According to the market statistics, US federal government is the largest purchaser of quality products. Now one mandate rule the government follows is around 23% of the total amount of dollars spent on businesses should be spent on the small businesses especially those are owned and operated by the minority group of business veterans. Prospective small businesses are recognized by 8A Certification and other programs. The small business development programs are not direct funding program but are designed to help the small ventures by offering them lucrative government contracts. SDVOSB or Service Disabled Veteran Owned Small Business processes are also given privileges to do business with the federal agencies.
It has been reported that in the year of 2008, only 6000 of the total 9000 certified companies used their certification in order to obtain federal contracts. So, you must asses your business status before planning for the certification. You must analyze the necessity of 8A certification to find what the recognition will do for your business. The fact is, not every business development program suits just about any small business process. You have to have the need to best utilize the advantages. HUBZone certificationprogram is area specific for which your business should be located in the HUBZone area.
Being 8A certified is not just filling out an application form and getting approved by the federal agencies. An applicant has to submit a comprehensive business plan via form 1010c to demonstrate your business potential. 8A Certification brings the license to get set aside federal contracts for the long 9 years. To establish even longer business relationship you need to re-register your business with SBA on an annual basis.
During these annual re-registration the financial ratios and other factors are again reviewed. So, it is clear that the 8A certification programs are actually not the one time application process. Incomplete or inappropriate applications are rejected and never reviewed. Moreover, once your application get rejected you lose your eligibility to re-apply for the next 6 months. Therefore, it is always wise to hire a professional to bypass the possible hazards.
Any 8A certified company get a 10% cost advantage over their competitors which make the contracts potentially more lucrative to the small business companies. A wide ranging industry is covered by the SDVOSB or minority owned business certification program. However the IT industry, construction companies, janitorial companies, food service and several other industries get greater exposure and opportunity compared to the others.
In fact, that is the reason why professional 8A certification consultants are now in demand. They not only help the applicants place a flawless application but also suggest a prospective business domain if they do not have any definite plan to start with. You can hire the professionals from online service providers or can download the guide books directly from the site to get complete program details and other necessary information. It is always good to have detailed knowledge about the certification program you are opting for. So, get online and find your needed information online, federal grants are just a few steps away.