Don’t Make … the Big Mistake!!!

Many veteran-owned businesses concentrate only on capturing federal contracts and make the big mistake of ignoring the billion-dollar corporate market.

by Beverly Kuykendall

A big mistake made by small and minority-owned businesses in the past has been sole-reliance on government preference programs. Now, don’t get me wrong, it does make good business sense to go after the largest customer in the world — especially when that customer has mandatory programs that eliminate or limit the competitive playing field.

However, while we are all knocking each other down to win this business; there are literally billions of dollars worth of other opportunities that are going untapped. Commercial companies are enhancing their commitment to small businesses in all categories. The business case for the inclusion of service disabled veteran-owned (SDVOB) and veteran-owned small businesses (VOBs) is a sound one — both within and outside the government acquisition marketplace.

Think about it…the best ideas in commercial business are generated when the opportunity for participation is open to as many as possible. If certain groups are excluded from the idea generating process—can the resulting solution be the best one possible? Can a monolithic or homogeneous group generate the very best idea or solution? Can an issue be investigated from all angles if only a few are allowed to participate? Multiple perspectives, or looking at an issue from various sides generates the best ideas and the most unique solutions. The business case for inclusion of SDVOB’s is born of this idea.

Veterans bring a variety of rich and unique approaches, ideas and perspectives. If companies are to maintain their competitive edge they NEED to be unique and develop offerings that appeal to a broad customer base. More and more this customer base is made up of a diverse group of consumers.

The Billion Dollar Roundtable (www.bdr.com) is a great example. The BDR is an organization comprised of large companies. The criteria for membership — a minority and woman-owned business spend in excess of $1 billion! This is the perfect response to the lament “show me the money!”

 


Billion Dollar Roundtable
Currently, there are 14 member firms of the BDR and these include:

  • Atria
  • AT&T
  • Daimler-Chrysler
  • Ford Motor Company
  • General Motors
  • IBM Corporation
  • Johnson Controls
  • Lockheed-Martin
  • Lucent Technologies
  • Procter and Gamble
  • SBC Communications
  • Verizon
  • Wal-Mart
  • Toyota Motor

www.bdr.com


The business case for the inclusion of (SDVOB) and (VOBs) is a sound one — both within and outside the government acquisition marketplace.The Roundtable was founded in 2001 and was created to recognize and celebrate corporations that achieve spending of at least $1 billion with minority and women-owned firms. I know, I know … where is the mandate? Where’s the preference program? There may not be a government-type preference program in commercial environments, but there will be an emphasis on assisting all categories of small business to understand how to do business with that large company.

For example, Johnson Controls holds monthly “straight talk” orientation sessions in key cities throughout the United States. During these meetings with diversity vendors, procurement personnel explain the pre-qualification process and review active purchasing plans. For upcoming dates of the “Straight Talk Series” go to www.jci.com or send an e-mail to diversitybusiness@jci.com.

The commitment for diversity comes from the top of these prestigious corporations. This commitment includes sourcing for veteran-owned business enterprises. So don’t make the mistake of only marketing to the government.

Another example is the Indiana Construction Roundtable (ICR) whose membership includes large manufacturing firms located in Indianapolis. They have made a commitment in the form of a signed memorandum of understanding (MOU) to include minority and women-owned construction firms in their construction projects. Opportunities abound, and if we focus on commercial firms that have demonstrated their intention to include all diverse companies in their supply chain, opportunities will continue to expand. The ICR is comprised of companies such as Eli Lilly, Roche Diagnostics Corporation, Indianapolis Public Schools, and Clarian Health Partners.

For additional information about the Indiana Construction Roundtable, contact Gary Price at (317) 685.8433 or gprice@indianaconstruction.org.

Expand your role with existing large business partners. Once a large business is satisfied with your work, begin to demonstrate how you can assist with other projects.The sooner VOBs begin to market to commercial companies, the sooner the opportunities for veterans will expand.

In the case of Tremco Inc., an international roofing, construction and facilities management company based in Beachwood, Ohio — increasingly commercial customers are requesting that construction and roofing contracts awarded to Tremco (www.tremcoroofing.com) include subcontracts to all segments of small businesses including those owned by veterans. The Tremco Small Business Strategic Alliance Program was initiated in the federal sector. Now the program has expanded to meet the diversity needs of commercial customers. In an effort to support diversity efforts, subcontracts are a condition of contract award to large businesses.

If you are partnering with large business for government sector business, consider this a great place to start marketing to be included as a partner or subcontractor on commercial business projects. Remember, the best place to look for customers are the customers you already have. Expand your role with existing large business partners. Once a large business is satisfied with your work, begin to demonstrate how you can assist with other projects. Bring fresh ideas to the table; understand the customer so well that you fully understand how to offer the skill of your firm as a “solution” to their problem.

Don’t make the same, traditional mistakes that small businesses have made for years. Look beyond the obvious. Be bold, step away from the crowd and move toward the … “Road Less Traveled.”