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Client asked on 10 Feb 2012 in Startups.

National companies are taking our state contracts. How can we expand into new markets?

We are small utility construction/marking company in the state of Virginia. We had a total of 10 employees and 3 subcontractors working for us. Big national companies have come into our state to bid on the biggest projects. These companies can beat everyone on price and then sub-contract only the least profitable pieces of work.

We are looking at different direction to take our company. But without the background we are having trouble breaking into other fields.

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Mark Wright
Mark Wright advised on 10 Feb 2012
Business consultant to turnaround situations bringing to bear over 30 years of corporate and mid sized company leadership and success.
I would suggest a combination of a strategic planning session with key members of your company after you have done a financial analysis of the different types of work/contracts you have done over the past year or two (focus on profitability and contribution margin). Use an outside consultant to get the best results. Can take 1 to 2 days and follow up meetings.

Without giving away the shop, if the big companies are keeping the high margin high volume stuff, why are you letting them dictate the market price for the pieces they choose to outsource? The most powerful word in the sales process is 'NO'.
b...@netscape.net commented on 21 Feb 2012
Thanks for the strategic, we are working on looking at the different types of work we have done. And trying to move in a different direction. It is slow going.
We have said no, that's why we don't have work. There are too many small businesses in my line of work, that are willing to do anything to keep working. And I do mean anything!
There is a big problem and everyone is looking the other way, even goverment. I keep thinking that OCA , DLSE or INS will step up and take action but I don't see it happening yet. I know goverment is reactive not proactive.
I'm sure the little guy will be the one under the bus. Better someone else than me.
Chris J Gallant commented on 04 Apr 2012
Mark good suggestion about the consultant, I truly believe that sometimes we cannot see some of the potential pitfalls when we are to close to the work we do.

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Chris J Gallant
Chris J Gallant advised on 04 Apr 2012
"International Consultant in the IT field, specializing in the development of concepts into real businesses."
Although my expertise is not in construction I believe that customer satisfaction is still key. If you have a site get testamonials, if you have awards, post them, if you are on Facebook get more endorsements. One thing that I have found out with National companies is that they constantly get themselves into trouble, specially when they sub it out. Somewhere you will notice that they did something wrong not that you should bring it up, but you can use it to focus on. For example, we had one here that sub a company for a road widening. The sub contractor cut all the trees, some of them where well over 100 years old, this caused a major chaos. The next day a contractor used the following in their bid, we will respect the trees that are there! They did not cut down the national company simply used it to their advantage. I would also consider what Mark Wright is saying, having a consultant looking in from the outside can help in identifying potential challenges and find results, good luck.

 

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Chris J Gallant advised about 1 month ago
Although my expertise is not in construction I believe that ...

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Mark Wright advised 3 months ago
I would suggest a combination of a strategic planning sessio...
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