Post Trade Show Follow-up

The ASIS Trade Show in NYC is a great opportunity to connect with security professionals throughout the country, but if you don’t have a plan in place to follow-up and measure results, you’ll never truly realize the benefits of the show.  Here are some quick tips for follow-up.

1. Follow-up on all leads within 48 hours.  For JKA clients, we’ve created a “Thank You” for stopping by our booth template through an e-mail marketing program that has a link to clients’ website, contact information and a call to action if the prospect wants additional information or a telephone call.    The nice thing about email marketing is that you can immediately see who opened your e-mail (and who did not), as well as who “clicked” on your website. 
2. Categorize and prioritize leads so that you can follow-up on the important prospects first, then enter them into a database.   Use administrative support, interns, temps or outsource. 
3. Develop a communication plan to maintain consistent contact with potential customers – this is not a one shot deal.   What happens after the “Thank You” email, or that initial phone call?   It has been my experience that businesses that have plan outlining a communication strategy month after month are more successful at closing business than those that don’t.
4. Determine ROI, how much did the tradeshow cost, how many leads did you get, and how many customers were closed as result of your participation in the show.
5. Conduct a post-show analysis and determine what worked for your company, and what did not work.  Some considerations include; did you meet your ideal clients at the show? How did your booth look? Lessons learned from competitors?

I remember the days an owner of small guard company struggling through follow-up, and often times, follow-up was put on the back burner to handle client issues, personnel issues and just day to day operations.   Whatever your situation is, be sure to commit to a plan for your follow-up!

 Good luck!

Common Myths About Government Contracting

Yesterday, I was talking to a business owner who told me he was not interested in doing business with the government.  Turns out, my client, like many other business owners have heard a number of myths about government contracting.  Here are some of the common myths:

1. It’s difficult to compete with large companies on things like pricing, and experience.  Small businesses really don’t have a shot at competing for large contracts.

The government is always looking for the best value, and price and past performance are definitely a consideration when going after large contracts.   There are however a number of options for small businesses including:

Small Business Set-Asides – contracts and programs that limit competition to small businesses to level the playing field.

Sub-contracting – most large contracts have a small business sub-contracting requirement in them to facilitate growth and opportunity for small firms.

Mentor-Protégé Agreements – this is when a large business mentors a small business and provides agreed upon support to small business to help them grow.

Micro Purchasing – for purchases between $3,000-$100,000 the federal government can use simplified procedures for soliciting and evaluating bids. 

1. 2.       Getting Paid is Difficult

It has been my experience that upon submission of a correct invoice, payment is received within 30 days.  There a number of steps that a vendor should take in order to including the proper registration of contracts, enrollment in the government’s on-line payment system and familiarization with invoice submission requirements.   In certain cases, the government also encourages vendors to offer discounts which can facilitate even faster payments.

1. 3.       The low bidder always wins

 

Competitive pricing is definitely important when looking to do business with the government; however the government is increasingly awarding contracts for goods and services based on “best value” in which case technical and cost factors are weighed in the final assessment.

As a small business owner looking to grow a business, there is no way you can ignore one of the largest purchasers of goods and services in the world.  According to recently published articles, the government buys over $425 billion a year with 23% being set aside for small businesses.   In my opinion, government opportunities cannot be ignored by anyone looking to grow their business.

Fast Track Your Growth through a Mentor Protégé Agreement

According to a recent article published by American Express OPEN for business, the average small business is spending over 100,000 and bidding on 4-5 contracts before they get their first federal government contract.  Of even greater concern to small businesses looking to acquire federal government contracts is the evaluation criteria that requires relevant past performance, competitive pricing and managerial expertise.  Could a Mentor Protégé agreement fast track your business?

Since the beginning of the year, I have had the opportunity to work on a number of Department of Homeland Security contracts, all of which require bidders “other than small businesses” to include sub-contracting plans with their bids, and failure to submit such a plan could mean the difference between winning and losing a bid.  What’s even more exciting is that on acquisitions that contain the requirement for a sub-contracting plan, large businesses are eligible to receive credit in the source/selection and evaluation criteria process for mentor-protégé participation.  

The DHS Mentor Protégé program is designed to motivate and encourage large business prime contractor firms to provide mutually beneficial development assistance to small, disadvantaged, minority, woman, veteran, HUB Zone and service disabled veteran owned firms.  According to DHS’s website, DHS wants to encourage the development of long-term business opportunities between large and small businesses. 

If you’ve been around long enough, you’ve heard all the stories of Mentor Protégé relationships that have not worked out, or situations where contractors large and small were disappointed in the outcome of the relationship.  The key to making a mentor protégé relationship work is finding the right partnership, and defining outcomes up front for both parties.  As far as I am concerned getting into the relationship just because one firm is small and the other is large does not make for a long-term mutually beneficial relationship.  Here are some considerations for a successful Mentor Protégé relationship:

1. Determine outcomes for the Mentor Protégé relationship:  first and foremost companies participating in a Mentor Protégé relationship should have clear understanding of what they want out the relationship, and what they bring to the table.  Examples include; successful past performance, licensing, office space, technology, management expertise, location, marketing, financing, GSA Schedules, small business certifications and contract bundling.
2. Central Contractors Registration:  make sure both firms have up to date profiles in CCR.
3. Set criteria for pre-qualification: once you determine the projected outcomes of the relationship, you should also determine the risks of forming such an arrangement and create a checklist that mitigates risk to your firm while meeting company goals.   Examples of selection criteria:
   • Has either party ever entered into a MP agreement previously? If so, what were the outcomes of the relationships?
   • Licensing/bonding/insurance
   • References/Past performance
   • Financial Stability/Credit worthiness
   • Has either party ever been debarred, had a contract suspended or cancelled?
   • Owners/Management resources
4. Get Professional Advice:  before committing to a mentor protégé agreement, sub-contracting agreement, the agreement should be reviewed by your accountant and attorney.  Non-negotiable if you want a successful relationship!
5. Have the discussion about financing: too many times, I see vendors get into trouble because they did not clarify financial responsibility for anticipated contracts.  Decide upfront how overhead, administrative, equipment and start-up costs will be handled on projects.  Expectations should be clear, defined and put in writing.
6. Agree to be transparent – no point in entering into a Mentor Protégé relationship if you are not willing to share RFP templates, documents, financial templates and sensitive information needed to prepare compelling RFP responses.  Exchange the appropriate non-disclosure agreements, as appropriate.
7. Create a proposal pipeline – rather than waiting for bids to come out and scrambling to put them together, obtain procurement forecasts and focus attention on the projects that are most likely to be successful.  In addition, set up an automated search engines in Feb Biz ops so that all projects that match your firm’s profile are sent directly to your in-box.
8. Develop Capability Statement - one of the benefits of having a MP relationship is increased capacity.  By way of example, through my strategic alliance with a large business, my firm’s capacity increased from local to national and global.  All of my marketing materials have been updated accordingly.
9. Market your services – one of the benefits to partnering with a small business, is all the resources and opportunities that are available.    Utilize small business resources; SBA, DHS Office of Procurement Operations, and Small Business Specialists as a resource to market increased capabilities.  Attend networking events.
10. Play to Win – know that winning government contracts takes time, persistence and patience. Take the time to get to know the agency you are pursuing, how they buy, when they buy and what contract vehicles they use.  Bring in resources if necessary to become familiar with contract terms, reporting requirements, conditions, and FAR regulations so that not only are you playing to win, but you remain in full compliance at all times. 

Small Business Subcontracting

All large businesses doing business with the Federal Government are required to submit small business sub-contracting plans. This creates an opportunity for small businesses to partner with large firms in order to provide advantageous proposals to the government.  Due to the competitive nature of government contracting, it is recommended that businesses both large and small begin the process of selecting strategic partners before the actual bid process begins.  The Small Business Administration (SBA) and the Federal Office of Small and Disadvantaged Business Utilization (OSDBU)  and Procurement Technical Assistance Centers (PTAC) are excellent resources for identifying opportunities.  Fed Biz Ops is also a good starting point for researching contract awards and procurement opportunities.

Business partnerships can be risky, so approach them with the same due diligence that you would approach any other business venture.   Do your homework; at minimum each company should be appropriately licensed, up to date with financial reporting requirements and taxes and meet the requirements for federal government contracting.  Central Contractors Registration (CCR) and On-Line Certs and Reps (ORCA) must be up to date.  Before exchanging information the appropriate non-disclosure documents should be completed.  Each party should be clear on the expectations regarding the partnership. 

Finally, there are a number of ways to approach a strategic alliance including subcontracting, teaming, and mentor protégé agreements.  Be sure to get the appropriate legal and professional advice before entering into any agreements.

 

Compliance Matters

New York Wage Theft Protection Act

 The New York State Wage Protection Act mandates that employers provide all employees with a notice reiterating their pay rate and other mandated information and obtain a written acknowledgement before February 1 of each year.  Under the WTPA, penalties for violations could result claims against employers for $50 for each workweek that the violation occurs (up to $2,500) plus attorney fees and penalties. 

For additional information, http://www.labor.ny.gov/workerprotection/laborstandards/PDFs/wage-theft-prevention-act-faq.pdf

 Increase in Class Act Law Suits Against Employers

In recent memorandum received from the Ingber Law Firm,  Attorney Cliff Ingber notes a significant increase in the number of cases brought by employees (and their attorneys) claiming unpaid wages for hours worked as well as overtime premium pay for hours worked in excess of  40 during a work week.   Attorney Ingber reports that these cases are being brought on as class action law suits which will seek to cover all employees who have worked for a particular employer at any time during over a six week period.  

 I-9 Compliance

I-9 Compliance is another area that we are seeing significant activity.  If the forms are not filled out correctly, accurately and properly maintained, employers could face substantial fines.   

 

MWBE Subcontracting

It’s bid season, and there are a number of projects in New York that require a good faith effort for MWBE participation.  It’s unfortunate, but what was designed to assist in the growth of small businesses, is often times viewed by large companies as a burden, and by small businesses as a significant risk.

For purposes of clarification, a good faith effort toward MWBEs means that a large firm actually provides meaningful outreach, opportunities and participation for MWBEs.  It’s not enough to send a blind e-mail and hope for the best. 

In working with my clients at MWBE Success, I encourage small business owners to seek out strategic alliances, teaming partners and JV partners well in advance of actual bids hitting the street.  One of the strategies that are working well for me is going outside of the industry. For example on Security bids, I can understand why there is hesitation to partner with another security company, the market is extremely competitive, so I am offering services that do not directly compete with the larger business.  I am also flexible in developing an alliance that creates both opportunities for both firms.

The other strategy that is working really well is partnering with a larger firm that is looking to gain a strategic position in New York but they don’t know the market or have the resources to do so.  My firm is able to provide a strong advantage to a large company that needs office space, training, marketing, administrative support, consulting and recruiting services.    I can clearly demonstrate to a large business an ROI on partnering with my firm –and that’s what it’s all about.  I am not expecting anyone to work with me because of my MWBE status. I use my status as a small, minority and woman owned business to gain leverage over my competitors and to create real opportunities for my partners.

When engaging a large firm, I insist on a true partnership and transparency.  A strategic alliance or any partnership requires mutual respect and trust.  Most important, the agreement is made in writing outlining roles and responsibilities as well as clarification on financial matters.  All agreements are reviewed by an attorney.

 

Compliance for Security Guard Companies – New York

As part of my on-going research regarding HR Compliance for Security Guard Companies, I did a search utilizing Google and typing in the words “Department of Labor – Wage and Hour”.  The top five responses from Google were law firms  with catch phrases like “ Find out What You are Owed”, “Do I Have a Case”, and Overtime Law.  Many of these law firms I found also had videos on You Tube, walking potential claimants through examples of cases employment law issues.   Potential claimants were encouraged to contact these law firms for free consultations, in fact one video called “How Much Does it Cost” reminded workers that the law provides for Employers to pay their legal fees.  Ouch!!

After spending hours reviewing some of these videos, there are Common Areas these law firms appear to be focusing and they are:

• Misclassification of Employees
• Overtime Pay
• On-Call Time
• Attendance for Roll Calls or requiring employees to arrive minutes early for their shifts
• Blackberry Use
• Travel Time
• Employer Record Keeping

In addition to these very colorful You Tube ads, the Department of Labor and the EEOC are posting results of employee claims on their websites; some are also using face book and twitter.  The EEOC has reported a record high in claims (over 99,000) for fiscal year 2011 – the highest in their 46- year history.

With all this activity around employee rights, it’s not a matter of if your company is going to be the subject of a claim, it’s when and how prepared you are as firm.  Action you take now with regard to employment policies, procedures, record keeping and training will ultimately mitigate your exposure for employee claims and save you countless dollars in potential fines and legal fees

I encourage you to join me, and The Ingber Law Firm on December 8, 2011 for Compliance Seminar specifically designed for the Security Guard industry.  You will receive a full overview of the Security Guard Act, I-9 Compliance, Employee Classification, Overtime Pay, and Record Keeping Recommendations along with best practices, sample forms and an interactive Q&A session.  You won’t want to miss this seminar – seating is limited and the classroom is filling up fast.   Sign up now!

http://www.mwbesuccess.com/solutions/Seminar_In_NYC/Seminars_Security_Industry_NYC/

 

How to Make Supplier Diversity Programs Work for You

I recently created a group where like-minded certified small, minority and women business owners share resources and discuss challenges that they are having with breaking into Corporate America using Supplier Diversity Programs.  Some firms reported a growing frustration with the process stating that Supplier Diversity programs were not working and that they did not feel that they had a real chance to do business with Corporate America.   Issues ranged from Supplier Diversity Managers not returning phone calls to sense that “nothing was being done” to help their companies.

The key to success with Supplier Diversity Programs is an understanding of the concept of supplier diversity, the supply chain and how each individual corporation views that role.  Supplier Diversity programs are not about giving MWBEs business, it’s about creating opportunities.  Through participation in groups like the National Minority Supplier Development Council “NMSDC” and the Women Business Enterprise National Council,  “WBENC“ certified MWBEs have access to meet with Supplier Diversity Managers from the Nation’s top companies, but that alone is not going to get your business.   In fact, at a recent Supplier Diversity Conference, the President of The NY &NJ Council, Lynda Ireland emphasized the importance of networking, attending training and connecting with buyers.   So, in a nutshell, connecting with Supplier Diversity representatives is one of several things that MWBE firms need to do to ensure success.

After working with a number of MWBEs that are currently doing business with the Fortune 1000, most report that it takes approximately five years of consistent marketing/networking before they obtained their first contract.  Successful MWBEs also remained vigilant about demonstrating their value to buyers through regular communication, strategic alliances, and networking.  In addition, these firms used resources available to them through NMSDC and WBENC by attending trade shows, one-on-one meetings, networking events, purchasing events and training programs.  Many successful MWBEs also actively participated in national events by getting involved with committees, writing articles, and sponsorship.  There is no one formula for success, but when successful MWBEs talk about their efforts; it becomes very clear that a focused strategy is essential for MWBE Success.

As 2011 comes to end, it is the perfect time to evaluate what’s worked for the year, and what needs to be done to increase sales in 2012.  First and foremost, your company should have a marketing plan for next year that includes a methodology for engaging your target audience on a regular and consistent basis that demonstrates your firm’s value and unique service offering. The key to a successful marketing plan also requires that you have clearly defined your target audience, so you know exactly who they are, what their titles are, where they network, how they buy and what their issues are.  Your marketing should be more about giving than getting, and use the latest technology available to reach the most people in a cost effective and efficient manner.  It should go without saying that your marketing materials and website should be up to date and reflect a high level of quality and professionalism. Finally, to ensure results your marketing efforts must be measured and results tweaked on regular basis. 

 

 

 

The other strategy that successful MWBEs use is strategic alliances and teaming.  By way of an example, when I was trying to break into a very large commercial bank for security guard services, I identified a facility management company that had a successful track record with the bank.  Since I had done my homework, and was acquainted with the bank’s supplier diversity goals, I knew that the Facility Management firm could strengthen their position with the bank by helping them reach their Supplier Diversity goals.  I approached the Facility Management firm and provided them with a strategic plan that outlined the benefits of doing business with my company.  I was careful not to appear as an MWBE with “hat in hand” that needed help. I presented a strong case for my company and let it be known that I was determined to make the plan succeed – if they did not take it, I’d bring it to someone else. I outlined exactly what my firm could bring to the table, and what I expected out of the relationship.  The long and short of the story is that our firms formed a strategic alliance and grew exponentially when the bank opened up new offices in New Jersey.   The process did not happen overnight night,  I started off small with one remote location before growing the business to a multi-million dollar contract with over 7, 000 weekly hours a week and over 175 employees.

In today’s economic climate doing business is not easy for anyone, but as certified MWBE I always feel that I have a strategic advantage because I am certified.  As certified MWBE, I find the resources available to my firm through certification to be a tremendous advantage.  Like I always say, if it was easy then everyone would be doing it.   Success won’t happen overnight, but through persistence, determination and hard work, I believe that it can happen for all of us.

Are you in Compliance with the NYS Wage Protection Act?

Years ago, I remember how I excited I was when I won my first contract for security guard services.   Back then, I did not know what I did not know.   I prided myself as someone who always did the right thing. I never looked to take any short-cuts and I always wanted to make certain that employees received the wages and benefits that they were entitled.   Imagine my surprise when the Department of Labor walked in and found issues with compliance.  My company’s infractions were not were not “willful” but I quickly learned that paying employees the right wage was only a small part of remaining in compliance.  There were a number of issues that needed to be considered with respect to compliance including contractual obligations, record keeping, notification, reporting and updates.

Today, I’d like to focus your attention on the New York Wage Theft Protection Act that increases employers’ obligations for Labor Law Violations.   First, if you are not familiar with the Wage Protection Act it was signed into law in Late 2010 by Governor David Paterson, and on April 1, 2011, the New York State Department of Labor issued guidance regarding the requirements.   The Act became effective on April 9, 2011.

Currently New York State Labor Law mandates that employers inform all new hires of their rate of pay, pay day and overtime rate in writing.  The law also requires that employers maintain a written acknowledgement that the information was provided in writing to employees.   Upon the Wage Theft Act’s April 9, 2011 effective date, the written notification must also include whether or not employees will be paid by the hour, shift day, week, salary or commission.   The NYSDOL now takes the position that providing exempt employees with the applicable information is optional.   There are a couple of other details regarding the Wage Theft Protection Act that includes notification in the employee’s primary language and annual notice obligations. 

The Wage Theft Protection Act significantly increases the penalties to employers for violations of the Labor Law.  By way of example, an employee who does not receive notification of the new hire notice within 10 business days of his/her start date may bring a claim against the employer for $100.00 for each work week that the violation occurs and may recover up to $2500 plus attorney fees.  This is significant and could adversely impact any small, minority or woman owned business.   

Provided for your convenience is a link to the NYS Department of Labor’s website regarding the Wage Protection Act, http://www.labor.ny.gov/workerprotection/laborstandards/PDFs/wage-theft-prevention-act-faq.pdf.

We are also here to help, if you’d like to learn more about our workshops, training programs and resources designed to keep you in compliance, please email me at compliance@jeankristensenassociates.com

Opportunities for MWBEs in New York State & DASNY

I am so grateful to have had the opportunity to be a guest speaker at the DASNY MWBE Forum for 2011.  In addition to connecting with an audience of enthusiastic entrepreneurs interested Federal Government Business Opportunities, I also had a chance to meet with New York State’s leading public and private sector decision makers and elected officials, not to mention network with other MWBEs.

According to a New York State Disparity Study released in 2010, MWBEs account for fifty three percent (53%) of all small businesses in New York State, yet less than 3% of MWBEs contracts from the State.      At the keynote address on October 13, 2011, the Lieutenant Governor Robert Duffy reinforced Governor Cuomo’s commitment to MWBEs as he spoke about the goal to increase MWBE participation to 20% this year.  In 2009, MWBE participation was about 9.3% representing about 2 billion dollars.   As a certified Minority and Woman Owned business myself,  I tend to be skeptical about these types of announcements and so called programs because if you have been around as long as I have, you’ve seen these programs come and go with no real results or enforcement.   I must admit; however after listing to Governor Cuomo’s MWBE Team talk about issues and enforcement, I am positively enthusiastic.

Governor Cuomo has in place an MWBE Team that was created to ensure that the Governor’s MWVE participation goals are met and that the provisions of Article 15 A are enforced. The MWBE Team, chaired by William Thompson impressed me.  The MWBE Team seems to have identified some of the barriers that MWBEs face in doing business with the State of New York, and they are working on solutions to address them.  Some of the issues that were discussed at the MWBE Team’s special session were lack of transparency with respect to subcontracting of NYS Contracts; the lack of enforcement for MWBE participation, and the bureaucracy involved with certification process.  Everyone acknowledged the continuing issue of lack of access to capital and credit for MWBEs.  The MWBE Team is broken up into committees that include compliance and enforcement, so MWBEs now have somewhere to address issues.   It appears that the program finally has some teeth.

I also learned that as a result of the Disparity study that New York State agencies will be held accountable for MWE participation goals, and that continued failure to meet goals could result in their losing their purchasing power.  In addition, as part of the new initiative, information regarding Agency participation will be published and available on the State’s website.  This is great news for MWBEs, and I am enthusiastic and excited about the program.  I will be watching this very closely.

Equally as important as New York State’s MWBE participation goals are what we do for ourselves.  Paul Williams, the President of DASNY shared a story about how a Construction Company Owner approached a legislator about consideration for a contract, and despite the fact that the company had been in business for years, he did not have the required licenses or infrastructure to meaningfully participate on the project.  The business owner was quoted in saying help me get the contract, and then I will get the license.  Well, that’s just not how it works.  In order to be taken seriously we need to plan for success.  Mr. Williams talked about the importance of MWBEs thinking long term and investing meaningfully in their business on things like training employees, equipment, and licensing.

 

 

 

So, what are some of the things that MWBEs can do to position themselves for opportunities as part of this initiative? First, and foremost every certified MWBE should be familiar with Article 15 A of the Executive Law which was created to promote employment and business opportunities on State contracts for Minorities and Women.  Next, I think it’s important to get familiar with the Governor’s MWBE Team, and stay abreast of their activity – get involved!  Most important, as an MWBE you need to be prepared to do business and that means staying abreast of procurement forecasts and bid opportunities, actively promoting your company through marketing and networking, and the continued investment your business infrastructure.

I am hopeful about New York State’s MWBE program, and I for one look forward to increased opportunity for myself and my clients.