Growing Your Small Professional Services Company with Corporations

Last week, I had the pleasure of attending the Women’s Economic Development Center’s http://wedcbiz.org/ panel discussion and networking reception on Growing Your Business with Corporate Contracts.   In addition to the fabulous team at WEDC, representatives from Westchester County IDA, IBM, MasterCard and Regeneron Pharmaceuticals shared information about opportunities for small businesses.  There were also two vendors on the panel, Devlinhair Productions and Reddy or Knot Graphic Design.

 

First, I was absolutely thrilled to hear that a good majority of the purchases made by these corporations are in the area of professional and technical services.  So, that is good news for consultants, trainers, graphic designers, accounting and legal professionals who often feel as though corporate contracts are out of their reach.   That said, although the opportunity exists, there are a few important things you should know if you are thinking about adding corporate contracts to your client portfolio, and they are:

 

1. Research:  all buyers emphasized the importance of doing research before engaging large corporations.  Check websites, analysis competition, and make certain that your company can meet the requirements for doing business.
2. Certification:  certification was mentioned over and over again as having significant value for corporations that were looking to increase spending with diverse suppliers.  Certification was noted as being a reflection of a company’s level of professionalism, commitment and investment in themselves.
3. Commitment to Marketing: one buyer shared research reflecting that it takes twenty one (21) touches and three years to get your first corporate contract.  This research was further supported by success stories shared by Ready or Knot Design, and Devlinhair Productions.  Both successful vendors shared that it took years of marketing, knocking on doors, follow-up and networking before they got their first contracts.
4. Registration on Supplier Portals:  while many of us consider registration on company websites an arduous task, buyers reported that they regularly review these sites looking for vendors.  To that end, if you register, it is important to ensure that your profile is complete and provides enough details about your company.   References, with examples were emphasized, along with strong capability statements and where appropriate a thirty second video was recommended.
5. Company Size/Capacity:  while buyers indicated that there were opportunities for smaller firms, they also mentioned that they look very closely at a company’s capabilities when considering them for projects.    Key considerations are number of employees, financial preparedness and whether or not a company can provide local, regional or national service.
6. Successful Past Performance:  chances of working with corporations are strongly increased when the firm can demonstrate they have had successful past performance working with another large corporation.  Smaller firms were encouraged to consider sub-contracting as a way to gain experience
7. Advice from the Successful Vendors:   the successful vendors who were currently doing business with IBM, and MasterCard provided some great insights.   Here is a quick synopsis of key points:
   1. Julie Jackson, Executive Vice President of Project Management from Devlinhair Productions emphasized the importance of consistent marketing and business development.  She specifically mentioned the importance of identifying multiple contacts within the supply chain and staying in touch.  Julie also shared the importance of compliance and the investment in infrastructure.
   2. Kirsten Knodt, owner of Ready or Knot Design is a graphic design firm, and she represented what is possible for smaller firms.  She provided five tips for small businesses that included:
      1. Being Accessible
      2. Flexible –the ability to wear many hats and adapt to changing environments.
      3. Lean – she spoke about the importance of keeping overhead down.
      4. On-Point – knowing what your good at (niche) and saying no to other projects
      5. All in – meaning that you are completely invested and willing to do what is necessary to get the job done.

          

Whereas the process described may seem daunting, the fact is that research shows two years after getting a contract with a corporation the average small business grew 25% and gained the leverage to hire more employees and attract additional corporate buyers.  There is a growing commitment from large corporations to increase opportunities for small businesses. 

 

At JKA, we are working with our small, professional services clients to assist them with doing business with government agencies and large corporations.    Our strategies include assisting smaller firms with gaining the necessary past performance, teaming/sub-contracting and marketing.   If you’d like to learn more about our programs for professional services firms, please join our upcoming complementary webinar at 1:00 pm on March 31, 2015.