Minority Business Certification Tips For Small Business Owners
Over the course of my employment tenure with several large companies
, I noted the fact that they were required both politically and socially to adhere to diversity standards. Most large companies either employ someone to insure diversity compliance or they have an entire department devoted to it.My current business partner is my wife Margaret, who is the majority shareholder of our corporation. Prior to incorporating, we determined that she should be the majority shareholder as part of our business plan.
Our particular business strategy was somewhat unique in that we had determined to focus our sales efforts toward the government. We knew our profit margins would have to be reduced and therefore we would be required to sell more than we would if we focused strictly on private sector sales. Federal, state, and local government entities, maintain a more consistent revenue stream with which to fund their purchases. In hindsight, focusing on government sales was a sound business decision because the private sector has experienced such economic volatility since 911.
Whether we like it or not, we live in a politically correct society. There are mandates in place which force government entities to set aside contracts and monies which are earmarked for sole source purchases with certified minority companies. It is like affirmative action for businesses. After doing due diligence to identify the protocols for minority business certification, we began the process of applying for certified minority status.
The qualifications for minority business certification in our state are fairly straight forward. For qualification, a business must be no less than 51 percent owned by a minority individual. The business has to have been incorporated for at least 2 years with the minority individual holding 51percent or more of the stock shares for the entire period. This must be proven using your corporate charter documentation which has to be copied and submitted to the state or federal Office of Supplier Diversity for consideration. The process is tedious and can be arduous if you are less than organized or a poor records manager.
Most states require that you provide financials including your DUNS number along with multiple forms of identification to include your drivers license, proof of residency, birth certificate, etc. States are serious, as they should be, about excluding folks they feel are not legitimately qualified for certification. Professional consultants are available for a fee to assist businesses with the certification process.
Once you have applied, you will more than likely be contacted by a diversity officer to negotiate submission of additional documents and qualifications. Even if you are organized and submit all of the required documentation in a timely manner, there is generally a lengthy lead time of up to 18 months for getting certified. The good news is that once you actually obtain your minority certification, your yearly re-certifications are expedited promptly if there have been no changes in ownership of the business.
Assuming you have applied and been accepted, it is time to start your marketing. If you are focusing your sales efforts on the federal government, you can start immediately by searching government sites for sales opportunities. This is of course if you have a DUNS number and have registered with the Central Contractor Registry.
As business owners there are pearls of wisdom that we acquire along the path of life that need to be shared. I believe this is part of our purpose as business mentors and that our legacy will be judged not by amassing wealth and material possessions. We can indeed make a difference if we are willing to help those around us. I also believe in the law of reciprocity which basically dictates that what goes around comes around. If we pay it forward with acts of kindness and inclusion in our every day lives, we are the ones who are ultimately blessed. I hope this article serves to help you and assist you in your business endeavors.
It is an exciting time for small business owners who are committed to providing excellent products and services to government entities. I would like to wish you good luck and good selling!
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