Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.
When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
1, The Procurement-Ready Enterprise Certification program was developed as a tool for economic inclusion with the intention of providing transparent and inclusive contracting opportunities for local small businesses
2, It’s a steppingstone for more robust certifications required by larger corporations and government agencies at the state and federal level
3, Program participants go through a discovery phase that identifies areas where they need development and can participate in trainings aimed at targeting those needs
4, Purchasing decision makers consulted during the creation of this program emphasized the importance of building relationships and trust with them as they seek new partners
Paadio Consulting and the city of Brooklyn Park’s Economic Development Authority have created a grassroots-level certification program aimed at preparing small businesses to become a vendor for larger entities.
The Procurement-Ready Enterprise Certification (PRE) program provides a pathway to contracting for small and micro businesses, freelancers and independent contractors.
The program was developed as a tool for economic inclusion with the intention of providing transparent and inclusive contracting opportunities for local small businesses. It is a steppingstone to prepare for more robust certifications required by larger corporations and government agencies at the state and federal level, while it provides a more visible and accessible pathway for local entrepreneurs that have been historically underserved, under-reached, invisible, marginalized and underestimated.
Program participants go through a discovery phase that identifies areas where they need development and provides modular training workshops that zoom in on those areas. What makes this program different is the hands-on follow up in the form of navigation sessions where participants can bring their questions and challenges and determine their next steps. They also get matched with resources and experience a guided journey for developing each critical area of readiness to prepare them for success in selling to larger entities.
Each business owner is equipped with a “Pre Kit” that contains a self-evaluation tool to build upon their discovery work and guide them to develop a step-by-step, week-by-week dynamic roadmap to readiness for connecting and achieving contracts, and/or for becoming an easily found vendor when employees need to purchase something. Once the business owner has achieved the minimum standard in each of eight layers of readiness, they can be matched with local contracts.
What does it mean to be “procurement-ready” or “contracting-ready”?
Readiness requires specific business systems to be developed and strengthened to be able to effectively participate in the local supply chain or contracting marketplace and successfully perform contract work.
The contracting landscape is as varied as the small business landscape. For example, some larger entities have centralized purchasing systems. Some will require “Preferred Vendor” status in order to purchase goods or services from you, but it also may be that only certain types or amounts of purchases require it. This depends on the entity’s policy and may vary from one department to another, so be sure to do your research. That’s where good networking helps.
For another example, some city or county procurement policies may require a state-level certification, while others do not. Get to know your city and county and find out what they require. Do not hesitate to engage the economic developers in conversation around policy and make suggestions (advocate strongly) for opening more flexibility to allow for more equitable economic inclusion. Writing letters and booking time to talk is an investment that can result in transparent dialogues and policy changes. Again, be sure to do your research and build your team of allies.
Brandee McHale, head of community investing and development at Citi, said in 2017 that “The buying power of cities is integral to empowering the local ecosystem … and to recirculate wealth versus allowing it to be siphoned off.”
Consider membership in community-based organizations, associations and alliances, such as the Independent Business Alliance and the National Federation of Independent Business. These organizations may or may not have formal advocacy programs in place but are a great starting point to build coalitions around the call to do business with local independents and especially with those who have been invisible, underestimated or marginalized in regional economic development work.
The number one theme that came up during discussions with purchasing decision makers as this program was being created was the critical importance of relationships and trust. Ideally, meet-and-greet types of events can be a great way to get introductions to purchasing decision makers and procurement professionals in your community.
If you build these layers of readiness into your business, your enterprise will be strengthened in many ways. Achieving contracts with big clients or selling to larger customers will become easier and more natural to you and your team. You can overcome barriers faced by small local businesses and become a supplier of choice in your community.
