Tools of the Trades

A HAMMER AND SAW - COMBINED WITH AMPLE PORTIONS OF AMBITION, MOTIVATION, THE ABILITY TO FIND A NICHE, AND TIMING - CAN BUILD A SOLID FOUNDATION FOR QUICK GROWTH.

STORY: CHRIS LARSEN

The property market has turned the corner in the past year, reflected in the strong performance of companies from this sector in the Fast 100. Of the 2007 Fast 100 finalists, 28 companies are in the construction or property and business services sectors. Of these, the vast majority - 22 - are making their debut on the list.

The booming property markets of Queensland and Western Australia have produced their fair share of Fast 100 success stories, with nine of the top property and construction companies headquartered in these states. But with analysts agreeing that the Perth property market has already passed its peak, Fast 100 companies from WA may find themselves struggling to stay on next year's list unless they have exposure to the Victorian and Queensland markets.

Phillip Grueff could personify the small businessman made good. Having been kicked out of school at the age of 14, he began his career as a carpenter and joiner in western Sydney. "I couldn't get into any other schools because of my behaviour, so Dad said I should just start my apprenticeship," Grueff says. After finishing his apprenticeship, he went out on his own in 2004, forming his business, ARCS Building Group, in his parents' dining room - a move born out of necessity.

"I go at a million miles an hour," Grueff says. "If I make someone a promise, I do it. A lot of the Contractors [I was using] were letting me down so I had to step in and do their work. I just got sick of it in the end, so I thought 'bugger it', and started hiring in-house." The company specialises in building maintenance for schools and tertiary education facilities, and shop fit-outs. Rather than using subcontractors, Grueff hires the tradespeople he needs - plumbers, carpenters, electricians, painters. Not only does it give him more control over his jobs, but he maintains it is cheaper than using subcontractors. Larger specialist jobs, such as concreting, are handed to contractors but only under strict performance controls.

The ARCS model means the pressure is on to keep staff happy, and Grueff and his wife Skye work towards this by creating a family atmosphere within the business. The company holds regular barbecues for its 30 employees, and gives them a half-day off every month for company-sponsored social functions.

"You spend more time at work with your work colleagues than you do with your loved ones at home, so you have to have a good [work] environment," Skye says.

Staff churn, a problem in the business's infancy has been remedied. "Our boys are happy and they're not moving. We really don't have staff turnover," she says. The funding model for ARCS is blissfully simple - it consists of the Grueff family home. "If you're going to grow quickly, you're going to need cash. That's a must," Grueff says.

"Everything the company has done was fully funded by the company and the money I was able to save," he says, adding that he draws down on his home loan to cover any gaps in the ARCS cash flow, then pays it back. "I figure if I stay away from the banks as long as I can and avoid an overdraft then we should be a success."

ARCS plans to expand to Brisbane within next two years.

COMPANY: ARCS Building Group RANK: 46
FOUNDER: Philip Grueff
REVENUE: $2.90 million
GROWTH: 80.5%