SBA Federal Contract Opportunities To Women Owned Small Business

SBA 8a certification has offered new opportunities to get more federal contracts for women owned small business. As per its final verdict on the program, it has included a new certification, known as edWOSB (Economically Challenged Women Owned Small Business). As per this new program, women business owners get increased chances of getting the government contracts.

Women Owned Small Business SBA Certification Federal Contract

Benefits of edWOSB program

• As per the new program, women business owners can also win set-aside government contracts
• 5% of these federal government set-aside expenditure is for the WOSB or edWOSB program
• Projects that are less than $3 million and $5 million can take advantage of this set-aside
• 5% of the subcontract requirements are fixed to wosb from large major contractors
• Along with other programs like SDVOSB and HUBZone, this new program has equal opportunity
• The new program also has a separate mentor protégé
• The program has no term limit
• Nearly 83 industries that are qualified by NAICS codes are enlisted in the program
• On 45 industries, rule of 2 for wosb is implied
• On nearly 38 industries there is no rule of 2 for edwosb companies

How to get 8A Certification

You can get new 8a small business certification in a number of ways, some of which are –

o Third party certification
o Using existing 8a or 8a BD certification
o Using DOT’s DBE certification
o Self certification

Procedure for Self Certification

The procedure for self certification is as follows:

1. As per the SBA final rule guidelines, you need to determine whether you are eligible for the program
2. Your business needs to have at least 51% women ownership
3. The financial threshold of the women owners should be as follows:
o Gross asset should be less than $6 million
o Net worth of business should be less than $750,000
o The annual income or salary of owners should be less than $350,000
4. You need to review 83 industries under NAICS and see whether you are meeting the standardized size
5. As per your business qualification you need to choose either wosb or edwosb program
6. You need to provide documents for the program, which are as follows:
a. Business profile – type, financial statement, tax returns, and so on
b. Owner’s (s’) profile – financial statement, personal tax return, credit history, and so on
c. Management profile – list of employees with residential details, list of officers with residential details, and so on
d. You need to fill out IRS form 4506-T
e. You need to fill out SBA 413 form
f. You need to fill out SBA guidebook’s appendix C, in case you are applying for edWOSB certification
7. You need to register or update (if already registered) your CCR registration
8. You need to complete or update DSBS database of SBA
9. You need to complete or update ORCA database
10. You need to sign all the documents mentioned above with notary affidavit
11. Then submit all the documents along with the application form to repository database of WOSB or edWOSB
12. Need to maintain a duplicate copy for company record

However, if you want to be free from the hassles of so much paperwork and stringent application procedure, you can take help of a professional consultant and pay more attention to increase your business revenue.

Please Check Video  GSA Schedule Contract & 8A Certification

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Paving The Way For A Good Business Through GSA Schedule Contract

The General Services Administration is an agency chiefly responsible for meeting the requirement of the United States government offices and employees. They arrange for all the resources required for the functioning of the government including vehicles and office buildings. The GSA Schedule Contract helps business organizations supply their product directly to federal agencies on a long term basis. Each contract is drafted in such a way that it remains in effect for quite a few years. This allows business units to enter in to a long term business relationship with federal agencies.

Business Through GSA Schedule Contract

Federal customers can buy from GSA scheduled commercial concerns in order to get products at a discounted price. There are a few advantages of shopping from GSA scheduled commercial organizations. As a result a large number of people are getting more and more inclined towards buying from these companies in order to get quality products at a discounted rate. First, buyers are always able to save a good amount while buying products from gsa schedule contract holders. It is to be kept in mind that the federal government has to buy and avail a large number of products and services everyday and so even a small save on each product and service can result in saving a huge amount annually.

Second, the federal buyers can make a choice from a large number of options. As there are a large number of contractors enlisted under the schedule. This helps buyers get the right product at the right price. Moreover, the companies that are enlisted in the gsa schedule contract are managed by expert professionals and hence are able to offer effective and efficient services and suggestions to clients. As a result the clients can be rest assured that they are going to get the best possible products and services at the best possible price.

Third, procuring goods from a gsa schedule contract holder is not a time consuming affair at all. The contracts are pre-competed and make it possible to procure even the scarcest resources within a very little time. Buyers can connect with the right industry partners and are thus able to make the best and utmost utilization of their time. Most of the procurement is done within a very few days if all the formalities are completed properly.

Fourth, transparency is another important aspect of sourcing goods and services from a gsa schedule contract holding company. The whole process is managed over the internet and so it is possible to maintain a transparent approach in the procurement process. There is no room for malpractices and both the procurer and the supplier benefit from this practice.

There are many commercial units that are currently registered under the gsa schedule contract. Federal buyers can go through the internet in order to know more about the companies so that they can select the right one according to their requirement. While dealing with these companies the buyers can be rest assured that they are going to have the best products and services in the market.

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How To Form An 8A Certified Small Business Administration

In the United States small and medium scale enterprises play a hugely important role keeping the nation’s economy running. As a result, it has become important more than ever to provide these business organizations with optimum support so that they can continue making contributions in the economy. A large number of socially and economically challenged entrepreneurs in the country are involved in the small and medium scale enterprises sector which has grown exponentially over the last few years. The 8a certificate has been introduced to provide some extra leverage to the small businesses owned by economically and socially challenged entrepreneurs. 8a certified small business administration enjoys some extra facilities from the government and are able to stay in the market competing with large business corporations.

8A Certified Small Business Administration

In order to file a successful application for an 8a certificate a business organization has to prove certain things. This certificate is for those who have been in a disadvantageous position for a long time in history due to no fault of their own. The socially disadvantaged class includes African American, Native Americans, Hispanic Americans and Asia Pacific Americans. All these people have suffered some sort of racial or ethnic repression at some point of time and the 8a certificate is designed to provide them some respite in matters of business and self employment. An 8a certified small business administration must be governed by those who are in a socially disadvantageous position. However, the business organization has to prove that it is in a similar situation if it has to earn a certificate.

8a Certification - What is 8(a) Certification Advantage?

Another important requisite for having an 8a certificate is being economically challenged. In the United States anyone having a capital less than $250,000 is economically challenged and is eligible for an 8a certificate. It is to be kept in mind that there are a large number people who are economically challenged when it comes to investing money in business. It is possible for 8a certified small business administration to gain some extra leverage in the market and be in business competing with others. It is to be kept in mind that there are a large number of people who think that when it comes to capital, small and medium scale enterprises lag far behind larger corporations. This certificate works a lot to allow the small business units enjoy certain facilities that would help them move forward in the market. Moreover, businesses managed by women are also eligible for 8a certificates.

The best way to file a successful application for 8a certificates is to take the help of professional 8a certification consultant who has quite a few years of experience in this field. There is no room for making errors in the process as if once the applications gets rejected all future efforts get even tougher. Hence, a professional consultant can help a person out in this regard and can make the filing process a successful affair. It is better for clients to contact more than one service provider and choose the right one.

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What Is GSA Schedule Contract?

Are you new to the federal market? You might then be looking for a place to learn the basics about a GSA Schedule Contract. This is the best place to start.

A GSA Contract is a government wide contract. It allows you to sell your goods and services to any government agency--local government, state government, federal government and few other organizations. The best part of it is it allows your company to get orders for services or products without you responding to the government requests, which have confusing federal contract needs and expensive federal proposals. Without this contract, you would require to bid on and negotiate with the different agencies separately. It’s a 5-year contract but you can renew it thrice. So, it’s basically a contract for twenty years with the largest client of the world.

GSA Schedule Contract

A GSA Contract has become the most preferred contracting vehicle for the procurement officers. The benefits that a company enjoys getting a GSA Schedule Contract are that it gets enlisted on GSA eLibrary and it offers the right to use GSA eBuy. A number of firms have tried convincing the technical staffs of government agencies by saying that their products or services  were great; but the only question they were asked is, “Do you have a GSA Schedule?” If their answer was yes, they were in the business; if no, they were not considered.

If you want to procure a GSA Contract, then there are few important questions you need to ask yourself first:

1. Does your firm have the resources to break in the federal marketplace? There is a GSA sales minimum. If you are unable to meet that, you may lose the contract.

2. Does your firm have a paper trail? Collecting the documents to submit for obtaining a GSA  Schedule Consultant becomes very difficult if your firm doesn’t have a sold recording system in place.

3. Why you need a GSA Schedule Contract? You need to use it for gaining profits. The contract must fit into your federal marketing plan. It must not be your plan for federal marketing purpose.

4. How many years of experience does your firm have? A minimum of two years of business experience along with a good base of projects and customers is needed if you want your firm to get a GSA Schedule Contract.

5. What will be the procedure for you to maintain your GSA Schedule Contract? You may need full-time employees devoted to your federal sales and GSA Contract. We also offer GSA maintenance services. So, if you want you can outsource your need to us.

Thanks for your curiosity to know what a GSA Contract is. Hope you can now answer the question, ‘What is a GSA Schedule Contract.’

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Strategic Sustainability Performance Plan 2012 - GSA

Are you aware of General Services Administration’s Strategic Sustainability Performance Plan? The plan outlines the strategies and policies regarding how the agency can endure Obama Admin’s commitment to cutting pollution, waste, and costs in the federal systems. Sustainability is the main concern of General Services Administration This plan reaffirms the obligation to this priority and includes tactics to handle risks arising from the major climatic changes.

Obama’s Executive Order of 2009 on federal leadership in energy, environment and economic performance highlights the persisting violent targets to reduce pollution and waste in the federal operations within 7 years. The Sustainability Plan of 2012 is to be built on three long years of progress under Executive Order and should offer an outline on the ways the agency is saving taxpayer dollars, cutting waste, saving energy and reducing carbon emissions.

 

8a Certified Business

2012 Sustainability Plan of General Services Administration comprises an action plan related to the adaptation to climatic changes, outlining the initiatives for reducing the susceptibility of the agency’s assets, investments and programs to the effects of incremental climatic change like heat waves, rise in sea level, drought, heat waves or climate inconsistency such as extreme or frequent weather events. The plan points out the actions, which address how a changing climatic condition can impact GSA operations and programs, while safeguarding the investments of taxpayer.

The plan, which Obama asked the federal agencies to prepare in the Executive Order is available for sixty days of public comment and is updated as required. The adaptation plan develops on the Admin’s commitment to marketing the climate change resilience and preparedness.

Actions in the plan include extensive efforts to continue making federal buildings more viable and to lessen the environmental effect with the cost-saving wits. General Services Administration has reduced the intensity of energy and received sixteen percent of its electrical energy from the renewable resources. The action has even reduced the greenhouse gas emissions by 20% in comparison to the levels that was noticed in 2008. Reduction in petroleum usage with the internal fleet of GSA have totaled to more than 150,000 gallons in last 7 years. Considering the present prices of the gas, this amounts to annual fuel savings of about USD 500,000.

Waste diversion has led to cutting expenses by 3.6 million dollars. With water saving, which is equal to 523 Olympic-sized pools, the action has avoided the costs of nearly 4 million dollars per year. The plan even includes the educational measures for amplifying the sustainability efforts in acquisitions. The green purchasing training for the purchase cardholders and acquisition teams is available for all to assist further drive action priorities and for a better ‘Go Green’ approach.

Other than this Climate Change Adaptation Plan, there are two more components that are included in the Sustainability Plans-- Bio-based Purchasing Strategies and Fleet Management Plans. The federal agencies keep posting the Sustainability Plans annually, giving priority to the activities, which help to meet water, energy and waste reduction objectives based on positive ROI for American taxpayer.

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How To Hit Upon The Right Growth Strategy For Your Business?

Do you feel that the surrounding market ambiance in which your organization keeps running is some sort of a green eyed monster? Well, it is pretty natural on your part if you feel so especially when things in the world of business tend to get so knotty in these days. In the midst of the culminating pressure points as well as challenges in the business world it is pretty important on your part that you hit upon the right growth strategy for your business. Here is a brief discussion on some of the strategies that you might like to consider in this regard.

If you have to hit upon the right growth strategy for your business you need to proceed the right way. So, let us just make it a point that we are going to focus on the right points with no rooms for slipups.

8a certification

Have proper and streamlined financial plan ready

In the first place, you do have to make it sure that you have a proper as well as streamlined financial plan ready with you. A financial plan should lay the foundation of your success in your respective niche or target market. So, preparing a streamlined financial plan should be at the top of your priority list. While setting up the financial plan for your company you should know the ultimate objective of the plan very well. You need to remember one small thing in this regard. Break the plan in terms of monthly goals as well as yearly goals.

Chalk out a befitting product development as well as service catering plan

If you really wish to make it sure that you are going to make a seamless entry to your niche market or your target market then it is evidently important on your part to have a befitting product development as well as service catering plan ready at your disposal. These plans are going to create the right sort o podium that you need to accomplish your objective as well as flourish in the competitive market. You should have a complete as well as a surefire process which is going to ensure that the product ranges which you propose to launch in your respective target market is going to be a big hit. In order to make it sure that your products are going to enjoy some sort of a surefire success in your target market you do need to make it a point that you are going to focus on three things quite specifically. Those three vital aspects are as follows- market analysis, market research as well as proper as well as streamliu8ned product designing procedure. A perfect combination of these three vital components is definitely going to make it sure that you are going to rest assured of the success of your products as well as services even before you rope them in the market.

Think of alterative channels

You do need to think of alternative channels in this regard. It is indeed pretty imperative on your part. These channels are more or less going to serve the purpose of a back-up plan for you. In order to figure out how to make the most out of these channels you can resort to an 8a certification program. When you get yourself engaged in a crucial task such as thinking over the alternative channels then it truly becomes important on your part that you are going to focus on proper screening as well as analysis of the target market. When it comes to the issue of alternative channels for the growth of your business you have got to think about the real prowess of social networking. Social media marketing is quite an in-thing in the present scenario. You do need to mull over the effectiveness of social media in this regard. In order to hit your target market with a bang you do need to make it a point that you are going to integrate the efforts of your sales team with your social media marketing initiatives.

Focus on intensive growth spectrums

It is really imperative on your pat to be able to think of or focus on intensive growth spectrums which happen to be an integral part of various industry verticals in the present scenario. You do need to know what your compatriots or pals as well; as your close rivals prefer to do in the challenging as well as changing business scenario.

Make it a point that you are going to cast a cautious glance at the few aspects that have been suggested to you. These happen to be the growth strategies initiated as well as followed by an array of developing or growing organizations all over the globe.

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Top Ideas To help You Achieve Success As An Entrepreneur

Winners don’t do different things. They do normal things in a bit different way. The maxim is true in its entirety. If you are an entrepreneur by profession and are in the habit of seeking constant streams or sources of ideas you should get the point that every time you might not need a concept which is as new as a new penny just out of the mint. In order to achieve success as an entrepreneur you mint have to mine a little harder. Probably you are going to find a perfect mix and match of the traditional methods as well as some mint fresh concepts useful for your ultimate objective. Here is a quick peep at some quintessential ideas which are going to help you a lot in terms of accomplishing your objectives and set your mark as a visionary entrepreneur of this era.

Overcome pessimism

Pessimism can prove to be biggest hurdle for your success as an entrepreneur. It is an impediment as well as a predicament. So you do need to make it sure that you are going to overcome pessimism at any cost. In order to overcome the problem of pessimism you can make use of the technique which renowned and astute motivators would like to describe as ‘auto-suggestions’. It is a particularly useful method which is often adopted by professionals, sports people as well as top notch sales people so that they can tide over the negative feelings that threaten to unhinge their mindset.

Go for a certification program

If your business is in a state of its formative years or in its startup phases then you do need to go for a certification program. You can consider the 8a certification program in this regard. With the help of this kind of a helpful program you are going to win your spur in your respective field of business in due course of time.

Use latest technologies

Use latest technologies such as crowd sourcing, social sharing through internet, life style apps, specific tools for enhancing productivity (TENXER, EVERNOTE). These technologies are gradually turning out to be the tools that change the way business are done on global platforms.

Take care of official red tapes

Take care of official red tapes are going to be a pain in the neck if you are not careful enough about them. Do everything in your power to make sure that the obstructions are well taken care of. If you have to pull strings, then pull strings. Use your connections. You would be surprised to know that an 8 a certification program can prove helpful in this regard. If you are 8a certified then you get to face less amount of stringency from official circles.

In order to give you a final word on this issue, you must make it a point that you are not going to get distracted while making your earnest initiatives. If you have to achieve success as an entrepreneur then you do need to make it a point that you are going to turn out to be more productive in a true sense. You need to reinstate or concretize your business vision. You have to tap into your expertise or potential and most importantly you have to keep asking questions that keep you motivated and help you brave through oddities.

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How Small Businesses Can Increase Their Sales Through Federal Contracting?

If you are an owner of a small business, you can increase your sales through federal contracting. As per the law, the federal agencies are needed to establish contracting goals. In fact, twenty-three percent of all the government purchases are intended for small businesses and these contracts goals are established for small disadvantaged businesses, service disabled veteran owned businesses, firms in HUBZone area, and women-owned businesses. So, if you are an owner of a small business, you can take this opportunity to bid on for federal contracts.

The U.S. government is the world’s biggest buyer of goods and services. It purchases about all categories of service and commodities available. It’s actually up to you to promote and match your company’s services and products to the purchasing requirements of the federal agencies.

However, not all small business owners can get an access to the federal contracting opportunities. Only the firms that are eligible for the SBA certifications can compete for the federal contracts.

How Small Businesses Can Increase Their Sales Through Federal Contracting?

http://www.ez8a.com

Getting the business certified

The first thing that you need to do is get your business certified by the SBA. If you are a small business owner who is economically and socially disadvantaged you should obtain 8a certification. If you are a woman who owns and controls 51% of a small business, you are eligible for women owned small business certification. On the other hand if you are a service disabled veteran who owns a small business, you should obtain SDVOSB certification. The small businesses that have their principal offices and thirty-five percent of their employees located in a HUBZone area are eligible for HUBZone certification. By obtaining the SBA certifications, the small business can get sole source and set-aside contracts.

Getting the business registered on the contracting resources

If you think that by getting your business certified, you can win government contracts you are wrong! You need to register on the contracting resources because these are the places where the federal procurement officers usually search for when they are in look out for contractors. As a business owner of a small business, you can register your company on the DSBS database, SAM, GSA Schedules, FedBizOpps, Federal Procurement Data System, OSDBU.Gov and USASpending.gov.

Identifying federal contracting opportunities

As a small business owner you should be able to identify the federal contracting opportunities. You need to be proactive. You should first decide the products or services which you want to sell to the federal government and look for the agencies that need your services or products the most. Remember one thing that the federal government is considered as the biggest consumer of goods and services in the world. It buys almost all kinds of products and services. You just need to find out which agency needs your product/service. After finding this out, you should start bidding on the contracting jobs available. Federal Business Opportunities website is a great place to find the federal contracting jobs.

Obtaining SBA certifications are truly an awesome idea! Especially if you are a small business looking to win federal contracts!

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7 Common Myths About The 8a Certification

Myth 1 : I can’t get certified if a family member is already in the program

The SBA has a waiver, which can be granted if the two firms are located in and market to a different territory or if they are in different industries.

Myth 2 : A majority of my sales must come from the private sector or I will lose my certification

The SBA has business mixed targets that your firm must meet in the ‘Transitional years’—years five to nine of its certification. In the years 5-9 you must have 15-55% of your sales from the private sector. If you fail to meet these targets you could lose your ability to perform on sole source 8a contracts. Automatically if you don’t make good faith efforts to correct this business mix target, you could lose your certification.

Myth 3: A firm cannot get certified unless it’s been in business for at least two years

The SBA has a waiver, which can be granted to firms that are wanting to obtain the certification sooner than two years. Typical requirements are that:

• The owner has a significant business background and has a significant technical background in the industry of the applicant concerned.
• The firm has successfully performed on at least one federal contract
• The firm has a potential for success indicated by income, profit and the firm must have at least one tax return.
Note a two year waiver is not needed if the only reason the firm is less than two years old is that it has an entity type change. For example, from a sole proprietorship to a corporation.

7 Common Myths About The 8a Certification

Myth 4 : A firm cannot get certified if it’s had a prior application rejected by the SBA

The SBA rejects 70% of 8a applications for a lack of completeness. Having your application rejected on its first attempt is very common.

Myth 5: An 8a certification isn’t that beneficial for my business

In 2011 8a certified firms received 18.4 billion dollars in federal contracts. This represents 2-3 million dollars in additional annual revenue per 8a certified firm.

Myth 6 : A company should be a well established mid-tier business before applying for the 8a certification

The SBA will certify firms with as little as $100,000 a year in annual revenue. Once certified, the SBA gives the firm the ability to enter into: joint venture and mentor protégé agreements with large federal contractors. These relationships enable the 8a certified firm to greatly increased growth by providing them with expertise, bonding, insurance, financial capabilities and other assistance.

Myth 7 : I must be a 100 % member of a minority group in order to prove SBA that I am socially disadvantaged

If an individual can show a 25% or more blood lineage to a presumed disadvantaged minority group like Hispanic American, African American, Sub-Continent Asian, Asian Pacific American or a Native American, he/she can qualify for an 8a certification. In some cases, the SBA will ask for additional supporting documentation to show that you represent yourself as a member of that presumed group in American society.

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Is Your Business Small Enough To Obtain 8a Certification?

You may own a business, which you consider it to be small. But what is most important is that whether the Small Business Administration considers your business to be small. The SBA will only consider your company to be small if it finds out that you adhere to the size standards set by them. This means only if your company meets the SBA size standards, it will be considered to be a small business by the Small Business Administration. Unless your firm is small, it won’t be able to get the 8a certification.

Now, the question is what is a small business according to the SBA. The SBA defines it either on the number of employees the firm has or on the basis of the annual receipts over the last three years. A manufacturing and mining company should not be having more than 500 employees if the firm wants it to be considered small by the SBA. A non manufacturing firm on the other hand are judged on the basis of their annual revenue, which is set by the SBA as 7 million dollars. This means a non-manufacturing firm shouldn’t have earned more than the specified amount in a year if it wants its business to get approval from the agency for SBA 8a certification.

The Small Business Administration even defines a small sized business as an enterprise, which:

• Has a business location in United States
• Is established for making profits
• Operates mainly within the United States or contributes largely to the economy of U.S. through paying taxes or using American materials, products or labor
• Is operated and owned independently

8a Small Business Certification

The company can be a partnership, sole proprietorship or corporation. Since all the federal agencies should use the size standards set by the SBA for the contracts, you must choose NAICS codes, which best describe the firm and then see if it meets the size standards for the chosen NAICS codes. If you want, you can even make use of the Size Standards Tool for finding out the size of your business.

After you find out that your business is small, there are few more things which you need to make sure your company meets. Your firm apart from being small need to prove to the SBA that it is economically and socially disadvantaged, majority of the company is owned by a disadvantaged individual, the firm has been in business for a minimum of two years and so on. To find out all these requirements of the SBA 8a certification, get in touch with an 8a certification consultant who can explain you in detail about the requirements.

Our Partner: GSA Schedule Contract

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How To Get In Touch With The Right Person After 8A Certification

If you think that getting the 8A certification is all that you need to do, to get access to the hugely funded federal projects, you are absolutely wrong. An 8A contract is all about pitching the right person the right time.

Often applicants after getting the 8 A Certification get confused where to look for feasible contracting options. If you are keen to initiate your business growths and sales efforts then it is imperative for you to get in touch with the right contracting persons. If you fail to communicate with the right person, it is quite likely that even after being awarded by the federal certification; you will not be able to reap of 8A contracts.

8 A Certification

After being awarded with the SBA 8A certification, your sole objective is to look for federal contractors and try to get access to government contracting. The section managers, program managers or functional area managers often administer such authority. Such qualified professionals take the executive decision where the dollars should be spent to earn maximum income. It is considered one of the most difficult parts of federal contracting. After being awarded, often applicants lack the opportunity to gain access to the government projects. Hence, it is imperative to implement a strategy to overcome this hurdle.

In this regard, one of the most basic things that you can do is you can consult with the contracting officers. By talking with the contracting officers you can locate the feasible project opportunities available. The primary function of the contracting officers is to monitor and control the contracts. It is the duty of the contracting officers to take care of all the legal formalities and paperwork involved to make sure that no complications arise due to lack of proper documentation. The budget of the contract plays a significant role in the federal programs; however, the contracting officers do not have any authority in regard to control of the budget.

It depends on you who will control the budget. For instance, if you are a seller of information technology services, you might want to get in touch with the OCIO- Chief Information Officer’s bureau. It is quite likely that you may have to interact with a number of people at the OCIO and find it difficult to locate the right individual. It depends on you how will you determine the right individual who monitors the appropriate budget for the particular type of service offered by you.

According to SBA professionals and business analysts, one of the best and extremely useful ways to look for the 8A contracts is by focusing on individual sales. By concentrating on individual sales along with business development efforts on particular people, you can ferry the contracts the way you wish to. This is considered one of the less-expensive and most-efficient options to look for the 8A projects.

Preparing for the federal programs and acquiring the certifications successfully is just a small part of the federal projects. The most important part is acquiring the project after being awarded with the 8a certification. Hence, it is recommended to devise effecti8ve business strategy and look for feasible options to reap the advantages off 8A programs.

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Tips To GSA Pricing Negotiation

Negotiation is basically a skill, which may be honed over time until it is perfect. However, developing this skill needs a lot of persistence and practice. The General Service Administration in the United States allows for negotiation. It conducts a price negotiation with the company that wants to apply for the federal contract. The price negotiation is generally conducted after the submission of the GSA application. The main objective of the negotiation is to get the best price for the federal government.

By obtaining a GSA contract, the vendor comes to an agreement to offer the best price to the government for any quantity. But, it’s also true that the General Services Administration will look for more concession. So, before starting the negotiation, it’s important that you do a thorough research.

GSA Schedule Contract

You are in fact highly recommended to seek products that are same as yours and are listed on the General Services Administration. However, there are some complications with regard to this.

• A GSA applicant may always try not to give the extra cost of the products that arise due to quality difference between their products and the one that is listed on the Schedule. Quality differences between the products are determined on the basis of weight, strength, warranty, product lifetime and durability.
• If the company is located in an area where the number of competitors you have is few, modifying the pricing strategy becomes a difficult affair. This is mainly because of the presence of the few regional competitors. Such a situation generally demands higher price to General Services Administration for your firm and less concessions.
• The General Services Administration ensures the Schedule holder to provide the most favored customer pricing. At whatever price you are selling your products to the commercial clients, it’s important to remember that it’s the price that General Services Administration presumes.
• As a GSA applicant, you should monitor the quantity discounts or payment that are proposed by your competitor to the General Services Administration. Proper monitoring will give you an insight on the successful discounts that were made by your competitors previously. By doing this, you can be enlightened about the negotiated agreements, which GSA acknowledged previously.

At Advance GSA, we say to our clients that every kind of price concession will have something in store for the Schedule holder. Therefore, we suggest our clients to try their luck for GSA bulk order discounts rather than the blanket price concessions. Getting faster payment terms need to be requested as an important part of price concession.

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8 A Certification Financial Requirements And Limits

8 A Certification is a United States Small Business Development Program for the small businesses. By obtaining the certification, small businesses can get an access to the federal contracting opportunities. So, getting certified by the SBA is a big thing for small companies that want to grow.

Not every small company can get 8a certified by the Small Business Administration. The firm needs to be eligible for the 8a program. For being eligible, the firm has to be small as per the SBA standards; the owner of the firm should be disadvantaged both socially and economically, he/she should have a good character, the company has to be owned and controlled by the disadvantaged individuals and it should have been in business for a minimum of two years. Only if the company and the entrepreneur have all these qualifications, the SBA is going to approve the 8a application of the firm.

8 A Certification Financial Requirements

Here in this article we are going to discuss in detail about the financial requirements and limits for obtaining the 8 a certification.

Personal net worth--$250K

The applicant’s personal net worth should not be more than $250K. But do you know what this figure takes into account? It includes all your cash, bonds, stocks, savings and checking accounts, automobiles, RVs, motorcycles and other assets. Though you will need to declare the value of your company, home, 401ks and IRAS on the SBA Form 413 or personal financial statement, they will not be included within the personal net worth limit. The Small Business Administration doesn’t include the value of your home, company or retirement accounts.

Annual salary--$250K

The applicant’s annual salary should not be beyond $250K. The person needs to be the highest paid one in the company. Moreover, his/her salary needs to be reasonable as per the industry standards and should be reasonable in proportion to the annual gross revenue of the firm. The Small Business Administration is going to consider both the salary as well as the amount the entrepreneur draws from the bank account of the company while determining what all is constituted in the ‘total owner compensation.’

Assets market value--$4 million

The individual who is applying for SBA 8a application needs to keep one very important thing in mind. He/she should make sure that the total market value of all the assets that he/she possess is not more than 4 million dollars. The person can ignore the liabilities when considering the total market value of the assets.

The 8a application reviewers generally look for any large or unusual transfers of money between the accounts during the three year period preceding the 8a application submittal. Few things, which the reviewers look for include huge amounts of money presented to relatives or mortgages for homes, which are quickly paid off.

3 year average AGI--$250K

The applicant’s 3 year average AGI or adjusted gross income as shown on the federal tax returns should not be more than $250K.

As far as the financial requirements and limits for 8 a certification is concerned, you should note the above-mentioned four points. They are going to be of great help to you while preparing the SBA 8a application.

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8a Certification: Determine Whether Your AGI is Below $250K

8a certification is a business development program for small businesses. Obtaining this certification is not an easy affair. The United States Small Business Administration is very stringent when it comes to approving the certification for small businesses. It scrutinizes the application in details and if it finds any SBA 8a certification requirement not being met, it rejects the application straightway.

If you are a small business wanting to get 8a certified, you need to make sure you first know the requirements for SBA 8a certification thoroughly. You need to be a ‘small business’ as per the SBA rules, you should be socially and economically disadvantaged not having more than $250K as your average AGI over the past three tax years, the small business need to be owned and controlled by disadvantaged individuals, your business should be 2 years of age at least and the business owner needs to have a good character.

8a Certification

Here we have discussed about how to determine if an 8a applicant’s average Adjusted Gross Income, which should not be more than $250K over the past three tax years.

Before starting, let’s first learn what is an AGI. It’s a tax term for an amount used in the calculation of the individual’s income tax liability. It’s calculated by taking the gross income of the applicant and subtracting the maximum allowable adjustments.

How to determine your AGI for 8a certification?

An easy way to determine if your AGI has exceeded $250K threshold is to add the AGI number for the past three tax years, which is the on the first page of the Form 1040. Add these three numbers, divide them by three and then find out what’s the result? If the amount exceeds $250,000, you need to do more analysis. If the number is not more than $250,000, then be happy you have not exceeded the threshold and that you have met one of the major 8a certification criteria.

If you’ve found out that your AGI is more than $250K, then a further analysis might help you. Sometimes it happens that married couple file their taxes jointly. In such a case, you need to separate your part of income, which is reported on tax return. After doing this, add up the AGI numbers for the last three years and then divide them by three again. If the number exceeds $250,000, you need to do more analysis. If it is below $250K, you can be happy that now you have met the criteria.

However, if the average AGI is more than $250K, there is one more way to see if you still exceed the specified threshold. If your company is an S-Corporation or an LLC you can:

• Deduct the income, which is related to the enterprise and that was reinvested into the business, less any distributions.

• Deduct the income, which has been used for paying the S-Corporation or LLC federal taxes within one year of the income distribution.

Determining your AGI for 8a certification is a complicated affair. Advance 8a can assist you to determine your Adjusted Gross Income should you require more help.

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SBA 8a Application: 4 Major Mistakes Applicants Often Make

Do you want your small business to get 8a certified? You first need to make sure whether you are eligible for the SBA 8 a certification requirements. If you are unable to meet any one of them, you will be rejected by the United States Small Business Administration. The SBA is very strict with reviewing the application. Any mistake on your part will delay your request and cause harassment to you or even jeopardize your chances of getting 8a certified by the SBA.

8 a certification

Here in this blog, we have discussed the four major mistakes, which applicants often make while applying for the 8a program. Make sure not to make these mistakes when you apply for the certification program.

Never appoint your better half as the CEO of your company

Many applicants make the mistake of appointing their spouse as the CEO of the firm. This is one of the major mistakes they do. You should never do this unless your better half has a strong background in business management or has held a top management position in other companies in the past. Make sure your spouse has technical credentials as well if you plan to appoint him/her in the position of CEO.  The person you appoint as the Chief Executing Officer of your small firm should have the appropriate skills, expertise, licenses and credentials required to succeed in the industry.

Never obtain contracts from your X-employer

You should make it a point not to acquire contracts from your past employers. If you do acquire contracts from them, it will see as if your form is just a front for them. All you need to do is develop a wide base of clients and have a balanced project portfolio before getting involved in the SBA 8a application procedure.

Never appoint a number of Board of Directors

One of the major mistakes, which small companies often do is, just after few months of their commencement they appoint a number of board of directors. Never do this because you might dilute your firm control or come up with an affiliation or size problem. Carefully vet all the directors and officers before applying for the 8 a certification because these people will need to submit some of their personal documents as part of the firm’s 8a application.

Never show a loss on company taxes

Applicants often think that they might get approval from the SBA if they show the agency that they have incurred losses while running the company. Never do this. Instead show positive equity and positive revenue in your business to prove the SBA that your firm is in a stable and healthy condition.

Always make sure that you do not make these above-mentioned SBA 8a application mistakes if you want your company to get 8a certified at one go.

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Arranging The Personal Financials Is Compulsory Before Requesting For 8A Certification

If you are thinking to request for the 8A certification without arranging your finances, it is quite certain that your 8A application will get denied. According to the federal rules set of the SBA, your personal finances must be synchronized to get access to federal funded contracts.

Requesting for the 8A programs needs fulfillment of numerous pre-requisites. One of the key requisites to be fulfilled for successful 8A certification is the appropriate planning of your financials. According to the rules of the government programs, if you are requesting for schedule projects you must correctly coordinate the financial position of your firm and deliver your SBA application in a methodical and disciplined way. Professionals suggest that, if you own a small firm and wish to get rid of your personal financial barriers effortlessly to request for the 8a programs, it can be completed in a number of ways namely:

8a Certification

 Assembling a list of the liabilities

Before you request for the 8 A Certification programs, arrange a list of all your incomplete dues and liabilities namely credit card accounts, car payments, mortgages and HELOCs. Agreeing to the SBA, if you are a candidate you must disclose all your liability to the SBA.

Placing papers for all accounts

If you own an account for any liability or asset, appropriate documents must be delivered to display its current value. To validate the existence of such accounts, suitable documents must be offered instead of just word-of-mouth.

Good riddance from debts

If you have any federal obligation such as linens, arrear taxes or student loans it is highly suggested to pay it off. In case you are unable to pay your debt completely, establish up a formal payment option with the leading federal agencies like IRS, SBA, or Department of Education. Ensure that the plan is included in the 8A application before submitting it.

Keep a record of assets

Maintain a record of all your assets before prior sending the application for the 8A program. If you possess an asset together with your spouse, do not forget to indicate it in the list. It is compulsory for you to make the SBA alert of each asset, online accounts or 401k plans you own, prior sending the requesting for 8A certification.

Place your documents in order

After organizing all your documents, use a binder or folder where it can be easily accessed when needed while creating for 8A application. You can utilize your account statement to aid your financials while sending application.

If you do not obey to the basic instructions and layouts set by the government program, your request will get denied. Meeting the financial requirements is one of the rudimentary requirements to get your company 8Acertified successfully. Hence, it is compulsory for you to pay attention to the above-mentioned ideas and solve your financials prior submitting your SBA certification request to bid for government projects.

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What is takes to qualify for the 8A certification program

8a certification application

8A Certification Application

If you are thinking to apply for the 8A certification program, and not worried about your eligibility, then it is quite likely that your application for the federal certification may get rejected. Qualifying for 8A SBA program is one of the hardest steps for a potential applicant.

To qualify for the Benefits 8a certification program, you need to meet few requisites. In case you fail to meet any one the mandatory requisites, your firm will not get the official federal recognition. In order to derive the benefits of the 8A SBA program, your firm needs to meet the eligibility requirements, which includes:

Disadvantaged Business

If you intend to apply for the 8A programs, it is mandatory for your firm to be monitored by a disadvantaged individual. It is imperative that a disadvantaged person occupies the highest rank or position in your firm. The disadvantaged individual must be in-charge of the firm and should be responsible for the day-to-day activities of the business.

Good Track Record

Your firm must maintain an excellent record of accomplishment, by delivering every order on time and meeting all the customer requirements.  This will help the SBA to evaluate your company on a positive note and help you qualify for the government program. Few positive testimonials from your previous clients will add to your overall credentials.

Good Moral Character

This is one of the most important requirements set by the SBA. The person representing your company must have a decent moral character. Fiscal responsibility plays an important factor in moral accountability. Make sure that the representative you opt for your company is not on parole or a felon. Such people should not hold a significant position in the ownership or the management of the company. However, few other mars such as a DUI arrest for 10 years do not prohibit you from applying in the 8A certification program. Few other felony convictions such as tax scofflaws, unmet taxes, default on SBA loans, liens etc. are taken as serious crimes, committed by an applicant and hence will reject the application.

Small Business Concern

According to the standard set by the SBA, your business must be small and meet the requirements of the federal program. In case the SBA does not define your firm “small”, it is not possible for your company to get the certification.

Presence

A company applying for the 8A certification should remain active for not less than 9 years. It is imperative for your firm to remain active for nine whole years in order to qualify for the SBA program. The reason for such a requirement is that the SBA wants to determine whether your company is durable enough to bear the uncertain ups and downs in business and whether it has the potential for success.

To get the certification, your firm must meet all the eligibility factors set by the SBA. If the above points are not fulfilled, be rest assured that your application for the certification will get rejected. All the documents and paperwork must be in proper order before applying and must be in agreement with the federal and state law.

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What are the mandatory requirements of your business to become 8A certified?

If you have overlooked the importance of the compulsory requirements of your business to get 8A certification, getting your business certified by the SBA can become very difficult for you.

In order for your business to get 8A certification, it is mandatory that certain requirements are met as suggested by SBA. Fulfillment of specific details and requirements confirms that your firm is qualified to be 8A certified. Such requirements include:

8a certified

Business concern

This part generally involves the structure of the organization, articles of incorporation and special agreement bonds with the state government. This section also includes bank signature cards, insurance information and business background. The SBA confirms whether you actually control the organization or not and if your business have shared ownership, location or management. If in case any individual is having a higher position than you in your organization, it is quite likely that your business will not be 8A certified. The SBA also verifies your employment background and find out the possibility of any discrepancy. The sole purpose of the verification is to determine whether you have job outside the organization or not. The SBA also scrutinizes your personal financial statement and determines the net worth. Your net worth must value below USD 250000 excluding your house and business.

Financial Status

You business concern should be financially capable to be able to thrive in the program and must have positive equity. If your business has negative equity, it will not get 8 a certification. The SBA also evaluates whether your company can prosper without the continuous introduction of capital in the business. The cash flow of your company is also determined by the SBA to find out whether your organization will be able to cover the expense when any client fails to pay within time. Your business must provide at least 3 years of business tax returns for the analysis of the SBA to verify the sales report and authenticate the financial statements.

Personal Data

Your personal data which includes financial position, personal history and narratives play a significant role in the eligibility criteria of your 8A program. You do not require providing with a social disadvantage network in case you are a member of a designated group such as the Asian Pacific Americans, Black Americans, Hispanic American etc. Providing an economic disadvantage narrative is essential for each and every applicant, in order to determine whether a particular application is approved or not. The economic and social disadvantage narrative displays specific events from your life displaying the discrimination depending on the membership of the group applied for. Such narratives may include specific gender, handicap and specific race. The sole purpose of SBA is to offer credibility to your narrative by verifying as much detail as possible.

To get your business 8A certified, it is essential that you fulfill the above mentioned points carefully. After proper scrutiny of the above mentioned points, the SBA may grant the 8A certification to your business and offer an official recognition.

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