The original proposal was rejected by the current importer. The challenge was then to identify alternate suppliers of equivalent systems, visit these operations and assist in selecting a suitable supplier of product, assist in negotiating exclusive supply arrangements and set up the new company to take advantage of the opportunity that existed in the market place at the time.

GNS Group then worked with the client to identify an alternate flexible piping system that could be imported, assisted in negotiating supply arrangements, gain Australian standards approvals for the manufacturer and system and develop a business plan, operating structure, required staffing and systems to compete effectively in this new market.

GNS Group prepared the business proposal to be presented to the current importer and concurrently contacted the manufacturer of that system in Italy to determine the existence of any exclusive arrangements with the current importer. In addition we conducted research to identify other manufacturers of similar systems and used our network of contacts to investigate having components of the system manufactured in China to reduce product costs.

The current importer was scared off the proposal thinking they would lose a share of what at that time was a small pie – rather than looking at the bigger picture of what could be.

Research conducted by GNS Group using ABS Census data and industry knowledge showed the potential market for the product to be greater than $60million per annum at that time.

Investigations identified a number of potential suppliers of equivalent systems in China. The factories were contacted and visited by Gavin Shaw of GNS Group and our customer leading to an agreement to purchase a system from one of the Chinese suppliers.

GNS Group undertook a range of activities for its customer including:

• Establishing a new company for the venture

• Coordinating applications and approvals from SAI Global (Standards Australia) for the system and manufacturing facilities including attending the audit of the facility by SAI Global

• Preparing a business plan and budgets

• Assisting with recruitment of key staff

• Developing and implementing key sales and operational systems

• Negotiating an exclusive supply arrangement for the Australian market with the Chinese supplier

• Helping to establish funding of the venture with banks and debtor finance organisations

• Coordination of trade mark registration

• Coordination of counter claims by competitors on a range of trade mark and patent issues – all successfully defended

• Managing cash flow and growth of the business on an on-going basis

•Ensuring that the business was run with an appropriate operating/personnel structure that ensured clear roles and responsibilities of owners and staff within the company and relevant remuneration structures.

Product was initially received from China in the first half of 2005 and first sales were made in June of 2005 out of a small warehouse operation established for the business in Melbourne.

In the next 2 years the company saw rapid growth and extended its operations interstate setting up distribution and sales networks in the key markets of Queensland, NSW and Western Australia.

Issues in continuing to adequately fund growth, get stock into the warehouse from China and fulfill customer requirements in a timely manner have led to the development of further fundamental operational systems that allow management and staff to have a clear understand how the business is performing at all times.

The company is now the number 1 supplier of this type of product in Australia and intends to continue to maintain this position.

As the company has grown, GNS Group have continued to assist in many areas of company operation including sales, advertising and marketing programs, investigation of further growth opportunities and regular performance monitoring of the business and cash flow against projections.

The growth of the company has been spectacular since the first sales in 2005. In the year 2007, the company was recognised by Business Review Weekly (BRW) as the fastest growing start up company in Australia for the 2005/06 financial year.

In 2008, the company again made the top 50 fastest growing start up list published by BRW.

The company sales have grown from a zero start to now be many millions of dollars.

The company consistently operates at profitable levels.

It has seen a significant increase in its ability to service its customers needs going from a low point of supplying circa 40% of orders in full and on time on a daily basis to now consistently achieving levels above 90%.

It is now able to fund all operational requirements and growth plans through free cash flow.