HUBZone Your Small Business, Part II

In Part I of this two part series on the HUBZone program, we covered what the HUBZone program is, how it works and how to tap into it. In Part II we’ll look at the HUBZone in action and the experience of those on the program.

HUBZone in action, experience of those using it now
What are some real life examples that this even IS an advantage to small business and not just a paperchase (or do loop if your a software geek)?

One firm, in Massachusetts, EComp, reported that they had to work extra hard to get their HUBZone designation. They still have to work hard to get government contracts, but, EComp feels that that their HUBZone designation will give them an added value with their large customers. Every large company fulfilling federal government contracts has to meet a HUBZone requirement, if some of them do business with EComp for electronic components they will be able to do just that. So EComp is looking at their HUBZone designation to help them either with government contracts or with larger companies who do business with the government, thus giving them two ways to win the business.

Other companies, such as Keylogic Systems in West Virginia had reported no success with government contracts since they had obtained their HUBZone designation. Keylogic is very successful as a small business, well respected and sought after. But their limited success with HUBZone is related to lack of awareness about HUBZone by contracting officers, a sense that only very simple work can be contracted to HUBZone certified companies, and the ease with which contracting officers can use alternate procurement vehicles.

The secret seems to be in making the marketing of HUBZone, once you have the designation, as much a part of your marketing plan as marketing your product. The HUBZone Contractor’s National Council had these tips to offer (you can down load their presensation at this link here):

• Market to your current customers
  -help them solve their “HUBZone goal challenge”

• Encourage team involvement
  -leverage team partnerships to win tasks

• Educate customers about HUBZone program requirements
  -help them solve “goal problem” by creating solution

• Make all your partners “HUBZone Enabled”
  -provide access to market & contracts previously unavailable
  -market & pursue HUBZone opportunities

• Proactively help your clients meet their HUBZone Goals
  -Previously been a challenge for agencies COs & OSDBU’s
  -Often agencies welcome an familiar & proven solution as they are low risk, easy, comfortable
  -Move new/existing contracts to HUBZone rather than loose to other small business programs

• Steer New Opportunities to HUBZone Program
  -Access opportunities that may otherwise go to other programs
  -Use rule of two – when appropriate
  -Reduce competition
  -Give clients HZ credit

The bottom line seems to be that while HUBZone has been enacted and can help you be more competitive. However, you have to market and use the tool for yourself as you would any other tool to make your small business thrive. The payoff? Tapping into some of that $62.7 billion dollars in prime contracts AND helping depressed areas of your community.

Some resources for further study:

• Senate Committee on Small Business & Entrepreneurship
• USA Small Business Association HUBZone Site
• How to get on the U.S. Government General Services Administration contracts