Joe Davis of Custom Engineering discusses the challenges with expanding his firm’s services outside of the region.

Competition

In a related question, Sam Jones asked those gathered where their competition was coming from and what they did to confront it.

“Competition comes from all over,” said Rick Rangel. In the distribution business there are scores if not hundreds of competitors trying to take away their business. “We distinguish ourselves by quality of service,” Rangel said. “We track the feedback from our clients to make sure we match the competition.”

For Ronald Harland of Evolv Solutions, competition comes “mostly from above.” His company has formed strategic alliances with the likes of Xerox, Ikon and Standard Register to distribute their products to companies that want or need to purchase from a minority supplier. The problem comes from those companies that, for reasons of economy, prefer to avoid the middleman and go right to a supplier.

“The competition is strong,” affirmed Lonnie Scott of the Minority Suppliers Council of Kansas City. Companies like Harland’s had to “bring value added to the customer” if they expect to prosper.

Diane Forgy also felt the heat from the major players in the lim-ousine business, particularly those that have franchises and affiliates in multiple cities like Kansas City. The fact that the limousine business is “labor intensive,” she believes, gives her an on-the-ground advantage over the national firms. She also has established affiliations of her own with comparable busines-ses in other cities.

Not all the major competition comes from outside the city. For Nancy Neighbors, one challenge is that large local companies like J.E. Dunn are doing more multi-family work. The advantage that her firm has over much of its comparably sized competition is that it has its own lumberyard and can provide doors, windows and other items at a lower cost.

Not everyone saw the competition as an obstacle. Joe Davis of Custom Engineering said, only half-joking, “I like to steal from the competition.” By “steal” he meant watching his competitors closely and incorporating their best ideas into his own business plans. Sam Jones affirmed in a similar spirit, “Lawyering is legalized plagiarism.” To be sure, Jones himself is an attorney by trade.

“I don’t think about the competition,” Diane Forte interjected. “I think about the clients.” Jeannette Prenger agreed that the imperative for an entrepreneur is to pay heed to strategic goals. “It is easier to build and maintain relations,” she added, “than to focus on competitors.” JoAnne Mina likewise downplayed the threat of competition, although she faces a good deal of it from large, nationally based staffing companies that have the potential to undercut her on price.

“They are only as good as their local offices,” she observed.

Innovation

Jeanette Prenger of ECCO Select discusses the importance of retaining clients. Lonnie Scott of Minority Suppliers Council (left) and Michael Dayton of Kauffman Foundation observe with interest.

Sam Jones asked those assembled how many of them had added a new product or service within the last six months, and most responded in the affirmative. In some cases, they did not have much choice.

As the proprietor of a “customer-driven” distribution company, Marilyn Townsend told of the constant pressure she feels to keep in stock the products that her customers are demanding.

With the help of students on loan to do market research, Ron Har-land’s Evolv laid out the strategy to add a printing arm to its offerings, specifically web-based supply chain printing tools.

Robbin Reynolds made one of the more dramatic moves of those who shared their stories. Historically a provider of sound systems for businesses, particularly background music, Reynolds saw and seized the “big opportunity” to provide security devices that also used a parallel low-voltage infrastructure.

The move for Mary Lou Jacoby was geographical, that is to Mexico where she opened a new company to complement her American operation. Her firm assembles and packages large industrial kits for its clients, including the U.S. military.

Nancy Neighbors of Neighbors Construction has come to see the wisdom of diversification. In her company’s case that means building more “higher end” projects.

JoAnne Mina of J.M. Neil explains the virtues of being a small and nimble business when competing against larger, more cumbersom competitors. Marianne Hudson, Mary Lou Jacobi and Jack Cashill look on.

Gina Pacumbaba-Watson of GPW & Associates knew that if she really wanted to grow her company, she needed to expand its services beyond the lighting design that she had been doing. With some selective recruiting, she turned the company into an engineering consulting company specializing in the design of lighting, electrical, mechanical and plumbing systems.

In a more mature business like auto sales, growth and innovation are not so easily achieved. “We have to have a lot more efficiencies,” Carlos Ledezma said. “We have to handle the customer better.” He also cited the need to look at other manufacturers and possibly to add new lines, depending on where the demand is.