Graduation day from 8: here are the steps you need to follow to survive the SBA program

Black Enterprise, Feb, 1998 by Joyce Jones

"It was a difficult adjustment. Once you're out of 8(a), those contracts are no longer available, and it's tough to adapt [to no longer having access to 8(a) contracts]," says Handy. "We lost a third of our staff, and that was substantial because we couldn't continue to compete for contracts we'd had for eight years or more."

To compensate, Handy did exactly what SBA officials say is critical--she relied heavily on the business connections she established while in the 8 (a) program. "We knew those relationships would be key in these years, and we've taken advantage of them. Now we have connections with major corporations," she says. "We're just beginning to see the light of day again where it's starting to look promising." Today, Tresp's major client base includes Lockheed Martin and NationsBank. They're also automating the electric utility company in Dakar, Senegal. Handy estimates her company's revenues at $16-$17 million for 1997.

Step 2--Understand the marketplace.

Long before certification, entrepreneurs must take the time to thoroughly understand the federal marketplace, says Darryl Dennis, SBA's counselor to the administrator. He recommends that CEOs begin this process by attending the numerous SBA-sponsored workshops held at business information centers throughout the country. He also suggests entrepreneurs personally visit the federal agencies to which they're considering marketing their companies, products and services. This is critic al because while every agency must follow federal acquisition guidelines, buying trends and cycles vary within each agency. "Selling to the federal government is a very detailed process", Dennis cautions. "The more time you spend learning how it buys goods and services, the better served your firm will be."

Step 3--Market your company.

Based in North Miami Beach, Florida, Solo Construction Corp. (No. 66 on the BE INDUSTRIAL/SERVICE 100 list) has been an 8(a) firm for two years although CEO Randy Pierson has yet to receive a single contract as a result of his certification. The concern, which has been in business for 20 years, had revenues of $32.6 million in 1996. "We've had a problem here in that there's not enough 8(a) work available," says Pierson. "We're in the process of being considered for some, but none of that has become real yet."

Pierson believes the problem is twofold. First, Solo is extremely specialized in that it primarily does heavy construction work such as roads, highways, bridges and underground utilities. Since fewer opportunities for such projects are available, it means fewer of those contracts are available to 8(a) participants. Second, and perhaps most important, Pierson believes he dropped the ball by not fully marketing his company to potential clients.

"A lot of people expect once you're certified the work will come pouring in, but it doesn't work like that," he says. "You've got to go out to the agencies and really market your company. Find out what their budgets are and what they're looking for. If you find out what they're going to be building in the next fiscal year, you can earmark a project you think will be of interest to you." And what does this have to do with graduating from the program? Success breeds success. This will also endear your smaller concern to larger enterprises that you can collaborate with after graduation.