Women-owned businesses have certain advantages--one of the biggest being that
corporate and government diversity programs can help them land big contracts.
Sounds like a great perk for you. But a new study shows it's also a great perk
for the offering corporations.
So what are corporations getting from contracting with women-owned
businesses? In a Women's Business Enterprise National Council survey of women
consumers, 79 percent of respondents said that knowing a large company was
working with women-owned businesses would entice them to try the company's
products or services; 80 percent said it would create loyalty to that brand; and
51 percent even said it would make them give the company a second chance if they
were dissatisfied with the product or service.
Those aren't small numbers. With women heading households, holding managerial
jobs and controlling purchasing decisions, they make up the majority of buyers
in almost all markets. And in our oversaturated marketplace, women consumers
will buy from companies that differentiate themselves from their
competitors--and companies conscious of working with WBEs often fit that bill.
This is exciting news for women entrepreneurs, who not only can get a special
invitation to the bargaining table, but also come with the added leverage of a
potential marketing boost. The WBENC study found that while corporations benefit
from advertising that they're friendly to women-owned businesses, women business
owners also help spread the word and become repeat customers themselves, buying
for both their business and their home from one company.
So with this overwhelmingly positive new information on diversity programs,
how can you land a large contract for your business? "Becoming WBENC certified
would certainly be a first step," says Sharon Castillo, principal and founder of
SB services, a consulting firm that focuses on supplier diversity, and author of
the WBENC study. "And not only being certified, but then becoming active in the
organization." Once you start pursuing procurement opportunities, Castillo
offers three tips:
- Persevere. It's not uncommon to take 12 to 24 months to cultivate
relationships with supplier diversity managers and other members of
corporate senior management.
- Be patient and make sure you have enough capital to carry your
business through the time it takes to secure a contract.
- Do your homework. "Get to know your corporate targets as much as
possible," says Castillo. You can start by reading their annual reports, SEC
filings, press releases and investor releases. There's also often video or
audio content available on their sites that provides an even more in-depth
look. You want to be able to speak the company's language and know what it's
going through.
But just because you're a woman entrepreneur, securing a contract isn't
necessarily going to be simple. "Being a woman-owned business will certainly
open the door, but that's not going to give you a sustainable, competitive
edge," says Castillo. The important factor is bringing value to the table.
Another way to keep the doors open and opportunities flowing is to look at
how you behave as a consumer. Pay attention to the products you purchase--from
groceries and electronics to utilities and services, and start researching what
the companies you buy from are doing for women-owned businesses. "Women as
consumers control more than 80 percent of all purchasing decisions at the
consumer level," says Castillo. "So if you have such a huge amount of clout, you
need to become a more educated consumer."
You can start your research by visiting company websites and looking at
corporations that get supplier diversity awards from organizations like WBENC.
Then exercise your purchasing power. "The more corporations understand that as
females we're connecting the dots, the more they will open the doors and provide
opportunities for women-owned businesses," says Castillo.
So don't be shy when supporting the corporations you would like to do
business with. You may get a blank stare if you go into a store at the retail
level and say, "I'm shopping in this store because you have this program." But
if they hear it often enough, the information will start to filter up the chain
of management. "And the more they hear that," Castillo says, "the more weight
it'll carry for senior management to devote resources to continue to drive
opportunities to women-owned companies."