How Small Businesses Can Compete without DEI

Small business owners that have typically won business through small and disadvantaged business contracting programs may wonder what other avenues exist in the current political environment. The answer is this: All the opportunities that existed before continue to exist today. 

In practice, many businesses that fit the definition of a small, woman-owned, or minority-owned business did not participate in programs that required certification. Forgoing these programs was usually deliberate. Some proprietors knew how to attract business without the certification. Others simply decided against the time, expense, and hoop-jumping required to secure the certification. 

Even businesses that became certified soon learned that certification did not mean automatic contracts. They still needed to market themselves to buyers, and they often had to compete against fellow certified businesses for limited opportunities. 

Keys to Success

The keys to competing for business as a small or disadvantaged business are to establish internal business development and contracting processes and to cultivate relationships with prospective buyers. Not surprisingly, those are the same keys used by businesses of all sizes. 

Which deals a business decides to pursue can also determine the likelihood of success. 

Let’s take these three components one at a time. The phrase “internal business development and contracting processes” means having the staff, the technology, and the proposal templates in place to quickly identify and respond to opportunities—and knowing how to do so effectively.

Next, you must cultivate relationships with prospective buyers and elected officials. By that I mean not only knowing who they are (which is an absolute necessity) but also making sure they know you and your expertise. Buyers need to know your value proposition (i.e., why you are the best fit for them) so they can demonstrate that the contract was granted on merit. Elected officials need to know that you’re a voting, taxpaying constituent—a squeaky wheel that intends to get oiled.

Finally, pick and choose your targets. Don’t place your company in direct competition with larger, better-financed companies. You’d only be giving decision makers a basis for disqualifying you. Don’t make it that easy. Instead, play in spaces where your proposal looks at least as good as the others in all material respects. Then, your networking can kick in since relationships are most vital when it’s a coin flip. 

Bottom Line

So, it’s really a matter of adjusting your approach to contracting rather than altogether abandoning the contracting game. The time doing extra work to qualify your company as a small or disadvantaged business can be better spent, in our humble opinion.

Learn more in our government contracting course.