Losing a deal is not fun whatsoever, especially when it is $500k. In episode 217 of Journey to $100 Million, listen in to Kevin as he explains how a deal lost, led to a company formed.
About two and a half years ago, when Kevin and Erik’s individual companies had been collaborating with one another, they lost a $500k deal. This deal was brought about by Kevin meeting the COO of a German company (also located in the US) through his membership in the HRIC. The COO reached to Kevin not knowing if the work could be done by them – but recommended Kevin should bid on the project.
So, Kevin took one of Erik’s employees and had a meeting with this company which ended up going well! They had two other subsequent meetings, and it was looking like Kevin and Erik would get the deal. But, at the last minute, this deal got derailed.
Someone higher up in the company decided they would rather work with one local company, rather than using two different companies. Since Kevin and Erik were two different companies working together, it looked a little wishy-washy, unprofessional, and as if they were not as capable. The deal ended up being given to a single local company that had redundancy, multiple project managers, and all the resources needed.
After this loss, Erik and Kevin knew something had to be done so that they could avoid future losses. They realized that if they merged their two companies, this issue could be quickly resolved – and it was done! This one project loss was what lead to the formation of Array Digital as we know it today!