I’ve written quite a bit about the value of the SBA and SCORE, the non profit counseling arm of the SBA, to aid you in researching and planning your business. But these organizations also offer a more interactive environment for you to meet some of the people you may want to do business with. The SBA sponsors an event called Business Matchmaking with co-sponsor Hewlett Packard (hp). It’s here that you can meet with SCORE counselors, most of whom are retired business professionals, and meet with sellers and buyers for specific products and services. The goal is to match small businesses with large corporations and government agencies which need small business services.
As Walter Johnson, president of Pacific Crossing LLC revealed on a panel discussion about the state of business today, he made important contacts at the last conference which resulted in millions of dollars in contracts with Raytheon. So here’s plenty of notice for you to prepare for next year’s Western Regional event!
This year’s event took place in Pasadena in June, with the Administrator of the SBA, Hector Barreto, Kevin Gilroy, senior vice president and general manager of hp’s Small and Medium Business Segment, and about 1,000 Business Matchmaking customers. There are three other conferences held around the country from March through September. There is also a training session to understand what is needed to do business within the public and private sectors - so the small business owner is prepared before ever meeting with a possible customer. All of this is valid no matter what age you’re beginning a business and it’s also free.
“Putting the know-how with the know-who.”
Hector Barreto - SBA Administrator
Barreto says the Business Matchmaking events are one of the most successful private/public partnerships in SBA’s history. He calls it “Putting the know-how (entrepreneurs) with the know-who (buyers).” The main focus is to bring government contracts to small businesses and “demystify the process of federal procurement,” says Barreto. It seems to be working. So far the SBA has set up over 30,000 one-on-one appointments between small business and buyers. The potential is huge — government bought $65 billion goods and services from small business last year - 24% of all government spending. “We want to educate more people on how to get these lucrative contracts,” he adds.
Tech giant hp partners in these events because a third of its business is from small business. “At the Washington D.C. event,” says Gilroy, “the energy on the floor by both sides was just a buzz. I’ve been at a lot of events that are flat, but these really buzz with commerce. That’s why we’re part of it.” Gilroy says he’s noticed one thing in all his travels around the world.
“The businesses that are wildly successful have great introspection skills. They know how to get from point A to B, then change to get to point C.
In a panel discussion of current issues, several local business owners talked about their success. Here are some of their best tips:
Jeff Teller of Orange County Marketplace, says:
“When we started, we had low expectations. We didn’t have to burden the business with a high rate of return because we had other sources of income in the family. My advice to others is to do the same. Don’t quit day job unless you have to.”
Teri Bialosky, president of Print Technology, says preparation was her key to success.
“Getting customers is biggest challenge. So I went back to work for a big company, established my customer base and then started my company. I had a built-in base of business and we made our start-up capital back in 90 days. I had two to three months before opening our doors while I set up a dual shop at home so when all that hp equipment arrived we were doing test runs. I had the space rented, the staff hired, and I was still working at my job, so we just needed to move the business and open the doors.
“Look for companies that aren’t out shopping. At a lot of companies the relationship with a supplier is the most important thing, especially those companies that have downsized so people who are there are doing many tasks.”
Walter Johnson, president of Pacific Crossing LLC, says:
“All your competitors tend to say the same things, so you have to find one thing you say that makes the customer listen to you. For us, our competitor’s technology wasn’t the latest and greatest, and we knew ours was better. So we told our prospective client, ‘we’ll take your toughest requirement and we’ll deliver in the shortest period of time.’”
Lawrence Barraza, president of Symvionics, Inc., says:
“POA - Passion, Opportunity, Agility. Small business owners have passion, so they need to just see and seize the opportunity, then have the agility to do what’s needed. Relationship management is the best marketing. From the first meeting, take the opportunity and make something of it. We all know you spend 80% of time with existing customers.”
Raul Segura, president, Segura Security Services says:
“It’s important to have persistence. Make clients remember who you are. Create good marketing materials that stand out. Organize information well so you contact clients on time.”
Barreto says more people over the age of 50 are starting more businesses, though the SBA doesn’t track by age. He knows from talking to people and watching trends throughout the country. And overall, he says the outlook for small business owners is better than ever. “We’ve lowered tax rates so there’s more money to reinvest in the business. We’ve streamlined regulations to save businesses $40 billion a year. We are bringing down the cost of health care by getting health savings accounts passed. We’re working to get association health plans passed to save even more money.” He sees opportunity in free trade agreements. “We’ve negotiated 11 free trade agreements and 97 percent of the businesses who participate are small business, but they only have 30 percent of the trade. I think the glass is more than half full. We’re making sure the SBA is everything it can be, a passionate advocate for small business.”
Whether you’re interested in government contracts or not, you can access all of SBA’s services online at www.sba.gov.