My immediate reaction to "how do I get signed?" is "Stop playing folk music for starters."What is the purpose of the group/your show? If you're trying just to get signed and make money... well, you're REALLY in the wrong genre. If you're trying to entertain people and are just hoping that this will eventually lead to getting a contract through a major label, that's different.
For the latter, I'd suggest building a fan base locally to begin with. Maybe look at doing a couple CDs without the niceties of a major distributor, so that you can sell them at shows and festivals. Play as much as you possibly can live - it'll help build a loyal following as well as increase your chances of being seen and heard by someone with the ability to advance your career.
Play anywhere you can that will help. This may mean turning down some shows later, but until you've enough of a reputation and following to start filling larger venues, don't turn down anything without some serious thought as to why. Be professional in ALL sets - word about that gets around. If you get to be known as a tight group that conducts themselves professionally, it will likely get around that you're a good group to have play. Likewise, if you don't play well consistently, are troublesome to get along with and the like, then you're not likely to get any shows, let alone a contract.
If you can get the fan base and the good reputation, you SHOULD be able to keep performing shows and possibly releasing new CDs on your own with some degree of success. You might even be able to do a small amount of touring. But the idea is to get as much exposure as possible, and to keep as much of that exposure positive as possible.
And after that (or even during), you MAY get some interest in someone signing you. Then things get really dangerous. I have NO experience from that point on, but I'd very strongly back up the need to have an attorney at least go over any contracts you'd be offered. The amount of stories of perfomers marching blindly into contracts that would have made the indentured servant market wince is truly dumbfounding. If you reach this point, the best of luck and the blessings of whatever you consider fortunate to be blessed by.
M