Becoming a Federal government contractor – while not always simple – often results in contracts that are lucrative and long lasting. For small business, such government contracts can easily be a path to growth and longevity, particularly in a depressed economy.

Small business owners would be mistaken to think that they are too small to matter. Departments of Defense, Energy, Health and Human Services, Treasury, etc. all have needs of products and services. They are particularly interested in innovation and promise, virtues that are usually cornered by entrepreneurs.

Thankfully, doing business with the Federal Government is pretty transparent. While the directions and resources may be overwhelming in sheer volume, the information is readily available to assist you in your bid for becoming a government contractor.

Departmental size, bureaucracy, and decision-making can also be barriers to your success. Still, if your business provides a product or service useful to government needs, you shouldn’t be deterred.

Keep the following tips in mind when considering or pursuing government contracts:

• Time is not your friend. Give your plans 12 to 14 months to mature. The current contractor doesn’t always get a renewal. Sometimes, they have failed the agency; other times, you can beat the competitor’s bid.
• Put your hat in the ring. List your business on the Central Contractor Registration. This is a database agencies can search for info that appears to suit their current needs.
• Put the plan in motion. Check FedBizOpps.gov where all government interests must be posted. Reviewing their needs locates potential targets for you; it also tells you what they are looking for, so you can adapt to their needs.
• Do deep and wide research. For example, the Department of Defense has an Office of Small Business Programs which includes a Guide to Marketing to the DoD.
• Explore resources such as your local Procurement Technical Assistance Center, set up to assist small businesses, especially those that are veteran, disadvantaged, or women-owned business, in their application processes with assigned Small Business Specialists.
• Secure the “solicitation for the requirement.” Study it in detail, seek advice, and do what you can to meet the specifics required.
• Turn information on the competition inside and out. Explore available databases on current contractors, subcontractors, and earlier contractors. It’s all available to you – if you take the time.

Now, be advised:  Federal contracts represent a significant undertaking in time, and time is expensive. So, clearly – if there is no felt return for this investment, stay away. But, if you see potential here, set goals, staff to the need, and secure qualified advice. It can re-shape your business future! 

Whether or not to register a TLD – or Top-Level-Domain – is the newest challenge in front of small business owners. It’s not an easy decision and requires some thought.

Internet domain names are registered with the Internet Corporation for Assigned Names and Numbers (ICANN). They have filed 100+ million names which do not admit duplication. So, for example, if the name www.maria’srestaurant.com is already taken, you can’t call your restaurant Maria’s or you need to find an alternative for your domain name. Top-level-domain names will open wider categories and optional choices. A new TLD choice allows you to distinguish your business from others with similar names, others in the alphabet, others without your performance standards. It is a marketing boost. If you are registered, licensed realtor, you can separate yourself from the pack; yours will be an exclusive address in an exclusive directory. And, ICANN will be there to police the exclusivity.

But, clearly, there are critics and those who don’t see the need. There is a short and long-term expense. The cost to apply for the TLD is no big issue, but there are immediate and subsequent costs in marketing materials in advance of, during, and following the re-naming. This involves planning, marketing materials, and stationery and billing. Owners have to decide on the timing for this – and the subsequent value. In addition, apparent changes in direction threaten customer goodwill. Customers establish relationships with websites; they learn to navigate them, know where to find information, know how to contact you through the site. You may not want to jeopardize this.

In a poll offered by The Wall Street Journal, 53% of respondents think the idea of a TLD is a good move while 46% do not. That split indicates some lack of clarity on this issue. Small business owners haven’t had very specific labels in the past. The web address usually ends with a .com, .biz. .net., or .org. TLDs offer very specific identifications, such as, .realtor, .contractor, .restaurant, .florist, and the like.  

Every small business has been or will be approached sooner or later to purchase new domain names. There are aggressive and numerous campaigns to sign you up with wildly contrived IDs. They layer on costs for international addresses and renewal fees. The ICANN reputation is singularly positive. It’s history and processes are transparent, and not a bad place to place your trust. The small business owner’s decision is individual:  investigate the options, the process, the expense, and the value to your business at this time.

Despite the resources we have gathered here, our American Heroes – service men and women – often find it difficult to find placement upon their return (in fact, NBC reports 12% unemployment in this group).  Small business owners are not positioned to solve all of the problems, but as job creators, you can help.

Included here is a list of various campaigns and efforts aimed at helping our Heroes re-join the workforce.  As you review the list, ask yourself how returning vets can address your business needs. The vast majority of these Heroes are clerks, drivers, cooks, nurses, equipment operators, etc. They have demonstrable skills and extensive training. They are – in their experience and training – alert, dependable, reliable, and accountable. They work with focus, and they finish assignments as instructed and on time. They work collaboratively and without ego.

If you hire this year, give them first crack. But, if you are concerned about erratic behavior, dependency issues, and post-traumatic stress disorders, think again. The great majority of vets return without these problems, and most serve with honor in and out of the military. Still, you can form a pro-active alliance with the designated Vet Rep at your local unemployment office. Develop a relationship that is clear and honest. Let the rep know what you need and what limits you put on variance from the “normal.” Where there is difficulty in the match, the rep can anticipate your needs, smooth the transition, and coach the candidate. Check out the resources below and make a vet your next hire!

Hire Heroes USA is a campaign orchestrated by a non-profit with partners including The US Chamber of Commerce, Anheuser Busch, Ryder Trucks, and others. With distinguished Boards of Directors and Advisors, it presents a professional venue to assist returning veterans in finding worthy employment.

Hiring Our Heroes is an initiative of The US Chamber of Commerce to provide job opportunities for 500,000 veterans in alliance with Capital One and The National Chamber Foundation (NCF). Since their start in 2011, they have sponsored 130 job fairs and hired 9,000 vets or military spouses.

Heroes Hiring Heroes encourages veterans to hire returning military. A project of the Employer Support Group of the Guard and Reserve, it is significant federal to support the hiring of vets into national and state employment opportunities.

Hire a Hero is a Monster-like employment search engine where vets can post resumes and research job opportunities. Employers can post jobs here for a focused attention. The site includes alliances with UCLA and Discover credit cards.

The Hiring Heroes Act of 2011 offers incentives attractive to small business owners. This bi-partisan legislation enables veterans to return to the civilian job market through the Department of Defense’s Transition Assistance Program (TAP). TAP offers job search information, cover letter and resume writing training, and interview practice. The Hiring Heroes Act fast tracks veterans into federal employment opportunities by eliminating the wait for their veteran preference. It removes barriers in transitioning returning vets to jobs requiring skills they have demonstrated: medical practitioners, drivers, heavy equipment operators, etc. And, finally, employers are promised $5,000 in benefits for every veteran hired and $9,000 for hiring those with disabilities.

Before the Business Plan:  For those of you that know me, you know that I’m a firm believer in making sure you have a marketable product or service long before you start your business plan.  So for those of you who already know there is a demand for your product and/or service, please sharpen your pencil.   Determine your purpose, and identify your target audience. Then, write, write, and re-write.

Unless you are trying to secure millions in venture capital, you can do it on your own with a considerable level of comfort if you remember a few things.  It’s not necessary to trust your Business Plan to an online template, so keep the following in mind:

• On-line or textbook templates are cookie cutter devices and, therefore, descriptive at best, a jack-of-all-trades and master of none. There simply is no master plan.
• One plan does not suit every need or audience. For example, I am a big advocate of sharing your small business’ plans with your partners, officers, and staff. Such transparency is a proven link to success. But, I think you need a more private plan that self-accesses, forecasts, and self-corrects. The language of the former plan, for example, would be motivational, but the language of the latter would include more specific and current data.
• Not every plan tries to raise money. Some sell product or service, and others solicit business alliances. If you plan is meant to position your product, the stress is going to be on performance, markets, and competition. If your plan is to form alliances with like businesses or complementary services, you want to stress all the elements that you and the solicited partner bring to the table and its future.
• Seeking funds and investors requires its own form. When applying for loans or capital, you need to provide data, experience, and forecasting. It requires appended records, incenses, contracts, etc. Still, I find many such plans to be unoriginal, ineffectively standardized, and overwritten.

Accept templates for what they are: descriptions of what goes where. Avoid templates or lessons that encourage you to fill in the blanks. Try to position yourself as the lender. Typically, a committee makes the lender’s decision, and the committee pretty much thinks it has seen it all. In fact, it has seen every template that MS Word offers.

The Plan is a leave-behind. As such, it should be very neat and clean, and it would be worth the buck to get designer advice on laying out your plan: margins, type size and style, logo/color, and data displays.

It’s my policy to keep the language at a minimum. Clarity, logic, and specifics match lender needs and mind-set. Avoid contractions, first and second person pronouns, and passive voice. Pay for support and coaching in preparing the covering letter and introduction. You may need the help in creating the first impression.

Some lending opportunities require a verbal or visual presentation. Do not confuse these needs with the business plan itself. They serve different purposes. For example, the live presentation offers you the chance to present yourself, your energy, and business savvy. Do not burden the presentation with the data and research that the plan includes.

Of the many advisors out there, I would suggest a review of the following sites for additional perspectives and tips: the Small Business Administration roadmap, a simple approach by Entrepreneur, and a detailed presentation by VetBiz/gov.

If we are going to make room for small business ambition, strategy, value, and success in the future, we have to find a new vocabulary - not to mention a new lens with which to view the world.  Try these different perspectives on for size…

Downside:  Unemployment will hover around 9%.

Upside:  Unemployment is not likely to increase until returning military are processed into the workforce. However, this represents a real plus if you see this as a pool of dependable, accountable employees. Form an alliance now with the designated veterans’ rep at your local unemployment office. Meet with him/her and make clear what you are looking for in terms of character and skills set. This will prove an invaluable partnership.

Downside:  Inflation will increase slightly.

Upside:  Inflation reduces the impact of debt. More important, it is a sign of the availability of money. You need to position yourself to land the part of that money that is discretionary spending. With fuel prices declining or at least returning to 2010 levels, you have cash flow you didn’t have throughout 2011. Plan now to make use of it.

Downside:  Housing starts are still down and repossessions have not bottomed out.

Upside:  Construction has resumed on unfinished developments in many places, and many cities are seeing an uptick in denser residential development and delayed retail construction. These are all signs that someone has faith in the direction of the economy.

Downside:  2012 is an election year.

Upside:  Issues of importance to small business owners and to your customers will be argued 24/7. Efforts will likely be made to please the middle class, but nothing material is likely to take effect until after the next inauguration. If the payroll tax break is extended, small businesses are likely to benefit directly.

Downside:  World economies will remain volatile.

Upside:  Economies in Greece, Italy, Spain, etc. are worrisome. Hysterics in their markets affect investments in ours. Nonetheless, American markets remain relatively steady and consistent. Inflation in China and political unrest in Russia favor US currency, and emerging Middle Eastern nations are creating potentially loyal markets.

Downside:  “Quality” is not the buzzword it once was.

Upside:  Quality has become a given in US manufacturing, and global markets demand it. But, as Time Magazine reported recently, perceived value is the deal breaker. US software, pharmaceuticals, aviation, and other manufacturing sectors are succeeding in new ways. I’d like to believe this is the tip of a resurgence.

Downside:  Small business owners remain discouraged.

Upside:  Their level of discouragement has dropped, and their pessimism has lessened in key indexes, such as accessibility of funding, capital investment, and expansion of labor force.

This may not be a terribly optimistic view of 2012, but it marks positive steps. In most sizable cities, the major bank hosts a yearly event in which an economic expert paints a picture of the coming year. Make sure you get an invite or pick up the report. It can provide strong and layered direction for your 2012 planning.

This is the third in a series devoted to building business on value and redesigning your business to maximize customer perceived value.

Value is not just in the eye of the beholder. It has a feel to it. Customers know what value feels like as they run it through their fingers. If you, the small business owner, don’t feel it the same way, you are going to lose customers.

Suppose there are burger joints on each corner at a traffic light near home. Time in and time out, you always go to the same one because of taste, ambiance, convenience, discount coupons, a playscape or senior bargains. What would make you change your buying habits? A restaurant-borne disease, advertising, change in the drive-in access, an upgrade in the store design? A customer changes a purchasing habit because of customer perceived value.

Why don’t more small businesses market this way? Well, too many businesses cannot think themselves outside traditional costing methods, i.e. adding the desired profit percentage to the cost of doing business. Nothing in that concept, math, or need interests your customer, and the only value in it is the value to you.

Moreover, some types of business find it hard to turn this ship around. Corporate complicity and trade regulation freeze Real Estate and Insurance prices. Professional standards and insurance legislation drive the price of Dental and Medical services. Lawyers, accountants, and consultants have their sacred billable hours.

For example, ask yourself why people like the Chinese Restaurant’s menu. The value lies in being able to order one from Column A and two from Column B – at will. Or, speaking of restaurants, when you order a Philly steak sandwich in a Philadelphia steak joint, they will ask if you want your sandwich “wit” or “witout.” (Translation: do you want it with or without cheese and onions?) The trick is you pay the same price “wit” or “witout.” Suppose the joint across the street charges $.50 less “witout,” would you switch to the other place? And, though it may date me, I remember Jack Nicholson, in Five Easy Pieces, trying to order toast in a diner only to be told that he had to order a chicken sandwich to get the bread. He couldn’t see customer value in that.

Admittedly, this may be simpler than customizing obstetric services or tax advice, but these business climates would benefit from offering more flexibility – and marketing it! Admitting that some industry standardization brings stability to real estate and insurance marketing, there are known price variances that could be extended to a larger customer public. If, for example, you bundle your services at one price, consider unbundling them to suit the customer’s needs. If you offer one item from Column A with Item 2 and 3 from Column B, nothing stops you from allowing the customer to move the pieces around. Or, if you do not bundle services, consider price reductions to those who want a bundle.

If you are not in one of these hunters’ blinds that makes it hard to see the customers’ future, take action now to realign your services and products so you can offer a “Chinese menu,” allowing the customer can see your flexibility and responsiveness. If you are stuck in the blind, do what you can within the wiggle room you are allowed. And, work from the inside to shift the thinking of your trade or professional group.

After all, you are a small business operator, and flexibility and agility are your strength. This is not a movement you want to fall behind.

Woman-owned businesses are fast becoming their own industry sector. 2010 Census figures rollout, reports from Forbes, National Association of Woman Business Owners (NAWBO), the Small Business Administration’s Office of Woman Owned Business, and others are emphatic about their expectations.  

Allow me to summarize the statistics.  Currently, woman-owned businesses account for less than 18% of the U.S. employment force.  By 2018, women owned businesses will be the source of one-third of the 15+ million jobs the Department of Labor expects to book. The very same numbers tell us that the new workplace will be more diversified, inclusive, and horizontally structured. 

Why the increase in numbers? For one thing, more college-educated women are making the move towards business ownership. For another, women have traditionally dominated the industry sectors that expect growth – healthcare, service industries, and the like. And finally, woman-owned businesses are less likely to depend on restrictive bank financing.  

How are female business owners different?

 Workplace.  While it may be stereotypically dismissive to label women as nurturing, evidence shows that women build business by creating a positive working environment for workers and customers.  They seek to:

• Value life/work balance and share it with others.
• Take pleasure to creating opportunities.
• Provide better pay and benefits to employees.
• Help employees feel better about themselves.

Customers.  Additionally, because they often have more to risk financially and emotionally than their male counterparts, women owners tend to:

• Focus on customers more directly and personally.
• Keep and cultivate appreciative customers.
• More strongly differentiate their business from the competitor.
• Stay ahead of what their rivals are doing.

Networking.  For women, networking is a more shared experience and less exploitive. They are more likely to co-exist creatively than to divide and conquer. Consequently, they are more likely to:

• Seek and take advice from others, including their consultants and advisor team.
• Listen to their employees on a whole range of issues from process to customer satisfaction.

Planning.  Women business owners, behaviorally speaking, are apt to have a broader and longer-term vision. They write thorough business plans and work hard to stick to the plan. They think about retirement more and toys and trophies less.

Support.  Such women are also quick to seek assistance from an increasingly large number of agencies, groups, and sites that study and respond to their increasingly articulate needs. The SBA Women’s Advocacy, National Association of Women Business Owners, and Count-Me-In are just a few of the hugely supportive info centers.

Franchise opportunities bring many entrepreneurs into the world of small business. Many people hunger for the success of many franchise owners - and overlook the failure of many who try.

By definition, a franchise is “a business system in which private entrepreneurs purchase the rights to open and run a location of a larger company.” McDonald’s, Burger King, Jack ‘n the Box, right? Yes, but the franchise world is bigger than fast food restaurants. It includes convenience stores like 7-Eleven, hotels like Hampton Inn, hair stylists like Cost Cutters, and plumbers like Roto Rooter.

Depending on the franchisor’s requirements, the franchisee boards the brand name ‘success train’ in exchange for upfront money and a percentage of revenues thereafter. The business owner (franchisee) receives training, supplies, product, advertising, and a range of support systems – just about everything to make the franchise work. Yet, there are downsides.  Among them, the franchisee surrenders independence. The franchisor has invested big bucks in development and is not about to let a first time entrepreneur run it into the ground. Again, depending on the franchisor, the franchisee can expect a complicated, multi-faceted contractual relationship.

Interestingly, there are a number of franchises available for start-up at reasonably accessible costs. For example, Entrepreneur lists 50 “low-cost” franchise opportunities. Among the 50 companies listed, there is a wide range of franchise fees, royalty fees, length of agreement, and so on. Additionally, there is a variety of expectations, cash on hand demands, and net worth demands. You would be well advised to work with an attorney specializing in this arena and to examine the nature of support and training in meticulous detail.

One thing I should bring to your attention to is the nature of the franchises on the list. Almost all of the 50 are service franchises, some of which can be run from home. Almost all of them address lifestyle issues: home/office cleaning services, tax preparers, exercise classes, training lessons, carpet cleaners, travel agencies, landscape maintenance, and pet care. In fact, seven of the top 10 are commercial or residential cleaners. These choices reflect an economy that assumes a future where consumers will be employed. These future consumers will look to keep up their homes and businesses.  These are conservative spenders who are less likely to eat out or sleep over at a franchise, but who are more likely to spend on home improvement and self-development.

Such opportunities are loaded with concerns that are subtle and not apparently part of the upfront costs. For example, your research has to determine the reputation for support from the home office; such support is part of your purchase, and if it isn’t there, you have been scammed. Upfront costs and royalties are intangible until you run the numbers, so get a fix on how this rolls out. Franchise contracts are usually unilateral and favor the franchiser; make sure you can live with those implications. Also, make sure you can meet and exceed the high productivity requirements. Finally, only you can figure out how long you are willing to owe your royalties and loyalties – to “the company store” – without resentment. If you don’t like the arrangement now, your sentiment is unlikely to change in the future.

Family businesses often happen by accident. The entrepreneur drives the start-up while the spouse and family chip in. Underpaid and overworked, these people are often willing to  sacrifice to make the dream come true.

Serendipity may bring success to a family business; however, the heads-up business owner builds practical solutions for potential family friction into the business plan.

• Identify the members of the family with potential to perform successfully within a structure. “Family” can mean a married couple, parents and children, or siblings and their spouses. In short, there are family members, and, then, there are family business members. Share that picture with the family.
• Separate family issues from business issues. Share an understanding at the very start about what you bring to the worksite and what stays at home. It may take some practice, but everyone needs to know where to discuss family baggage. Everyone needs to know what the process is to solve issues.
• Budget vacation, holiday, and personal time with the family. Keep business out of those moments. However, remember that children are competitive; the best families suffer some dysfunction. So, clarify an understanding for the handling of dependency issues, hostile behavior, and divisiveness.
• Pay fair competitive wages. If early revenues do not permit this, clarify the value of their sweat equity. Create a compensation plan that will reward their effort later – proportionate to their contribution and talent. Seek advice on framing the plan and communicate it clearly.
• Hold regular “tailgate” meetings, family retreats, or key member meetings. Let members vent simmering complaints– within reason. Approach these as learning opportunities. Collaborate and incorporate fairly offered ideas.
• Plan for succession when it makes sense and you are ready. Build cautions into the plan to discourage challenge to the plan. Communicate it well. A well-structured plan should reduce infighting.

Finally, enlist a third party coach – not a crony or other family member. Retain the advice of a specialist in family business matters to get things right from the start and to bounce things off as you succeed at your goals.

Finding – then obtaining – small business funding to start or grow a business can be confusing. Interest rates continue to be amazingly low, and summer reports showed a surge in small business borrowing, (up 25% in May and 28% in June, according to Federal Reserve Board Governor Elizabeth A. Baker).

So, why can’t you get your hands on it?  Read on for three tips to help you get your fair share of small business funding.

Find a lender  The US Small Business Administration has an invaluable website. Just click on your regional SBA office and enter your zip code for a list of lenders authorized to make loans for small business funding. The page provides banks, addresses, phones, and maps. It also provides extensive information on resources in your state and locale including workshops on loans and application.

Think small  The SBA Micro-loan Program makes loans available for as much as $50,000, the average loan is more like $10 to 15,000. The loan can be used for most business purposes – except the payment of debt or the purchase of real estate. Interest rates are determined by the lender but must reflect current Fed rates. The lender has the right to demand collateral and continuing training for the borrowing owner.

Have the courage to borrow  The Fed’s rates are close to 0%. The White House continues to press SBA approved lenders to account for their small business lending. Moreover, the banks decline fewer than 12% of the applicants and fewer than 5% of small business borrowers default on their loans.

The overwhelming majority of small businesses start with personal investments – in addition to those of family and friends. What appears to discourage small business borrowing from approved lenders is the process itself. Applying for and obtaining small business funding is detailed and slow. Among reports  oft required are detailed balance sheets, expense statements, business plans, and proof of a loan declined.

There are consultants lined up to show you how to make application for SBA loans, but you can do it yourself. Study the SBA website, attend a workshop, and talk to your banker and CPA. Among other things, this is good discipline:  planning, detail, and patience are virtues you need to succeed, whether or not small business funding is something you need.