The final step in starting a new business is actually more about how to handle your success. If you find yourself starting to bring in more business than you can handle, an expansion may be on the horizon. Such a move could take many forms. You could move into a bigger space and hire more employees. You could branch out into new opportunities, including international sales or government contracting.
But just don’t wait until it’s time to expand to start planning for an expansion. Do it before you’ve maxed out your current space and capabilities. It may be tempting to bask in your success. But keep an eye on the future and be ready to make your move when the time is right.
Until then, double-check this list on a monthly basis:
- Consult your business plan. Are you meeting expectations? Are your supporting documents accurate and up to date?
- Keep an eye on your team. Do you have the right people in place? Are you providing adequate training to ensure their success?
- Modify your operations as needed. Is your business running as efficiently as it should? Do you have enough space to accommodate growth? Is there anything you could be doing better?
Know When it is Time to Grow
Only you will know when it’s time to expand. But there are signs to consider:
- Your bottom line looks healthy.
- Your business enjoys a steady stream of repeat customers.
- You have more business than you can comfortably handle.
A word of warning: Don’t get caught up in an unexpected or seasonal surge that temporarily inflates demand for your product or service. Expanding just as the surge dies down can create unwanted challenges. Instead, look for a steady upward trend lasting several months with strong indications of staying power.
Selling in the US
Securing federal contracts will require you to take several steps. These include:
- You need to develop a corporate capability statement and secure the preferred small business certifications.
- Look for opportunities by monitoring Bid Match services (daily searches/email alerts).
- Learn what, when and how much government agencies buy.
- Target agencies and contractors that buy what you offer.
- Complete required/mandatory government database registrations.
- Institute a government-accepted accounting system and know how to handle contract audits, reports and modifications.
- Ask for help when you need it from procurement specialists at the Florida SBDC Network.
Selling in Florida
MyFloridaMarketPlace, a division of the Florida Department of Management Services, connects vendors with state agencies looking to purchase supplies or services. The state spends more than $1.6 billion annually on contracts and agreements through the site. These include:
- Term contracts
- Informal purchases — less than $35,000 and do not require competitive bidding.
- Formal purchases — greater than $35,000 and require competitive bidding.
For details, visit dms.myflorida.com/business_operations/state_purchasing/vendor_resources.
Government Contracting
There’s good news if you are considering pursuing government contracts. Florida is one of the top U.S. states in terms of government contract procurement. This can provide a solid route to growth if you have the right infrastructure and know how the procurement process works. You’ll need to understand, however, that this sector operates differently than the civilian market. Forget flashy brochures and glitzy sales pitches. Focus instead on showing, beyond any doubt, that your business will meet its contract obligations at the right price.
Attention Vets!
While you may have heard that veteran-owned business get preferential treatment with government contracts, that is largely not the case. They have to compete just like any other business owner. If they win a contract, it’s because they’ve done their homework, not because of their military service.
Each year, just 3% of government contracts are set aside specifically for veteran-owned businesses compared to 23% for all small businesses. The bidding process is a level playing field with one exception. There is preferential treatment when a veteran-owned business goes up against a non-veteran-owned business for a VA contract. If all else is equal, the vet will likely get the job.
Exporting
Florida businesses have access to the nation’s second largest Foreign Trade Zone (FTZ) network. The state is home to more than 60,000 exporters — the second highest number in the U.S. Most of them are small- and medium-sized businesses with fewer than 500 employees.
If you are interested in exploring international trade opportunities, here are five steps to take:
- Prepare your company. You can seek export counseling assistance and participate in educational seminars, conferences and webinars.
- Educate yourself on current trade rules and agreements. Start with SelectFlorida and the U.S. Export Assistance Center.
- Create an export business plan and strategy. Apply for an Export Marketing Plan through the Florida SBDC Network, SelectFlorida or U.S. Export Assistance Centers.
- Find potential customers. Look for opportunities by attending international trade shows and missions with SelectFlorida and the U.S. Commerce Service.
- Secure financing. Learn about funding programs for exporters of goods and services by contacting the Florida Export Finance Corporation and EXIM Bank for information. fefc.biz
Start Exporting
When you think you are ready, get started by connecting with U.S. Commercial Service trade professionals in six Florida offices. These seasoned experts can help you identify and evaluate international partners. They can help you create market entry strategies and navigate documentation challenges. For general information on regulations, licensing, free trade agreements and other topics related to exporting, visit legacy.export.gov.
You can also work with the Florida SBDC Network’s international trade specialists, who work with SelectFlorida and the U.S. Commercial Service to prepare Export Marketing Plans. These customized plans — which include market recommendations, overseas trade opportunities and an action plan for market entry — can take dozens of hours to prepare. The plans aren’t cheap, at $7,500. But qualifying companies are eligible for a $4,500 scholarship, and a $2,500 STEP grant, bringing your company’s cost down to $500. For more information, visit: floridasbdc.org/services/consulting/international-trade