The 8(a) Problem...and Solution!

The Problem

During the 8(a) Conference last week, I noticed a common theme among the many eager small organizations, anxiously promoting their products and services. Here is what many are lacking:

• Solidified service or product offering
• Short-term goals for teaming and opportunity capture
• Long-term goals for strategic partnerships and target customers
• Opportunity pipeline
• Processes and tools for proposal development to set the stage for future winning proposals

You’ve taken the leap and created a small business and you’ve been accepted into the 8(a) program, which promises abundant opportunity for driven businesses that are capable of providing value to the Government.

Now What?

You’ve heard of the need for businesses outgrowing their 8(a) status and large businesses to find companies like yours for teaming opportunities, and you are ready to bid on all those set-aside contracts. Now what? What do you bring to the table that the next 8(a) doesn’t?

The last thing you want to be is that newly formed 8(a) with no past performance and no real value, other than your small business classification. Frankly, there is a laundry list of these businesses in each NAICS code, just waiting for a large business or a graduating 8(a). How can you bring value with little to no in-house resources to support business development and no real past performance to help win contracts for the team? You CAN set yourself apart without hiring an expensive in-house BD team. Outsource!!!

Why Do Companies Avoid Outsourcing BD Needs?

I know, outsourced BD support has always been very expensive, and wasteful, and definitely doesn’t look like they are part of the team. In fact, their hourly rates are EXORBITANT. Their attitudes are TERRIBLE. They don’t share your vision and don’t care about your strategy or goals. They sell a service in ways that make their job seem only possible if you’re an expert. They shove unnecessary processes down your throat and, can we be honest for a second, they are typically cocky and rude. It feels disjointed and piecemeal to bring in a proposal person for a proposal effort in January and a BD guy in June to support a pipeline, you’ve attempted to pull together based on Sam.gov searches and the inside scoop you heard over drinks at that 8(a)-networking event. Things can be better!

What does an Effective Outsourced BD Team Look Like?

Here is the kicker. They look like an in-house BD team. Effective outsourcing shouldn’t look outsourced at all. For all intents and purposes, they should look like, sound like, and work like your employees. They should help to develop solutions to all those things your company is lacking, and then be passionate about helping you achieve those new short and long-term goals. They should develop all your internal proposal processes and tools to set you up for success against your solidified pipeline of strategic opportunities. Within 1-2 months of working with them, you should feel confident about your company’s future, not just the one proposal you hired them to bully you over. Working with the team should be pleasant, and friendly and you should trust their guidance because they are passionate about your success. They won’t have an ego. They won’t make you feel dumb. They will take the time to listen and help you follow your dreams.?

Expert Tip: Having a good BD and proposal team can be a real bargaining chip to set you apart from your competition when courting potential teammates. You may not have past performance, but you can manage and contribute greatly to the proposal. When your teammate is already facing an overwhelming pipeline of their own, being able to write the winning proposal on behalf of the team on top of offering access to the set-aside opportunity can be a ringer.

What to Ask When Looking for Outsourced BD and Proposals

1. How many consultants are on your team? Look for a smaller, cohesive team who has experience working together.
2. Do you have a variety of BD and Proposal Experts? They should give access to a wide range of support, so you aren’t stuck with the network, knowledge, and experience of one guy who overpromises and underdelivers. They should have writers, subject matter experts, graphic artists, editors, desktop publishers, capture managers, pricing experts, legal/contracts experts, coordinators, and proposal managers. If they offer marketing support too, hire them!
3. What does your BD/Proposal Workflow look like? Their BD and proposal consultants shouldn’t all be working all the time and charging you out the wazoo. There should be a clear workflow between BD and proposals. One stops and the other picks up. The biggest benefit to outsourcing is cost savings compared to internal employees. You should get an entire team of BD and proposal professionals including graphics, editing, desktop publishing, writers, and subject matter experts. In many cases, you should gain access to all these people for less than hiring one full-time person.
4. How much do your services cost? If they know what they are doing, they should be forthcoming about their rates and offer an estimate for the type of work you’re looking for. It shouldn’t be difficult for them to quickly provide hourly rates and a typical level of effort estimate to you. Their rates and pricing structure should be forthcoming, transparent, and easy to understand. I’ll say it again for the people in the back…

Outsourced BD/Proposal support should be more cost effective than hiring an internal team.

1. What steps do you take to save me money? The answer to this question should make sense, be rational, and shouldn’t sound like they are beating around the bush, making excuses, or trying to sound like what they do is worth an arm and a leg. You’ll know…I promise.

All of these questions aside, you should have a certain degree of chemistry with the team. There needs to be a connection, a shared passion for success, and a feeling that they will be easy to work with, and ease the burden of business development, not create more headaches.

The Cheat Code

Lucky for you, I know just the company to give you all of this and more.

Strategic Growth Advisors provides a full-service offering for small businesses looking for all of the above. Our support includes Business Development, Marketing and Brand, Proposals, Capture Management, Networking & Integration, Business Analytics, Pricing Assistance, Facility Security Office, Grant Writing, and Merger & Acquisition Support.

Message me to vent about your frustrations as a small business or to find out more about how we can help!