8(a) companies face new uncertainty

By Bill Scheessele

| December 4, 2008

The pressure and uncertainty is increasing for small businesses in the government market.

A business development plan isn't thesame as a business plan. The formerrequires a focus on business developmentand revenue generation from aproactive rather than reactive stance. Getoutside help for this critical first step.Business development leadership iscrucial to growth. The individual chosenshould have hunting and farming expertiseand the interpreneurial profile of ateam builder. If someone with those credentialsis not already on the team, findan outside professional with experiencein building a business developmentoperation. Your business developmentthinking must focus on building long-termrelationships with clients. Althoughproviding top-notch customer service isessential, knowing and understandingthe challenges your customers face iseven more important. Invest in the trainingyou need to expand your group'sknowledge about business development.It is essential to install a companywideprocess that all employees use. Everyonewith customer contact is in businessdevelopment and should understand theorganization's business developmentprocess and use it.Building a team of strategic huntersfor new business and organic farmers foradd-on business is crucial for ongoingviability. Whether a firm continues as anindependent organization or is beingpositioned for acquisition, the businessdevelopment capability will make thedifference between succeeding witheither strategy or folding because thecompany did not meet revenue objectivesand profit projections.Firms in the government servicesindustry face many challenges overwhich they have no control. Whetheryour company is a member of the 8(a)program or not, actively securing itslong-term viability by cultivating businessdevelopment thinking, disciplineand methodology is something you cancontrol and should tackle as an approachfor 2009 and beyond.There is nothing unconstitutionalabout that.For more business development resources, click . To contact Bill Scheessele, e-mail

The U.S. Court of Appeals for the
Federal Circuit recently ruled that
the Defense Department's contracting
rule for small, disadvantaged
businesses was unconstitutional. It
sounds harsh, but that could be the
wake-up call many 8(a) firms need.

The good news is that the ruling
applies only to DOD's program. The
court took 10 years to reach that decision,
and it doesn't dismantle set-aside
programs created by federal laws.

The bad news is that the decision adds
more uncertainty and gives 8(a) businesses
more to worry about.

When companies accept entry into the
8(a) program, they also accept the challenge
of creating a business development
culture and methodology.

There is no forever under the 8(a) program.
Eventually, you must deal with the
reality of surviving on your own. If not,
you've created an environment of
dependency and vulnerability regardless
of your technical capability and
relationships.

Cultivating a revenue-generation capability
involves more than investing in
proposal writing, capture management
and how-to-sell workshops or relying on
a mentor/protégé relationship. Building
a business development operation and
culture early in the program requires
taking a number of steps.

Developing a strategic and tactical revenue
growth plan.
Securing a business development
leader with hunting and farming
abilities.
Understanding business development
thinking and methodology.
Installing a companywide business
development process.
Building a team of hunters and farmers
to guarantee revenue growth.

here bill.scheessele@mbdi.com.

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