Many new enterprises that have started doing business just a few days or months ago are already eager in attaining the 8a certification. It is not always possible to achieve the 8a status in such a short time. The SBA only grants the 8a status to viable and healthy companies that have a potential to succeed in business. The Small Business Administration measures the potential for success in different ways. One such way is– it considers the age of the company. The company needs to be in business for a minimum of two years. Although by a business waiver request, a company with less than two years of age can join the 8a Business Development Program, not every firm is granted such a waiver.
So, a company that doesn’t have a two year experience in the industry but wants to become 8a certified, should apply and request for a business waiver. In that case, the company should keep in mind to prove a few things to the Small Business Administration:
- That management team of the company has considerable technical experience in the industry
- That the company has an existing customer base, as supported by contracts or letters of commitment from the customers
- That the firm has a stable financial condition
- That the company has already generated some revenue, which needs to be proved by showing the tax records, contracts or other documentations
Although there are many other criteria for a waiver, these are some main factors, which should be addressed in a waiver request documentation and needs to be provided to the Small Business Administration.
So, if your company happens to be a newly launched minority owned business that wants to attain 8a certification, you need to keep in mind that there are many things, which you can do to position your firm in a better place so that you be granted a length of time in business waiver. However, most of the firms need to be established and be in operation for at least a few months before the length of time in the business waiver request turns out to be a feasible option.
Don’t think that just because you won’t be able to attain 8a certification right away, you won’t start your new venture! Rather make sure to put aggressive marketing and business development efforts; you will be able to get your firm to a better position for leveraging the certification later.