Building a business in regional WA is no small feat. The challenges are vast, from remote locations and staffing hurdles to the staggering costs of operating in the north-west. Yet, entrepreneurs like Sean and Lisa Clarke, the founders of Raw Hire, prove that with grit, creativity, and smart strategies, success is possible—even in the toughest conditions. Raw Hire’s incredible trajectory from a side hustle in Karratha to a major player in the vehicle and plant hire sector is a testament to the perseverance of business owners in the Pilbara.
Here’s how Raw Hire rose to become one of the north-west’s most inspiring business empires.
The Beginning of Raw Hire
Founded in 1998 as McLaren Hire, Raw Hire started as a part-time venture while Sean Clarke was working as a welder for Clough. Sean and Lisa saw an opportunity in providing mine-spec vehicles, a concept that was relatively new at the time. Identifying this niche in the resources sector allowed them to tap into a burgeoning industry while operating out of one of the most challenging regions.
“We saw an opportunity there to really push into that for the safety side. The mine-speccing out of vehicles was pretty new back then,” Sean shared.
Their dual-income strategy provided stability during the early years, enabling them to grow the business slowly and strategically.
Navigating the Challenges of the North-West
Running a business in the Pilbara isn’t without its trials. High operational costs, limited staffing, and fluctuating commodity prices present constant challenges.
“The north-west has some amazing opportunities for people to give it a go, but along with that comes the risk and challenges,” Sean noted. Perhaps the toughest hurdle? The cyclical nature of the resources market. Commodity price fluctuations can significantly impact demand and profitability.
Sean explained that running a sustainable business required financial discipline and adaptability. “The key to having a sustainable business operating in the Pilbara is to have a lazy balance sheet, making sure your debt-to-equity ratio is strong.”
This financial prudence allowed Raw Hire to weather industry down cycles while maintaining its service quality.
Adopting a ‘Safety-First’ Model
For businesses with stakes in mining and resources, safety is non-negotiable. Sean and Lisa understood this early on and built Raw Hire’s operations around meeting high corporate and industry safety standards.
“The expectation from big corporates or the mining companies to meet those standards is quite high, so you build your business around that,” Sean said. This focus became a key differentiator, earning the trust of clients who needed reliable vehicles that met stringent safety standards.
Embedding these principles into their company culture was another crucial step. By ensuring that team members understood the unique challenges of operating in the Pilbara, they created a workforce that was both skilled and aligned with their company vision.
Strategic Expansion to Improve Talent Retention
While Raw Hire began in Karratha, its operational team eventually shifted to Perth. This move was driven by a need to attract and retain talent. The cost of living and limited resources in regional WA often make it difficult to keep employees engaged long-term. By relocating core operations to Perth, Raw Hire gained access to a larger talent pool and reduced turnover.
Despite the relocation, the company’s roots in the north-west remain strong. Today, about 60% of profits still come from the Pilbara.
“It gets in your blood, that red dirt. We are very proud of what we have done there,” Sean shared.
Keys to Success in the North-West
The success of Raw Hire demonstrates that while the north-west comes with its fair share of challenges, it also offers unparalleled opportunities. Here are some of the key takeaways from Raw Hire’s growth story:
- Identify Niche Opportunities
By focusing on mine-spec vehicles, Sean and Lisa positioned Raw Hire as a solution to an unmet demand in the resources industry. Specialising in something unique opened doors to long-term partnerships with major corporations.
- Adapt to Changing Circumstances
Whether it was riding out market downturns or moving operations to Perth, flexibility was key to Raw Hire’s longevity and growth. Being prepared to make strategic changes allowed them to stay competitive.
- Instil a Safety-Centric Culture
Meeting corporate safety standards not only secured high-value contracts but also became a core element of the company’s reputation. Raw Hire’s attention to safety cemented its place as a trusted provider in its sector.
- Maintain Financial Stability
Keeping a “lazy balance sheet” allowed Raw Hire to remain resilient during economic challenges. This proactive approach to managing debt and equity ensured the business could survive tough periods in the resources cycle.
- Rooted in Community Spirit
Despite relocating major operations to Perth, Raw Hire retains deep ties to the Pilbara. This connection to their origin has helped the company maintain credibility and respect in the region.
A Testament to the Pilbara’s Potential
Raw Hire’s story is more than just a tale of business success; it’s an ode to the opportunities that exist in WA’s north-west. For those willing to take risks and innovate, the Pilbara offers a unique environment that can foster incredible growth and resilience.
If you’re inspired by the Red Dirt’s success stories but are unsure where to start your venture, begin by identifying unmet needs in your industry. The Pilbara may have its challenges, but as Raw Hire shows, it is a land of opportunity for bold and strategic entrepreneurs.
For more information visit: https://www.businessnews.com.au/article/Business-empires-built-in-the-red-dirt