For military veterans and spouses looking to embark on their small business journey, government contracting represents a promising avenue. This article serves as a guide, shedding light on the intricate process, potential challenges, and the wealth of resources available to aid veterans and spouses in securing federal and state government contracts.
Understanding the Process: Embarking on government contracting involves a series of steps, each important to the overall success of your small business. Let’s dive into several of the key areas needed to start on the road of government contracting.
Conduct Market Research: Begin by conducting extensive market research to identify government agencies, departments, and prime contractors seeking the products or services aligned with your skill set. You can begin with local government (i.e. City of Austin) as well as with the Small Business Administration’s (SBA) veteran contracting assistance programs.
Registration: Navigate the bureaucratic landscape by registering your business in the System for Award Management (SAM), the central database for vendors engaging with the federal government. Additionally, consider obtaining certifications like Service-Disabled Veteran-Owned Small Business (SDVOSB) or Veteran-Owned Small Business (VOSB) for access to set-aside contracts. Government agencies at both the federal and state levels have set-aside programs specifically designed to leverage contracting opportunities for veteran-owned businesses. These programs reserve or “set-aside” a certain percentage of contracts for businesses owned by veterans or service-disabled veterans.
Proposal Development: Crafting compelling proposals is an art. Clearly state your business’s capabilities, past performance (if any), and unique value proposition (a clear message about the value of your product or service). Tailor each proposal to meet the specific requirements of the solicitation. Work with your local Veterans Business Outreach Center (VBOC) program, which provides entrepreneurial development services such as business training, counseling, and mentorship to veteran-owned businesses.
Contract Administration: Upon being awarded a contract, meticulous attention to detail is required to ensure compliance with the contract’s terms and conditions, deliverables, reporting requirements, and performance standards. We recommend that you seek support with reviewing contracts or legal terms and conditions before committing. To receive advice, join EGBI for one of our Legal Clinic, offered twice a year EGBI to work with one of our volunteer attorneys in a one-on-one consultation session to business owners.
Challenges Faced by Veterans and Spouses: While the opportunities are abundant, veterans and spouses encounter several challenges along the way. Here are some things to keep in mind as you navigate this process:
Competitive Landscape: Government contracting is fiercely competitive, with established firms and experienced contractors vying for the same opportunities.
Complex Procurement Processes: The intricacies of government procurement processes, regulations, and compliance requirements can be overwhelming, particularly for those new to the scene.
Resource Constraints: Limited access to capital, technical expertise, and administrative support can pose significant hurdles for veterans and spouses seeking government contracts. So, we suggest that you reach out to as many resources (various agencies local and federal) as you can in an effort to garner insights in how to obtain the best opportunities for your small business.
Certification and Credentialing Requirements: Meeting certification and credentialing prerequisites, such as obtaining security clearances or industry-specific certifications, can be especially challenging for those transitioning from military service to entrepreneurship.
Resources for Veterans and Spouses: Thankfully, a multitude of resources are available to provide support and guidance. Here are some federal and local support networks available that we recommend you connect with to help you with your small business and government contracting ambitions.
Federal:
Small Business Administration (SBA): The SBA offers various programs, including the SDVOSB/VOSB certification initiative, government contracting assistance, and workshops dedicated to federal procurement.
Procurement Technical Assistance Centers (PTACs): PTACs offer free counseling, training, and resources to aid small businesses in navigating government contracting opportunities at the state and local levels.
Veteran Business Outreach Centers (VBOCs): VBOCs provide specialized services, including business counseling, training, and mentorship tailored to the unique needs of veteran-owned businesses.
Local:
SCORE Mentors: SCORE offers the expertise of volunteer mentors, many of whom are seasoned business owners, to guide and support entrepreneurs in various facets of government contracting.
Veteran Service Organizations (VSOs): Organizations such as the Veterans of Foreign Wars (VFW), American Legion, and Disabled American Veterans (DAV) offer resources, advocacy, and networking opportunities for veteran entrepreneurs.
Economic Growth Business Incubator (EGBI): is a non-profit organization which provides training, coaching, and support to aspiring and existing business owners who face barriers to growing a successful business.
In summary, while embarking on the path of government contracting may seem daunting, securing government contracts can be a rewarding journey for military veterans and spouses, offering not only financial growth but also a pathway to economic success. By comprehending the process, overcoming challenges, and tapping into the wealth of available resources, veterans and spouses can position themselves for success in the competitive world of government contracting.
Dalila Vazquez and her husband Israel started their business together wanting to help and change others life and cause ease to others property space. They started PuroClean Property Savers together and have been nothing but successful; they’ve been having this business for almost a decade.
David Fuentes: Tell us a little bit about yourself?
Dalila: Dalila and Israel are a married couple who started a business together in 2015 they moved from Mexico city to start their adventure. They help people who have damage to their property.
David Fuentes: What are you guys’ main goals?
Dalila: Delila and Israel’s main goal is to make people feel at home after they experience damage to their property and try to communicate as best as possible.
Since 2016 they’ve seen a variety of disasters in the central texas area and they have over a decade experience and working as a business they came from another business, which was challenging for them and they took the skills from that business and placed it with theirs.
David Fuentes: What are essential components of a business emergency preparedness plan?
Dalila: You should design a five step planning process which you can look at as a five step guide. The first step is called planning. Planning is key. You have to plan and prepare everything for an emergency. You’re going to have the time you’re going to address the emergency in the fastest way possible. and in a better way the second step is safety. You have to understand what are the hazards inside your property to understand what’s going on and you can minimize those hazards so when the event comes you can know how to approach the situation. The third one is customized. Customize your plan based off your needs and haves on your property no matter the size the fourth step is to review you need to constantly or schedule times to review and look over your property and plans the fifth step is execute the plan when the bents comes or the emergency comes if you follow the four steps before you should be good.
Megan Doherty has a passion for sustainability and working on the environment and helping the environment. She always tries her best to make sure she pours into our environment and community. Megan works at Driving Sustainability Austin Circular Economy Program.
Here aresome interesting facts about Megan
Megan Doherty: I was born and raised in austenite, passionate about preserving and amplifying the environment and culture. The charm of this blooming beautiful city that we call home. She had a degree from UT Austin in geography and environment. And spent over a decade outside of Texas launching several entrepreneurial ventures from catering vegan food at big picture movie sets in Hollywood. To vending superfood shakes at large festivals. ultimately opening a cafe and bottle drink line in central Mexico.
Alexander Williams: This company is all about promoting sustainability by transforming.
Megan Doherty: Our traditional linear economy which takes the make and dispose economic model into something more thoughtful and createful and more regenerative.
What do you guys contribute to Austin TX?
Megan Doherty: Support these circular businesses, traditional, waste, rental businesses and to help businesses repair and refurbish to bring back up to market and sharing platforms.
What’s the key services provided by circular economy program businesses innovation and how they contribute to city?
Megan Doherty: Sustainability and economic goals. They have an event called circular showcase that is designed to establish circular businesses which is a threshold on any business that has a circular concept that currently makes more than 10,000 a yr and less than 250,000 a yr and whoever wins gets a 12,000 prize.
In the realm of small business management, one critical yet often overlooked aspect is succession planning. This process ensures the smooth transition of business ownership, safeguarding the enterprise’s future and legacy. In an episode of EGBI’s Podcast, hosted by David Fuentes of the Economic Growth Business Incubator (EGBI), Miranda Barcena, a financial advisor from Barcena Financial Group, delved into the intricacies of succession planning. This article synthesizes key points from the podcast, providing a comprehensive understanding of succession planning and its importance for small business owners.
Introduction to Succession Planning
Succession planning is the strategic process of preparing to transition business ownership from one party to another. This can involve passing the business to a family member, selling it to a third party, or even merging with another company. As Miranda Barcena explains, the goal is to transfer the business to the right person at the right time for the right amount of money. This ensures the continuity of the business and secures the financial future of the outgoing owner.
Importance of Succession Planning for Small Businesses
Small businesses form the backbone of the U.S. economy, with over 90% of all businesses falling into this category. However, less than a third of these businesses survive beyond ten years. One of the primary reasons for this high failure rate is the lack of proper succession planning. Small business owners are often caught up in daily operations, leaving little time to consider long-term strategies. Miranda points out that succession planning is essential not only for the business’s longevity but also for the owner’s retirement and overall financial health.
Common Challenges in Succession Planning
Starting Too Late
One of the most significant challenges small business owners face is starting the succession planning process too late. Many owners dream of selling their business for a substantial amount and retiring comfortably but underestimate the time and effort required to achieve this. Proper succession planning can take years, and starting early is crucial to effectively navigating unforeseen challenges.
Lack of Knowledge
Another common hurdle is the lack of knowledge about where to begin with succession planning. As Miranda mentions, many business owners are experts in their fields but not in financial planning or business valuations. This lack of knowledge often leads to procrastination, further complicating the planning process.
Understanding Business Value
A critical aspect of succession planning is accurately valuing the business. Many owners are unaware of the true value of their business, especially how it might change when they are no longer involved. Miranda provides an example of a surgeon whose business was valued at $3.2 million with him actively working but dropped to $800,000 without him. This stark difference underscores the importance of understanding and planning for business value changes over time. By starting early and working with advisors, the surgeon could have developed strategies to increase the business’s value independent of his presence, ensuring a better outcome for his retirement.
Steps in Succession Planning
Assessing the Business
The first step in succession planning is a thorough assessment of the business’s current state and future potential. This involves evaluating financial health, market position, and internal processes. Understanding these factors helps in making informed decisions about the future.
Identifying Successors
Identifying potential successors is a crucial part of the process. This could be a family member, an employee, or an external buyer. Each option has its own set of considerations, and the choice depends on the business’s specific circumstances and the owner’s preferences.
Developing a Transition Plan
A detailed transition plan outlines the steps needed to transfer ownership smoothly. This includes setting a timeline, defining roles and responsibilities, and ensuring that the successor is adequately prepared to take over. This plan should be flexible to accommodate unexpected changes.
Financial Planning
Financial planning is integral to succession planning. This includes valuing the business accurately, planning for taxes, and ensuring that the owner’s retirement needs are met.
Legal Considerations
Legal aspects of succession planning, such as contracts, estate planning, and regulatory compliance, must be addressed to avoid future disputes and ensure a smooth transition. To do this, engaging with legal professionals is advisable.
The Role of External Advisors
Small business owners often wear many hats and may not have the expertise to handle all aspects of succession planning. Engaging external advisors, such as financial planners, attorneys, and accountants, can provide the necessary support and expertise. In the podcast, Miranda emphasizes the importance of having a team of experts to guide business owners through the process, ensuring that all legal, financial, and strategic aspects are covered.
Conclusion
Succession planning is a critical component of small business management, often overlooked due to the daily pressures of running a business. However, as Miranda Barcena articulates, early and strategic planning can significantly impact the business’s future and the owner’s financial security. By understanding the process, recognizing common challenges, and engaging with external advisors, small business owners can ensure a smooth and successful transition, securing their business legacy for the future.
FOR IMMEDIATE RELEASE SMBR Announces Partnership with EBGI to Empower Small, Minority and Women-Owned Businesses
Austin, TX – The City of Austin’s Small and Minority Business Resources Department (SMBR) is thrilled to announce a new partnership with the Economic Growth Business Incubator (EGBI). The collaboration is set to significantly enhance the support services available for the City’s small, minority and women- owned business enterprises (MBE/WBE) by focusing on crucial aspects of business growth and city procurement processes.
A New Era of Business Support and Growth
“Through this partnership, we are reinforcing our commitment to the growth and success of small, minority and women-owned businesses in Austin,” said Director of SMBR Edward Campos.
“Collaborating with EGBI allows us to offer a more comprehensive range of services tailored to the unique challenges our small, minority-and -women-owned businesses face.”
For more than 20 years, EGBI has provided training, coaching and support to aspiring and existing business owners who face barriers to growing a successful business.
“EGBI has always been where the community needs it, and we’re excited to partner with SMBR in this endeavor. We provide three times the average coaching hours than most business incubators – and SMBR comes with their impact. Our goal is to provide sustainable growth and success for the businesses that provide traction to our economy,” said Executive Director of EGBI Larissa Davila. “We believe that through this collaboration, we can make a significant difference in the Austin business community.”
Commitment to Continuous Improvement
The partnership will encompass a variety of services aimed at strengthening the business capabilities of firms: Orientation and Training: Firms will receive comprehensive guidance on navigating the City of Austin Finance Online website, enhancing their ability to submit bids and secure city contracts. Business Coaching: Expert coaching will cover an array of topics including business strategy, financial management, preparation for financing applications, and navigating city payment processes. Financial Operations Support: Assistance in adopting more reliable systems for tracking financial operations, including setting up and training on QuickBooks Online. Hands-On Assistance: Firms will learn how to effectively utilize financial reports for business management and gain insight into finding and responding to contracting opportunities.
A Step Forward in Economic Development and Social Mobility
The partnership represents a significant step in fostering business development and economic mobility in Austin. By empowering small, minority and women-owned businesses, the City of Austin reaffirms its commitment to creating an inclusive and thriving business environment.
How to Get Involved To receive training, coaching, and/or support from EGBI, small and minority-owned businesses will need to complete a short intake form that is available on the City’s website. Firms will then need to submit the form to SMBR’S Program Manager I Catherine Sak at Catherine.Sak@austintexas.gov or smbr@austintexas.gov.
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About SMBR The Small and Minority Business Resources Department (SMBR) administers Minority-Owned, Women- Owned, and Disadvantaged Business Enterprise Procurement Programs for the City of Austin. Our mission is to promote access and equity on City of Austin contracts, providing economic opportunity to small, minority-owned, women-owned, and disadvantaged businesses. About EBGI Economic Growth Business Incubator (EGBI) is a small business incubator or business accelerator established in 2003 in collaboration with several community entities including the Greater Austin Hispanic Chamber of Commerce and the Housing Authority of the City of Austin. In 2023, EGBI was recognized as the No. 1 incubator in Central Texas by the Austin Business Journal and in 2024 the incubator received the CAN Butler Award for Spirit of Collaboration and the Candid Platinum Seal for Transparency, and Best Places to Work for Working Parents. EGBI provides business coaching to entrepreneurs in Central Texas wanting to start and/or grow a business. Up until 2024, our organization has provided over 4,200 hours of business coaching in bookkeeping, sales, marketing, business planning, online presence, government contracts and similar topics to provide traction to small business owners.
