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.
The Balance Sheet is also known as the Statement of Financial Position (nonprofits), and this shows you the balance between how much you own (assets), how much you owe other people/companies (liabilities), and the book value of your company (equity). Like the income statement, you read it from the top and then move down the report. It tells you the ending balance of your accounts at a singular moment in time. Most business owners ignore this report and focus on the income statement, which causes you to be short-sighted with your business. If you can’t tell how much debt you have, how often you can turn your assets into cash, and any other future payments you may have, then you will always feel behind. Your balance sheet should always balance—Assets always equal liabilities plus equity.
When you’re reading your balance sheet report, you’re looking for months that break the trend you see. What’s weird? Why’s one month significantly lower or higher than the rest? Why are your total assets lower? Why are your total liabilities higher? Why is your total equity higher? You should be able to determine the answers to these questions as you review your balance sheet. All three financial statements are connected, and you shouldn’t favor one report over the other. Your net income from your profit and loss statement is connected to your balance sheet in the equity section. A monthly review of all three financial statements helps give you a complete picture of your business.
There are three main sections to a balance sheet:
Assets
Current Assets
Long-Term Assets
Liabilities
Current Liabilities
Long-Term Liabilities
Equity
Owner’s pay & investments
Investments from others
Retained Earnings
Assets
Your assets are divided into current and long-term assets. Your current assets include your bank balances, accounts receivables, and inventory. Your current assets mean that you can quickly access your cash immediately, or if you need cash within 12 months, it’s possible for you to sell more inventory and call on your customers who owe you money (accounts receivables). Long-term assets include purchases such as equipment, vehicles, and properties. These assets will take longer than 12 months to turn into cash. It’ll be harder for you to access cash for immediate needs quickly.
Liabilities
Current liabilities include your credit card balance, lines of credit, and accounts payable (vendors/contractors that you owe) — bills/debt you must pay within 12 months. Long-term liabilities include your larger loans and other long-term debt you may have. These loans usually don’t need you to pay the full balance within 12 months. Some debt is good to help you grow your business, but being over leveraged (having more liabilities than assets) will cause you to constantly be scrambling for cash to keep up with your interest and principal payments and may eventually go bankrupt. So, be careful when taking on debt, and always have a plan of how you’re going to pay your debt back while growing your business.
Equity
Equity has three main sub-sections: owner’s pay or investments, investments from others, and retained earnings. As the business owner, any dividends or transfers from the business account to your personal account will be recorded here. Unless you legally turn yourself into an employee, all the money you pay yourself as the owner is recorded on the balance sheet, which doesn’t show up as an operating expense on the income statement! Also, if you invest in the company with your personal money, it’s recorded in the equity section, as well as any other investments you receive from others. Retained earnings are the cumulative net income from starting your business. So, if you’ve lost money from the beginning, your retained earnings will be negative, and if you’ve been net positive, your retained earnings will be positive.
The balance sheet reports help you see your business as a whole, while the income statement only shows you one portion of your business. Having a positive net income means your retained earnings increase, which in turn means you have more cash in your bank. But you may have to use some of that cash to pay your liabilities. Next week, we’ll talk about how reviewing your cash flow statement will help you confidently see if you have enough cash to pay your expenses for next month.
About the author:
Anwuli Chukwurah is a versatile finance professional with a track record of starting new finance organizations and scaling them for growth in fast-paced entrepreneurial environments. She has over 6+ years of experience working with small business owners, startups, and nonprofit organizations to help connect finance with their business goals. She aims to ensure her clients become comfortable and adept at navigating their numbers. She works with clients at Woolichooks and writes a newsletter for non-finance folks.
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.
Death, heights, public speaking — can you guess which is the most common fear in America?
According to the National Institute of Mental Health, it’s public speaking.
But while the anxiety of speaking in front of an audience can be huge, the benefits in mastering this communication skill can be even greater. With the right words and a confident delivery, imagine being easily able to:
Build public awareness of your brand
Attract and retain loyal customers
Articulate your vision and motivate your team
Grow a meaningful professional network
If you’re interested in conquering your own fear of public speaking, improving your communication skills, and growing your business and network, you are invited to join EGBI’s Toastmasters club. Click here to find out how.
Our club is one of over 14,000 global chapters of Toastmasters International, a nonprofit organization dedicated to building confidence and public speaking skills.
In each Toastmasters meeting, members deliver speeches they’ve prepared and receive feedback from other members. After the speeches, members often have the opportunity to participate in Table Topics, an activity where a host selects a random club member to speak for 1–2 minutes about a specific topic.
Within the supportive environment of a Toastmasters meeting, members improve their listening, presenting, feedback, and improvisation skills, while building the confidence and interpersonal skills that help them excel as leaders in their businesses and communities.
And whether you’ve never spoken to a group or feel completely at ease in front of a crowd, there’s always something to learn at Toastmasters. Click here to learn more about how to join EGBI’s Toastmasters club and take your communication skills to the next level.
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.
