8 (a) Business Development Program Success Factors

We identified several common traits and excellent practices among the more than 1,500 8a Certification Business Development Program participants in Metro Washington, D.C. after analyzing trends among them. Here are the strategies used by the most prosperous businesses to expand over the initial four years of the developing phase and the following five years of the transition phase, which results in 8a certification program graduation

8(a) Program Entry

Entry into the 8a Certification Program Participants in the 8a certification program typically have a track record of at least two years, however, the SBA may waive that criterion. Additionally, the business typically employs at least one person outside the owner.

What differs do the most prosperous people do? They are already marketing to the government and concentrating their efforts on the most promising agencies before they even apply for the program. They concentrate their efforts on a maximum of 3–4 agencies. They have also worked in teams before. The foundation for joint ventures (JV) and/or mentor-protégé (MP) partnerships is already in place.

8(a) Stage 1: Initial Development

The top 8(ain )'s program exhibit exceptional contract performance right away, and they actively seek out training to hone their skills in vital areas like costing, proposal writing, government sales, marketing, and business development.

The most successful 8(a) enterprises have their first contract set up and prepared for the award as soon as they are granted 8a certification status, or they receive their first award during Year 1.

By the end of Year 1, they have at least one JV and/or MP agreement in hand, or they have at least one JV and/or MP relationship.

8(a) Stage 2: Growth Development

Currently, 8a certifications are winning more work based on their impressive past performance. They are intent on securing as many 8(a) opportunities as they can, hopefully without going over the size limit.

However, those who are most successful are also broadening their influence within their first agencies and gaining recommendations from within and outside of their first federal agencies by extending their networks and cultivating new connections in both business and politics.

The Developmental Phase ends in Year 5 and is replaced by the Transition Phase. Each 8a certification is required to achieve business activity targets (BATs) intended to change their business mix and reduce their reliance on 8(a) contracts.

The most prosperous 8(a)s focus their business development team on more non-8(a) sales, fine-tune the transaction management plan they've had in place from the start to fulfill those goals, and look for the best post-graduation 8(a) partners.

8(a) Stage 3: Initial Transition

Most 8(a) must continue to meet their BATs of 15–25% once in the first stage of the transitional period (Stage 3), to remain eligible for sole source payments. However, the leaders substantially step up their networking and relationship building for non-8(a) business development. Additionally, they begin planning their post-graduation strategy, such as how they will outsource work to other 8(a)s or whether they intend to expand by acquiring one or more businesses.

8(a) Stage 4: Final Transition

The most prosperous companies at this period continued to meet their BATs (35–45%) while looking for younger 8(a) to join as prime partners after graduation. To facilitate post-graduation subcontracting to such younger 8(a)s under the 8(a) program or to support preparing to be acquired by a larger firm, many also position themselves as potential mentors to such younger 8(a)s. For the 8(a) Business Development Program, these 8 crucial success elements emerge:

• Inform them of the issue you resolve and the unique aspects of your approach. Tell a brief tale about yourself that highlights your background, accomplishments, skills, or core principles... not a rundown of your credentials.
• A buyer is not required to grant an 8(a) single source just because they can. In reality, federal purchasers are urged to compete for opportunities rather than use a single supplier. Be bold and kind when you speak up for chances to compete against other 8(a)s.
• Be persistent in pursuing business, but recognize that just because an agency says to "come back when you have your 8(a)," doesn't indicate that there will be a job waiting for you.
• Prepare 8(a) opportunities, particularly sole-source ones, before and during the application process.
• Keep in touch with your SBA Business Opportunity Specialist frequently and adhere to your reporting obligations.
• Plan your business growth efforts to satisfy the changing needs of your business activity targets at each stage by starting with the end in mind.
• Attend your target agencies' outreach activities, engage in SBA, agency, and industry matchmaking events, and network at SBA-sponsored and -recommended events. Make sure your top executives regularly attend agency- and networking-focused events.
• Early on in your program participation, look into and schedule meetings with potential joint venture partners or mentor-protégé connections.

Going through the occasionally challenging SBA 8a certification procedure may be worthwhile. You will have access to 8a government contracts worth millions of dollars after your business receives certification under this program. Additionally, businesses that do not hold a small business 8a certification are prohibited from bidding on contracts under the 8A Business Development Program.

We can help you navigate the technical assistance process if you are a person of an economic disadvantage having issues with an 8a certification. Reach out to our 8a certification requirements specialists for assistance with SBA certification and company development, requirements for 8a certification, how to become an SBA 8a certified business, and to ensure that your SBA 8a application criteria are fulfilled.