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Certifying
Your Business Can Land Bigger, Better Contracts
If you're a woman running your own company, you may be missing
out on lucrative opportunities if you haven't yet become
certified as a woman-owned and operated business.
I spent the last two years researching all kinds of
certifications for women and the organizations that grant them.
Not all certifications are created equal. Female business
owners who have undergone the process report that certification
definitely helps move the needle when selling their services and
products. "It has opened doors with large corporations. And we
think it has helped us locally and regionally," says Barbara
Dell, who founded her Mesquite, NV marketing agency back in
1977, but only became certified in 2004.
This article seeks to help you get started in what can be a
lengthy certification procedure, as well as provide you some
insider tips about how to leverage being a woman-certified
company.
The value of becoming woman-certified
 Basically,
becoming woman-certified puts you into position to bid for big,
long-term contracts from large corporations and/or from local,
state and federal government agencies. Locally, Harrah’s and
MGM recognize some certifications.
Certification is an acknowledgement (sometimes legally mandated)
by vendors and governments that women and minorities have faced
years of discrimination and must still jump higher hurdles in
business. It's designed to expand "old-boy networks" and make
the bidding and approval processes more transparent and fair.
As a woman-certified company, you pitch your value with the
vendor's awareness that you're a "diversity supplier." That can
help you get business in the form of measured "set asides," a
percentage of contract awards earmarked for diversity or simply
because of corporate policies. The work can be awarded directly
to your company (so-called Tier 1 contracts) or you can become a
subcontractor to other companies that secure such contracts
(Tier 2).
But certification doesn't give you anything in and of itself.
Like any marketing tool, it's your strategy and plan that gets
you the business," notes Sheila Murphy, chief operating officer
at the New England Center for Women & Enterprise (www.cweonline.org),
a group that provides certifications. What certification can do
is increase your chances of being in the room when the deals get
done.
Why you need the certification edge
Some women owners sidestep certification because of a vague
sense of pride or fair play, or a feeling that big markets
aren't right for them. If that's your take, consider that you
are contributing to these jaw-dropping stats: Some 60% of
Fortune 1000 companies spent $1 billion or more with outside
suppliers in 2003, but women's businesses — on average —
captured only a puny 4% of that market share, according to a
study commissioned by the Women's Business Enterprise National
Council (see below for more about this organization's
certification work).
Yet those women's businesses that do target corporate markets
receive nearly half their revenues (48%) from large corporate
contracts. "The importance of this market for women
entrepreneurs is irrefutable," says Susan Bari, president of the
Women's Business Enterprise National Council (WBENC), of the
study. "Clearly, women business owners, regardless of the size
of their firm, should not overlook the corporate market place."
How to get certified
There are various types of certification from different private
organizations and public agencies. You'll need to research which
ones will do your business the most good.
For instance, a municipal government certification might be best
to target vendors in your community. A private nationwide
certification would be best to target Fortune 1000 corporations.
Plus, each certifying group has its own form and requires
specific information and documentation. Be prepared. This can be
a drawn-out process.
These are the main types of certification:
Private certification. Starting around 1997, two
nonprofit women's business organizations created certification
processes that are increasingly accepted by partner corporations
and, more slowly, by some government agencies. The most
prominent is the Women's Business Enterprise National Council (www.wbenc.org
<http://www.wbenc.org>
).
Headquartered in Washington D.C., WBENC has 14 affiliates around
the country. At last count, more than 700 corporate partners
(including Harrah’s and MGM-Mirage) and a growing list of state
and local government agencies had accepted its designation. "We
are able to create access for our members because we partner
with corporations that have goals of doing business with women.
We can facilitate face-to-face meetings between women-owned
companies and corporate partners," says Liz Cullen, regional
director of the Women Presidents' Educational Organization (www.wpeo.us),
a regional affiliate of WBENC. The other nationwide certifying
group is the National Women's Business Owners Corporation (www.nwboc.org),
an arm of the influential National Association of Women Business
Owners.
At these groups' Web sites, you'll find online applications
forms, information and instructions. The certification process
is based on proving, via documents and tax forms, that you're a
viable, up-and-going enterprise 51% or more women-owned and
controlled. Fees run about $300 and must be renewed each year.
Many companies carry certifications from both groups. Make no
mistake, this is not a process for women who do not keep good
records, who are working part time on a venture or who do not
want to give out ALL their business info. If you’re serious
about your business, you will likely get the certification. And
oh yes, they will visit your office too – whether it is a home
based business or if you have an office in a building, strip
mall, etc.
State and local certification. Each state and dozens of
counties and cities have their own certification procedures to
support women-owned and minority-owned businesses. See your
state's Web site to find out more or get in touch a local
affiliate of one of the two women's groups mentioned above.
Federal certification. As you might expect, federal
certifications can be more complicated. Generally, you don't
need to become woman-certified to bid on a federal contract. But
you may "self-certify," which can help. That means you "certify"
that your business is woman-owned and run and list it for free,
along with a company profile, in the U.S. Small Business
Administration's procurement database. See the Central
Contractor Registration site (www.ccr.gov) and FedBizOpps.gov,
which has a guide to federal contracts for women.
The FedBizOpps database is accessed by federal agencies and
large contractors looking for small businesses to hire. Other
federal certifications are more rigorous. The most well known,
the 8(a) Business Development helps small, disadvantaged
companies, typically minority-owned. "It's a tougher
certification for women, but if you can show evidence that you
were discriminated against because of gender — say, being in a
male-dominated industry — then you might qualify for an 8(a),"
says Murphy at the New England Center for Women & Enterprise.
Similarly, a newer Small Business Administration program called
Small Disadvantaged Business (SDB) offers assistance to socially
and economically disadvantaged companies trying to land federal
contracts. And the HUBZone Empowerment Contracting Program gives
contracting preferences to small businesses in underutilized or
underdeveloped urban and rural areas. Visit the Small Business
Administration Web site (www.sba.gov) to learn more.
How certification has ongoing value
Management Decisions, a woman-owned consulting and staffing
business founded in 1988, has been certified for five years, and
it's made a significant difference, says vice president Brad
Mendez. "We bring up certification early in the sales process
and it's a means of gaining access," he says. "But it's
independent of the presentation made to the client by our
account executive."
As Management Decisions expands its presence into Dallas, being
woman-certified has proven valuable, Mencher adds. "Our first
phone call was to the WBENC affiliate to get advice and
information about the market," he says. "We will attend some
matchmaker meetings with local companies and we'll get help
about which businesses to target.
Overall, he adds, "certification greases the wheel. It helps us
break into accounts."
I speak from experience on this one. I am a WBENC certified
female owned business and I am proud of it. The process took
about five months but already has been well worth it.
If you want more information on certifications or any marketing
tools for your small or medium sized business, contact me. I’m
here to help!
Mary Ann
McQueen Butcher
Red Carpet
Marketing, LLC
www.LVRedCarpet.com
702
994-7282
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