Business Information Group

Government contracts help local firm grow

DSW — Mon, 17 Oct 2011 23:29:28 +0000

Source: Middletown Journal

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MIDDLETOWN — For decades, Karen Halsey had been building her way toward leading a construction company.

The Middletown native was initially involved on the accounting side of Better Built Construction Services, which got its start in 1994 at the hands of Halsey’s husband and his brothers.

In 2001, she took the reins as president of the then-dormant company and switched its focus from residential construction to commercial construction.

Today, the firm is one of the Top 25 largest minority-owned firms in the region, with more than $35 million in government contracts for construction projects.

Becoming certified on the state and federal levels, Halsey looked to leap into the commercial arena and started taking on some private projects, plus projects for several local municipalities and schools.

Once the business received its certification, it started predominantly working for the Army Corps of Engineers.

Better Built’s southwest Ohio projects include the Solid Rock Church Amphitheater and the “Kings of Kings” statue, a pipeline dormitory at Wright-Patterson Air Force Base and the structure that houses the Wright B Flyer.

“In addition to private owners and the U.S. Army, the Middletown contractor also serves the Navy and Air National Guard, Department of Veterans Affairs and Environmental Protection Agency and local governments.

Q: What is Better Built best known for?

A: “We’re really known for our military construction. At this point, we’ve built several army reserves centers at Wright-Patterson, we did a pipeline dormitory, which is the housing for the human performance wing up there.

“We also did the building that houses the Wright B Flyer. That was a smaller project, it was unique and we enjoyed doing it.

At Ft. Campbell (Ky.) we did a project called the Soldier Family Assistance Center. I liked being involved with that because that was the first project of that kind and it’s now being used for all of those projects nationwide. It’s for a soldier’s family, whether he’s coming back with a disability, an injury or emotional issues.

“In Fort Stewart, Georgia, right now we’re building a child development center and also a youth activity center on that installation. We’re doing a couple of brigade headquarters right now, one at Fort Riley, one at Fort Bragg.”

Q: What are the major goals the company is currently working on and how is the company working to achieve those goals?

A: “We went through a little bit of difficulty here. From last September to July of this year, we received no projects because of the (federal) budget. Until the budget was finalized, they weren’t awarding projects.

“That was a difficult time that we went through and since July we’ve been awarded four major projects. It was like the floodgates opened for us and we’re very thankful for that. We’re now on two major design build projects and two bid built projects, which is very good for us.

“Our goal is to just continue on the path that we’re on. Our company is growing and we’ll probably graduate the disadvantaged, small business (level) within a couple of years.”

Q: What are the biggest challenges facing the business today and why?

A: “Right now, I guess the challenge that we have is just with receiving these projects that we have is just getting the staffing in place and getting the project started off in a timely fashion.

“There’s a lot of meetings that take place initially to get a project kicked off, so there’s a lot of travel involved and a lot of meetings, and just a lot of planning, which is what we’re doing right now for each of these projects.”

Q: What have been keys to Better Built’s success over its history?

A: “I think the key for Better Built has been the development of relationships with large business. We’re in a member-protégé relationship with a large company out of Michigan.

“It took us about two years to develop the relationship and we’ve actually been in the Small Business Administration approve mentor-protégé relationship now for three years. They work right beside us on the projects and areas that we’re deficient in, they help to fill that void. We’re learning on each project alongside of our mentor.”

Q: What do you feel your company does better than its competitors?

A: The federal government does project reviews that are posted to a website and when you are proposing on a new project, this evaluation means everything.

“We have worked very hard to get outstanding evaluations. Those evaluations are based on the relationship, as well as the quality of work that we do, the timeliness of our work and just the overall professionalism of our company.

“We have realized that that’s key from the beginning and now, thankfully, we can say that we have had outstanding evaluations on several projects.

“We’ve also received different awards from different agencies and that has helped to get Better Built’s name out there and help people understand what we stand for. We’ve learned how to represent ourself in our proposals. That’s been key.”

Q: Where do you see Better Built in five years?

A: “I envision us being a mentor to a small business and using our lessons learned to help another disadvantaged or HUB (Historically Underutilized Business)-zoned business make it. It can be a very difficult place.

“A lot of people say they don’t want to work in the federal arena and if you don’t know what you’re doing, you can certainly be destroyed. If you understand what you’re supposed to do and how you’re supposed to do it, I think it’s a great place.”

Q: How is the company committed to the community?

A: “When we bought the building here and renovated it, there were all kinds of letters and sound-offs saying we must be crazy and stupid to be putting this kind of money into a building in downtown Middletown. We were trying to look ahead.

“I was born in Middletown, so this has been a part of my entire life and we’re expecting good things to come out of Middletown.

“We’re involved in the Darlene Bishop Home for Life, which is situated on the Solid Rock (Church) property. At one point I was on the board of the Crisis Pregnancy Center here in Middletown and since that time have just been involved in working with young ladies who are in crisis over either pregnancy or drugs.”

Women-Owned Businesses Have Come a Long Way But It’s Not Far Enough

DSW — Sat, 15 Oct 2011 16:45:26 +0000

Source: Small Business Trends

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How do women-owned businesses differ from companies owned by men? Not as much as they used to, according to a recent study from the SBA’s Office of Advocacy. “Business ownership no longer can be analyzed simply on the basis of the owner’s gender; businesses owned by women and men more and more share the same general development patterns,” write the authors of “Developments in Women-owned Business, 1997-2007.”

Between 1997 and 2007, the report found, women’s share of total U.S. firms increased from 26 percent to almost 29 percent; during the same time frame, men’s share dropped from 55 percent to 51 percent. As of 2007, the top four revenue-generating industries were identical for businesses owned by women, men, and by women and men together; they were construction, manufacturing, wholesale trade, and retail trade.

But there is still one area in which women-owned businesses differ from those owned by men: Women-owned firms were less likely to have employees. In 2007, more than 88 percent were non-employer firms.

Employment is on everyone’s minds right now, and a separate report from the Ewing Marion Kauffman Foundation, “Overcoming the Gender Gap: Women Entrepreneurs as Economic Drivers,” suggests that with the right kind of help, women-owned businesses could become drivers of employment and stimulate the economy.

The Kauffman report found some similar gaps between men- and women-owed companies. For starters, while startup companies, especially high-growth startups, are the biggest source of new U.S. jobs, only about 35 percent of startup business owners are women. In addition, their startups are less likely to grow than those owned by men: Just 36 percent of women-owned startups in the report had employees, compared to 44 percent of those owned by men.

Lesa Mitchell, Kauffman Foundation vice president and author of the report, says that while women are breaking through the glass ceiling, they seem to be encountering “glass walls” that keep their businesses from expanding. As a result, three years after startup, just 19.8 percent of women-owned businesses in the Kauffman report make over $100K annually, while 32.8 percent of men-owned companies do.

Of course, some women (and men) may prefer to keep their companies small. But for those who want to grow, what steps would help them? Mitchell says:

1.) Establishing support networks early in the startup process is one way to position your business for growth. Joining the board of a company in your industry is one way to do this.

2.) She also urges successful women entrepreneurs to become role models and mentors for younger ones.

3.) And she urges more networking and collaboration between startups and bigger, more successful firms.

Networking seems to be a common thread when it comes to helping women-owned businesses thrive. In Forbes’ latest list of the best cities for women in business, the cities that topped the list had several things in common: a supportive legal environment, government procurement goals for women- or minority-owned firms, resources like the SBA’s Women’s Business Centers, and the presence of women’s business organizations to provide networking and support.

Women are often called “naturals” at networking, and most women business owners I know are pretty good at it. But to power your business to the next phase, you need to take networking to the next level. Don’t just network within your comfort zone: Get out of it.

Depending on your business’s needs, that might mean hobnobbing with angel investors or even venture capitalists. It might mean getting comfortable at male-dominated industry events or conferences, or meeting key people at companies that are much bigger than yours. Whatever you’re hoping to achieve with your business, there is someone out there who can help you do it—but not if you don’t get out there and meet them.

A New Push To Rethink The Small-Biz Contracting Payoff

DSW — Tue, 11 Oct 2011 19:48:51 +0000

Source: Matthew Weigelt/FCW

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Federal programs aimed at aiding the growth of small businesses through federal contracting are not a good investment if they simply set up those firms to fail, some experts say.

The problem is that when small businesses become midsize businesses, they lose access to set-aside contracting programs and end up struggling to survive in the eat-or-be-eaten world of federal contracting. Some firms find a way to get by, but others end up selling out to bigger competitors.

That is not necessarily a good return on the federal government’s investment. But help might be on the way.

Rep. Gerry Connolly (D-Va.), who has many IT contractors in his district, is pushing a pilot program to help ease newly graduated small businesses into full-and-open competitions against the biggest contractors.

In his plan, only the General Services Administration could award contracts through the set-aside program. As important, the midtier company could win a set-aside contract only if GSA officials believe a small business likely would not have received it. In addition, the midtier company must mentor a smaller company.

Connolly’s goal is to continue helping the once-small contractors that the government has invested in and nurtured through the years after they become midtier competitors.

He said he questioned the benefit to taxpayers if small companies are sent “into a Darwinian world where they are, on Day One, expected to compete with the big guys.”

Others have reached a similar conclusion — and have come up with their own solutions.

At a hearing Sept. 14, Rep. Nydia Velázquez (D-N.Y.), ranking member of the Small Business Committee, pointed out that GSA already has the Business Breakthrough program, which prepares small companies for the next level.

The program is available to a range of companies, and officials envision it being particularly useful to companies that are too large to qualify for small-business advantages but not large enough to successfully compete with the nation’s largest corporations. It’s just want Connolly wants with his proposal.

GSA also has its mentor/protégé program. There are 81 active agreements between businesses of all sorts, from large companies to a variety of small-business types. The agreements can result in lasting business relationships and prepare the smaller firms to enter the bigger market.

Any of those programs might help, but only if federal agencies are willing to support them.

However, one industry executive said that for the most part, agencies aren’t looking beyond the small-business credit.

“No matter how well a small business does in support of an agency, it seems that once that business has outgrown the specific small-business program, the agency just turns to the next small business for support,” said Randy Slager, CEO of Catapult Technology, a mentor in GSA’s program.

Without a diversified set of customer agencies, a newly minted midtier company can quickly lose its customer base — a major factor in the high rate of failure among small businesses, he said.

Bill Jaffe, senior vice president and general manager of Tape, a service-disabled veteran-owned/woman-owned small engineering firm, said the 8-year-old company will cross the threshold into the full-and-open competition marketplace by December, and he’s going to face off for work against the Lockheed Martins and Northrop Grummans of the world.

“Companies do go through the process and survive,” Jaffe said, “but many of them do not survive.”

He is one of the leaders of a new industry group called Mid-Tier Advocacy that seeks to support such companies in a tightening market. But overall, it’s the company’s responsibility, Slager said. Businesses must plan and strategize well before the growth begins.

“I don’t think that this is a factor that is government-dependent,” Slager said. “It rests with the senior management of the small business.”

Another businessman has a different idea: Why make growth the main goal in the first place?

A reader calling himself Stay-Still-Stan recently commented on an “Acquisitive Mind” blog post by advising his peers to bask in the small-business perks. Most government contracting companies, including his own, strive to grow but are rarely happy when they do, he wrote.

His advice? “To be most profitable, government contractor: Find a niche, become the best, be a ‘disadvantaged’ company for special perks, stay not-for-profit and employee-owned, and keep company size under one of the government-defined limits to minimize the paperwork you need to do,” he wrote. “Do this, and everyone in the company will retire quite wealthy and happily.”

Leaving Your Company’s Comfort Zone

DSW — Wed, 05 Oct 2011 01:40:52 +0000

Source: International Trade Association

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According to an executive of Combustion Associates Inc., current and potential exporters should leave their comfort zone if they want to succeed overseas or to enter a new market.

by Doug Barry, a senior international trade specialist in the Trade Information Center.

In May 2011, then Secretary of Commerce Gary Locke presented Combustion Associates Inc., with an E Award for Exports. The company, located in Corona, California, was one of 27 U.S. companies and organizations presented with the award, which is the highest U.S. government recognition any U.S. entity can receive for supporting export activity.

Combustion Associates is a minority-owned business that provides power solutions to clients in the energy, process, and environmental industries. To sell overseas, the company worked closely with the U.S. and Foreign Commercial Service (USFCS). Most recently, it successfully bid on a multimillion dollar project with the government of Benin to supply gas turbines to help fill that West African country’s growing energy needs.

Recently, Doug Barry of the Department of Commerce’s Trade Information Center spoke with Mukund Kavia and Kusum Kavia, the husband and wife team that founded the company in 1989.

Barry: What exactly does Combustion Associates do?

Ms. Kusum Kavia: Our company manufactures power generation systems using aeroderivative turbines. We provide modular power plants in the range of 1 to 10 megawatts. A 1-megawatt plant is the size of a 40-foot container and can power 1,000 U.S. homes. So when we install such a plant in an emerging country in Africa, Eastern Europe, or Central America, it can power an entire village. The turbines not only provide power, but they really help to grow an entire economy.

Barry: How big is your company?

Ms. Kavia: When we started our business in 1989, we were a two-person office in a 200 square foot facility. Today, we’ve grown to 60 employees with a 40,000 square foot facility, and most of our revenue comes from exporting.

Barry: Are you both engineers?

Mr. Mukund Kavia: I’m an engineer. My wife is in business management and is the chief operating officer of the company.

Barry: What was the biggest challenge your company faced in getting started in the international marketplace?

Ms. Kavia: The biggest challenge was that we were not a brand name and were not recognized in the industry. Being a small company, we had to make a name for ourselves out there. So we used partnerships with the USFCS and other government agencies to help spread our name around and to broadcast what we did. That effort successfully elevated the company to a higher level, and we were subsequently able to be in front of potential customers at the international level.

Barry: I understand you received help from various government agencies as you started selling overseas. Any agencies in particular?

Mr. Kavia: Fred Latuperissa of the U.S. Export Assistance Center (USEAC) in Ontario, California, was especially helpful. He did a lot of background research for us about where we wanted to export. He showed us the right way to do it. When we brought potential customers to the United States, he and his colleagues accommodated them in every sense possible. Fred literally opened up his office to us! For example, when we started, we didn’t even have a room to accommodate a foreign delegation that was coming to hopefully do business with us. I called Fred at the USEAC, and he said, “Please, use my conference room.” He even had the ability to bring together bankers and representatives of the Export–Import Bank of the United States under one roof. He has just been extremely supportive of us from the time we started.

Barry: This doesn’t sound like the stereotypical government agency.

Ms. Kavia: In my experience, government offices at every level—local, state, and federal—really go out of their way to help businesses blossom and grow. When we’ve gone to government offices and told people our story, they’ve opened up and asked, “How can we help you?”

Barry: The majority of U.S. exporters sell to only one international market. How many countries do you sell to?

Mr. Kavia: We are now active in about 10 countries. We are in Africa, which is a growing market right now. We are also in Asia, Central America, and Eastern Europe.

Barry: About how much of your company’s revenue do exports account for?

Mr. Kavia: About 90 percent.

Barry: You are both immigrants from Kenya and Bangladesh through London, where I understand your parents still live. They must have been very proud of your receiving the E Award.

Ms. Kavia: We wish they could have been here. They told their neighbors in London. We are very appreciative of the honor that the U.S. Department of Commerce gave our company. We feel that if the U.S. government is behind us, there really is no stopping us. We want to work hard. Out in the world, we want to make sure that we are there to represent our country and to really be the best that we can be. We’re a family-owned business, and we really have the typical American story. We came to this country with very little but lots of big dreams. And so to us, America still remains the land of opportunity.

Barry: What advice do you have for company decisionmakers who are considering exporting or whose companies already do a bit but not in a strategic way?

Ms. Kavia: I would say don’t limit yourself. You’re already doing something that you know is your passion. All you have to do is get out of your comfort zone. Yes, things are going to be there for you as you grow. You’re going to have different challenges—some new, some old. But I would encourage everyone who is looking to export to ask, “Why haven’t I thought of doing that?”

US Federal Contractor Registration Now Identifies Which Agencies Contractors Need to Market to Most

DSW — Sat, 01 Oct 2011 20:08:21 +0000

Source: PRWeb

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US Federal Contractor Registration’s new free government market assessment takes the mystery out of government contracting. By identifying key areas business owners need to be aware of, it helps the business develop a plan of action to see them through to their first contract. The key information contained in the report includes the fiscal year’s top contracting agencies, top prime vendors, top utilized NAICS codes, breakdowns of the types of contracts awarded and the level of competition, number of contract awards and amount of money awarded.

Knowing how much agencies spend in a given industry and how they award contracts is important for new vendors trying to break into the federal market, according to US Federal Contractor Registration. Many business owners waste valuable time and money trying to win contracts without performing the necessary research first. Mistakes made during CCR and ORCA registration or in trying to compete for contracts can waste further resources. Many small businesses, particularly troubled businesses turning to contracting due to reduced consumer spending, can’t afford to waste time or money.

According to Judy Bradt, government contractors spend an average of 20 months and $100,000 trying to win their first contract. This can be a long time to wait, so contractors are encouraged by the Small Business Administration to market themselves aggressively to procurement officers. The only effective way to do this is through thorough research of the federal acquisitions market.

With economists predicting a “double dip” recession in the very near future, it’s vital that business owners take steps now to open up additional revenue streams. In addition to other strategies, government contracting can be a steady source of income when consumer spending lags. The United States Government is considered to be the biggest buyer of products and services in the world. No matter what the status of the economy is, the United States Government must continue to spend money in order for it to continue functioning.

The Free Government Market Assessment from US Federal Contractor Registration can help business owners determine how to market to particular agencies or prime vendors. For instance, the Department of Defense in FY2011 was the top contracting department with the highest number of contract awards and contracting dollars spent, according to a report from the Federal Procurement Data System. Additionally, the DoD had the highest percentage of Non-Competed Actions, with over 62% of the contracts issued awarded with no opportunity for competing bids.

A new contractor interested in selling to the DoD would benefit most from marketing directly to the department as well as the top prime vendors receiving these non-competed contracts, rather than looking for contracts put out to bid. Since so few of the DoD’s contract awards are open to bidding, it’s likely the competition for these contracts will be too fierce for a newcomer; looking for subcontracting opportunities, micro purchases and simplified acquisitions that do not rely on the bidding process will all be more effective for such a contractor.

US Federal Contractor Registration hopes their new free government market assessment will help new vendors make the smart decisions that will help them find success in federal government contracting.

US Federal Contractor Registration is a third party registration firm that helps businesses determine if government contracting is right for them through their free government market assessment. They help vendors succeed in contracting through comprehensive CCR and ORCA registration, creation of a FEMA Vendor Profile and government marketing services. Find out if government contracting is right for your business for free at http://governmentcontractingtips.com today.

Women-owned small businesses still not getting their fair share of government contracts—here’s how to change that

DSW — Wed, 28 Sep 2011 19:26:28 +0000

Source: Lourdes Martin-Rosa

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There is finally a set-aside program in place to ensure women entrepreneurs get their fair share of government contracts. Although this program will finally arm federal contracting officers with the necessary resources they need to award exclusive contracts to Women-Owned Small Businesses (WOSBs) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs), it is slowly ramping up.

In 2010, women business owners received less than the allocated 5% of federal contract dollars which would have meant approximately $30 billion in contracts for WOSBs. The Small Business Administration implemented the Women-Owned Small Business Federal Contract Program in February 2011 to fix that. In the past, agencies received credit for awarding contracts but couldn’t set dollars aside in the same way they could for other categories of contractors such as 8(a) & Hubzone certified firms or businesses owned by service-disabled veterans.

Recent reports show, however, that while approximately 6,500 WOSBs are registered or in the process of registering for the SBA program – which gives them exclusive access to contracts worth up to $4 million in products & services and $6.5 million in manufacturing – federal agencies have awarded only a handful of set-aside contracts to-date.

Women entrepreneurs need to step up to the plate now more than ever to take advantage of these set-asides. According to American Express OPEN’s government contracting survey of small business owners, two-thirds of women whose firms do business with the federal government generate more than $1 million in sales, despite taking nearly two years, on average, to land their first contract.

Following are key steps for women entrepreneurs to help them get their fair share of government contracts.

Get your business noticed — As with any client, the first step in seeking a federal contract is to make your business known. That means registering your company’s information to the Central Contractor Registration (CCR)–the primary vendor database for the federal government. Registration is free. (Currently, there are less than 90,000 WOSBs registered to do business with the government.)

When registering, there are a few important tips to keep in mind. First, make sure that the small-business owner is registered as the primary point of contact. Second, be sure to identify your company’s industry categories or NAICS (North American Industry Classification Codes). Third, explore if your business qualifies as a small business on the SBA websites. If your business is at least 51% owned by a woman with U.S. citizenship, make sure you register for the Women-Owned Small Business Federal Contract Program. You may have an edge in government contracting.

Also seek any possible benefits offered by the 8(a) Business Development or HUB-Zone programs from the SBA. The 8(a) program was created to help small disadvantaged businesses compete in the American economy and access the federal procurement market. The HUB-Zone program provides federal contracting opportunities for qualified small businesses located in Historically Underutilized Business Zones areas.

Search on FBO.gov for “sources-sought” notices, which are synopses posted by federal agencies that state they are seeking possible sources for a project. Although they are not solicitations for work or even requests for proposal, “sources-sought” notices present a great opportunity to call attention to your firm’s capabilities;

Get to know OSDBU (Office of Small and Disadvantaged Business Utilization) personnel —they will be a good source of information on changes to purchasing priorities. These are strong small business advocates.

Know your targeted agencies’ mission and objectives before any communications or solicitations go out. An educated contractor is a successful contractor. Visit www.acquisition.gov to learn about upcoming contracting opportunities.

Lead with your capabilities and then mention the certification as an added competitive edge.

Learn from those who preceded you: Use available resources to find information that will save you time and money – for instance, visit www.giveme5.com for free online tutorials and www.openforum.com/governmentcontracting for comprehensive information on landing government contracts. American Express OPEN also created an OPEN Insight Guide, Government Contracting: Women in Procurement, which offers tips and advice to help entrepreneurs understand the program and determine whether their businesses qualify to participate.

Expanding Internationally: Grow as You Go

DSW — Mon, 25 Apr 2011 17:44:13 +0000

Source: Inc.

4-25-2011

NOTE: This article, first published in 1998 in Inc., was ahead of its time, and is probably more relevant and important today than ever:

Large companies routinely take advantage of the enormous potential of international markets. They simply budget for the expansion, spending whatever it takes to build the infrastructure to support future revenue. Entrepreneurs, on the other hand, have limited resources, few connections, and tight budgets. When they go global, they need to be convinced that they are doing the right thing. They also need to stick with one guiding principle: Grow as you go. In other words, finance global expansion as global revenue comes in — not before.

News like this may send a lot of entrepreneurs running for cover. Why go global at all? One reason for many is that they must. Barely three years after the founding of our company, Evolutionary Technologies International Inc., a large company approached us, saying, “Who represents you in Europe? We’re ready to buy.”

At that time, in 1994, we had annual revenue of a tiny $3.5 million. We quickly realized we had to sell in markets other than the U.S. because of the nature of our product. Our software improves the consistency of data across entire enterprisewide computer systems. Were we selling applications particular to the U.S. — a package, say, for calculating documents for the IRS — it might not have been as necessary to go overseas.

These days, entrepreneurial companies are more likely to be selling products used across geographic boundaries. By entering international markets, even very small companies can increase revenue significantly — as much as 50% can come from international markets. They can open their doors to global customers, which buy locally rather than from vendors based only in the U.S. And they can boost market share.

Getting into foreign markets requires minimal up-front investment, as well as decisions about which markets to enter and how best to do business in each — directly or through distributors. Here’s how entrepreneurs shouldtackle the job.

Getting Started

When ETI was dragged kicking and screaming into the global arena, we quickly decided to start in Europe. As a rule, small companies should select a first-priority region and focus on building operations there, rather than expanding into all regions at once.

Europe was a no-brainer for ETI because it is very large and technologically sophisticated. In addition, customers in Europe require the least amount of adjustments to ETI’s software product.

In entering Europe, I assumed responsibility for leading the charge. This is another going-global basic for entrepreneurs: Assign one person to beresponsible, ideally with a commercial background, international experience, and familiarity with small companies in general and your company in particular.

With an overseer on the domestic front, hire a local manager to guide you through the machinations particular to each area. These might include accounting issues, such as how to record revenue (in Europe, it’s best to transfer revenue to the U.S., where it’s taxed at a lower rate), as well as prospecting and local hiring. Our European manager is a Frenchman, who had brought an enticing deal to our table when working for a North American reseller. We snapped him up immediately, giving him profit-and-loss responsibility.

Direct or Distributor?

With both domestic and local managers in place, a company must then decide whether to do business directly in a given country or to work through distributors.

The Case for Selling Directly In our case, in Europe, the decision was easy. Our product requires a good deal of support, and we were concerned that distributors wouldn’t provide optimal care for our customers. So we chose to sell directly.Working through our local manager, we hired only a few people at first, and only as revenue came in. In this way, we were able to reduce our risk, ensure positive cash flow, and pay for the expansion. The strategy worked. With a staff of 48, our European operation now accounts for 28% of ETI’s revenue of between $35 million and $45 million.
The Case for Using Distributors In foreign markets, however, what works best in one area of the world doesn’t always work best in another. Although ETI needs to support customers, we discovered that we couldn’t sell directly in Japan. Preparing to enter that market this year, we are currently selecting several distributors.As a very “foreign” place in which to do business, Japan isn’t receptive to outsiders. The Japanese tend to buy from other Japanese. Its language serves as an additional barrier. If you haven’t been there and done that, there is a lot to learn. Selling directly can be too costly, and you may be shut out.To get into Japan, we also turned to an American consultant to identify potential resellers. Our consultant is paid a retainer and will receive a percentage of the revenue generated by whatever distributors we select. Tying the consultant’s compensation to results links ETI’s gains or losses to the consultant’s.

Turning to a third party isn’t necessary if you have regional experience in identifying resellers, negotiating deals with them, and working with them to produce sales. But know about what you don’t know. If you don’t have this expertise, don’t be shy about buying from the outside.

Either Path You Take

Whether you sell directly or through distributors, let necessity be your guide. Realize that, in many cases, you must go abroad to expand your business. With 55% of our sales to be generated overseas once Japan gets under way, ETI surely wouldn’t have grown as fast without the foreign contribution.

Let global revenue pay for global growth. Try closing the first clients quickly by making deals as attractive as possible for them; they will serve as references for others. When others sign on, you can begin marketing and adding staff. If you go out and immediately hire a bevy of people, you’ll go bust.

With these guidelines, you’ll be on your way. Join all the frequent flier programs. Buy your melatonin. And good luck with your company’s international success.

Robin Lea Curle is the cofounder of Evolutionary Technologies International Inc., based in Austin, Texas, a provider of software products for data integration management.

Denise Farris to speak at U.S. Department of Energy ‘s Small Business Conference & Expo

DSW — Mon, 18 Apr 2011 23:39:28 +0000

Source: Kansas City Star

04-18-2011

Washington, D.C. (April 18, 2011) – Denise Farris, a member of Women Impacting Public Policy’s (WIPP) executive advisory board and owner/managing partner at Farris Law Firm LLC, has been invited to speak at the U.S. Department of Energy’s 12th annual Small Business Conference & Expo.

Ms. Farris will be speaking along with Ann Sullivan, head of WIPP government relations, at a session titled “Powering Up the Women’s Procurement Program,” which focuses on helping women business owners win federal contracts.

“Its been a privilege working with WIPP and our elected officials to implement rules enabling women to access 5% of total procurement dollars in federal contracting”, says Farris. “Now we get to reap the long-awaited benefits while building our local and federal business and tax base – a total “win/win’.”

The U.S. Department of Energy’s Small Business Conference & Expo will take place May 10–12 at the Kansas City Convention Center. The event will feature panels, educational workshops, an exhibit hall with over 200 exhibitors/sponsors, and business matchmaking sessions. The largest civilian contracting agency within the federal government, DOE spent over $25 billion in contracts in FY 2010.

Reserve space at http://smallbusinessconference.energy.gov/

Women Impacting Public Policy is a national nonpartisan group with over half a million members. WIPP is the collective voice in Washington, D.C., for over 50 national women and business organizations. WIPP advocates for and on behalf of women in business in the legislative process of our nation, creating economic opportunities for members and building alliances with other business organizations. Visit www.wipp.org.

The Farris Law Firm LLC is AV rated and judged “Best of the Bar” in Construction Law by the Kansas City Business Journal. Denise Farris was identified in Martindale-Hubbell 2010 “Preeminent Women Lawyers” in construction law for the states of Missouri and Kansas, as well as State of Kansas Woman Business Advocate of the Year, KC Business Magazine “Most Influential Women,” SBA Regional Woman in Business Champion and WIPP’s National Public Policy Advocate of the Year. Her articles on government contracting may be reviewed at www.farrislawfirm.com.

The Hobson’s Choice: Reinvention or Extinction

DSW — Thu, 14 Apr 2011 23:35:16 +0000

Source: Forbes

04-14-2011

If you’ve spent at least a few years as a small business owner, it’s a safe bet that you’ve discovered that you must keep reinventing your business.

All of this reinvention can never stop because every day the 21st century marketplace becomes less like a destination and more like a moving train. Indeed, the Hobson’s choice for a small business is reinvention or extinction.

Let’s talk about reinventing your business, yourself and the fact that there should also be a balance between the two.

In his book, Creative Approaches for the Cost Effective Organization, Steven Martin says there are five generations of business growth:

1. Work – the entrepreneurial stage.

2. Sell – focus on sales growth and market share.

3. Cut – focus on efficiencies to drive the bottom line.

4. Buy – quire assets to reach the next level.

5. Think – all actions are proactive.

It’s almost a natural law that a successful business will reinvent itself along these five generational lines. And since each growth step requires a different kind of manager, be sure to reinvent yourself.

Unfortunately, there is no corresponding natural law to help keep your personal reinvention matched up with, and parallel to, that of your company. Consequently, keeping your personal intellectual growth in sync with your business requires constant attention and honest self-analysis.

Personal reinvention doesn’t mean you go from being a surveyor to a surgeon. It means that instead of being intimidated by technological advancements, you actually become a visionary expert on how to leverage new capability.

It means you go from knowing nothing about how an earthquake or a military coup d’etat on the other side of the planet could affect your business six months from now, to being pretty good at identifying local, as well as global, threats and opportunities.

Perhaps the best example is when you’re able to delegate tasks that you once trusted only yourself to do to the capable staff you’ve hired.

Sometimes circumstances require you to reinvent yourself whether you’re ready or not. When that happens you can choose to be a whiny victim or embrace the change. But remember this: Only owners who lead change can run and grow successful businesses in the 21st century.

Write this on a rock… Reinvention or extinction — the choice is yours.

Missouri Governor touts new loan program for small businesses

DSW — Sat, 09 Apr 2011 14:56:47 +0000

Source: KY-3 TV

4-09-2011

SPRINGFIELD, Mo. – Gov. Jay Nixon visited the city on Thursday to talk about creating jobs and economic growth, and to talk with seven local entrepreneurs. He also said, as of Friday, $27 million in loan funds will be up for grabs for small business owners.

“Small businesses are the backbone,” Nixon said. “Along Main Streets in every corner of Missouri, small businesses are a critical force for creating jobs and growing our economy.”

The governor said his goal on Thursday was to listen to business owners’ success stories, and try to incorporate that into other entrepreneurs applications for business.

One of those stories belongs to Tom Douglas. In 2010, his computer services firm, JMARK Business Solutions of Springfield, was named one of the top 5,000 fastest growing private companies.

“They’re the ones out there taking the risks, and reaping the rewards,” said Nixon.

The latest aid to small businesses is $27 million in federal funds secured last month.

“My boss (the governor) has been active in helping small businesses,” said David Kerr, director of the Missouri Department of Economic Development.

That loans will be for small businesses (500-employees or less) whether they’re just starting up or need to expand.

“It’s a fresh opportunity at every stage,” said Nixon.

“It’s nice to know the state and federal government, as a small business owner, believes in us,” said Nathan Taylor, co-owner of Obelisk Homes and other companies under the Taylor-Martin umbrella. “It’s nice to look (the governor) in the eyes and tell him what you need.”

Nathan Taylor’s companies played host to the round table meeting with the governor. Taylor is interested in a loan to help with expansion.

With up to $3 million available for each loan, the governor hopes businesses will start booming.

The federal funds are available in two programs for small business loans in Missouri. One deals with science and technology; the other program is for agriculture, industrial and commercial companies.

Entrepreneurs interesting in applying for a loan can go to mo.gov, starting Friday. The loans will be given out quarterly. Nixon admitted the state hopes to especially help out