Obtaining 6-figure Government Contracts as an African-American Business Owner
Being an African-American doing business with the federal government is not impossible, but you must do it right if you want to succeed.
Those Boeing-sized contracts do not get awarded to just anyone. I am coming in on my ninth year since I launched Civility Management Solutions. There have been some big wins and some lessons learned. However, we have proudly been named an Inc. 5000 business. The Inc. 5000 ranks companies by overall revenue growth over three years. So that means for three years, I have successfully led a revenue growing government contracting firm.
That is such an accomplishment! Being black and in government contracting, these are the milestones I have always sought to reach, but I don’t want to be the only one obtaining that level of success. I’m certainly not, as there are many successful black-owned government contracting firms. However, we are still the minority in the space.
So, I am going to tell you how I am successfully black and in federal government contracting.
Learn and then grow
One of the things I did very early on was partaking in training, building relationships with key players, and familiarizing myself with the specialty programs that would benefit me.
I took courses in:
Writing a capabilities statement.
How to respond to a proposal?
How to structure pricing?
Knowing the levels of simplified acquisitions and what the requirements are.
Understanding a blanket purchasing agreement.
And so much more.
I spent the majority of my early years learning the industry I was entering. There are many FREE resources available. With the COVID-19 pandemic, most of them are available online. Are you taking advantage of them?
Yes, this made my journey longer. However, it has led to some fantastic relationships, allowed me to position myself as a thought leader in this space for minority business owners, and be a mentor to those who want to learn.
Don’t get 8(a) too soon.
The Small Business Administration offers many grants and programs for various underserved groups. One of those programs is the Small Business Administration 8(a) Development program.
The federal government aims to award at least five percent of all federal contracting dollars to small disadvantaged businesses each year.
To help provide a level playing field for small businesses owned by socially and economically disadvantaged people or entities, the government limits competition for certain contracts to businesses that participate in the 8(a) Business Development program.
Disadvantaged businesses in the 8(a) program can:
Compete for set-aside and sole-source contracts in the program.
Get a Business Opportunity Specialist to help navigate federal contracting.
Form joint ventures with established businesses through the SBA's mentor-protégé program.
Receive management and technical assistance, including business training, counseling, marketing assistance, and high-level executive development.
The 8(a) program is only for nine years. I have had many conversations with African-American business owners in the 8(a) program to find out they had no contracts currently in play. Some were in year 5 of the program, and they were missing the wealth transfer. Don’t get it too soon. Take your time with forming your relationships. Do your due diligence by finding the agencies that align with your services. Identify those areas of expertise that you offer and how they align with those agencies and research where those officers are.
Well, how do you know when the time is right. When those relationships start asking, “are you 8(a) yet?” Those words often are your greenlight to certification. I know it was mine.
Build those relationships.
When I was getting started, I looked at the missions and goals of agencies. From there, I asked myself questions. You can do the same. Does this training benefit Veterans? Can my lawn care service cover the National Mall? Could this application assist health care workers?
The federal government prefers to do business with people they like, people they know, and people they trust. You can only get to be one of those three by building those relationships.
How do you do that? LinkedIn is a powerful tool for identifying potential partnerships and relationships as a business owner other than the almighty Google.
Additionally, SBA and the agencies host webinars and events to inform potential contractors what sorts of acquisitions and procurements they are looking for based on their goals and strategies.
It not about what you offer, but what you know.
Another thing to keep in mind is the big picture. So many people start the journey of being a federal government contractor for the wrong reasons. Around here, “I’m doing government contracting” has become the million-dollar phrase to use. Why? People assume you a) are making a lot of money and b) you know what you are doing. Being a successful government contractor is not only about what your offer but what you know.
Do you know what a FAR is? The Federal Acquisition Regulation (FAR) is the principal set of rules regarding government procurement in the United States and is codified in Chapter 1 of Title 48 of the Code of Federal Regulations, 48 CFR 1. If you are unaware of what the latest FAR includes, you can potentially mishandle lucrative contracts. Do not let that happen to you.
Another common mistake is the misconception of what it takes to be a business owner. There is a difference between doing business and being a business owner. You have to know what role you want and need to play to be a successful government contractor.
I remember my SCORE mentor told me, “Laurie, make sure you get an accountant and an attorney before you need them.” Having a mentor allowed me to quickly know what it takes to be a business owner and what it takes to be a government contractor. Those are two separate skill sets that work together to achieve longevity in this field of work.
Build your business line of credit
Once you have that knowledge and have been in business for a while, you should use some foundational tools that can help build your business. One of those tools is establishing a business line of credit. Studies have shown that black entrepreneurs are more likely than white business owners to refrain from applying for loans because they believe they will not get approved. The same goes for business lines of credit.
Have you heard of Duns & Bradstreet? Do you have a DUNS number? The most significant benefit of establishing a DUNS number for your small business is that anyone seeking to understand your business’ credit history and creditworthiness will likely look to Dun & Bradstreet to find this information. Businesses that contract with government agencies are required to have a DUNS number.
TIP: Make sure you pay your business bills early! It helps your business credit score.
What does it take to be black in the federal government?
All in all, what does it take to be black in federal government contracting and be successful? My short answer is patience and understanding. Government contracting is relatively easy to get in, but not very many businesses can sustain themselves.
For black business owners looking to enter the federal government contracting world, information is where you start, stay, and finish.
I will continue to advocate and be a resource in the space for women, African-Americans, and Veterans.
If you are interested in learning more about government contracting, I am available for workshops, webinars, and keynotes for 2021-2022.
You can connect with me at LaurieSayles.com/connect.