4 Steps To Succeed In The Government Marketplace

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4 Steps To Succeed In The Government Marketplace
March Drop in Loan Approval Rates at Big Banks Is a Cause for Concern
Worth Every Penny: How to Earn What You are Worth
Playbook for Success: A Hall of Famer’s Tactics for Women in Leadership

Posted: 22 Apr 2012 03:30 PM PDT

The U.S. Federal Government buys nearly $100 billion worth of goods and services from small businesses each year – but cracking this market as a small business can be challenging. However, done right and with plenty of pre-planning and research, small business owners can successfully land their share of federal business.

capitol building

If your small business is interested in selling to Uncle Sam, follow this four-step plan that summarizes the process of entering the federal marketplace.

Step 1 – Register Your Small Business as a Government Contractor

Winning your first contract takes planning and perseverance. You might even consider partnering up with a larger contractor on a sub-contractor basis. But the actual process of certifying and registering your business so that you are in a position to compete for federal business is actually a fairly simple process.

In order to compete for government business as a small business, you must meet certain size standards. – these vary by industry, so be sure to check whether you are eligible via the SBA website before following the next steps.

Next, you'll need to apply for a D-U-N-S number (done via the D&B DUNS Numbers website) and register in the Central Contractor Registration (CCR) database. CCR is a database of all businesses that sell to the government. It is used by government employees and purchasing officials to search for services and products and the companies that sell them. Regulations require that you are registered in CCR before you can sell anything to "the Feds."

Step 2 – Get a Contract Vehicle

Here's how selling to the government really starts to differ from the private sector. Unlike a business contract (which binds a vendor to provide services at an agreed rate), a government contract vehicle is an agreement or form of pre-authorization that lets government purchasers know you are an approved supplier and is often put in place before you even sell anything. They also include pre-agreed pricing for your products and services.

There are many government contract vehicles, but the most common and favored is the General Services Administration's GSA Schedules Program. (The GSA oversees the business of the U.S. federal government and is responsible for helping federal purchasers acquire cost-effective, high-quality products and services from commercial vendors). Exercise your patience! The application process for a contract vehicle is complex and can take many months. So think long and hard about whether you have the resources to commit to this and plan ahead.

An alternative to getting your own contract vehicle is to become a sub-contractor, meaning you partner with a "prime contractor" who already holds a government contract vehicle.

Step 3 – Develop Your Government Market Strategy

Moving on from the technicalities of getting registered and certified, having a focused market approach is critical. The federal government is huge; each agency has its own priorities, needs and sometimes their own contract vehicles. So it's important to find the right fit for your business and what you have to sell. Information on how and what the government buys is in the public domain, which is helpful. Sites like USA.gov, USAspending.gov, FedBizOpps.gov and the Federal Procurement Data System include information on agency profiles, government spending, and current opportunities.

It's also critical to network furiously. Industry events are plentiful and offer insights from government officials and industry experts. Government market intelligence firms like GovWin, epipeline and ONVIA also offer information and resources to help you focus your strategy.

Be sure to line up reference customers and case studies that support your proof of performance as a trusted supplier in the marketplace. The government is very particular about past performance.

Step 4 – Get Bidding

Once you're set, start researching government opportunities. The website FedBizOpps lists all agency bid announcements. Happy selling!

United States Capitol Building Photo via Shutterstock

From Small Business Trends

4 Steps To Succeed In The Government Marketplace

March Drop in Loan Approval Rates at Big Banks Is a Cause for Concern

Posted: 22 Apr 2012 12:30 PM PDT

Small business loan approvals by big banks ($10 billion+ in assets) dropped to 10.9% in March, down from the 11.7% figure reported in February. This figure represents a 6.8% decline over a one-month period and from the 11.6% approval rate one year ago in March 2011.

lending down

According to the Biz2Credit Small Business Lending Index, small bank lending remained flat at a 47.6% approval rate, alternate lenders picked up slightly (0.5%) to a 63% approval rate, and loans made by credit unions barely increased (up 0.1%) to a 57.9% approval rate.

Big banks are always the most cautious, particularly when economic news is less than rosy. The March jobs report found that only 120,000 new jobs were created, significantly short of estimates of 300,000+ positions created. Meanwhile, the rising price of oil also makes borrowers and lenders wary.

So while the availability of small business capital has improved over the past 12 months than in 2009 or 2010, the flow of capital may be slowing, which is a cause of concern.

Big banks are still stringent in their loan parameters and approve loans at a lower rate than any other category of lender, despite promoting their efforts in the small business lending space.

This is disappointing news because for the past year lenders of all types had been steadily increasing the number of funding requests from small business owners that they granted. I am a bit concerned that the momentum in the last few months seems to have slowed, and business sentiment is turning cautious.

However, I am still cautiously optimistic that this is a temporary blip and not a start of a slowdown like what happened during second quarter last year when lending stalled after a good first quarter. The good news is that credit unions and alternative lenders continue to approve more than 50% of loan requests, and small bank lending remains strong.

Lending Down Photo via Shutterstock

From Small Business Trends

March Drop in Loan Approval Rates at Big Banks Is a Cause for Concern

Worth Every Penny: How to Earn What You are Worth

Posted: 22 Apr 2012 09:10 AM PDT

I don’t remember exactly how I came to know of Sarah Petty and Erin Verbeck, authors of the new business book “Worth Every Penny.” At some point Sarah joined me on my radio show to discuss how to compete without focusing on price.

One thing led to another, and then another. Last year I got the chance to hang out with Sarah and Erin when they came to Cleveland. They came not just to talk (although we had great fun at that) — they showed me what they do. They brought along samples of the items they provide to subscribers of their Cafe Joy monthly marketing service. Subscribers get a “recipe tin” they can fill with the monthly recipe cards mailed to them containing marketing ideas and tips. They get access to marketing design templates for creative marketing items, such as unique photo cubes and greeting cards. The items are visually intoxicating – and inspire you to think up your own creative marketing.

As soon as I “saw” I was hooked. And that was when they told me they were writing a book. So I was thrilled to get an advance copy and gave a testimonial for the back cover — because I knew they were the real deal.

Who Are the Authors?

Sarah Petty (@SarahPetty) spent 20 years in business working with the Coca-Cola brand. Then about a decade ago she opened a boutique photography studio. Fast forward five years: that studio was recognized for being one of the most profitable in America. From there Sarah was asked to become a speaker sharing her business expertise with other photographers. Eventually she and her co-author Erin Verbeck evolved into a business called The Joy of Marketing, where they teach other photographers and small business owners how to charge what they’re worth.

How To Get Paid What You’re Worth

So what’s involved with learning how to charge what you’re worth? A lot of elements: branding, customer service, pricing, sales – and even social networking and public relations.

The book shares the authors’ wisdom about how to create a unique brand and translate that into profits.

The first thing you learn in the book is that as a small business owner, the path to earning what you’re worth is to build a “boutique business.” As they say in the book, “Boutique is a business model, not a gift shop.” Any type of business can be boutique — a cosmetic dentist, flower shop, tax consultant, mortgage broker or photographer. Being boutique is not about what you sell, but how you operate. The authors write:

“When you’re boutique, your products or services are specialized and customized. They’re cooler. They’re more fabulous. They’re more personalized. They’re more valuable. And they’re almost impossible to imitate, because they’re based on your personality and talents.”

A boutique business is fundamentally different from large companies or commodity businesses. In a boutique-type of company, you never would sell based on being a low-priced provider. To a boutique business owner, the words “sale” and “deal” are 4-letter words — in ALL ways. You’re not trying to get every customer — you want the right customers. You must create the aura of being unique with a “gush-worthy” brand, add value to customers — and charge accordingly.

Now… is your mind wrapped around the boutique concept yet? Because if it is, you can move on to the rest of the book, which is about showing you how to create that aura and unique brand, how to add value to customers, how to price for profits, and how to market and sell when you run a boutique business.

Key Principles to Being Worth Every Penny

Getting paid what you’re worth is not just about you and getting paid more. At the heart of it, it’s about adding so much value and wow-ing your customers to the point that they would spontaneously say “worth every penny!” A few of the key points in the book include:

Making your products and services worth more. You can’t just jack up prices if you offer a poor quality product or a mediocre service. You have to offer more. The authors call it adding a “thrill” for the customer. The book gives one example of a tattoo artist who doesn’t just show you a rendering of the tattoo, but who will actually take your photograph and Photoshop it to show the tattoo positioned on your body so you can decide if it’s going to be in exactly the perfect spot. Isn’t that better than finding out later that you have to live the rest of your life wishing it were just a few inches higher?
The high touch experience. A boutique business is by definition a high-touch business with strong service and deep relationships with customers. As Petty and Verbeck say, “Discounters can’t compete with you when you provide a better experience for customers.”
Demand-based pricing. You might think you know what this means, but the authors’ take is a bit different. To them, it means “set a price at what consumers will pay and then create the demand you need to meet that price.” But you’re thinking, ‘ Create demand? How do you do that?’ The book goes on to give examples such as based on appealing on an emotional level, positioning the business owner as an expert who goes out and speaks to groups, and “creating your own weather” to build demand. To understand what that latter phrase means, you’ll have to read the book!

I found this book easy to read and digest. You’ll get a lot of inspirational support for pursuing the boutique business model — and if you start to doubt yourself, the book will be an excellent source of reinforcement.

At the ends of the chapters are simple action steps for you to follow. Ultimately, though, it will be up to you to use your brainpower and creativity to develop a boutique business. And when you do, you could finally get paid what you’re worth. Pick up a copy of Worth Every Penny.

From Small Business Trends

Worth Every Penny: How to Earn What You are Worth

Playbook for Success: A Hall of Famer’s Tactics for Women in Leadership

Posted: 22 Apr 2012 05:30 AM PDT

Playbook for Success No matter the sport we appreciate an athlete's influence on a professional sports league. That influence is exponentially higher when an athlete has made trailblazing firsts that furthers a society as well as a sport.

Nancy Lieberman is exactly that trailblazer. An Olympic champion whose has sport-transforming success in women's collegate and professional basketball, Nancy achieved a high regard among athletes from all sports. Her status in an early developing field – and the atypical challenges that come along with being at the forefront – demonstrates the best traits in managing steps towards success.

Her book Playbook for Success: A Hall of Famer’s Business Tactics for Teamwork and Leadership makes a splendid interpretation of those steps for businesswomen as well as an inspiration for those with a sports enthusiast's heart.

The book focuses on leadership development and establishing teamwork, spiced with Nancy Lieberman's career moments and personal insights. Nicknamed "Lady Magic" for her basketball prowess – she is also a friend of Magic Johnson – Liberman can certainly offer solid observations on how businesswomen can maneuver to their strengths, particularly in male-dominated fields. She is the first woman to coach a male professional team, the Texas Legends – a NBA development team associated with the Dallas Mavericks.

Some of the tips may be familiar for those who have been in business a while, but do not take my statement as a pejorative one. Lieberman's comments strike a down-to-the-basics tone, a reflection of an athlete's efficient mindset. You'll read insights that explain the benefits for those oft-said tips, a particular aid to budding entrepreneurs and young leaders. See this quote regarding budgeting one's own time as an example:

"Time management also involves managing your time when you aren't at work so that you are ready to roll each and every day. "

Lieberman's spin shows how such tips make an impact over life as well. She touches on many subjects that women encounter through their professional lives. Here are a few other notable thoughts.

On responsibility:

"You can't force people to be responsible if he or she chooses to be unprepared and dodge his or her duties. You can, however, be prepared to manage the morale and complications that are certain to arise because of that one person's lack of integrity."

On womens' health:

"Believe it or not menopause is a major workplace issue these days, and it's not going away anytime soon. As baby boomers continue to age it is going to become virtually pervasive through at least 2020….Don't let these biological changes – or any change in life throws at you, for that matter – hinder your performance or how you're perceived. Instead, prepare, gather knowledge, and understand your situation, so that you can cope with it constructively."

On taking steps to develop your strategy

"Homework comes in so many different forms these days – about your industry, your competitors, or trends in the market. If you have a feeling a certain strategy might work, research it….Homework also requires that you make phone calls and ask people who've walked a similar road what they've done in similar situations."

One fascinating aspect about the book is Lieberman's choice to seek mentorship from excellent athletes outside of her immediate league, such as in a demonstration with Michael Jordan, and a phone call which leads to a friendship with Muhammed Ali. Some people may consider it name dropping while reading Playbook for Success, but I say imagine a walk in Lieberman's shoes. To be an Olympic champion and playing women's basketball prior to today's WNBA, you would draw the respect, interests, and private insights from excellent mentors in other fields. That attraction to innovators is always evident, at least from what I’ve read or heard. Lieberman earned that trait, having “done her homework.” She also makes the reader feel that they can earn that trait, too:

"Honestly, you do not have to be a former player or sports fanatic to learn how to use sports as a tool for winning in your business. Anyone can be a winner by having faith, self-confidence and the correct mind-set."

Lieberman expresses her persona with a centered awareness. In the chapter Game Time, she reminds the reader "to enjoy the big wins, but reserve a little humility at the same time." There's also a glossary at the end that connects sports terms to business. It's not meant to speak down to anyone who isn't sports savvy, but as shared thoughts from a basketball maven who grew up playing in the tough pickup games of Harlem's Rucker Park.

Playbook for Success is not a business process book, but the ideas are flexible to fit your personal approaches to the situation. The ideas also speak to all businesspeople on being competitive when there is no trail established. To borrow from the sports glossary at the end, the ball is in your court to pick up and read how a true champion in any competition – on field and off – thinks and behaves.

As Lieberman wrote: