Opportunity
Problem
Customers in the Houston area are in need of beautiful office buildings, warehouses, public works etc. The area is growing rapidly and they need a company with the right materials and high quality work to build what was needed.
Solution
Fosse Commercial Contractors strives for the highest quality design and site preparation. We also provide cost estimates, construction, repairs, and alteration services to large clients. Fosse offers the highest quality commercial construction service.
Market
Houston is booming. Businesses have grown in the Houston region for the last few decades and are expected to continue this growth for at least the next 4 years. Fosse Commercial Contractors can profit from this attractive market.
We will be focusing on the clients that will offer us the highest return, which is those who require office building construction. This is our fastest growing client segment. The other categories that we will serve include the restaurant segment, the special facilities segment, and all other potential commercial clients.
Competiton
We currently have three main competitors in the Houston area. These are TNT General Contractors, Texas Specialty Construction, and Polanski Construction. Fosse clients are targeted by all three of these companies and they have each earned a high reputation for customer service. Houston is experiencing rapid growth and demand for services is higher than supply. This is a great opportunity to increase market share and defend your position in the industry.
Why Us
Low cost and good project management are the best ways to be competitive in the construction industry. One of the most important processes for winning a contract is the bid process. Fosse has a unique competitive edge over most of its competitors. FCC’’s General Projects manager, Mr. David West, is the nephew and owner of McHoughton’’s Lumber, one the Midwest’s most important construction material suppliers. Fosse has been able obtain a very favorable supplier contract which allowed Fosse access to its materials at a significant discounted price. This gives Fosse an advantage over its competitors and allows it to take a leadership position at a low price.
Expectations
Forecast
Fosse has only a small amount of debt and intends to stay that way. We expect to see higher profits as a result of our market shift efforts before the end of year 2. As we expand our market penetration, we expect to see lower profits over the next three years. As we grow and benefit from economies of scale, we expect to be able reduce marginal costs and increase overall profitability in Year 3 and 4.
We also think we can grow. Our goal is to double our revenues for the next year to nearly $900K from $572K in 2017. We have the market and the people. It’s time to grow.
Growth can be costly. For most of the first year, we are willing to inject capital to offset losses. For years 2 and 3, we can turn a profit.