through Winnipeg for short stays on their way either east or west. "We got a very positive response," he says, pointing out that 70 of the 100 surveyed, from as far as Australia and Japan, said they would sign up for a tour that would take them to attractions off the beaten path.
He also learned that no other tour companies were operating in his region - and that about 6,000 travellers pass through Winnipeg between May and October.
His confidence boosted, Abbott proceeded in the summer of 2004 to create a business plan and managed to secure a $10,000 loan from the Canadian Youth Business Foundation
By the time spring rolled around, he was ready to start thinking about marketing and getting his provincial license to transport clients by vehicle.
He knew when it came to marketing he had to get creative: "International travellers don't really pay attention to radio or TV," he says. "And so I concentrated on how I used to travel, basically through word of mouth from other travellers or people working in hostels." For that reason, Abbott decided to try to create awareness through an edgy poster campaign (the tag line on his brochure reads, "Ride us. Get off. Adventures for backpackers and international travellers"), which he'd distribute to hostels across the country.
Because he worked for an advertising agency, he was able to secure a cut rate on his marketing campaign, which included his web site, branding, and poster and leaflet design. At a cost of $25,000, he estimates he saved about 30 per cent, and printing cost about another $4,000.
With his license and marketing in place, Abbott bought a mini-van, which set him back $60,000, and hired a full-time guide. In hindsight, he realizes he was a little too keen. "I had this idea that people were going to come flocking to my door, but that wasn't really the case," he says. "I over anticipated how easy it was going to be to create awareness."
That first season, Abbott only gave one tour. "It sucked. To be brutally honest, it was terrible," he says. Luckily, he had neither given up his day job or rented an office, so the financial repercussions were minimal.
But he did have that sole staff member, whom he had to let go at the end of July. "I failed to recognize that when you're young and new, you need to be a little more reactive in your approach," he says. To help cut his losses he sold the van, putting him out $10,000, and bought an SUV for $17,500, which he also uses as his personal vehicle.
The Toban Experience only operates from May to October, so after a winter off, Abbott decided to modify his offerings a little by offering three levels of tours, ranging from just one destination to seven and from $99 to $299. "We doubled that year," jokes Abbott, "and did two tours." Without an employee, Abbott hosts the tours himself, thanks to his flexible day gig.
He decided that this year, his third year in business, would be the tipping point. With 10 tours under his belt, he feels good about the growth he's seen and is willing to give it another go next season.
"It feels great that things are picking up," he says. "I guess it's validation that, yes, I did do something that people are interested in."
Even greater validation is the reaction he gets from his guests. "They're really awestruck by how beautiful our landscape is," he says. "It's great to see them enjoying themselves."
How he did it
After travelling around the world for four months, Jason Abbott was inspired to start up his own tour company in Winnipeg. With only one booked tour in his first year of operation, things were off to a rocky start. But now, in his third year of business, he's starting to see things pick up.
Start up costs
Marketing $25,000 (including branding, posters and web design
Vehicle $27,500
Staff $4,000 (one full-time for two months)
Brochures $4,000
TOTAL: $60,500
Monthly expenses
Gas and insurance $375
Utilities $150 (including 1-800 number, cell phone and web hosting)
Host email web site which is $10.
Loan repayment $250
TOTAL: $785
Number of $99 tours he has to sell a month to break even: 8
