Want to Become a Thriving Small Business Contractor? Explore Mentor Protege Relationships
The Department of Defense (DoD) began a Mentor Protégé (M-P) Pilot Program when Senators Nunn and Perry came together in the 90's to address the excuses of the large Prime contractors who said they could not find enough capable small business to satisfy the requirements of mandatory small business subcontracting plans. The M-P program has seen its ups and downs through the years especially in the area of budgets. Even so, several years after the DoD M-P program became a recognized success many other agencies, including the Small Business Administration, developed their own version of a mentor protégé program.Whether it is a formal agreement facilitated by a government agency or just a well-developed informal relationship, M-P programs are a benefit to both large and small firms in competition for contract awards. For business owners, the benefits are having a coach in real time as well as an access to the larger businesses' resources and contacts. Larger businesses can benefit from small businesses' flexibility and unique skill sets, while meeting their small business subcontracting goals.
M-P relationships are as close to a business "marriage" as one can get. The successful ones are built on mutual trust and respect for each other's services and contributions in the relationship. Where many programs have gone astray is when a small firm links up with a large firm and they both offer the same products or services. The small firm wants to grow up to be like the big guy, and the large guy hopes they sell more of what they provide by way of a small business advantage.
The relationships or agreements which seem to hold the most promise are those that are made up of two firms that need each other's products or services and have a "go to market" strategy that benefits each other over the long term and in multiple scenarios involving both government and large commercial contracts.
Few essentials to note when exploring if a M-P relationship is right for your business:
-- Evaluate whether an agency is right for you in relations to the products and services you plan to sell. Each government agency has its own version of a mentor protégé program based on its strategic goals for their small business programs and goals.
-- It is more important to find the right mentor before choosing an agency. Working together on a contract is the best way to establish a mentor protégé relationship. But be wary of sharing too much proprietary information, like pricing and technology, too fast. And always get things in writing - in a dispute you may be right but proving it in court may be too costly of an experience.
-- Use your business instincts to guide your strategy and not just big dollars at the end of the rainbow. Develop and stick to your strategy for business growth and use a M-P relationship as a tool to get you to that next level!
Doña Storey is the American Express OPEN Advisor on Procurement and through her experiences as an active woman-owned small business contractor, she lends her expertise to help small businesses navigate the procurement maze and find success.
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