Certifications for small businesses

1. Georgia SBDC Network
Certifications
A Marketing Strategy for Winning Contracts
With Corporations and the Government
Presented by:
Erica Bracey
Business Consultant
Georgia State University SBDC

2. Agenda
Alphabet Soup
Private Sector vs Public Sector Certifications
Benefits of Certification
Role of SBDC Consultant in the Certification Process
Certification Requirements & Documentation
Common Mistakes to Avoid
A License to Hunt – Marketing The Certification
Impact – Managing The Results
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Certification as a Strategy

3. Certifications 101
Making sense of Alphabet Soup
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Certification as a Strategy

4. Certifications 101
Private Sector
Certifications
Public Sector
Certifications
Same Game….
…..Different Perspective
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Certification as a Strategy

5. Certifications 101
Making sense of Alphabet Soup
VOSB
8(A)
WBE
WOSB
MBE
PDBE
GLBT
SDVOSB
EDWOSB
Private
Sector
Certifications
Hub
Zone
SDB
Public
Sector
Certifications
DBE
GSA
Schedule
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Certification as a Strategy

6. Certifications 101
Making sense of Alphabet Soup
Private Sector
Certifications
VOSB
8(A)
Public Sector
Certifications
8(A)
WBE
MBE
MBE
Private
Sector
PDBE
Minority
Business
Enterprise
PDBE
Person with
Disabilities
Business Ent.
Hub
Zone
DOT
DBE
GLBT
GLBT
Gay, Lesbian,
Bisexual,
Transgender
Business Ent.
SDB
GSA
Woman Owned
Small Business
Service Disabled
VOSB
DOT DBE
Economically
Disadvantaged
WOSB
Dept. of Transp.
Disadvantaged
Bus. Enterprise
HubZone
Public
Sector
SDVOSB
EDWOSB
SDVOSB
WOSB
Veteran Owned
Small Business
WOSB
Woman Business
Enterprise
VOSB
8A Business
Dev. Program
WBE
GSA
Schedule
Historically
Underutilized
Business Zone
General Service
Administration
Schedule
Schedule
SDB
Small Disadvantaged Bus.

7. Private Sector Certifications
WBE’s
MBE’s
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Certification as a Strategy

8. Private Sector Certifications
The Women's Business Enterprise National Council (WBENC)




Largest third-party certifier of businesses owned controlled, and operated by women
14 Regional Partner Organizations
WBENC is also the nation's leading advocate of women-owned businesses
Approved Third-party for SBA WOSB
 WBENC Certification
 51 percent owned, controlled, operated, and managed by a woman or women.
 Formal documentation and site visit process
 WBENC Certification gives women-owned businesses the ability to compete
www.WBENC.org
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Certification as a Strategy

9. Private Sector Certifications
The National Minority Supplier Development Council ® (NMSDC®)
 Chartered in 1972 to provide business opportunities for minority businesses
 Provides a direct link between corporate America and minority-owned businesses
 One of the country's leading business membership organizations.
 NMSDC Certification




Gold standard for certifying minority-owned businesses by corporate America
51 percent owned, controlled, operated, and managed by minority
Formal documentation and site visit process
Asian, Black, Hispanic and Native American business owners
www.NMSDC.org
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Certification as a Strategy

10. Benefits of Private Sector Certifications
Access to supplier diversity and procurement executives
Formal & informal networking with corporate buyers
Conferences, business fairs and matchmaking sessions
Electronic database of certified small business owners
Foster long-term and mutually beneficial business
relationships
Strategic partnerships
Joint Ventures
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Certification as a Strategy

11. Benefits of Private Sector Certifications
NMSDC MBE Corporate Spend
Provided by NMSDC
$110.8 Billion – 2011
$105.2 Billion – 2010
$101.1 Billion – 2009
$100.5 Billion – 2008
$104.7 Billion – 2007
$100.3 Billion – 2006
$ 94.6 Billion – 2005
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Certification as a Strategy

12. Benefits of Private Sector Certifications
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Certification as a Strategy

13. Certification Program Eligibility
Ethnicity
Based
Gender
Based
US
Citizen
OR
WBE
Ethnicity
NOT a
MBE
consideration
US Citizen
ONLY
Permanent
Legal
Resident
Alien
Gender
NOT a
consideration
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Certification as a Strategy

14. Certification Program Eligibility

15. WBENC WBE Certification
Documentation Required for WBENC
Legal entity documentation
Tax returns
Bank signature cards
Resumes
Evidence of gender
Evidence of citizenship
Financial statements
Personnel documentation
Processing Fee
Between $350 - $1000
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Certification as a Strategy

16. NMSDC MBE Certification
Documentation Required for NMSDC
Legal entity documentation
Tax returns
Bank signature cards
Resumes
Evidence of ethnicity
Evidence of citizenship
Financial statements
Work History
Fees
$500 processing fee
$350 annual recertification fee
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Certification as a Strategy

17. WBE vs MBE
Ethnicity
Based
Gender
Based
US
Citizen
OR
WBE
Permanent
Legal
Resident
Alien
Ethnicity
NOT a
consideration
July 2011
MBE
The Small Business Administration (SBA)
has APPROVED WBENC as a Third-Party
Certifier - providing Women Owned Small
Business (WOSB) certification - for the
SBA's WOSB Federal Contracting Program.
Gender
US Citizensome time, WBENC has investigated
For
additional ways in which it can support its NOT a
ONLY
mission of leveling the playing field for women's
consideration
business enterprises (WBEs) not only in the
private sector, but also in the public sector. Now
WBENC is at an historic moment and is proud to
announce it will take its world-class certification
into the government arena by delivering WOSB
certification.
January 2009
GWBC entered into MOU with City of Atlanta
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Certification as a Strategy

18. Certifications 102
More Alphabet Soup
8(A)
8(M)
WOSB
WBE
MBE
PDBE
Private
Sector
Certifications
VOSB
SDVOSB
Hub
Zone
SDB
GLBT
Public
Sector
Certifications
DBE
GSA
Schedule
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Certification as a Strategy

19. Public Sector Certifications
8(A) Business Development Program
 business assistance program for small disadvantaged businesses
 socially and economically disadvantaged individuals
 participation in the program is divided into two phases over nine
years
 a four-year developmental stage and a five-year transition stage
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Certification as a Strategy

20. Public Sector Certifications
Historically Underutilized Business Zones (Hub Zone)
 small businesses in urban and rural communities gain preferential
access to federal procurement opportunities
 35% of staff must live in a HubZone
 company "principal office“ must be in specially designated area
 3% annual goal
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Certification as a Strategy

21. Public Sector Certifications
GSA Schedule
 fast, easy, and effective contracting vehicle
 “Most Favored Customer” (MFC) pricing
 Special Item Numbers (SINs)
 intensive screening criteria
 Indefinite Delivery, Indefinite Quantity (IDIQ) contracts
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Certification as a Strategy

22. Public Sector Certifications
Service Disabled Veteran-Owned Small Business
 Veterans Entrepreneurship and Small Business Development Act of 1999
 Veterans Benefits Act of 2003
 Service-Disabled Veteran-Owned Small Business Concern Program
Purpose of the SDVOSBC Program
 exclusive competition
 sole source awards
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Certification as a Strategy

23. Public Sector Certifications
Women-Owned Small Business Federal Contract Program
 51 percent owned, controlled, operated, and managed by a woman or women
 self-certification OR
 certified by an SBA-approved Third-Party Certifier
 WOSB
 EDWOSB
Over 300 NAICS codes currently eligible
for Federal contracting under the WOSB Program
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Certification as a Strategy

24. Public Sector Certifications
Disadvantage Business Enterprise
 DOT-assisted State and local transportation agency is required to
establish DBE goals.
 DBE subcontracting goals
 DBE Certification Officers
 widely accepted by most States
http://www.sba.gov/content/state-government-certifying-agencies
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Certification as a Strategy

25. Benefits of Public Sector Certification
Access to SADBU’s
Formal & informal networking with government buyers
Conferences, Business Fairs and Matchmaking Sessions
Electronic database of certified small business owners
Networking activities
Foster long-term and mutually beneficial business
relations
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Certification as a Strategy

26. Benefits of Public Sector Certification
8 (A)
8 (M)
WOSB
EDWOSB
HubZone
Managing Agency
SBA
SBA
SBA
SBA
Start-Up Businesses Can Apply
No
Yes
Yes
Yes
Yes
No
No
No
No
No
Yes
Must Be In Business > 2 years
Waivers Eligible
in Certain
Circumstances
VOSB
DBE
Department of Department of
Veteran
Transportation
Affairs
Yes
Yes
GSA
Schedule
General Services
Administration
No
Must Meet SBA Small Business Size
Standards
Yes
Yes
Yes
Yes
Yes
Yes
No
Restrictions on NetWorth
Yes
Yes
Yes
Yes
Yes
Yes
No
Restrictions on Location of Principal Office
No
No
No
Yes
No
No
No
Business Tax Returns Required
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Personal Tax Returns Required
Yes
Maybe
Maybe
Maybe
Maybe
Maybe
No
Must Demonstrate Past Performance
Yes
No
No
No
Maybe
Yes
Yes
9 years
Indefinite
Indefinite
Indefinite
Indefinite
Must Renew
Every 2 Years
Indefinite
5 Years with three 5
Year Extension
Options
3 –5 Months
Approx. 4-8
Weeks
3 –5 Months
3-6 Months
Moderate
Moderate
Moderate
High
Program Length
Average Time for Approval
Application Complexity
6-9 Months
(often longer)
High
Certain
Certain
Must Recertify
information must information must Every 3 Years
be updated
be updated
annually
annually
SelfCertification
SelfCertification
Does not require Does not require
approval
approval
Low
Low
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Certification as a Strategy

27. Benefits of Public Sector Certifications
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Certification as a Strategy

28. Benefits of Public Sector Certification
Fiscal Year 2012-2013 Agency Goals
The U.S. Environmental Protection Agency (EPA) goals for Fiscal
Years (FY) 2012/2013 are based on estimated obligations of $2.1
billion for direct and $400 million for subcontract.
NOTE: 8(a) and SDB has a combined goal
Estimated Obligations
Negotiated
Direct
Dollar Value Goal
Small Businesses
$882 M
42.0%
Small Disadvantaged Businesses
$105 M
5.0%
Women-Owned Small Businesses
$105 M
5.0%
HUBZone Businesses
$63 M
3.0%
Service Disabled Veteran Small Businesses
$63 M
3.0%
Subcontract
Dollar Value Goal
Small Businesses
$220 M
53.3%
Small Disadvantaged Businesses
$20 M
5.0%
Women-Owned Businesses
$20 M
5.5%
HUBZone Businesses
$12 M
3.0%
Services Disabled Veteran-Owned Small
Businesses
$12 M
3.0%
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Certification as a Strategy

29. Role of
SBDC Consultant
with Clients
Seeking Certification
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Certification as a Strategy

30. Strategy
Strategy drives Marketing ….
……Marketing does NOT drive Strategy
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Certification as a Strategy

31. Role of SBDC Consultant
 Educate client on benefits of certification
 Be an objective 3rd party
 Serve as intermediary between applicant & certifying organization
 Maintain credibility & visibility within business community
 Stay knowledgeable about national & local events
 Source & Recruit long term AND good clients 
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Certification as a Strategy

32. Certification Assistance Process
Meet and interview the business owner
Determine certification eligibility
Educate business owner on the process
Review application and supporting
documentation for accuracy and completion
Post certification follow up and ongoing
consulting
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Certification as a Strategy

33. Why do applications get declined?
Industry Specific
Certifications
Business
Not
Eligible
Ownership but
not in Control
False
Pretense
Arms Length
Transactions
Board of
Director
Issue
Bylaw
Discrepancies
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Certification as a Strategy

34. Yeah!!! We’re Certified
NOW WHAT???
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Certification as a Strategy

35. Marketing the Certification
“Don’t just send a check and expect magical
contracts to just fall from heaven…
…The way to get the most out of certification is
to establish sound, long term relationships.”
Ken Huff
Supplier Diversity Manager
GA Power
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Certification as a Strategy

36. Marketing the Certification
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Certification is the beginning of the process
Encourage developing marketing strategy and
implementation plan for EACH certification
Coach clients on networking skills and best
practices
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Certification as a Strategy

37. Marketing the Certification

38. Why Bother with Certifications?
Benefits to Consultant
Referral Sources
Area of Expertise
Impact Clients
Long Term Cases
Success Stories

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Certification as a Strategy

39. Final Thoughts

40. Help at your fingertips
Helpful Sites
www.nmsdc.org
www.wbenc.org
www.sba.gov
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Contracting Opportunities
www.fbo.gov
www.gtpac.org – Useful Links!
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Certification as a Strategy

41. Thank You
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Certification as a Strategy

42. Thank You
Ebracey@georgiasbdc.org
Georgia SBDC Network * www.georgiasbdc.org
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Certification as a Strategy