Certified Business Enterprises - Differentiate yourself on the playing Field
Let’s face it, it’s a dog eat dog world out there when it comes to competition in any industry. So, what can you do to differentiate yourself?
For those of us who meet the qualifications of one or more Certified Business Enterprises (CBEs), this marketing tool can be a distinct competitive advantage. It is worth the time and financial resources required to complete the certification process if you qualify for any of the following common CBEs:
Women Business Enterprise (WBE)
Minority Business Enterprise (MBE)
Veteran Business Enterprise (VBE)
Disadvantaged Business Enterprise (DBE)
Disability Owned Business Enterprise (DOBE)
It is important to note that certification for any of these usually has to be done at the Federal, State, County & City Level. Some Counties and Cities combine for one application but we have not seen any at the individual state level which can be used in lieu of the Federal level or the County/City level. Why is that? It is unknown, frankly. And as a small business owner it is one more administrative task that you can either take on yourself or outsource to your Business Consultant, Attorney, or perhaps your CPA. Fair warning – we have heard one manufacturing owner describe the process as “intrusive”. And that is because it is. The governing bodies need to ensure that applicants qualify on their own merit and the data required to confirm that is all encompassing. It also needs to be updated regularly, which may mean you have to constantly re-apply. After all this is a privilege not granted to most, so expect to weave it into your normal annual budget.
The most important component for all of these Certifications is that the Primary Owner, responsible for the company’s operations, owns 51% or more of the company. And you will have to show forms of eligibility for each one proving that you not only own 51% but that your expertise is the one needed, which without, the company could not operate. The VBE and the DOBE have additional paperwork required and the DBE is a financial litmus test. The DBE is applicable to Department of Transportation projects and is attained by an in-depth financial review and threshold that must be met.
There are also additional certifications available to WBE and MBE firms including HubZone, 8(a), and WOSB. Often you may find that Military Organizations may prioritize working with VBEs, given their close affiliation. It is a wonderful perk associate with recognizing the sacrifices Veterans have made on the country’s behalf. Each state will set its minimum requirement for the percentage of work that needs to be contracted to CBEs, they are all not the same. And the DBE has its own contract percentage set by the Secretary of Transportation. The percentage may also be set at the Project CBE level as well. But do not be overwhelmed, if you can qualify for this work, it is often a steady, life-long income stream and worth every effort.
If you believe your business could benefit from one or more of these designations, take the time to either read up on them or seek out professional consultation. You never know what work may be just around the corner and it may be worth your time to fetch one of these to stand out among your competitors!
