Getting Certified

Our business has been a certified WBE since 1989 — long before certification was part of the mainstream American business landscape, and definitely before the process became this complicated. In conjunction with a contract we performed for a large Midwest state, we were required to complete a one page census document about the size and ownership of the business. Then, surprise, by return mail, we received our first WBE certificate.  In other words, getting certified wasn’t planned. 

I’ve met many minority, women, veteran, disabled, service-disabled or LGBT business owners over the last 20 years and it has been interesting to learn how these other business owners found and chose the certification programs in which they participate. While most follow some sort of recommendation, the majority of established businesses appear to pursue certification at the suggestion (or request) of existing clients, while new businesses seem to seek certification as part of their marketing plan. In the case of the established business owners, I often hear that their commercial clients have recommended Womens Business Enterprise National Council or the National Minority Supplier Diversity Council while government clients tend to recommend government certifications. When clients make these strong recommendations, the goal is to satisfy a client’s need to meet supplier diversity goals. Of course satisfying client needs is priority one, but choosing a certification program should be a strategic decision for the business owner.

Making the decision to become certified should be based on a few simple criteria:

• The business is at least 51% owned and operated by a person, or persons, who meet the certifier’s guidelines.  In other words, to be a minority certified business (MBE) at least 51% of the business must be owned by ethnic minorities (e.g. Americans of African, Asian, Hispanic, Native or Pacific Island extraction).  While women are considered minorities in the business world, for certification purposes Caucasian women do not qualify for minority certification. A firm that is 51% owned by women, minority or not, can be a women certified business (WBE). 
• Simple ownership is not enough. Owners must operate the business. Not perform every task in the business, but know what tasks must be done and be able to find and supervise the additional resources to perform those tasks.
• Again, simple ownership and operation is not quite enough. These owners must direct the business, plan for its future and drive it forward.
• For disadvantaged or small business certifications the net worth and/or annual revenues must fall below the certifier’s published maximum.

Once you know you meet the minimum criteria, you need to think about the certifier. If someone has recommended a specific certifier, research the certifier’s requirements. Visit the web sites of multiple certifying agencies to get a feeling for their process. While you’re doing the research, think about your own business’s goals and objectives and how a given certification would help you meet those goals. Talk to your clients and other business owners to find out what certifications work for them. Then, gather your supporting documentation into a convenient location and organize your time to complete the application.

Next time we’ll talk about some simple steps you can take to reduce certification induced stress.