YOUR BUSINESS: Lucie Hannigan

Certification can boost business

Copyright © 2005 Blethen Maine Newspapers Inc.

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About the Author Lucie Hannigan is the small business relationship manager for the Portland district of KeyBank. To top of story

In a competitive business-to-business market, using tools that can increase your small business' visibility is a wise strategy that can yield high returns.

For many minority- and women-owned companies, acquiring state or national certification opens doors to business opportunities that might otherwise have been overlooked. Being informed about certification options and then taking the time to apply is a solid strategy for maximizing your business success.

Minority-owned enterprise or woman-owned enterprise certifications are granted by public and private agencies to companies that can prove they are at least 51 percent owned and operated by minorities or women. The certifications offer a seal of approval, showing that a company's claim of being a minority- or woman-owned business has been investigated thoroughly by an outside group and found to be true.

For many companies, certification can mean the difference between winning and losing a contract.

Certification can give a small business an extra edge over the competition. Today, women-owned businesses are finding that if they want contracts with corporate America and to have an edge in marketing, they must be certified.

Corporations are looking for women-owned businesses with whom to contract. Being certified is one way to make the products or services you offer more attractive to these types of potential customers.

Certification can provide access to tools and resources within the certifying agency to help business grow; deepen relationships with supplier diversity professionals looking for certified M/WBEs; offer greater exposure by having your business in M/WBE directories and databases plus increase networking opportunities with corporations and other M/WBEs; provide access to government contracts; and be a great marketing tool.

Data from the Center for Women's Business Research reveals that 56 percent of women's business enterprises surveyed reported that being certified made the difference in obtaining contracts with large corporations.

Forty-four percent of female business owners said certification was somewhat or very helpful in getting business with corporations.

An overwhelming majority of corporate purchasing executives - 79 percent - reported that they had internal policies that promote doing business with women's business enterprises.

It may take some time to get certified. Some certification fees range as high as $350, and the certification process tends to be stringent, involving a lot of paperwork and even a site visit. There's no question that applying for certification can be a tedious, time-consuming process.

You can help decrease the time it takes for an organization to certify you by submitting complete and accurate packages, double-checking every line item, following the checklists provided and, most importantly, by reading the instructions in the certification packet. Certifying agencies generally won't process an incomplete application.

Basic criteria for certification include 51 percent ownership by a woman or women; proof of effective management of the business (operating position, bylaws, hire-fire and other decision-making role); control of the business as evidenced by signature role on loans, leases and contracts; and U.S. citizenship.

You will be asked for general information about the business, its history and its legal and financial structure. Other documents may include, but are not limited to, customer and bank references, loan activity, financial statements, articles of incorporation, tax returns, stock certificates, resumes, drivers' licenses and proof of citizenship.

Additionally, there is not one certificate accepted across the board, and having one certification from one group does not necessarily exempt you from having to qualify for another when doing business with a customer looking for a different one. Rather than apply to several different groups and going through a long, costly process for each, a female business owner should investigate which certification is likely to be accepted by the majority of her potential customers.

In utilizing tools that can increase your business's visibility, it is wise to perform due diligence to understand what will truly benefit your business. For many minority- and women-owned companies, being informed about certification options and seeking certification opens doors to opportunities that will ultimately enhance their business success.

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