Starr Structures - Steel Fabrication

Challenge: When former tradesman David Rogan took the plunge in 2000 to start up his own business in steel fabrication, it seemed the stars were aligned. Starr Structures boomed and grew rapidly. After winning a number of high profile projects, the company moved to specialise in the creation of significant architectural steelworks used both in Australia and overseas. But then when the global financial crisis hit, this rapid growth and success became a liability. While David was a top tradesperson, his business skills were undeveloped. Suddenly, managing 30 staff, a complex inventory and a constant stream of orders became impossible for one person to handle. David was struggling to maintain control of the company's direction. With constant pressure to meet deadlines, David simply did not have time to undertake much needed work on the business and the business was slipping backwards. While in high demand externally for its quality work, internally, the company was experiencing difficulties managing cash-flow, managing its relationship with its bank and was lacking the appropriate procedures and processes to control its finances. Through a government grant with Enterprise Connect, Starr Structures was able to receive partial subsidisation to commission the expertise of the CFO Centre.

Solution: The CFO Centre conducted a complete systems audit, including investigating if the right people were in the right roles. The CFO Centre identified where there were gaps in procedures, processes and reporting and assisted Starr Structures to put in place a skilled Management Team. Where necessary, external consultants were brought in to ensure the business was better monitored and systems were optimised. The new structure provided necessary framework to analyse the financial profitability of particular projects and allow the company to forward-plan. The CFO Centre also provided training and mentoring for new staff and led regular management meetings to discuss medium to long-term strategies that would steer the business in the right direction.

Result: The CFO Centre was able to apply its "big company" expertise to benefit this medium-sized business. Like many businesses this size, Starr Structures did not have the resources to fund a finance department to offer high-level strategic advice. The CFO Centre allowed the company to access this expertise within its budget, by offering it on a flexible, part-time basis. Today, just nine months after commissioning the CFO Centre, Starr Structures is back on track. Business is good and David's work life has become enjoyable once again. Starr Structures has secured funding to grow its business and expand its premises to meet increased demand, for which it will be well prepared. And it has been nominated for an Occupational Health and Safety Award through Enterprise Connect.

"The CFO Centre's recommendations have proven highly successful. Things have turned around dramatically since they came on board nine months ago. I couldn't recommend the CFO Centre highly enough. You just need to be prepared to listen, act and delegate authority to the right people. Our turnover has increased. We're winning new contracts and we're able to cater more efficiently. We have plans to expand, but this time we're prepared. I went into business as a tradesperson seeking a change. I really knew nothing about business. I would not have been able to hire the right people because I didn't know what I was looking for. And I would never have been able to get the most out of them. Even now, I can't offer them the mentoring the CFO Centre provides. The monthly budgets they are providing to track our business and plan our next step are beyond what I imagined possible. Attracting these people would have been impossible without the backing of the CFO Centre."

David Rogan
Starr Structures, WA, Managing Director