MBE certifications provide you with evidence that your business at least 51% owned, controlled, and operated by a minority. The term MBE is often used to refer generically to any minority business enterprise, but sometimes people also use it to refer to MBE certified entities. So you need to determine which context it is being used.
Now that we have some definitions, lets explore a few of the ways that you can use multiple levels of MBE certifications to grow your minority-owned business. An MBE certification may be obtained at a local government level, state government level, federal government level, and at a national level (for selling to Corporate America). Thus, you would want to obtain an MBE certification at the proper level depending on what type of agency or company you would like to have as a client.
For example, if you are interested in selling to a state government agency, consider a state MBE certification. If you are interested in sellling to Corporate America, then you should consider a national certification.
You may not necessarily be required to have a certification to do business with a government agency or Corporate America, but as a practical matter, some of them will require or encourage you to have a certification so you will increase your chances of getting business from them. That is the main reason these certifications are beneficial: they give you a greater chance of obtaining the government and/or Corporate America as a client.
So what is the point of obtaining MBE certifications? The federal government does not have projects that are “required” to be set-aside just for minority owned businesses. But as a practical matter, the federal government does make significant efforts to award a certain percentage of contracts to minority companies. Some state and local government agencies, and large corporations do have special projects they set aside for MBE’s. So there are still incredible advantages with the federal government and large corporations if you are a MBE.
If you sell products or services that government agencies in your state would be interested in buying, then you should explore the option of obtaining a MBE certification in your state (if your state offers a MBE certification program).
One very effective strategy for growing your business can be to obtain a MBE certification in more than one state. Despite popular belief to the contrary, you can in fact obtain certifications in many different states. This would allow you to compete on projects from state government agencies in each state in which you are certified, with the special advantages that your MBE status gives you.
It certainly will take more effort to obtain MBE certifications in different states. Unfortunately, every state has a separate MBE certification process and paperwork. Dont spend your time obtaining a certification unless you have identified one or more state government agencies that you are targeting in a particular state.
Another strategy to consider for increasing your sales is to use the various types of certifications in combination. In other words, you can obtain a state MBE certification for increasing your chances to sell to state government agencies, use your self-certified federal MBE certification to help get federal government contracts, and obtain a national certification to help get more contracts from large corporations.
Before you rush out and apply for one or more of these certifications, take a moment to consider who the ideal customer is for your products and services. Then, you can determine the level of certification to go for that will best increase your chances of obtaining that entity as a client. It would be a waste of time to pursue a certification if you don’t plan to sell to an entity that the certification is used for.
With these MBE certifications, you increase your chances of gaining business from those “deep pockets”. If you do want to have those deep pockets your clients, you should consider those certifications that give you a serious competitive advantage because of their mandatory requirements. Why not use any competitive advantage you can get your hands on?
Denise Gosnell is an attorney, entrepreneur, and world-recognized author on business, technology, and legal topics. For more information on obtaining and leveraging minority business certifications, make sure you check out Denise’s FREE MBE certification Kit at http://www.mbecert.com.