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G&S Tool, Inc., San Leandro

Gabor Paulovits, President of G&S Tool, Inc.G&S Tool, Inc. was established in 1994 to service the tool & Die and precision machining needs of the aerospace, lighting, and bio-medical industries. Over the past twelve years, it has proven itself as a valued supplier of precision-crafted tooling and machined components.

In early 2008, G&S reached a critical juncture in its corporate history.  It had recently completed a significant investment in capacity and had just learned that it was facing losing 30% of its estimated 2008 revenues due to the loss of a major customer that was consolidating operations out of the Bay Area.

Gabor Paulovits, President, was introduced to the Alameda County SBDC as a result of taking a number of classes in early 2008. In May, when he learned of the loss of the key account, Gabor entered a Request for Services and met with Business Advisor, James Bergeron. Gabor and James developed a two stage initiative to 1) control cash flow and manage debt and 2) to put in place the necessary marketing/business development initiatives to develop new prospects and new business.

Gabor understood the necessity to get out in front of the problem and communicate with his vendors. Working with James and communicating with his vendors, he successfully restructured some payables including payment schedules and interest rates, developing a cash flow plan that would sustain the business until revenues increased.

Next Gabor developed a business plan to move G&S Tool forward. He put in place a business development plan and marketing program to get in front of new clients and compete for new contracts. Again, working with James, he further was able to develop a pricing strategy that has helped reduce the need for working capital to complete contracts.

Gabor’s hard work paid off. Not only did he get expenses under control, but his business development efforts resulted in turning what could have been a 30% down year into an 18% year over year revenue gain when compared with 2007. As of February 2008, his new business development activities have resulted in a five month backlog of future business and he’s beginning to think about expanding the business to meet future needs.

"I learned the craft of tool and die making first.   James was the right resource at the right time—he made a terrific contribution to the future of our company."

Business Owner(s): Gabor Paulovits, Jr.
Phone: 510-633-9632