Looking Back at 2023 #VETBIZ Improvements and Forward to 2024 Resources

Posted on by Jack Benggio

We are almost at the end of 2023! That means it’s time to look back and reflect on the successes of the past year and look forward to exciting opportunities ahead. This past year, America’s veteran and military spouse-owned small business owners have, once again, shown a level of resiliency and persistent hard work that they should celebrate. The U.S. Small Business Administration (SBA) recognizes the veteran community’s innovation and creativity year after year. In 2023, SBA launched new resources to help veteran business owners grow, start, or adapt their businesses.

1. Veteran Business Certification:

In January 2023, SBA launched its Veteran Business Certification program, VetCert, which enabled veteran-owned small businesses (VOSBs) and service-disabled veteran-owned small businesses (SDVOSBs) to certify their businesses and gain access to exclusive federal contracts. Applying to get certified is a must for veteran business owners looking to add additional revenue streams.

The VetCert program has improved the process of helping veterans and service-disabled veterans get their businesses certified by streamlining the certification process to a centralized support system, offering a more business friendly approach to the application process and providing reciprocal certification for businesses with remaining eligibility in the women-owned small business (WOSB) and 8(a) programs.

So far, the VetCert program has been a success, and thousands of businesses have already applied to be certified. To see if your business is eligible and to apply for certification, click here!

2. Veteran Business Outreach Center Expansion:

In spring 2023, SBA expanded its Veteran Business Outreach Centers (VBOCs) and now has 28 total locations around the country. VBOCs support VOSBs by providing business training, counseling, and resource partner referrals to service members looking to start or grow a small business. The expansion has helped more and more veteran and military spouse business owners access the support they need to achieve their business dreams. The expansion also helps to provide more training opportunities and increases access to services. VBOCs fully service all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, and American Samoa. The six new VBOCs are the:

Click here to schedule an in person or virtual appointment with your local VBOC!

3. Military Spouse Pathway to Business Program:

On July 17, SBA launched the Military Spouse Pathway to Business Program to support White House Executive Order 14100, which aims to strengthen economic opportunity for military and veteran spouses, caregivers, and survivors. All military spouses interested in starting a small business are eligible to participate in this no cost program. The program aids military spouses at all stages of their entrepreneurial journey by teaching them key elements of entrepreneurship, including market research, economics, legal considerations, and finances.

In just a few short months, the program has been able to help many military spouses become one step closer to achieving their dreams. You can learn more about the program and sign up for free virtual or in person classes here!

Looking Ahead:

  • Local Assistance: You can access SBA resource partners from more than 1,400 locations that provide mentorship and access to local events to help your small business grow.
  • Transition Assistance: SBA’s Boots to Business program provides foundational knowledge of business ownership to service members and military spouses at no cost.
  • Entrepreneurial Training Programs: SBA, along with its grant recipients, offers a variety of entrepreneurial training programs (ETPs) designed to give veterans and military spouses the tools they need to launch or grow a business. SBA’s ETPs are designed to increase knowledge of federal procurement resources and to help veteran owned businesses grow. See if you are eligible to sign up for one of the ETPs here!

SBA is committed to finding new ways to share resources with even more veteran and military spouse entrepreneurs to help them achieve their business goals in 2024. You can find more tips and resources to help your business grow in 2024 by visiting the veteran-owned businesses page on SBA’s website!

November 27, 2023

Photo by Benjamin Davies on unsplash


This blog was originally written by the U.S. Small Business Administration’s Office of Veterans Business Development. 

The Florida Veterans Business Outreach Center is funded in part through a Cooperative Agreement with the US Small Business Administration. All opinions, conclusions and/or recommendations expressed herein are those of the authors and do not necessarily reflect the views of the SBA.

3 Steps to Protect Your Business from Disasters

Posted on by Jack Benggio

Natural disasters can strike anytime, anywhere. Preparing ahead is critical for protecting yourself and your employees as well as for business continuity and recovery. Here are a few of the natural disaster recovery resources from the U.S. Small Business Administration that are worth learning about before an emergency.

1. Assess your Risk

The first step in planning for a disaster is assessing the likely risks to your business. Are you based in an area prone to wildfires? Is your storefront in a flood plain?

SBA understands that assessing risks can be difficult. That’s why SBA’s many local partners are ready to help you with this step, for free. You can connect with your local Veterans Business Outreach Center, Women’s Business Center, and Small Business Development Center, among others.

Find a partner organization near you to get started! www.sba.gov/local-assistance.

2. Create a plan

Once you have an idea of the potential disasters your business might face, it’s time to start planning. Click here to visit SBA’s preparedness checklists and safety tips for a range of natural and manmade disasters including:

You can also check out the U.S. Department of Homeland Security’s free business toolkits for even more preparedness checklists and tips.

3. Get financial assistance

Last but not least, SBA also offers help to businesses affected by disasters who need financial help getting back up and running. It’s worth familiarizing yourself with your options now in case you ever need them.

SBA offers several types of disaster loans, including:

Visit the SBA website to learn more about the loans and their eligibility criteria.

While preparing for a disaster, don’t forget to save SBA’s Disaster Assistance Customer Service Center’s phone number (1-800-659-2955) and email (disastercustomerservice@sba.gov) in case you need access to emergency toolkits and guidance. (If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.)

Also, follow the SBA on social media @SBAgov and follow its Office of Veterans Business Development on LinkedIn, Twitter, and Facebook for updates about federally declared disasters and additional emergency preparedness tips.

September 14, 2023

Photo by Danila Popov on Pixels

 
This blog was originally written by OVBD. To learn more about OVBD, visit sba.gov/ovbd.

The Florida Veterans Business Outreach Center is funded in part through a Cooperative Agreement with the US Small Business Administration. All opinions, conclusions and/or recommendations expressed herein are those of the authors and do not necessarily reflect the views of the SBA.

3 Ways A Strong Network Can Help Your Veteran Small Business

Posted on by admin

Whether you’re starting or growing a small business, equipping yourself with a strong network will help you every step of the way. Here are three ways a network of knowledgeable people from different backgrounds can aid the success of your business – and how SBA can help you grow that network.

1. A Second Opinion

One of the most valuable ways a network can help you on your journey is by providing an informed second opinion on big business decisions. SBA has many resource partners that can provide entrepreneurial guidance. One example includes SBA’s SCORE mentors who have helped many veteran and military spouse entrepreneurs navigate issues from developing business plans, to sorting out the best brick and mortar location, and much more.

2. Word of Mouth

SBA can help you connect with individuals who, in turn, can introduce you to other professionals who will support you in setting up your business for success. This can be especially helpful if you’re looking for employees, contractors, or partners, as these contacts have already been vetted from a trusted person. A great place to start is with your local SBA District Office, VBOC, or Small Business Development Center (SBDC).

Not everyone in your network will be able to provide mentorship or strategic introductions, but they may still be able to help promote your business to their contacts. Don’t be afraid to ask, to share readymade promotional materials, and to do the same for them!

3. Supporting You, The Entrepreneur

Being self-employed can be unpredictable, but a strong network of peers in entrepreneurship can help by offering perspective and validation. Your local SBA District Office, VBOC or SBDC can help you find other veteran or military spouse entrepreneurs who also understand your military background. SBA’s Women’s Business Centers can also connect you with mentors and resources to help you navigate the unique challenges of growing your business as a female entrepreneur.

No matter which resource you use, SBA’s Office of Veteran Business Development (OVBD) is dedicated to making sure veteran, service member, National Guard and Reserve member, and military spouse entrepreneurs have what they need to succeed on their business journeys. OVBD understands your military background and works with external partners like the Department of Defense, the Department of Veteran Affairs, and others to help you.

Learn more about OVBD and its resources to help your business flourish.

This blog was originally written by the U.S. Small Business Administration’s Office of Veterans Business Development. To learn more about OVBD visit, sba.gov/ovbd.

May 26, 2023

The Florida Veterans Business Outreach Center is funded in part through a Cooperative Agreement with the US Small Business Administration. All opinions, conclusions and/or recommendations expressed herein are those of the authors and do not necessarily reflect the views of the SBA.

Bootstrapping to Start Your Business

Posted on by Janice Benggio

So, you want to start your own small business, and you have some key ingredients to be a successful entrepreneur. You have a good idea, the opportunity, determination, and customers waiting to be served. However, you still lack the funds to launch. What can you do?

Many potential small business owners find themselves in this situation. In fact, most people don’t have a bucket of cash sitting around with no designated purpose. If you do, you’re lucky and probably planned to save long ago. Since that’s not what most of us did when our business idea came about, let’s look at bootstrapping.

Research shows that many successful companies indeed got their starts from humble beginnings, saving money however they could to reach their goals. Some of them are: Facebook, Apple, Clorox, Tito’s Vodka, Microsoft, Patagonia, Basecamp, Spanx, MailChimp, GitHub, and many more.

The word “bootstrapping” may sound strange, but the origin refers to someone picking themselves up by the bootstraps. That conjures up an odd image, but it basically means doing something that might seem impossible on first blush, or making something from almost nothing. If you have the grit and determination to start your business but with limited funds and resources, bootstrapping is a great option. It may also delay starting the business, but the advantage would be starting with little or no debt.

The first source of funds for your business savings will likely be from your jobs, past and present, one or multiple jobs. It may take sacrifice of your personal time and taking on additional paying jobs so that you can earn cash beyond what it takes for non-discretionary spending. Be sure you have a dedicated savings account to place that money that you save for your new business, and don’t dip into it for anything else. Make sure you also have a personal savings account for emergencies and for whatever you might need so that you don’t rob the business savings account.

Once you’ve started that business savings account, look for all sorts of ways to add cash to it. A good place to start is to look at how you currently spend your money. If you have more “wants” than “necessities,” consider what you could forego without much discomfort.

Here are some ideas that might help you save:

  • Do you need cable TV, or could you find other forms of entertainment? Or, could you reduce your current plan to a lower-cost plan and still be happy?
  • Is your cell phone provider giving you the best value? Would another provider have discounts or lower cost plans that would still serve your needs?
  • What do you do to reward yourself? If it includes buying a brand-name coffee each morning, could you make your own coffee for less? Could you reduce the number of times you go to restaurants?
  • Transportation needs can be evaluated for reduced costs. Maybe a bike would get you to destinations nearby and also provide added health benefits. Could you be happy with a less expensive vehicle or one that gets better gas mileage (including hybrids and electric vehicles)? Have you shopped for lower cost insurance before it’s time to renew? Does car-pooling, public transportation, or ride sharing make sense and save money?
  • If you receive cash gifts, inheritance, reimbursements, cash back from credit cards, rebates, promotions, or other “free” money, you can quickly put it in your business savings account before you’re tempted to spend it.
  • Replace high interest and annual fee credit cards with cash back cards, and then put that cash in your business savings account.
  • There are many ways to sell unused and unwanted items. You could have a garage sale or list them on apps and social media. Something that is no longer wanted by you could be exactly what someone else wants. Likewise, be sure to view items for sale in these areas, because you may save money on something you want or need.
  • Get over any stigma you may have about shopping at thrift and discount stores. You can often find good quality merchandise for a fraction of the cost you’d pay elsewhere. There are sometimes free give-away events, too.
  • Can you grow some of your veggies and herbs yourself? Even if you don’t have a yard, some foods can be grown on a patio or in an apartment. Can you produce or make some things you want? I found that I can make a low-cost daily shower cleaner that does just as well as those that cost much more than the pennies it costs me to make; just reuse the spray bottle after buying one!
  • An alternative to selling your stuff or growing your food is to trade with friends and family. You may save money buying large quantities at a big box store, but it might not be a good value if it would take a long time to use or it would spoil quickly. If someone else also buys bulk items, you might be able to trade with each other and realize cost savings with more manageable quantities. You could swap other items, too, which could save you from spending money.
  • High deductible health plans are popular with generally healthy people and young families, because they have lower premiums in exchange for higher deductibles. The government allows buyers of these plans to save money in tax-free healthcare spending accounts. There are many cost savings benefits involved in these accounts, but they are not for everyone (people with lots of healthcare expenses and often, older people). Investigate this healthcare option if you feel it would be a good value for you.
  • The internet is your best friend for finding other ways to bootstrap. Loyalty programs and apps are other ways to leverage the power of technology for your business savings account.

Perhaps one or more of these examples have ignited ideas for saving money to start your business. Some of them can also be applied to the business, once it has begun. There are books, webinars, videos, and countless other resources that can expand your knowledge in this area, too.

Bootstrapping may be all it takes to launch your new business, or it might be a way to build cash injection for the business. You may still need a loan, which is very common for new businesses, and lenders require “skin in the game” before they’ll take on a risk of lending money for a brand new business that has no credit history of its own. If that’s the case, make sure you have at least 20% cash of the total amount needed, but more is certainly better. Obviously, the less you have to borrow, the faster your business can start earning a profit.

Written by Janice Benggio, Florida VBOC Consultant

Photo by Oziel Gómez on Unsplash

May 12, 2021

The Florida Veterans Business Outreach Center is funded in part through a Cooperative Agreement with the US Small Business Administration. All opinions, conclusions and/or recommendations expressed herein are those of the authors and do not necessarily reflect the views of the SBA.

Online Financial Institutions & Technology

Posted on by Janice Benggio

Wells Fargo, founded on March 18, 1852, according to their website is “forever linked with the image of a six-horse stagecoach thundering across the American West, loaded with gold. The full history, over more than 160 years, is rich in detail with great events in America’s history. From the Gold Rush to the early 20th Century, through prosperity, depression, and war, Wells Fargo earned a reputation of trust due to its attention and loyalty to customers.” Wells Fargo offers personal loans, small business lending, as well as commercial loans.

Historical brick and mortar banks focused on relationship banking and conduct surveys, has customer advisory councils, Global payment conferences, and customer site visits to ensure that satisfaction and customer service remain a definable goal. Establishing relationships with lenders is vital for veterans returning home from active duty military service during the pre-venture phases of business startup. Although the relationships may not be in person, relationship banking is indispensable to the success of large lenders and first-time borrowers.

Traditional lenders now provide convenient online services, CEO Mobile, for customers to sign on and manage accounts as well as make financial transactions via smartphone.

Types of Technology Used to Drive the Virtual Business Operations

The Mobile Token customers can use their iPhone® or AndroidTM device to access Commercial Electronic Office® (CEO®) services and perform sensitive transactions from your desktop, laptop, tablet, or mobile device. The mobile device contains the token, so there is no concern over misplacing it or security and privacy concerns.

CEO Mobile Token uses proven RSA SecurID® technology that lets customers generate a one-time code on the mobile device that you can use to sign on and access secure CEO services. CEO Mobile Token provides an added level of security to help protect your accounts and information, and there’s no additional charge to use the feature.

CEO Mobile Deposit allows customers access to their checking balances, the ability to virtually transfer funds, deposit checks, and make payments using their CEO Mobile service. Customers can remain updated about accounts, improve cash flow, and reduce trips to the bank.

The Implementation of technology has become essential for the future of banking. Current technologies like Automatic Teller Machines, (ATM) Internet banking, mobile banking, data warehousing with management techniques like Customer Relationship Management (CRM), Human Resource Management (HRM), Management Information System (MIS), Decision Support Systems (DSS), and electronic-marketing, have enhanced the functioning of banking to help adapt banking to meet the needs of a virtual environment even before times of COVID 19.

The quickly evolving global information infrastructure is driven by information technology, (IT), computer networks like the internet and intranet, and advanced telecom systems allow for technological and electronic commerce, (e-commerce) platforms at a universal level, leveraging the internet as an invaluable business tool.

These digital advancements have created a new type of economy, often referred to as the digital economy. With this digital transformation comes other changes through technology including the creation of virtual supply chains, new forms of product, and service delivery like e-banking. A consequence of the digital economy is a change in the balance of power, which appears to be shifting in favor of the customers. Traditional lenders have a goal of being customer-centric, so this customer-first philosophy fits the model of how they interact with customers and is enhanced by this power shift in favor of their customers.

The transition from a traditional method to online or virtual banking requires technological support and effort, effective planning, and efficacy for its execution. The business of banking is dramatically changing, specifically in monetary transactions that are adapting from conventional to smart technology banking practices. To support the emergence of virtual business, the banks are designing adaptable products.

A technology through which banking customers can be reached is through mobile banking. As mobile device based banking has emerged, its introduction to customers around the world can tap into that technology as a secure and convenient medium in virtual banking and online business.

Future Technological Advances and the Virtual Aspect of the Business

Another change is the introduction of virtual currencies, using distributed ledger technology (DTL), used in blockchain technology has piqued the interest of the financial industry as an enhancement or replacement of the use of double-entry bookkeeping practices, and the use of other monetary tracking efforts. 

Other concerns include decentralization of systems such as blockchain protocol which threatens processes within financial services as well as the use of obsolete identity management technology to protect customer privacy.

Financial regulators continue to monitor this quickly developing the use of DTL transactions as it is more commonly used and adopted as an adequate solution for securities markets.

Conclusion

Traditional brick and mortar lenders have expanded their relationship banking mission with the use of mobile banking and online platforms. As one of the nation’s oldest financial institutions, each has embraced technology to solve the problems of commercial customers as well as retail customers.

The use of DTL technology, as well as other digital app-based interfaces, allows Wells Fargo to compete against a growing trend toward customer-focused banking.

Challenges include regulations to adapt and monitor the progress of electronic commerce as well as fears of loss of privacy and concerns of theft from hackers and other virtual pirates.

Online financing should be able to keep pace with technology to quell the concerns of commercial and retail customers as virtual financing transforms how banking is performed.

January 19, 2021


Originally written by Brent Peacock, Director of the Florida Veterans Business Business Outreach Center. 

The Florida Veterans Business Outreach Center is funded in part through a Cooperative Agreement with the US Small Business Administration. All opinions, conclusions and/or recommendations expressed herein are those of the authors and do not necessarily reflect the views of the SBA.

Looking Ahead: How to Set Your #VetBiz Up for Success in 2021

Posted on by Savannah

The year 2020 has been tough for small businesses across the nation, including veteran and military owned. Thanks to years of service, veterans are well-equipped to navigate difficult situations, adapt to new environments, and pivot against the unknowns. But that doesn’t change the fact that the COVID-19 pandemic has presented numerous challenges for entrepreneurs during this time.

We recognize that many of you have had to shift operations, adapt your business plan, layoff your valued staff, and much more. The SBA and our extensive veteran resource network is here to give you the tools you need to strengthen your business in the new year.

Here are some ways you can set your veteran-owned business up for success in 2021.

Get your business finances back on track. At the SBA, we want to make sure small businesses can access the capital they need to move forward and rebuild. Preparing your business for lending prospects and finding the right lender are important first steps if you’re looking to acquire additional funding. We’ve made it easier for entrepreneurs to access lenders through Lender Match, our free online tool that connects small businesses with SBA-approved Community Development Financial Institutions and small lenders.

SBA also offers a variety of loan programs for small businesses, including the Economic Injury Disaster Loan which is designed to economic relief to businesses that are currently experiencing a temporary loss of revenue due to COVID-19.

Sharpen your business knowledge and acumen. Now is the perfect time to touch up on your business knowledge, and the good news is the SBA offers a number of free or low cost entrepreneurial education and training programs. For example, the Boots to Business program is a great way to get back to the basics of business and brush up on the fundamentals of business planning, opportunity

recognition, market research, financing, and more. Classes are offered on military installations worldwide or in your local community through Boots to Business Reboot.

Thanks to our network of grantees, SBA also provides entrepreneurial training programs for veteran and military entrepreneurs, including specialized programs for women veterans, service-disabled veterans, and veterans interested in federal procurement. The majority of these programs are conveniently offered in a variety of formats which makes it easier to find a program that works best for you.

Team up with SBA’s extensive resource partner network. As you work to strengthen your business in the new year, you don’t have to do it alone. SBA has a nationwide ecosystem of resource partners in over 1,400 locations with more than 13,000 business advisors who are ready to assist you especially during times like these. Our Veterans Business Outreach Centers (VBOC) are a great place for veteran entrepreneurs to find tailored business trainings, workshops, counseling, and more. Plus, VBOC services are offered in-person, virtually, and over the phone.

In addition to VBOCs, SBA’s network of District Offices, Small Business Development Centers, Women’s Business Centers, and SCORE Chapters help bring all of SBA’s programs and resources right to your local community. Think of this network as your team or unit in the military – we have your back and we’re committed to helping you accomplish your mission successfully.

For more tips to help you set your veteran-owned small business up for success in 2021 and beyond, visit https://bit.ly/Dec20VetBiz1.

December 1, 2020

Photo by Alev Takil on Unsplash

SBA’s top priority is to continue to support the small business community, including the military and veteran small business community, through the COVID-19 pandemic. Please visit sba.gov/coronavirus for information. 


Originally written by the U.S. Small Business Administration’s Office of Veterans Business Development. 

The Florida Veterans Business Outreach Center is funded in part through a Cooperative Agreement with the US Small Business Administration. All opinions, conclusions and/or recommendations expressed herein are those of the authors and do not necessarily reflect the views of the SBA.

From Service to Startup: Tips for Service-Disabled Veteran Entrepreneurs

Posted on by Savannah

Life after the military may seem like uncharted territory, but the good news is that veterans are well-equipped to pursue a variety of post-service career options including entrepreneurship. As a service-disabled veteran, you bring a unique and valuable skill set to small business ownership thanks to the tenacity, resilience, and fortitude you’ve acquired from years of service to our country.  

SBA works diligently to remove the barriers that service-disabled veteran entrepreneurs may face when transitioning out of the military and back into life as a civilian. We provide specialized programs, resources, and services to help ensure these entrepreneurs prosper in the business world. 

Here are some tips to help you set your service-disabled veteran-owned small business up for success. 

  • Check out SBA’s transition assistance programs. SBA’s flagship transition assistance program is Boots to Business – an entrepreneurial education and training program available for service members, veterans, and military spouses. Offered as part of the Department of Defense’s Transition Assistance Program (TAP), Boots to Business introduces participants to the fundamentals of business ownership and helps aspiring entrepreneurs determine if business ownership is right for them. The course is offered on military installations worldwide, but if you no longer have access to your installation, no problem! You can also access the course right in your local community through Boots to Business Reboot. 
  • Set your business up for success in the federal marketplace. Did you know that the federal government’s goal is to award 3% of all federal contracts to service-disabled veteran-owned businesses (SDVOSB) each year – and they’ve exceeded that goal every year since 2012? It’s true, and SDVOSBs received 4.39% of all federal contracting dollars in 2019. SBA is in the business of helping veterans succeed in the federal marketplace by providing set-asides and programs to help you position your businesses to win and retain government contracts. And through a grant funded by the SBA, the Veteran Institute for Procurement (VIP) offers programs that meet you where you are in their federal contracting journey – whether you’re just starting out, interested in growing in the field, or ready to take your business to market overseas. 
  • Tap into local resources for additional support. SBA’s partner network, including our Veterans Business Outreach Centers (VBOC), give service-disabled veterans access to entrepreneurial resources right in their local community. VBOCs are armed and ready to guide you on your mission to small business ownership. You can find business workshops, financial trainings, counseling and mentorship, resource referrals, and more at a center near you. Plus, all services can be accessed in-person, virtually, or over the phone. In addition to our VBOCs, there are a number of other SBA local resource partners who are also dedicated to supporting our nation’s veteran entrepreneurs. 

Remember, you don’t have to embark on your entrepreneurial journey alone. For more information about SBA’s resources and programs for service-disabled veterans, visit http://bit.ly/OctVetBiz2. 

Join us to celebrate all veteran entrepreneurs, including service-disabled veteran entrepreneurs, during this year’s National Veterans Small Business Week on November 2-6, 2020! Visit sba.gov/nvsbw for the latest information. 

October 1, 2020

SBA’s top priority is to continue to support the small business community, including the military and veteran small business community, through the COVID-19 pandemic. Please visit sba.gov/coronavirus for information. 


Originally written by the U.S. Small Business Administration’s Office of Veterans Business Development. 

The Florida Veterans Business Outreach Center is funded in part through a Cooperative Agreement with the US Small Business Administration. All opinions, conclusions and/or recommendations expressed herein are those of the authors and do not necessarily reflect the views of the SBA.

Five Steps to Help Veterans Navigate the Federal Marketplace

Posted on by Janice Benggio

Did you know that the U.S. government is the largest customer in the world? It’s true. And get this – the federal government contracts with small businesses to buy all types of products and services, and it’s required by law to consider buying from small businesses.

SBA works to maintain a level playing field for small business contractors and encourage maximum participation in government contracts by disadvantaged, woman-owned, and veteran-owned small businesses who are interested in federal procurement. In fact, the results are in – based on the Fiscal Year 2019 Small Business Federal Procurement Scorecard, the federal government exceeded its small business contracting goal for the 7th straight year, recording 26.5% or $132.9 billion in prime contracts to small businesses. That’s the highest dollar amount ever in the scorecard’s history!

Here are five steps to help you set your veteran-owned business up for success to compete in the federal marketplace.

Step 1: Determine if government contracting is right for your business.

First, it’s important to evaluate your small business to see if it’s equipped to win and retain government contracts. In order to compete, you’ll need to confirm that there’s a market for your product or service, determine how big that market is, and find potential buyers for your business. You’ll also want to ensure that you have a strong reputation in the industry as an established and reliable company.

Step 2: Get to know the basic federal procurement requirements.

Once you’ve decided that government contracting is right for you, make sure your business is set up properly to compete for contracts before diving into the federal marketplace. For example:

  • Does your business have a DUNS number? A Dun & Bradstreet (DUNS) number is a unique nine-digit identification number for each physical location of your business.
  • Are your products matched to a NAICS code? A North American Industry Classification System (NAICS) code classifies businesses based on the products or services they supply.
  • Do you meet SBA’s size standards for small businesses? To be eligible for government contracts reserved for small businesses, your business must meet SBA size requirements.
  • Are you registered with SAM? The System for Award Management (SAM) is a database that government agencies search to find contractors.

You’ll need to consider each of these items before you can begin bidding on government contracts.

Step 3: Learn about federal contracting assistance programs for small businesses.

Now that your business is set up to compete in the federal marketplace, it’s time to learn about the special programs available to help small businesses bid on and win government contracts. The federal government’s goal is to award at least at 23 percent of all federal contracting dollars to small businesses each year.

If your small business is at least 51% owned and controlled by one or more service-disabled veterans, you may qualify for the Service-Disabled Veteran-Owned Small Business program.

If your small business is at least 51% owned and controlled by women who are U.S. citizens, you may qualify for the Women-Owned Small Business Federal Contracting program. Be sure to check out the new certification site for Women-Owned Small Businesses (WOSB) and Economically Disadvantaged WOSB.

If your small business is at least 51 percent owned and controlled by U.S. citizens who are economically and socially disadvantaged, you may qualify for the 8(a) Business Development program.

Step 4: Tap into federal contracting training programs for veteran entrepreneurs.

After you’ve become familiar with the federal procurement process, requirements, and assistance programs, it’s a good idea to get some formal training. SBA offers federal procurement training specifically for veterans who are interested in entering or expanding their business in the federal marketplace. Through a grant from the SBA, the National Center for Veteran Institute for Procurement (VIP) offers programs that are designed to meet you where you are in your government contracting journey — whether you’re just starting out, interested in growing in the field, or ready to take your veteran-owned small business overseas. Check out VIP for intensive training to help you establish best practices for federal procurement and become well-positioned to win and retain government contracts.

Step 5: Reach out to local resources for additional guidance.

If you’re looking for additional government contracting support, your local Procurement Technical Assistance Center provides expert government contracting help at little or no charge, through training and workshops, one-on-one counseling, matchmaking events, and more. Your local Veterans Business Outreach Center can also give you access to government contracting opportunities and provide specific tools to help you navigate the federal marketplace as a veteran small business owner.

The government contracting world can be complex, but federal contracts are a tremendous financial opportunity for veteran-owned small businesses. For more information about SBA’s government contracting resources and programs for veterans, visit http://bit.ly/SepVetBiz2.

SBA’s top priority is to continue to support the small business community, including the military and veteran small business community, through the COVID-19 pandemic. Please visit sba.gov/coronavirus for information.

Written by the U.S. Small Business Administration’s Office of Veterans Business Development

September 1, 2020

The Florida Veterans Business Outreach Center is funded in part through a Cooperative Agreement with the US Small Business Administration. All opinions, conclusions and/or recommendations expressed herein are those of the authors and do not necessarily reflect the views of the SBA.

When Will My Business Become Profitable?

Posted on by Janice Benggio

No one goes into business to lose money, and most business owners start with high hopes of making a profit… and getting their hands on it quickly. If you don’t make money after a while, it’s probably just an expensive hobby. But how do you know when that magic moment will occur, that point where you begin to make money instead of lose money?

It’s easy for many of us to claim that we hate math, so we may be tempted to get started with the business and hope the money follows. Right? However, a word of caution is to do some homework and don’t depend on your “SWAG – scientific, wild a*s, guess” to get you to the point of profitability without having planned out some scenarios before you open your door to the new business. By the way, I give credit to my co-worker, Jamie Shepard, for introducing me to “SWAG,” one of the many memorable expressions she uses to get a point across.

Ideally, you will spend the time required to understand your business’s revenue model, which includes your cost structure (money going out) and revenue streams (money coming in) to realize a profit.

That formula is rather simple to ensure your business will be financially successful, but it’s not as simple to operationalize. You may compare it to the formula for losing weight – eat less, plus exercise more, equals weight loss. As we all know, that’s easy to understand but not as easy to achieve. Planning and determination are needed for success, whether it’s to lose weight or to have a successful business.

There are many ways to research all aspects of the business before starting it, and getting the most accurate financial estimates will be important, especially for the first year of operation. The object is to closely predict how much money is needed for start-up and during the first year and how much money you will make during the first year. Most businesses will start with money from the owner, whether it’s your own cash or money from loans. That is the owner’s equity injection, because you have injected money to initiate the business. Depending on what goods or services you sell, it can be quick or weeks to months before the business brings in money from whatever it sells. This means you and your money are propping the business until it begins to generate money from sales. That wonderful day when your business reaches break-even is truly a milestone. The break-even point means that you need to keep generating money to pay back what you’ve already injected, as well as to make enough money to stay above your costs.

The homework for new entrepreneurs is to calculate different scenarios in which you can predict when the break-even point will happen so that you’ll understand how much money you need to that point. How do you do that? By running various scenarios that will show how making theoretical changes can help predict real-life economics before you start the business.

Here is an example, with a fictional company called “Joe’s Cup of Joe Coffee,” a simple business where Joe sells coffee from his coffee cart on the street in his hometown. In this example, Joe sells his coffee for $2 per cup and expects to sell 3,200 cups of coffee per month, which will yield $6,400 in revenue. He then calculates that he will have $2,080 in variable costs (the expenses that are directly tied to volume of sales) and $4,320 in fixed costs (the expenses that will occur each month, no matter how many cups of coffee he sells). In this scenario, Joe will break even. He will not have any net profit, and he will not have any unpaid expenses. This probably occurs after a month or two of being in business, because he needed time to build up a customer base and get comfortable with his new business.

Joe realizes he cannot possibly survive by simply breaking even each month, so he must consider what changes will improve his bottom line, or net profit. In the next example, Joe decided that he had enough time in his life that he could be open an hour longer each day and increase his sales volume from 3,200 cups per month to 4,000 cups per month. By making this one change, he improved his business to have a net profit of $1,080 per month.

Joe is an ambitious young man, and he was pleased to see how that simple change could help him realize a profit. He also realized he could make a few other changes to improve his bottom line. In this example, he raised the cost of each cup of coffee, and Joe found another supplier that charged slightly less for the coffee beans, cups, and other supplies used in the business. By increasing the price per cup and reducing those variable costs by only five cents per unit, or per cup of coffee, he can double his net profit from the last scenario in which he only increased his sales. This combination of selling more units and reducing costs made a significant difference.

You can download your own break-even template from SCORE (an SBA resource partner) at https://www.score.org/resource/break-even-analysis-template. This type of modeling is useful not only before starting your business but also after you’ve been in business and find the need to pivot.

If you are unsure of what numbers to enter for any of the sales or costs, you might try using an average, such as a three-point estimate. Here are a couple of variations:

  1. Triangular Distribution: This is simple, in that you add three values and average them: the most optimistic value, the most likely value, and the most pessimistic value. Example, coffee cups may cost five cents each (most likely) from your main supplier, but you found that you can get them from another supplier for four cents each (most optimistic). There is a concern that inflation could drive the price up to eight cents per cup (most pessimistic). To get a 3-point estimate via triangular distribution, the formula would be:
    • 5 + 4 + 8 = 17 / 3 = 5.7 cents per cup estimate
  2. Beta Distribution: This average is based on six values and is closer to the more likely value than a triangular distribution. In this one, you include the most likely value four times (instead of once) and the others once each, and divide the total by six. By using those same assumptions, you can get a 3-point estimate via beta distribution with this formula:
    • 5 + 5 + 5 + 5 + 4 + 8 = 32 / 6 = 5.3 cents per cup estimate

As your business becomes more mature, you’ll develop more accurate values to use in estimates and modeling, thereby providing scenarios that are closer to reality than when you start the business. We also know that unexpected events happen, which will shift our predictions. The global pandemic affected almost every business in some way, which undoubtedly caused glitches in economic plans. That’s an example of an unknown risk. Some businesses have known risks, and as such, should consider those in their economic forecasts. An example would be businesses with seasonal peaks and valleys. Be sure to factor in anticipated fluctuations.

Business economics, in its most simplistic form, seeks to balance the costs and the revenue so as to the tip the scale toward making more money than is spent. The Veterans Business Outreach Center offers no cost business counseling services to our clients, and we welcome your questions on this topic.

Written by Janice Benggio, Florida VBOC Consultant
July 7, 2020

The Florida Veterans Business Outreach Center is funded in part through a Cooperative Agreement with the US Small Business Administration. All opinions, conclusions and/or recommendations expressed herein are those of the authors and do not necessarily reflect the views of the SBA.

What is the Role of Corporate Social Responsibility in Global Organizations?

Posted on by Janice Benggio

Many large multi-national organizations have taken on the added obligation of looking beyond motivations exclusively driven by profit and have shouldered responsibilities that address social impact rather than just their own economic well-being. The social impact is directed toward various stakeholders such as their communities, customers, employees, and the overall environment. This recognition is known as Corporate Social Responsibility (CSR), a form of corporate goodwill that endears stakeholders to the company and its products. Success in international markets depends not only on the quality of its goods or services, but also on its social consciousness, level of CSR, and corporate gifting. An international business engaged in CSR often ties its business ethics to corporate giving.

The role of CSR is more than a marketing platform meant to build goodwill but is an acknowledgment of the influence a company has on the macro-exterior ecosystem. CSR has gone beyond only recognizing concerns in the external macro-environment to engaging in efforts to solve problems and concerns of its stakeholders. Research continues on identifying cultural differences of attitudes and social practices worldwide to examine the role of corporate CSR in global organizations.  A review of studies by Hofstede and the tri-dimensional Arthaud-Day research model to define and illustrate the role of CSR in global businesses and organizations.

Geert Hofstede conducted studies on power distance, individualism, masculinity, uncertainty avoidance, and long term orientation and cataloged responses in a worldwide survey of IBM employee values between 1967-1973. In Culture and Organizations: Software of the Mind (2005), Hofstede created a variety of indices to gauge the levels of inequality within both the “collectivist societies” where employees are managed in groups and as individuals. The study took into account gender roles and emotional overlap of masculine and feminine genders, the level of threats certain individuals in culture may feel, and future rewards such as perseverance and thrift. The resulting Hofstede model can be applied to many areas of the internal business as well as global CSR.

The tri-dimensional Arthaud-Day research model (2005) is used to examine practices in a sampling of worldwide businesses to evaluate the level and commitment of CSR activity. This research yielded three studies comparing business ethics and CSR in an international context to demonstrate the role of CSR in global organizations. 

The first research track compares the global companies based in the United States with those based in Europe. International businesses demonstrated commitment to social responsibility via their social media. However, their actions often failed to mirror that commitment in different parts of the world. Another study compares the codes of ethics of U.S. and European based companies. It shows differences in attitudes toward corporate philanthropy.

The second research track compares the ethical perception of the global companies based in the United States with those based in Korea using quality of life as a metric judging a culture solely by the values and standards of one’s own culture and moral idealism drives social responsibility and the level of CSR. The ideals among management to CSR were measured by the Perceived Role of Ethics and Social Responsibility (PRESOR). These studies revealed that social responsibility differs depending on ethnocentrism and these differences leverage the result of decision making among management.  

The third research track uses businesses in developing countries such as Mexico to compare to local or global CSR techniques. Results show that even though many companies understand CSR, multinational and transnational companies in developing countries appear more concerned with solving social problems that are country-specific.

The role of CSR in global organizations depends upon how the needs are perceived by all stakeholders and the level of responsibility global organizations commit to and act upon. The research tracks from the Arthaud-Day research model compared CSR among the U.S. and European global firms, U.S. and Korean based global businesses, and U.S. firms to firms in underdeveloped and emerging nations reveal a sustainable global commitment to CSR. The reports examined varying ideology and attitudes to CSR, showing support for CSR which remains significant.   

Written by Brenton Peacock, Director VBOC Florida
June 11, 2020

The Florida Veterans Business Outreach Center is funded in part through a Cooperative Agreement with the US Small Business Administration. All opinions, conclusions and/or recommendations expressed herein are those of the authors and do not necessarily reflect the views of the SBA.

This image has an empty alt attribute; its file name is image-3.png

References

Altuntas, C., & Turker, D. (2015). Local or global. International Marketing Review, 32(5), 540-575. Retrieved from https://search-proquest-com.ezproxy1.apus.edu/docview/1710151356?accountid=8289

Hackert, A. M., Krumwiede, D., Tokle, J., & Vokurka, R. J. (2012). Global corporate social responsibility practices and cultural dimensions. S.A.M.Advanced Management Journal, 77(4), 33-41,2. Retrieved from https://search-proquest-com.ezproxy1.apus.edu/docview/1287957411?accountid=8289

Osuji, O. K. (2015). Corporate social responsibility, juridification and globalisation: ‘inventive interventionism’ for a ‘paradox’. International Journal of Law in Context, 11(3), 265-298. doi: http://dx.doi.org.ezproxy2.apus.edu/10.1017/S1744552315000154