Want That Fortune 1000 Contract? Certify as a Woman-Owned Business

Did you know? Some 60% of Fortune 1000 companies spent $1 billion each on outside suppliers in 2003, yet women’s businesses, on average, captured a mere 4% of that market, according to a recent study commissioned by the Women's Business Enterprise National Council (WBENC). To help even out the economic playing field, many corporations have set diversity goals for doing business with certified women’s business enterprises (WBEs).

In today’s competitive market, it is imperative that businesses find ways in which to stand out from the rest. For woman-owned businesses, one such strategy would be to obtain women’s business enterprise certification from the WBENC (a nationally recognized third-party organization that provides certification). A WBE is a business that is at least 51% or more owned, operated and controlled by a woman business owner.  To find out exactly what you need to be certified, visit www.wbenc.org/certification/index.html.

The advantages of certification as a WBE are numerous. By highlighting your existence to companies that want to meet their diversity goals, certification can offer you access to new markets. Specifically, you have access to special forums for networking with corporations that want to do business with WBEs, which also gives you the opportunity to meet and network with other WBEs.

How Do I Get Certified as a WBE?

Although there are a number of places that provide certification in the tri-state area, two key organizations not only provide WBE certification but also offer educational and networking events for women-owned businesses: the Women Presidents’ Educational Organization (WPEO) for the private sector and the City of New York Small Business Services (SBS) department for the public sector. The WPEO is the local affiliate of WBENC in the New York tri-state area. WBENC certification is accepted by more than 700 Fortune 1000 corporations.

The city’s certification process is similar to the WPEO’s; in fact, there is an agreement between SBS and WPEO whereby if an applicant has been certified by the WPEO and provides a copy of the certificate and supporting documentation to SBS, she will be certified by the City of New York as well. There are many other organizations that also provide certification (see Resource list).

Both of these organizations offer events such as mini-trade fairs and networking breakfasts so that certified businesses can meet representatives from local corporations who are looking to work with WBEs.

Is Your Business Right for Certification?

Some businesses more than others can reap the benefits of WBE certification. Generally, those that are business-to-business — providing a service or product directly to the client rather than a manufacturer’s broker or representative — can successfully market the certification. Some examples include business consultants, specific retailers and other niche market service providers. Women in non-traditional industries — electricians, general contractors and owners of construction companies and waste disposal businesses — generally have the most success as a result of their certification status. The reason for WBEs’ success in these types of industries is that there are so few women-owned businesses of this nature, giving them a competitive edge.

As a rule of thumb, industries that are highly competitive, such as promotional marketing, Internet technology and advertising, can also benefit from certification. Regardless of your industry, though, should you decide to become certified, don’t rely on WBE status as the key to your marketing strategy. Your certification will help get you in the door — the rest is up to you.

Utilizing Your WBE Certification

Once you are certified, the challenge is to market your WBE status. There are a variety of tools at your disposal. Make sure you are familiar with the certifying organization’s database, services and calendar of events. To maximize networking potential, do research in advance of educational events or WBE conferences to determine if your key targets will be present and how you can best approach them. For example, if you call the organization hosting the networking event, you can find out which corporate representatives will be in attendance and research those corporations’ diversity goals (using the individual corporate websites) to see how to best align yourself with them in providing your service or product.

When targeting appropriate contacts, it is imperative to be as selective and specific as possible. While there are hundreds of corporations looking to do business with WBEs, a realistic and feasible strategy would be to research the three corporations that would make the best fit with your business. Corporate contact information is available on an online database for all certified WBEs (through WPEO or WBENC) to research. Do not get discouraged! Developing relationships with potential buyers can be a lengthy process, but it can also lead to successful contracts. WBE certification can be compared to a gym membership: It is not enough to be a card-carrying member; you’ve got to put in the effort to reap the rewards. Similarly, once you are certified, take advantage of all the resources and events open to you as a WBE.

Example of a Successful WBE Contract