Imagine having a salary in excess of 100,000 euros, a chief executive position at a large corporation, and the steadfast support of your boss, all by the age of 26.
Now imagine giving it all up to launch a business focused on domestic sustainable energy.
To say the move sounds like an unnecessary risk might be underplaying it, but Irish businessman Simon Phelan doesn’t see things that way.
Jon Moulton, founder of private equity firm Better Capital, had sent Mr Phelan, one of his protégés, to Spicers in Dublin with the task of managing the office supplies company’s turnaround.
But as much as Mr Phelan enjoyed his career and its lucrative nature, he felt the chance to follow his entrepreneurial nose would be easier at a time when he had no real commitments in his private life.
Mr Phelan, who recently turned the ripe old age of 27, said: “I come from a family of entrepreneurs and knew I wanted to go down that road.
“I was given an opportunity by Jon Moulton because I had aspirations of being an entrepreneur, not because I wanted to be given the role. That I got the job was down to fate more than any grand plan.
“Whilst I could have made my career in that first CEO job, I felt the time was right. I thought, I’m 26 − I’ve got 10 years when I can work hard before other priorities in life come into my thinking.
“I was looking towards the long term with this decision.”
And so, earlier this year, Mr Phelan co-founded his fledgling business, HomeTree, alongside Andreu Tobella, who he poached from British Gas’ smart thermostat unit. Hive.
In a nutshell, HomeTree’s quest is to make it easier for ordinary people to afford and install energy saving domestic products, such as boilers, double-glazing and solar panels.
Mr Phelan, who is a qualified civil and environmental engineer, said much of the inspiration for the venture came from Tesla, particularly its work on the Powerwall home storage battery.
“It felt like the energy space was moving towards a position where homes were becoming more like a power plant,” Mr Phelan said. “The problem is – how do you pay for it?
“Energy installation is a fractured retail experience. You either go with a big company and pay a mark-up or you go with a small local player. While there’s nothing wrong with doing that, the smaller companies might not have a finance option, so the consumer might have to go to his bank manager. I think there should be financing to help with that.”
HomeTree, with the support of its trade and finance partners, vows to provide the best value for money on the market.
London-based firm, which launched publicly earlier this month, is initially targeting sales in the counties in and around London, the north-west and the north-east of England.
Mr Phelan said there were plans afoot for HomeTree to raise its first equity round early next year, so potential investors will want to know how the business plans to make its money.
Essentially, it will charge a fixed percentage fee on top of every product installed, though making a living is only part of the reward, Mr Phelan said.
“I’m very passionate about shifting to a low carbon future. I think the most important crisis we could face is climate change” he said.
“I don’t get out of bed every morning saying I’m a treehugger. It’s satisfying to build a commercial industry, but if it’s done well it could help solve this macro issue.”
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