Background – The Challenge
Holloway Seating, LLC has been in the spectator seating industry since 1991. They provide quality seating such as Indoor Arenas, Outdoor Grandstands, Stadium Seating, Grandstands and Press Boxes. They have a reputation for providing customers with complete turnkey projects on time and within budget. The company assists architects in the design of the seating through the construction of the project. They provide all the materials for renovating older Bleachers and also for building new Bleachers. They strive to be the sole source all Bleacher and Grandstand needs.
Operating in the industry since 1991 Jason Holloway had a deep understanding of the market. The company, however, was on the construction side of the business & had to buy manufactured product from others. Jason wished to vertically integrate and establish his own production facility.
Although business was good, the potential for larger net profits was greater if he could become his own supplier. Cash flow, however, was cyclical which complicated making the case for term financing for building construction and equipment purchase. Making a case for term financing in this case required a business plan.
The Indiana University of Pennsylvania SBDC helped Holloway Fencing make its case for financing through narrative and financial projections. In this plan, however, Jason Holloway’s clear understanding of and articulation of the market opportunity was key.
• An appropriate location was found in the West Hills Industrial Park with the help of the Armstrong County Industrial Development Authority
• A business plan was completed, bank financing was obtained and building construction is underway.
• The Construction and fabrication business which will feed the manufacturing has been brisk and growing.
• Revenues have already exceeded those put forward in the initial plan.
• Word of mouth on the quality services is accelerating with the majority of new clients reporting they were referred by existing clients