Grow It

Sadly, however, many businesses do go under — 20% in their first year, 50% by their fifth, according to the U.S. Small Business Administration. And, it’s not always a matter of money. In many instances, businesses fail because short-sighted owners neglected to plan ahead.

As you work through all the details of just getting your new business off the ground, you may forget to look forward. So here’s a reminder: Now, while you’re still in the early stages of small business ownership, give some serious thought to your company’s future growth. Ask yourself: Where do I see my business a year from now? In five years? In 10 years? What steps will I take to get there?

Commit your answers to paper and add notes to them periodically. Then, when you are seriously ready to expand, you’ll have a blueprint to follow. The sooner you begin asking — and answering — these questions, the greater the odds your business won’t be among the 50% that do not survive beyond five years. Make planning your company’s future growth a priority now. It’s never too early to start.

 

Plan to expand … before you absolutely have to.

Don’t wait until you’re running out of room or resources to think about growing your business. As soon as the dust settles on your grand opening, follow these five steps to begin laying the foundation for future expansion:

• Revisit your business plan periodically. Look carefully at the business plan you opened with. What do you know now you didn’t know then? What new goals/plans come to mind as a result? Have you realized your expectations and if not, why not? Which supporting documents need to be updated?
• Fine tune your operations. Is your business operating at peak efficiency? Do you have the necessary tools/space to meet current and future needs? If not, what do you need and how will you pay for it?
• Rate your team. Have you prepared written job descriptions for all positions? Do you have the right people in place? How effective are your training programs? Do you have a plan for attracting/hiring new personnel?
• Enlarge your market. Are you reaching all possible markets for your product or service? Is your marketing budget adequate and are your promotional strategies working? If not, what adjustments will you make?
• Assess your financial fitness. Have you reached your break-even point? What’s your cash flow situation? Can you afford to expand? If not, what measures will you take to make future expansion financially possible?

 

Tomahawk Robotics, Melbourne
Kinesis is a software suite that enables management of robot systems regardless of underlying hardware. Simply stated, it makes robots easy and safe to use as well as more effective for workers doing dull, dirty and dangerous jobs. But at Tomahawk Robotics, a firm co-owned by veterans Brad Truesdell and Matt Summer where Kinesis is available, there’s a problem: finding and hiring the right type of talent. So Tomahawk gives its employees a stake in the company and a reason to work past 5 p.m. Says Truesdell, “We’re open and thoughtful and appreciate everyone’s insight and opinions. And we’ve made it a point to hire veterans. Currently a third of our full-time team members are veterans. We’re proud of that.”

 

Explore new avenues for expansion.

Growing your business doesn’t necessarily mean it’s time to increase space or staff. It could be the time has come to expand into an area of business you hadn’t previously considered, such as government contracting and/or exporting.

GOVERNMENT CONTRACTING

Good news: every level of government must buy goods and services. Even better news: Florida currently ranks among the top 10 U.S. states for procurement of government contracts. No doubt about it, there’s a market for government contracting and the rewards can be substantial, but is this a good choice for you?

It can be … but only if you know how to navigate the system, have the necessary infrastructure in place and understand how the procurement process works.

Landing a government contract on any level — federal, state, county, municipal — is not like pitching your product to a civilian buyer. A flashy brochure won’t cut it. Government agencies want to be assured that your business is capable of giving them what they need, when they need it and for the right price. To succeed in this highly competitive arena, you must understand exactly what you’re bidding on and then provide a corporate capability statement as evidence that your company can deliver it.

Government contracting can be tricky. So if this is your first time at it, don’t try to go it alone. Connect with an SBDC procurement specialist who can walk you through the process.

SELLING TO THE U.S.

Landing a federal government contract takes time and effort. To position your firm for success, take these steps:

• Evaluate Understand what, when and how much government agencies buy of the product or service you offer.
• Plan Target government agencies and prime contractors that buy what you offer; develop a plan to reach them.
• Register Complete the required/mandatory government database registrations including: System for Award Management (SAM) and Dynamic Small Business Search.
• Prepare Develop a corporate capability statement; create government-focused collateral and e-marketing resources; secure preferred small business certifications such as: 8(a), Woman-Owned Small Business, HUBZone, Veteran-Owned and applicable state and local certifications.
• Pursue Be aggressive. Monitor computerized Bid Matching Services (daily searches and email alerts). Identify opportunities through government bid boards, posting databases and networking. Obtain a GSA Schedule contract, if applicable.
• Achieve Develop a government-accepted accounting system and be ready to handle possible contract audits, reports and modifications.
• Ask for Help Procurement specialists at the Florida SBDC Network stand ready to help small businesses pursue government contracting opportunities at all levels.

SELLING TO FLORIDA

One avenue to expansion is as close as your computer. MyFloridaMarketPlace, a division of the Florida Department of Management Services, has some 15,000 registered buyers who issue, on average, 5,000 purchase orders each month at three levels:

• Term Contracts
• Informal Purchases Less than $35,000. No requirement for competitive bidding.
• Formal Purchases Greater than $35,000; require competitive bidding.
• Determine which level best matches your business abilities, then register online as a vendor. For details, visit dms.myflorida.com/business_operations/state_purchasing/.

 

Exporting

Florida is home to nearly 60,000 exporters — the second highest number in the U.S. — and nearly all of them are small- and medium-sized businesses with fewer than 500 employees. Florida exporters enjoy a multimodal system that ensures seamless movement of people and products between any two points on the planet as well as ready access to the nation’s second largest Foreign Trade Zone (FTZ) network.

Interested in expanding your business through trade? Here are some steps you can take:

• Evaluate your readiness. Seek export counseling assistance and/or participate in educational seminars, conferences and webinars.
• Create your export business plan and strategy. Apply for an Export Marketing Plan through the Florida SBDC Network, Enterprise Florida or U.S. Export Assistance Centers.
• Enter a new trade market and meet your buyers. Attend international trade shows and missions with Enterprise Florida and the U.S. Commercial Service.
• Learn about funding programs for exporters of goods and services. Contact the Florida Export Finance Corporation and EXIM Bank for information.
• Become familiar with trade rules and agreements. Seek assistance from Enterprise Florida and the U.S. Export Assistance Center.

 

Stonehill, Tampa
Can a company with fewer than 25 employees and less than three years of full-time operation be recognized nationally for outstanding business achievement? Yes, and Tampa-based Stonehill is proof. In 2019, the U.S. Chamber of Commerce awarded its prestigious “Emerging Business of the Year Award” to Stonehill based on the company’s excellence in five operational criteria: business performance, community engagement, customer and employee relations and innovative business strategies. Self-described as a strategy and transformation consultancy, Stonehill helps companies identify opportunities, create change and accelerate growth. Its clients represent a wide variety of industry sectors, including manufacturing, finance, logistics and health care.

 

Make it Happen

If you’re serious about becoming an exporter, don’t go it alone. Instead, partner with:

• U.S. Commercial Service Trade professionals in six Florida offices (see page 34) can help companies get started in exporting or increase sales to new global markets by identifying and evaluating international partners, creating market entry strategies and navigating documentation challenges. For general information on regulations, licensing, free trade agreements and other topics related to exporting, visit export.gov.
• Florida SBDC Network In partnership with Enterprise Florida and the U.S. Commercial Service, Florida SBDC International Trade Specialists prepare Export Marketing Plans for qualifying Florida-based manufacturers and service providers. Approximately 100 hours is spent preparing each customized plan, which includes target market recommendations, overseas trade opportunities and an action plan for market entry. Each Export Marketing Plan costs $5,000 to prepare. However, qualifying companies are eligible for a $4,500 scholarship, bringing your company’s cost to $500.

eSmart Recycling, Tampa
Tony Selvaggio always dreamed of building a business. In 2011, he moved to Tampa from his native Venezuela to help friends open a scrap metal recycling center. Three years later he launched his own — eSmart recycling — and as a Microsoft Registered Refurbisher, began accepting discarded electronics (computers, keyboards, printers, etc.) as well as scrap metal from filing cabinets, refrigerators, water coolers. And with the profits he made from his recycling business, Selvaggio helped fund computer labs for schools and nonprofit organizations that did not have the money to acquire technology. In 2019, he launched TKIBA®, an online educational technology platform aimed at middle and high school students. Now, in addition to hardware, students will have access to a wide-ranging computer curriculum.

Questions to ask before you go global:

1. Is my business ready? Find out at trade.com where three exporter assessments are available to help you determine your company’s readiness to: enter its first international market; expand into additional markets; or take on more challenging high-growth export markets.

2. Do I have a plan? Before jumping into uncharted waters, take the time to put your plans on paper. Assemble facts, identify constraints and set specific goals to ensure positive outcomes.

3. Have I done my homework? You wouldn’t take a foreign vacation without researching your destination, so why take your company overseas with no prior knowledge? Study up on markets, trade barriers, regulations and other exporting details specific to wherever you’re headed.

4. Where do I even begin? If you know absolutely nothing about exporting, but would like to learn, a good place to start is the SBA Office of International Trade (www.sba.gov/offices/headquarters/oit).