September 30, 2011
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FedEx Global Brand Management Director Monica Skipper shares a cost-effective way to build a bigger brand for your small business.
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If you are a small, socially and economically disadvantaged individual and business, the SBA 8a Business Development Program could be for you. First, ask yourself: how do I qualify? Then consider how you would maximize your efforts as an SBA 8a supplier. Here are some of the questions that I was asked a few weeks ago while providing consulting services to a small business owner.
SBA 8a Business Development Program eligibility
The SBA 8a Business Development Program is a one-time, nine-year assistance program designed to help level the playing field for small and disadvantaged businesses to allow them the ability to effectively compete with other businesses that are more socially and economically sound. How does this program work? To be eligible, the business must be owned, managed and operated at least 51 percent by the owner who is also socially and economically disadvantaged.
I told the business owner to first take the 8a Business Development Program Suitability Tool and Assessment, and then determine if this program was a good avenue for their business. Once eligible, you will be enrolled into a two-phase 9-year program: 4-year development and 5-year transition. Under this program you will receive several benefits from counseling, partnership resources to help you successfully navigate through the procurement and government contracting system, sole-source contract opportunities and mentor-protégé programs to joint-venture opportunities.
Do you have a plan for outgrowing the program? Remember, this is a
one-time offer and limited to a 9-year commitment?
Using the SBA 8a Business Development Program as a tool
The SBA 8a Program is only a tool, but as a business owner you still have to market your business to the government, maintain your eligibility in the program and use “all” of the resources and opportunities to grow your business. It is the goal of SBA to help you outgrow the program and become more competitive in the mainstream market.
While in the program, the limit for sole-source contracts are $100 million or five times the value of your primary North American Industry Classification System (NAICS).
Effective tips as an SBA 8a Supplier
There are several steps that should be taken to move forward with becoming an effective SBA 8a supplier. Here are some tips that I offered the business owner.
- Build a relationship, stay engaged with the top five government agencies of your choice that buy and may have an interest in your product or services, and understand ‘how’ they buy.
- Be pro-active. Develop a partnership with other 8a suppliers for joint-venture and mentor-protégé opportunities.
- Market your product or services not only directly through your established relationships but through the agency’s vendor database (if applicable) andFedBizOpps.
- Review your business model annually to assure that your business is still operating as outlined in the business plan that you created, edit and streamline as needed.
- Maintain accurate financial documents because SBA representatives are allowed to conduct annual reviews of your business.
Report and document accordingly
Since you are operating under a one-time, 9-year program, be mindful that neither you nor your business can be a part of the program again. If there are any problems with anything and anyone in the program, throughly document the incident(s) and report the improper behavior or dilemma to your SBA 8a counseling representative or a higher SBA official immediately. You want to avoid any type of inaccurate or inappropriate actions reported against you or your business because it can be a mark against you within the near future.
OPEN Cardmember Vernita Naylor worked with the General Services Administration (GSA) for 25 years in project and construction management and government contracting. She is the Founder/CEO of Jabez Enterprise Group (JEGroup), an integrated business resource company providing technical assistance and business development services including government contracting, consulting, project management, strategic marketing, life and business coaching, educational workshops and brand development for small-medium businesses and non-profit organizations.
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