All companies in today's world of business tend to grow and widen their goals. This thesis paper addresses the issue of how a small family company can expand and increase its competitive strength. It also explains what are nontradable products, their characteristics and effect on the chosen company, Šljunčara-transporti Smontara. Apart from nontradables, it is important to present the company, analyse its business activities, as well as assess the financial capacity for further expansion. The main part concentrates on the concrete plant project in which the company is investing in order to expand and increase its competitiveness. Therefore, it is necessary to analyse and define the cost effectiveness of this investment. The production of concrete, a construction material and nontradable product, is a process consisting of few steps which are also explained herein. According to the project, the coete plant is based in Ludbreg, while the distribution area coves the north-west of Croatia, from Varaždin to Koprivnica. The allocated capacity of the concrete plant is between 50 - 60 m³, and according to the sales plan, production in the first year would be 4 500 m³ with an expected growth of 10% in the following years. The most substantial part of the investment refers to the very production of concrete. When a company is entering a new market, preparation and analysis are of utmost importance, so benchmarking, or the analysis of both local and regional markets, is a significant part of this paper. The financial analysis of the concrete plant project, with different financial indicators, has shown that the investment is cost effective and will be returned in the fifth year of business operation. Consequently, this project will increase the competitive strength and enhance the market position of the company and thus the investment is justified and highly recommended.