Dissatisfaction gave rise to an idea and a belief in the future. Fifteen years later, HydX is one of the most competitive and innovative hydraulics companies in the Nordics, and its services are sought after by contractors and machine manufacturers around the world.
“We set a goal to be the best in the field by building the company on values that reflect us as people. We must always be able to stand behind what we do,” says Henrik Pålsson, one of the founders of the company. Today, he is a sales manager, and in this four-part interview series, he is the first to tell us his story about how HydX grew from an idea to success.
HydX’s founders, Patrik Broman, Mikael Andersson, Håkan Erlandsson, Henrik Pålsson, and Stefan Holmberg, had been working together for a couple of years. Still, none of them were thrilled with the strategy their then-employer was using. When Stefan was called to a meeting with the group management and was let go, his colleagues did not hesitate. One after the other, they abandoned the strategy they no longer believed in, and within a couple of weeks, the five partners had resigned to start anew.
Together.
“It was a fascinating time, autumn 2009,” Henrik Pålsson recollects.
“I didn’t feel at home with certain parts of the strategy, but what bothered me most were the values. They did not align with mine, and I realised that I couldn’t continue working with something I did not fundamentally believe in. It isn’t possible to live with a lie; it’s neither right nor sustainable. Despite that, I had unbelievable qualms about it. I was sales manager for one of Sweden’s biggest hydraulics companies, a very nice and challenging job, and I felt at home in that role and especially with the people I worked with.”
•How was the idea born?
“I guess it was born out of dissatisfaction, and someone blurted out that we could do this so much better ourselves. Things were really set in motion when the CEO change became a reality. That’s when we realised it was our only alternative.”
•From dissatisfaction to starting a new company in a competitive field. How did you manage to work around it?
“Firstly, Stefan had both started and sold companies before, while being a CEO for many years. That expertise and experience laid the foundation for us and were certainly a prerequisite for our success. I recall the aggressive business plan we developed, which set ambitious goals. We would reach a turnover of 100 million SEK in seven or eight years. I remember thinking: ‘How will we manage that?’”
“At the same time, I had learnt that one needs to aim really high to be able to think freely. If you aim too low, your thoughts will tend to stay stuck in that mindset. To evolve, you must think outside the box.”
•You speak of your values. How did they influence the founding of HydX?
“We decided on our values from the start, agreed that they should reflect us as people and that we should observe them in everything we do. It still stands today. We decided that we would be the best by setting a clear goal and strategy that involved everyone. We recruited the right employees: Mike Budd, who had worked with us before and whom we trusted, and Per-Arne Nyberg, who was an experienced salesperson. We then hired Per-Olof Persson as mechanic, Carina Johansson as administrator and Liselot Feikes de Groot as buyer. Already in 2010, we took the next step and hired three salespersons in Gothenburg – Peter Eklund, who had been CEO, sales manager Stefan Carlbom and Tomas Järvelä.
•How did you succeed in recruiting so much competence in such a short time?
“That’s a good question, but we simply contacted competent people we knew could make a difference. Besides, I think they believed in us and, just like us, had some hesitations about the strategy of their employer at the time. From there, we kept building further by always making sure that we were a good employer.”
•You were starting a new company, that much was clear, but how did you finance it?
“We could have started it all by ourselves, and we would have, if that had been what we wanted. However, we wanted to kickstart the company, which required capital. It was not easy to go to the bank and ask for a loan as a start-up company in 2009, in the middle of the deepest recession.
A mutual acquaintance of ours gave us a lead about contacting Karl-Axel Granlund at Volito in Malmö, who was interested in investing in an industrial company. We delivered an outstanding presentation of our business plan, which impressed Volito. They partnered with us, providing the financial security we needed to begin negotiations with the banks. That partnership gave our business the start we had hoped for. Meanwhile, our previous employer was in panic, which opened the door to some easy business deals – and just like that, we were up and running.”
•What was that time like?
“It was an unbelievably groundbreaking time. I went from turning off my computer with thousands of emails and leaving all the negativity behind me to turning on a brand new, blank computer and building a company from the ground up. We had nothing, not even suppliers; we started in literally empty premises in Ystad. There was nothing there, not even toilet paper. We had to choose some office furniture that Volito had discarded from their offices to get started. Everything happened so quickly and was very intense, but there was no turning back. In March 2010, we made our first business deals that involved construction.”
•Did you ever have any doubts?
“Yes, of course I did. But, at the same time, I was following my values, and I knew that the five of us who started this had excellent knowledge, and now it was all up to me. Initially, I was in charge of sales, but with Patrik and Per-Arne becoming available and the hiring of three salespersons in Gothenburg, I felt we were less vulnerable. We were finally a team that we could build on. And what a team we were!
•Have you asked why Karl-Axel Granlund chose to invest in you of all companies?
“Yes, I did ask him once, and he answered that he saw our competence and that there was experience, expertise and that we knew what we were talking about. HydX remains a company founded on competence, knowledge, and simplicity in all aspects of our operations, including our relationships with suppliers, municipalities, customers, and partners. Those values are deeply rooted in us.
•How does it show in your work towards your suppliers and customers?
“Everyone is free to express their opinions, and we build long-standing relationships where we and our partners can evolve. The feedback we have received also tells us that our partners are happy with this kind of collaboration.”
•You keep mentioning your values, but at the same time, you have grown very fast. What are your thoughts on recruitment?
“Throughout our journey, we have been cautious in recruitment, and during the first years, we could rely on our own network. Over the past five years, this has become more challenging, and we now seek external support to find the right people. What has never changed are our values. We will never compromise on them – they are the reason we have come this far, and they will guide us into the future.”
