Knowledge Center

By: Casey Neal, Business Development Specialist

When business owners talk about growth, they usually mention profit, lead generation, or customer satisfaction. Rarely does the conversation begin with workplace culture. That’s a costly mistake. Culture isn’t just a buzzword. It’s the engine that drives retention, productivity, and long-term performance.

A healthy culture does not just improve employee happiness. It increases accountability, speeds up execution, and builds trust with clients. On the other hand, a broken culture will quietly chip away at everything you’re trying to build.

Organizational psychologist Adam Grant outlines four common culture mistakes that often get ignored. While his research focuses on large companies, these issues are even more dangerous for small and midsize businesses that depend on lean, high-performing teams.

What happens when you reward brilliance over respect?

In some companies, high performers are treated like royalty, regardless of how they behave. Skill and output are celebrated more than attitude or values. On the surface, this may seem harmless. After all, you need strong salespeople, efficient operators, and expert technicians.

But when the wrong behavior is excused because of results, it creates a ripple effect of resentment. Team members start to question whether their hard work and integrity matter at all. This builds tension, silos, and eventually, attrition.

One toxic top performer can lower team output by up to 40 percent. When disrespect is tolerated from high achievers, it sends a clear message to everyone else. Numbers matter more than people. That message eventually comes back to bite you in the form of lower engagement, higher turnover, and lost clients who sense the dysfunction.

Are you rewarding silence instead of speaking up?

Many team members spot problems before managers do. They notice broken systems, risky shortcuts, or opportunities to improve. Yet, far too often, they say nothing. Not because they do not care, but because they don’t believe their voice matters.

When employees stay silent, it is usually because of one of two reasons. Either they’ve spoken up before and nothing changed, or they’ve seen others punished for being honest. Both are symptoms of a dangerous culture.

Healthy business cultures actively encourage feedback. Employees need to know that their insights are valued, and their ideas will be considered without backlash. When frontline workers are empowered to speak up, businesses adapt faster and make smarter decisions.

Speak-up culture is not built overnight. It starts with leaders asking the right questions and responding with action instead of ego. The best ideas often come from those closest to the work. If they do not feel safe to share, your business will always operate below its potential.

Does your company avoid conflict instead of confronting it?

Conflict avoidance is one of the most overlooked threats in a growing company. It starts with good intentions. Managers want to be liked. Teams want to get along. Owners want to focus on the future, not interpersonal drama.

But when tough conversations are avoided, small issues become major problems. Poor performance drags down the team. Misunderstandings turn into personal grudges. Expectations are assumed rather than clarified.

Clear and respectful conflict resolution must be modeled at the top. Leaders need to show that addressing problems early is a strength, not a weakness. Accountability should never be conditional. It should be consistent, fair, and direct.

Are you chasing harmony over true belonging?

Harmony sounds like a win. Everyone getting along. No arguments. No friction. But too much harmony can actually mean people are hiding their real opinions just to keep the peace.

True belonging is different. It means every team member feels safe enough to be authentic. They know their unique perspective is welcome, even when it’s different. They trust that their contributions matter.

When people feel like they belong, they stop pretending. They start showing up with creativity, confidence, and commitment. This is when real collaboration happens, and long-term loyalty is built.

Harmony may feel smooth in the short term, but belonging builds something far more valuable. It creates a team that can grow together, disagree respectfully, and solve hard problems without falling apart.

What should business owners do next?

Improving culture doesn’t require a complete overhaul. It starts with awareness and curiosity. Begin by asking your team three simple questions in a one-on-one setting:

• What is something we do well here that we should never stop?
• What is something we need to fix?
• What is one way I can support you better as a leader?

Ask. Listen. Act. These conversations build trust, and trust is the foundation of every healthy business culture.

Culture is not a luxury. It is a performance strategy.

Toxic work environments are not just bad for morale. They are expensive. High turnover drains money. Burnout limits productivity. Silence kills innovation.

If you want your business to thrive, culture cannot be an afterthought. It must be intentional. It must be maintained. And it must start with you.

“Culture eats strategy for breakfast.”
— Peter Drucker

Grant, A. (2022, June 21). The 4 Deadly Sins of Work Culture. Ted.com; TED Talks. https://www.ted.com/talks/worklife_with_adam_grant_the_4_deadly_sins_of_work_culture?utm_campaign=tedspread&utm_medium=referral&utm_source=tedcomshare

How to Tell the Difference and What to Do About It

By Andrew Pfeiffer, Project Director

Why do so many businesses struggle with accountability?

If you’ve ever found yourself saying, “I just can’t find good people,” you’re not alone. It’s one of the most common frustrations across industries.

But what if the real problem isn’t the person? What if it’s the process? Imagine the relief of finding a solution to this common frustration.

When businesses experience inconsistent performance, it usually comes down to two things:

1. People don’t know what’s expected of them (expectation gap)
2. Or they know but aren’t doing it (execution gap)

Either way, the result is the same: frustration, inefficiency, and lost revenue.

So, How Can You Tell If It’s a People Problem Or a Process Problem?

Start with these questions:

• Is the role defined in writing, or is it just understood?
• Has the person been trained recently, or have they been thrown in and expected to figure it out on their own?
• Do they know how their performance is measured?
• Do they have the right tools and support to do the job?
• Are others on the team consistently completing the same task?

If the answer to any of these is no, chances are, you’ve got a process issue. If everything checks out but the performance is still off, then it’s likely a people issue.

Real-World Example

I worked with a business where the operations leader was frustrated with the scheduling function. Jobs were being missed, clients were calling in angry, and field crews were idle at the wrong times.

It appeared to be a performance issue, but a closer look revealed there was no clearly defined process in place. There was no checklist outlining what needed to happen each day, limited training on the scheduling system, and constant interruptions that made focused time nearly impossible.

Once the process was clarified and documented, including a checklist, time blocks for uninterrupted scheduling, and training on the tools involved, performance improved within two weeks. This reinforced the fact that the issue was not about personal capability. It was about the absence of a well-defined, structured process.

People vs. Process: A Simple Breakdown

Here are some common symptoms and how they usually indicate whether you’re facing a process issue or a people issue:

• If you see inconsistent results across your entire team, it’s likely a process issue. When only one person is underperforming while others succeed, it may indicate a people issue.
• If there is no documentation or training, that’s almost always a process problem. People can’t succeed with unclear or missing instructions.
• When the right tools or systems are missing, that reflects a failure in the process, not in the person using them.
• On the other hand, if everything is clearly defined, documented, and available, but performance still falls short, that usually signals a people issue.

Use these observations as a guide when diagnosing problems within your business. Remember, the ability to diagnose and analyze is the first step towards a solution.

Fix the Process First

You can’t expect consistent results when expectations are vague or undocumented. Before jumping to conclusions about performance, take a hard look at the systems in place.

This is where Cogent’s 4 Pillars come in. They help anchor the foundation of any business:

1. Business Development: Are roles supporting the direction you’re trying to grow in, or are people stuck doing whatever comes up?
2. People: Are responsibilities clear, and does the team know who owns what?
3. Measurement: Can you tell, at a glance, if something is working or not?
4. Operations: Are your processes documented, or are they reliant on memory and habit?

Once those are in motion, I use what I call the 5 E’s Framework to drill in further and figure out what’s missing:

1. Experience: What’s it like to work in that role day-to-day? Is the setup helping or hindering?
2. Expectations: Have you clearly communicated what “done right” looks like?
3. Execution: Are people following the plan, or is it just a suggestion?
4. Education: Has the team been trained, or are they winging it?
5. Empowerment: Does each person feel confident making decisions, or are they stuck waiting for permission?

You don’t need perfection, but you do need clarity, consistency, and a plan that people can follow.

When It’s a People Problem

Once systems are sound and performance still doesn’t align, the conversation shifts.

Steps to take:

1. Have a direct, coaching-focused conversation
2. Reset clear expectations and timelines
3. Provide short-term accountability and follow-ups
4. If improvement does not follow, it may be time for a change

Avoiding this step has a cost. Clarity and courage are essential for leaders.

Why This Distinction Matters

Too often, leaders focus on the individual rather than the system as a whole. Or they keep tweaking the process while ignoring performance problems.

Using Cogent’s 4 Pillars provides a full-business perspective. Pairing that with the 5 E’s Framework helps structure conversations and decisions around people and performance.

Next Steps: What You Can Do Today

If it’s a process issue:

1. Review the full process map to identify where the breakdown is happening
2. Look for missing steps, unclear handoffs, or assumptions that no longer fit
3. Clarify expectations and streamline where possible
4. Create a checklist or job aid based on the revised process
5. Retrain using examples grounded in actual day-to-day work
6. Ensure that tools, systems, and responsibilities support the process in the future

If it’s a people issue:

1. Reset expectations and timelines
2. Coach actively
3. Track progress and take action if needed
4. Use Cogent’s 4 Pillars and 5 E’s Framework to evaluate all future performance issues

Reinforce with Documentation

Even when the correct process is identified, clarity only lasts if it is documented and accessible. Leaders often assume that saying something once means it’s understood. In reality, documentation protects the business from miscommunication, turnover, and dependency on memory.

When creating or updating processes:

• Write them in a checklist or step-by-step format
• Make them easy to find and reference
• Review and update them regularly based on team feedback and results

Strong documentation turns clarity into consistency, and consistency is what scales.

Final Thoughts

Accountability without clarity creates chaos. Empowerment without structure creates drift. When roles, systems, and expectations are aligned, accountability becomes a shared standard.

Start with the process. Then develop the people. That’s how long-term change takes root.

Introduction

By Paul Sandberg, Project Director

In project-based manufacturing, accurately matching revenue and expenses within the same accounting period is crucial for financial accuracy. The percent of completion (POC) method provides a structured way to recognize revenue and expenses in alignment with a project’s progress. This article explores how a fictitious manufacturing company, Proactive Custom Manufacturing (PCM), can implement the POC method, account for upfront deposits, and manage revenue recognition effectively over long-term projects.

The Challenges of Revenue Recognition in Manufacturing

PCM specializes in producing high-end custom components for industrial clients. Their projects often span six months or more, with payments structured as upfront deposits, progress payments, and final payments.  If PCM were to recognize revenue only when payments were received, its financial statements would be misleading—showing spikes in revenue during payment months and underreporting during production months.

By applying the POC method, PCM can:

1. Accurately match revenue and expenses.
2. Provide a realistic view of financial performance.
3. Comply with accounting standards such as GAAP and IFRS.

Example cash basis Income Statement:

Month 1: receive $50,000 deposit
Month 2: expense $250,000
Month 3: expense $250,000, invoice $200,000 progress payment
Month 4: invoice final $750,000 invoice

Step 1: Accounting for Upfront Deposits

When PCM receives an upfront deposit from a client, it should not immediately record it as revenue. Instead, the deposit should be placed into a Revenue Billed Not Earned account, which is a liability on the balance sheet. This ensures that revenue is recognized in proportion to the project’s completion.

Journal Entry for Upfront Deposit:

This entry reflects that while cash has been received, the work has not yet been performed.

Step 2: Recognizing Revenue Using the Percent of Completion Method

PCM determines project completion percentage by comparing actual costs incurred to total estimated costs. If a project is estimated to cost $500,000 and PCM has incurred $250,000 in costs, the project is 50% complete.
If the total contract value is $1,000,000, the revenue to recognize is: 50% of $1,000,000 = $500,000
PCM must move a portion of the Revenue Billed Not Earned into a recognized revenue account.

Journal Entry for Recognized Revenue:

This aligns revenue recognition with project progress.

Step 3: Accounting for Work Performed but Not Yet Billed

If PCM has completed 50% of a project but has only billed 40% of the contract, there is an additional 10% of revenue that has been earned but not yet invoiced. This is recorded in a Revenue Earned Not Billed account (an asset on the balance sheet), ensuring that revenue is recognized even if billing lags behind work progress.

Journal Entry for Revenue Earned But Not Yet Billed:

This entry ensures that PCM recognizes revenue in line with project progress rather than billing milestones.

Step 4: Managing Progress Payments and Final Payments

Throughout the project, PCM may issue progress invoices based on the contract terms. When a progress payment is received, PCM records it as follows:

Journal Entry for Progress Payment:

When the project reaches completion and the final invoice is sent, PCM adjusts the remaining balances, moving any unbilled revenue into accounts receivable and ensuring that all revenue has been recognized.

Step 5: Closing the Project

Once PCM completes the project and receives the final payment, the balance sheet should reflect that:

• Revenue Billed Not Earned has been fully transferred to revenue.
• Revenue Earned Not Billed has been moved to accounts receivable and subsequently collected.
• Expenses have been fully accounted for and match the recognized revenue proportionally.

Example true Accrual Percent of Completion Income Statement

Conclusion

The percent of completion method provides PCM with a robust framework to align revenue recognition with project progress. By properly handling upfront deposits, progress payments, and earned-but-unbilled revenue, PCM ensures that financial reporting reflects the true state of operations. This method not only enhances financial transparency but also supports better decision-making for project managers and stakeholders.

By Paul Sandberg, Project Director

If you have a construction or contracting business you may be able to increase employee productivity – and by extension gross margins, by implementing project management processes taken from the lean construction movement. Companies often report 30% improvement in employee productivity by applying these principles.

At the heart of Lean planning is the idea of making reliable commitments and continuously measuring your performance against those commitments. Let’s explore how you can apply this through a three-tiered planning framework and use KPI metrics like PPC, RNC, and APLR to drive better performance on your projects.

The Lean Planning Framework

1. Master Project Schedule (MPS)

The Master Project Schedule gives you the big-picture roadmap. Created during the preconstruction phase, it outlines major milestones, sequencing, and key deadlines.

The MPS is not meant to be a detailed plan for the project. You will develop increasingly detailed plans as the time horizon gets closer. The key here is don’t invest more time than necessary to get

Benefits:

• Aligns all teams around shared milestones
• Provides a strategic view of long-term goals
• Highlights potential bottlenecks early
• Provides insights on when resources will be required

2. 5-Week Look-Ahead Plan

Think of this as your tactical lens. The 5-week look-ahead plan translates the master schedule into an actionable window of upcoming work.

Each week, the team reviews what’s coming in the next five weeks and checks for constraints: Are designs complete? Are materials on-site? Are crews available? The project manager role is accountable for maintaining the 5-Week Look-Ahead Plan.

Why it matters:

• Removes roadblocks before they cause delays
• Encourages proactive coordination
• Reduces rework and last-minute scrambles

3. Weekly Work Plan (WWP)

This is where promises are made—and kept. The WWP is created during short weekly meetings with field leaders, who commit to specific tasks based on actual readiness.

Unlike traditional schedules, this is commitment-based planning—only plan what you can realistically get done (note: this is not a plan for what you are working on, it is a plan for what you expect to complete 100%). The supervisor role is accountable for creating and updating the weekly work plan

Best practices:

• Plan based on real conditions, not wishful thinking
• Only plan for what you are confident you can complete
• Review performance from the prior week
• Use daily huddles to stay aligned

Using KPIs to Drive Continuous Improvement

Planning is only half the battle. To truly improve, you need to measure performance. That’s where Lean KPIs come in. These three are especially effective:

1. Percent Planned Complete (PPC)

Formula: PPC = (Completed Promises / Total Promises) × 100

PPC tells you how reliable your plans are. If you committed to 20 tasks and completed 15, your PPC is 75%. The goal is to make and keep commitments, not just fill out a schedule.

How to use PPC:

• Track it weekly and share results with the team
• Look for trends, not just one-off dips
• Use it to promote accountability and build trust

2. Reasons for Non-Conformance (RNC)

When work doesn’t get done as planned, why? That’s what RNC tracking is for. Instead of pointing fingers, it helps teams identify systemic issues—like late materials, incomplete designs, or missing tools.

Tip: Categorize reasons (design, supply, weather, manpower, etc.) to spot patterns. Then fix the root causes, not just the symptoms.

3. Actual to Planned Labor Ratio (APLR)

Formula: APLR = Actual Labor Hours / Planned Labor Hours

If you planned for 80 labor hours and used 100, your APLR is 1.25—meaning your plan underestimated the effort. A consistently high APLR points to productivity issues or planning inaccuracies.

Use APLR to:

• Forecast labor needs more accurately
• Benchmark trade performance
• Understand which tasks routinely blow their labor budgets

Wrapping It Up: Lean Is a Culture, Not Just a Schedule

When you combine the Master Schedule, Look-Ahead Plans, and Weekly Work Plans with smart KPIs like PPC, RNC, and APLR, you build more than just efficient workflows—you create a culture of reliability and accountability.

This Lean planning system:

• Encourages proactive communication Reduces waste and delays
• Makes performance transparent Builds trust through accountability
• In short, it makes your team better—week after week, which improves productivity and profitability in your business.

Cultivating a quality-centric culture is like planting seeds of success throughout your organization. Just as a single seed can blossom into a flourishing garden, inspiring a commitment to quality has the power to foster continuing success. So, what are the most effective ways to plant these seeds of success? How do we water the seeds properly to get the lasting results all business owners want? In this article we will explore some techniques on how to accomplish this. 

Leading by Example  

The most common technique to cultivate a quality-centric culture is leading by example. For this technique to be effective, mindful leadership must set the tone for excellence and inspire teams to follow suit. Universal engagement throughout all levels of your company fosters ownership, accountability, and innovation beyond product delivery.  

Look internally for champions and train those champions as an investment. This in turn empowers employees to consistently deliver high-quality results, reinforced by a shift toward everyone’s responsibility in upholding quality. View mistakes as learning opportunities that fuel innovation within guidelines. Celebrate successes and continue to drive a customer-centric perspective. When your team can sustain quality through growth, it reinforces the long-term impact and loyalty bred by a quality-focused culture.  

Cross-functional quality culture enables quality practices to span across functions creating a holistic dedication to excellence. Fortify this commitment through data-driven decisions that target developments and promote transparency, accountability, and ongoing learning. Ideally, empowered problem solvers will lead the charge in proactively safeguarding excellence. Instilling quality-centric culture is about the intentionality behind empowering your team and aligning values with both your employees and customers.   

Supplier Partnerships 

The next way to cultivate a quality-centric culture is through supplier partnerships. Let’s imagine your company is called “Gadget Genius.” It’s a well-established company known for its innovative tech gadgets that have captivated the market. However, the company has been facing a persistent quality conundrum lately and needs a solution. Some of its products have been falling short of customer expectations due to inconsistencies in the components supplied by different vendors. After reading a witty article online, you, the owner, decide to embrace the strategy of supplier partnerships.  

You contact the suppliers and form the “League of Quality.” Together, you embark on a mission to ensure that every nut, bolt, and chip entering the Gadget Genius production line meets the highest quality standards. By uniting as a leadership team and aligning partners with their quality goals, Gadget Genius transforms its supply chain into a unified quality ecosystem. 

The most important part is to talk to your suppliers. Be open, honest, and clear about your expectations of quality. You can bargain with suppliers by ordering in bulk or calling upon your long history together to make deals happen. Sometimes calling in a third-party consultant to strengthen your supply chain partnerships is the best move. Talk more with your supplier’s leadership team and find out how they are truly doing to form a genuine partnership with them. Move away from a transactional partnership and move into a genuine partnership. 

Tracking Metrics that Matter 

Tracking metrics that matter is critical to cultivate a quality-centric culture. The critical component of this is “that matter.” Stop wasting your time if you’re tracking something that doesn’t link to your bottom line. Many small businesses barely track input/output metrics, and fewer companies track key performance indicators (KPIs) that link to their bottom line. Many companies also forget that rework, return rate, defect rate, and UX metrics also link to your bottom line.  

For example, Gadget Genius saw the importance of reducing its defect rate. They reduced it from 5% to 2%. With an annual production of 100,000 gadgets, this reduction meant avoiding 3,000 potential defects, translating into $150,000 in savings from reduced rework costs and warranty claims. Doing so bolstered the company’s net profit by 12%. The question is, how do we reduce the defect rate? This is where we land back at supplier relationships! 

Feedback Loops for a Problem-Solving Culture 

Embracing feedback loops and instilling a problem-solving culture in your business is the final technique to create a quality-centric culture. Quality is a mindset, and it doesn’t only apply to what your businesses sells, but to your employees, too. Ideas should be cascaded from ground-floor workers to leadership. In leadership, you need all the information about what is happening to make the best decision at the right time. Your employees know what is happening in real time.  

There are many ways to create feedback loops, but the goal is a communication channel for employees to voice concerns, share insights, and suggest improvements. Leadership must create constructive time to find champions of change and innovation with rewards and incentives. Where do you get the incentive money? It can come from the return on investment from the opportunities or problem costs found by the employees.  

For example, let’s say that an employee finds that if the assembly lines shift down vertically by 10 degrees, gravity will slide the boxes down the shoot 10% faster than before. Her line is the only line doing this, and her line has consistently kept up with the pace and has outperformed its competing lines by 10%, as she predicted it would. You verify it’s a safe option to make the adjustments, and now you have two more lines running at an additional 10% each. This translates into 100,000 more widgets a quarter, which is 400,000 more widgets annually, ultimately leading to $1.4 million in net profit. The math is hypothetical, but you would certainly have a few dollars to spare to compensate the employee for such a suggestion.  

This hypothetical revenue increase comes from intentionally creating an environment of feedback. If you praise the employee, you create a positive example and encourage behavior, leading others to follow suit. Each idea should be made known and heard and never shot down abrasively. You can learn tips to do this effectively in many different forums. The point is to be intentional and well-planned in your approach to feedback loops. 

Conclusion 

To conclude, cultivating a quality-centric culture is crucial to keeping your customers happy and loyal and ensuring your employees are seen and heard. A happy employee taking ownership and pride in their work is worth its weight in gold. Lead by example, foster genuine supplier partnerships, track metrics that matter, and implement feedback loops to cultivate a quality-centric culture in your business.  

Discover the keys to hiring and attracting the RIGHT employees 

Do you ever feel like you’re doing everything in your company? When you go home, are you able to leave work at work?  Has your family expressed concerns about your work-life balance? Let’s address the why behind these issues.  

Companies, regardless of size or industry, are always challenged with recruiting and hiring the right people. So, what does “right people” really mean? How do we identify it?  First, we must put the “human” back in Human Resources and the recruiting and interviewing process. In the world of AI, it’s easy for someone to build a stellar resume. When you call references, many will give you a glowing review of the candidate with little substance to back it up. Some former employers will only confirm dates of employment to avoid potential litigation.  For these reasons, don’t put too much stock in what you see on paper.   

Validating a resume is not effective and doesn’t give you any insight on the person you’re interviewing. Instead, ask open-ended questions that look beyond the resume. Use your knowledge of company culture to determine if the candidate is truly a good fit. Here are some examples of open-ended interview question starters: 

• “Tell me about a time when…” 

• “How would you handle…”  

• “What does your ideal work environment look like?” 

Second, you must stop looking for yourself in the candidates. Teams built on diversity in thought, personality traits, cultures, and experience levels have been shown to perform better. If you want to raise the bar for your company, you must have individuals surrounding you who feel safe and comfortable expressing their ideas and thoughts. This likely means leaning in to your own discomfort. In the world of recruiting and hiring the right people, leaders must get comfortable being uncomfortable! 

What qualities should we look for in candidates? Many leaders look for timeliness of arrival, appearance, first impressions of the handshake or smile, etc. While these are good indicators of the person’s attention to detail, planning, and personality, we need to dig deeper. Ask questions to see if the person has knowledge and passion about the role and its requirements. Ask questions to determine whether the person is a good fit for your culture. Determine if the candidate is coachable. Remember, it’s easier to teach skills than will. Your candidate must bring the will and right attitude to your organization.   

There must also be performance measurements when hiring the right people. When determining whether a candidate can be an asset to your team, consider the environment your candidate worked in previously. Your job during the interview is to decide whether the candidate can create the result for which you’re looking. If you are hiring for a critical leadership role, do not rush the process! Hiring the right person at this level has far-reaching financial implications.  

Third, you must learn to fail fast. If you’ve been in the people business long enough, you understand there is no such thing as perfect hiring. Realizing this, when you do hire a person that is not going to be successful in the role, do not hold onto to the individual in that role. Consider alternative roles if possible. However you handle it, make the move quickly. The longer you leave the wrong person in the role, the more setbacks your company will have to overcome.  

Fourth, remember that recruiting and hiring are not all about you and your company. Candidates that are truly interested in joining your organization have requirements of their own. If your desire is to build long-lasting and productive teams, you must find out your candidates’ requirements and determine if your organization’s culture can meet those requirements.  

During the interview, keep notes, but not on the resume! Take notes on a notepad, particularly about your observations.  Depending on the role, this information is important for future development needs. For example, how did your candidate respond to your questions (logically and timely). How was the body language when the candidate was asked more challenging questions? Did the candidate ask for clarification, if needed, or did they just respond with an answer? How well did the candidate use facial expressions and voice inflection to keep your attention?     

Finally, look at your employment ads. If your ads focus on the role and years of experience, you should revamp. Ads should reveal more about your company’s culture and what it’s like to work there. Be open and honest with the good, the bad, and the ugly. This transparency is important because it speaks to the right people who want to join your culture and organization.       

We often turn to conventional avenues when faced with increased volume or demand. We typically find some remote workers, Managed Services Providers, or temporary workers. While those methods are effective, it may be time to consider creative outsourcing strategies beyond the conventional. This article will explore unconventional approaches like task-specific partnerships, micro-task outsourcing, and freelancing platforms. These tactics can help you quickly scale without overwhelming your internal resources and smooth operations.  

Task-Specific Partnerships 

Let’s start with task-specific partnerships. Task-specific partnerships are acute relationships with external entities to address only a specific business need or project for which you don’t specialize or need additional capacity. Using expertise, resources, or capability to complete tasks more efficiently or reach a particular goal without committing to a long-term or comprehensive collaboration is essential.   

Let’s say you have a software development company. Your company is experiencing a sudden surge in demand for specific software applications. Due to a recent trend, the demand has spiked, and your team needs to meet the demand without compromising quality. You decide to enter a task-specific partnership with a specialized external firm. Their expertise in the required technology allows them to quickly build the software application, helping you meet the market demand and capitalize on the trend while maintaining your reputation for quality.  

Once the project is completed, the partnership ends. You return to your normal operations, as does your partner tech company. It’s a small commitment and a quick collaboration with a qualified company to reach a goal. In contrast to hiring temporary workers, online workers, or forming a permanent partnership, this can be a better solution when faced with increased volume.   

Micro-Task Outsourcing 

Now let’s look at micro-task outsourcing. Sometimes your capacity is stretched and delegating some simple tasks to someone else could free up internal capacity for core tasks. Micro-task outsourcing is giving those small talks to external individuals. It is often done through online platforms or gig economy services like Amazon Mechanical Turk or Clickworker. The tasks are usually short, well-defined, and able to be completed remotely.  

Micro-task outsourcing companies are a resource to consider. The platforms offer access to a diverse pool of skilled professionals. These professionals can be engaged on a project-by-project as needed, and your core employees remain consistent and utilized correctly. The traditional hiring process can be time-consuming and costly, but freelancing platforms allow businesses to hire freelancers quickly.  

Speed is crucial when there is an urgent need. Freelancers typically have specialized skills and expertise in various domains. You can leverage these skills to handle tasks or projects outside your current staff’s competencies. It’s a scalable solution because you can hire short-term or long-term employees as needed. Talent on freelancing sites is global. They enter these platforms from around the world and often provide a fresh perspective on the work. Outside of adjusting to your specific company, there is typically a significantly shorter training time, reducing the administrative burden. These platforms also handle administrative tasks, such as payment processing, contracts, and communication. This, in turn, frees up your administrative team to conduct their core activities and maximize their time.   

Case Study 

Let’s say you have a small e-commerce business called Dinosales and are experiencing a sudden surge in orders from the holiday season. To handle the increase in demand, you have decided to try out micro-task outsourcing. You choose a platform and post small tasks such as labeling and packaging the product, printing shipping labels, and organizing shipments. Two days later, you receive a list of registered independent workers who have picked up the tasks. They complete them remotely and returned the results to Dinosales. This allowed you to quickly scale up the order processing without fully hiring additional permanent staff. Once the holiday season ended and the order volume returned to normal, Dinosales no longer needed the micro-task outsourcing platform. It is the perfect temporary demand spike solution.   

Tips for Hiring Freelancers 

When hiring freelancers, here are a few suggestions to keep in mind:  

1. Be sure to have your project well defined so that the expectations are clear for the freelancer. 

1. Do your research and choose an outsourcing platform that meets your needs.  

1. Check the portfolios and reviews that your potential candidates prepare, as these provide great information about who they are, as well as their experience and skill level.  

1. Strong communication skills are needed to manage freelancing relationships, as freelancers are often global.  

1. Ask direct questions about the expertise of any potential freelancer. You will want to hear examples of similar work that they have done in the past. Talk about your budget and timeline for the project together with the freelancer. They must understand and have clear goals and deadlines.  

1. Above all else, spend time conducting virtual interviews. Words on paper are okay, but a video interview will teach you much more about them. It shows personality, indicators of work ethic, and can show commitment to your project.  

1. Consider testing freelancers with a smaller, less critical project to gain your trust and then move them on to something more significant once trust has been established.  

1. Make sure your freelancers are a cultural fit, especially if they will work with other people in your organization.  

When demand increases, use outsourcing platforms as they are flexible, affordable, and potentially a great way to find new permanent workers to aid in your company’s growth.  

Is your business suddenly booming? Do you need help keeping up with the demand? As your business experiences sudden growth, it’s important to know a few practical ways to manage increased workload and demand. In this article we’ll explore the concepts of workload automation, dynamic capacity planning, and on-demand staffing solutions. Learn how these strategies can help you maintain quality, meet deadlines, and satisfy your team and customers during high volume or unexpected growth periods. Applying the strategies in this article is like using a surge protector for your home office setup.  

Dynamic Capacity Planning  

Let’s examine dynamic capacity planning, a strategy for real-time resource allocation optimization. Businesses use this strategic process to optimize resource allocation and usage in real-time based on the company’s changing demands or conditions. It involves analyzing data and adjusting resources to be sure that the right amount of capacity is available to meet workload requirements. It’s an excellent way to avoid overprovisioning or underutilization of resources.  

Performing dynamic capacity planning properly results in cost savings, improved performance, and better responsiveness to changes in demand. It’s a lot like switching up your lineup in a football game. As the game progresses, some team members might be stronger than others for specific tasks, or perhaps your quarterback got injured. You want to swap a player out and put in a fresh one in real time. Look at your dynamic capacity plan like a call sheet for when players are tired or need to shuffle to finish the play. This type of planning leads us to workload automation technologies. 

Workload Automation Technologies 

Now that you have a dynamic capacity plan, it’s time to incorporate workload automation technologies. Let’s imagine that you run a manufacturing company called MachineWorks. It’s been operating at full throttle all season. You have already allocated all your resources to run the operation, and every gear in your warehouse is in motion. Suddenly, a massive order lands on your desk after a famous pop star endorses your product on television.  

A surge like this could quickly derail you if you didn’t have workload automation technology. Thankfully, you’ve kept your workload automation software up and running, and now you need to find some resources. So, you decide to run the automation. The software juggles resources, shifts priorities, and allocates tasks with precision. It redistributes tasks intelligently, preventing bottlenecks and keeping the production process flowing smoothly. Your workload automation has now turned your operational constraints into opportunities, and you can handle high-demand situations gracefully. Now your business is thriving and not just surviving. 

While this is an hypothetical example, workload automation software really can save you in a bind. Once set up properly, it is simply a software package that serves as automated workflow management. There are plenty of options out there that range from expensive to more expensive, but the return on investment is well worth it. Some popular workload automation options are IBM Workload Automation, BMC Control-M, Cisco Workload, and Microsoft System Center Orchestrator. Research them to determine which is the best fit for your company. What happens if after dynamic capacity planning and workload automation, you still need help finding more capacity or resources to allocate to the demand? Let’s explore on-demand staffing solutions.  

On-Demand Staffing Solutions  

With capacity stretched and a surge in demand, it’s good to have a secret weapon ready to save the day. This is where on-demand staffing solutions come into play. If you have a spike in demand at the same time year after year, it’s easy to anticipate when extra staffing will be needed. If not, it’s still good to have a working relationship with some on-demand staffing solution company. These companies offer flexible instant workforce solutions or, in more familiar terms, reinforcements when the battle is getting challenging.  

On-demand staffing solutions provide businesses with access to skilled and qualified workers when needed on-demand, enabling companies to quickly scale up or down based on fluctuations in demand. It’s a temporary or short-term staffing option allowing organizations like yours to address immediate staffing requirements without a long-term commitment. On-demand staffing solutions generally provide agility and cost-efficient pricing. It can take a little time to hash out the details of this arrangement, so it is best to have this conversation with the on-demand staffing company before the spike in demand comes. It can take weeks or months to do it right, so be preemptive about this strategy and work with the leadership team to iron out the details. 

Let’s look at a quick example: Amazon Fulfillment Centers. They hire temporary workers in peak seasons, and then when the season is over, they release the workers back to the agency they came from. Amazon does this in-house in some places, but they will often use the human resources of an on-demand staffing agency because it’s easier for the management team.  

Another organization that does this is the United States Postal Service. Many logistics companies go through this process around the holiday season, using on-demand staffing solutions just like the ones we are describing. The trick is to have these conversations early and have a working relationship with one before the floodgates start. 

Conclusion 

The key here is to implement these strategies before the surge comes. Build a working relationship with an on-demand staffing company so you have the resources you need when you need them. Resource reallocation is the swiftest way to free up resources and handle that new bid or order that just came in. When that’s not enough, it’s time to rely on your relationships with on-demand staffing companies.  

Time Management Tools (TMT) and Systems Operations form a dynamic partnership—a delicate dance between timing and operational workflow. While TMTs optimize individual and team productivity, Systems Operations streamline overall processes and resource allocation. When you put them together, they synergize data-driven precision and operational finesse to drive businesses to peak efficiency. By doing so, this marriage of efficiency can shape the path for strategic growth and maximizing net profit. This overview sounds a bit abstract; so let’s work through a few concepts with concrete examples.

Cohesive Workflow Integration 

Let’s start with Cohesive Workflow Integration, a term which refers to seamless process harmonization. Imagine your business is a symphony orchestra. Each department is an instrument playing a crucial role in your latest performance. Consider an e-commerce company as your orchestra, where inventory management, marketing, and customer service are the distinct sections. Next, let’s introduce the fictional time management tool, SyncCity, which acts as the conductor, confirming that every department plays in perfect harmony.  

 In the example of our e-commerce orchestra, SyncCity automates routine tasks like inventory restocking, ensuring replenished shelves as demand requires. This level of efficiency allows the marketing team to harmonize their campaigns. Now, inventory availability prevents stressful situations where demand exceeds supply. As a result, the business reaches a harmonious workflow. Each department plays its part immaculately, creating an orchestrated symphony of satisfied customers. It also gives your net profit a consistently repeatable, optimized, stable increase.
 Hypothetical examples aside, Cohesive Workflow Integration is about tasks working together in a well-timed, smooth way. Automation and workflow tools help teams work together, keeping things running smoothly, customers happy, and profits growing.
 

Strategic Bottleneck Identification (SBI) 

What about workflow obstacles? Strategic Bottleneck Identification (SBI) is about pinpointing workflow efficiency obstacles. Imagine that you own a company named HarmonyTech. You have an ambitious growth plan that is unfolding nicely, but an unexpected bottleneck arose during product development. The bottleneck is delaying new releases and slowing your team down. During your SBI process, you deploy new software called EffiSync. After analyzing the timing and workflow data, you find that the bottleneck originates from the communication gaps between design and manufacturing teams.  

 Armed with insight, you now leverage efficient time management techniques to implement a streamlined communication protocol. New product development accelerates by 15%, allowing your company to release more innovative solutions to the market much faster. With SBI, some bottlenecks are easy to spot, with pain points being the slowest part of your process. Other times, it is necessary to deploy technology to track, monitor, and analyze large amounts of data to pinpoint areas of concern.

The moral of this example is that TMTs working with your system operations can be a huge benefit if appropriately analyzed. The root of problems are not always readily visible to the naked eye, and technology mixed with proper metrics-capture can identify your business’s various needs. While EffiSync is an imaginary example, there are other tools you can find to do the same job of identifying bottlenecks in your business, including Tableau, Prometheus, Lean Six Sigma, Celonis, Minit, Power BI, and Sysdig. Research to determine which is the best fit for your company.

Holistic Resource Allocation 

Let’s discuss another strategy to blend Time Management and System Operations. This one is called Holistic Resource Allocation and refers to optimizing overall resource distribution. Underutilizing or overutilizing resources is costly, and correctly timing the use of the resource seamlessly with your operation is critical. Sticking with the orchestra example, let’s imagine you are gearing up for a bold season of performances this winter. As the conductor, the business owner, you have noticed that while your string section is soaring, the brass section is having difficulty keeping up due to resource imbalance.  

What do you do? Let’s imagine you introduce a hypothetical TMT called ResourceSync to ensure each musician’s time aligns with their skillset. Now through deep schedule and data analysis, the tool discovers a profound discrepancy between resource allocation and performance demands. With the approval of the leadership team, ResourceSync automatically prompts the operations team to reallocate skilled brass musicians to support the strings, bridging the resource gap. The orchestra is now playing in beautiful harmony, with each section functioning optimally and contributing to a season of magnificent performances. Your average performance grade went from 3 stars because of the imbalance of musicians to an all-around average of 5 stars due to well-rested and properly utilized musicians on each performance. In short, resources can burn out too quickly or be underutilized. Finding the proper utilization balance through measurement and timing can save your company money and increase performance or productivity. A system or tool to automate this or monitor utilization is a pro tip for any owner or manager. 

Conclusion 

In business life, it’s easy to be self-indulgent and read these insights like this without taking the leap to implement anything. Remember that knowledge without application is like sheet music untouched by skilled hands, worthless. The strategic dance between time management tools and system operations isn’t merely a theoretical spectacle; it’s a powerhouse duo ready to elevate your business. So, as the final curtain falls on these pages, don’t let it be a farewell but rather an overture to orchestrate real change in your business or management. The stage is set, and the baton is in your hand. Now let the music begin! 

Looking to diversify your talent pool? Identifying potential in diverse talent pools can be much easier if you try inclusive assessment techniques. So how do these techniques work, and what can they do for you? This article will explore the techniques and benefits of blind hiring, gamified assessments, and skills-based challenges. Learning these strategies helps eliminate biases, uncover hidden talents, and create a more equitable and innovative recruitment process.  

What Is an Inclusive Assessment? 

An inclusive assessment is an evaluation or measurement process designed to consider and accommodate a diverse range of individuals. It includes those with different backgrounds, abilities, and learning styles. It’s not a one-size-fits-all assessment where only one kind of learner or worker will flourish. These assessments aim to provide fair and unbiased evaluation opportunities that do not disadvantage any group and allow participants to effectively demonstrate their knowledge and skills. Inclusive assessments consider cultural differences, disabilities, language proficiency, and individual learning preferences. They are ideal for creating an equal opportunity to showcase a candidate’s abilities and accurately evaluate beyond their background or circumstances.  

 Inclusive assessments can open the talent pool and offer a different perspective on your candidates and how you think about your process. Thankfully you don’t have to spend much time and money developing your inclusive assessment; there are reputable companies that have already created them and offer metrics tracking. Pymetrics, Vervoe, InterviewBuddy, and Mercer Mettl are excellent examples. Do your research and see if any of these platforms are a good fit for your needs. Let’s delve into some fun strategies to diversify your talent pool and take an unbiased approach to your hiring process. 

Blind Hiring 

The practice of blind hiring reduces unconscious biases in the hiring process. The practice calls for the hiring team to conceal identifying information about each job applicant. These details include name, gender, age, race, ethnicity, and other personal characteristics that might lead to biases. The goal is to evaluate the candidate solely on skills, qualifications, and experience rather than being influenced by potential biases. This approach vastly improves workplace diversity, equity, and inclusion by solely evaluating the applicant’s merits. As you can imagine, it is an exciting process, and you will likely be surprised by the results. We all have unconscious bias; it’s human nature. But when hiring good talent, sometimes we must get out of our way for the sake of the company.  

Gamification  

Gamification has become increasingly popular in today’s digital age. Gamification of skill evaluation assessments offers a wide variety of ways for candidates to showcase their skills. Gamified assessments often measure cognitive abilities, problem-solving skills, and situational judgment rather than just resumes and qualifications. Without being hindered by past experiences or credentials, these gamified evaluations can show potential for growth and the ability to learn. Gamification is particularly beneficial if your business incorporates a training process before the candidate gets to work. It also eliminates bias by removing unfair advantages. Everyone is taking the same test with the same criteria, minimizing the impact of unconscious biases or experiences. You can find gamification assessments at many of the same companies listed previously. 

Skills-Based Challenges 

After you have sourced your last round of candidates, conducting a skills-based challenge can weed out the fake from the real. Skills-based challenges are practical skill assessments. These assessments allow you to evaluate whether a candidate can do what they say. For example, suppose a software development company is hiring a programmer. In that case, they might provide candidates with a coding challenge where they write a piece of code to solve a specific problem. To the same effect, a graphic design company could ask candidates to create a design mockup based on a given brief. These challenges evaluate the candidate’s proficiency in a practical and hands-on way, giving employers a more accurate assessment of their abilities. If you can have candidates complete these assessments “blind,” with no personal identifiers, it is even better. 

Conclusion 

Inclusive assessments are becoming increasingly common. If it’s not in your budget to pay for assessment or gamification, at least adopt the blind hiring and skills-based challenge methodologies. These both are keys to a successful, inclusive, strategic hiring process with long-standing results.  

Can’t seem to find those diamonds in the rough? Is your job posting too much of a specialized position to find a decent pool of candidates to hire? Perhaps it’s time to learn about the art of “niche sourcing.” Niche sourcing can help you uncover those exceptional candidates all business owners want to hire and retain.

What is niche sourcing? Why is it important? How does it work? This article delves into sources like industry-specific forums, online communities, and skill-focused platforms. You’ll learn how tapping into these niche sources can connect you with highly skilled professionals who might not actively seek job opportunities but are open to the right offer. Some stellar candidates are waiting for the right opportunity to fall into their lap. You must know how to find them.

Foundations of Niche Sourcing

Let’s start with some foundational pieces for better understanding. Niche sourcing, as you may have guessed, is targeted, specialized talent acquisition. It’s not your usual job board, Indeed, or Zip Recruiter situation. Many employers rely on platforms like these because that’s all they know. Often, small businesses have someone running their HR department, but it could just be a family member that is familiar enough to handle the burden. Finding excellent HR help is challenging when running a small business and is often only achieved by working with a recruiting firm. The niche sourcing suggestions below are designed to help any employer looking for candidates beyond the Zip Recruiter realm.

Industry-Specific Forums

Industry-specific forums are our first stop on this niche sourcing train. Forums attract professionals and enthusiasts from specific industries. Posting job openings on relevant forums ensures your vacancy is seen by people with relevant skills and interests. These forums allow you to connect directly with potential candidates, share insights, and build relationships authentically, making identifying potential candidates easier. Another benefit of industry-specific forum sourcing is that it provides you an opportunity to showcase your company culture. Sharing relevant content can give potential candidates a glimpse into a day in the life at your company. It can attract candidates that align directly with your values.

In these forums, people often showcase their skills and expertise through contributions. You can review their posts and interactions and gain insight into their knowledge and abilities before contacting them. Finding those individuals with niche skill sets on these forums is possible. Some who engage with forums have had a nontraditional career path that has led them to what they currently do. They find community in the forums and showcase their skills in unique ways. It is crucial to find that diamond in the rough that may not have had a traditional career path.

In most forums, you can directly interact with participants, which creates ample opportunities to reach out and build a relationship with a candidate. If you are lucky, some forums even have engagement metrics displaying the user’s engagement. These metrics can show things like their activity level and the quality of their contributions. All these metrics can help you identify knowledgeable members. Forums are plenteous across all kinds of industries. For tech, you have Hacker News and Stack Overflow. For marketing and advertising, you have Reddit Advertising and Warrior Forum. For finance and investment, there is The Wall Street Oasis and Bogleheads. The list goes on and on for almost all industries and niches. Research potential forums and start connecting with potential candidates.

Online Communities

Similar to forums, there are online communities. Online communities differ from forums as they are generally smaller and often have more rules for engagement with their members. Online communities are usually more personal than forums; people identify more with their smaller community than the massive forums. Be careful with your approach and be sure you want to be a member of a community or forum before joining. A good rule of thumb is that you must first give to receive. Be patient and respectful, and your time will come to find the perfect candidate.

Reddit, Github, DeviantArt, NurseGrid, Spiceworks, and Linkedin Groups are all examples of communities. If you notice, some of these were mentioned as forums as well. Many of these platforms serve as both, so be sure you are ready to be a part of the community as a contributing member and commit to a comfortable level of involvement and engagement. Remember, engagement metrics are also captured for your user account, so other members (potential candidates) can see and make assumptions about you.

Skill-Focused Platforms

The last niche sourcing recommendation is skill-focused platforms. Unlike forums and online communities, skill-focused platforms are designed to connect individuals with specific skills to job opportunities, projects, or learning resources. These platforms are usually tailored to facilitate direct interactions between skilled professionals and those seeking expertise. Upwork, Fiverr, Linkedin, Behance, Dribbble, Toptal, Coursera, and Udacity are all examples of skill-focused platforms that can be useful for niche sourcing.

Many skill-focused platforms have employer and job-seeker logins to create an environment of professional interaction directly. Maintaining utmost professionalism while highlighting your company culture is imperative. On sites like Upwork, potential candidates can see how long you have been on the platform, how many jobs you have posted, your reviews, and how much you have paid out, among other things. So, play nice and start small. Many employers on these platforms initially hire candidates for part-time jobs or temporary work to see if the candidate is a good fit long term. The critical piece of this is to enter as a real person, be professional, and build genuine relationships with the platform’s community.

Conclusion

Don’t go straight to a staffing or recruitment firm when you need niched or skilled labor. There are numerous options that are free to use and are sometimes better for building long-lasting relationships with your candidates and the communities you enter. Learning about these forums, online communities, and skill-focused platforms is an important recruitment strategy. Start exploring some niche sourcing options, don’t let yourself get overwhelmed, and find those great candidates you’ve been seeking. great.

You Should Get Certified! 

These are words many businesses owned by women hear at some point or another. But is it true?  

The answer is, maybe. Getting certified as a Women Business Enterprise (WBE) or Woman-Owned Small Business (WOSB) takes time and concentrated effort and can result in substantial growth for your company. But it will not, on its own, result in contracts.  

Think of getting certified as a “license to hunt”. The success of that hunt, and deciding whether it is right for you and your company depends on a number of factors:  

• Are you eligible?  
• What does your company sell? 
• Which certification program(s) should you choose? 
• Approximately what percentage of small companies in your industry are woman- or minority-owned? 
• Who are your current customers? Are they from private industry or government? 
• Can you demonstrate successful past performance, either in the public or private sector? 
• Do your target corporate clients have an active supplier diversity program? 
• Are you equipped (in terms of capacity and financial strength) to take on larger contracts?  
• Do you have adequate staff and support with the skills to research opportunities and write proposals? 
• Are you prepared for the fact that it is likely to take 90 days or more to get certified and another 6-8 months before landing a contract?  

You will need to develop a proactive strategy to go after the work. This takes time, effort, dedication, and commitment. That said, the decision to become certified can open large and potentially lucrative opportunities that could enable your company to grow rapidly. 

The Basics: Eligibility 

Certification is a complex topic and you’ll find it uses a lot of acronyms. At a glance: 

Other certifications are also available for companies owned and controlled by veterans and minorities. Your company may qualify for more than one. 

Understanding Supplier Diversity 

Supplier diversity is an industry approach that has grown in prominence over the past decade or so. Many large corporations and government entities proactively seek to procure goods and services from underserved small businesses, including those owned by women, people of color, veterans, those with disabilities, or any other underserved population.  

Many corporations have quotas to ensure a percentage of their contracts go to diverse companies and may even designate a certain percentage of contracts be “set aside” for women- or minority-owned small businesses. Getting certified as a WBE and/or WOSB can increase your chances of landing that business.  

Explore Your Options 

There are several certifications available. Depending on your company’s target audience and business development goals, you may need to get more than one.  

Federal government WOSB certification is handled through the U.S. Small Business Administration (SBA), which offers a wealth of information on its website: SBA.gov/WOSB. Businesses can apply for certification at no charge at wosb.certify.sba.gov. However, this process is time-consuming, there is no live support, and applications are often rejected for technicalities.   

The SBA will accept reciprocal certifications, some of which are also used by private industry. They include: 

• WBENC (Women’s Business Enterprise National Council, pronounced “we-bank”) not only offers a certification widely accepted by private corporations and the SBA, but it also offers regional and national events where certified businesses can meet with buyers and attend educational sessions on growing their business. There is an annual fee to be certified, based on business annual revenue. You will have the option to obtain a WOSB certification from the federal government at the same time you apply for the WBE certification.  
•  NWBOC (National Women Business Owners Corporation) offers third-party certification for women, veterans, and minorities for an annual fee. All application information and documents needed are listed in the NWBOC’s application form, which is available on its website. The NWBOC also offer the option for potential WOSBs and EDWOSBs to purchase a tailored application kit to guide applicants through the process of applying. The fee to apply for certification is $400 at a minimum, and an applicant may be charged more if requests for more information are not met in a timely fashion.  
• USWCC (U.S. Women’s Chamber of Commerce) offers an online-only application process for WOSB and EDWOSB third-party certification to both its members and non-members. Certification takes between 15-30 days and costs $275 for Business and Supplier members and $350 for non-members. The entire application and document submission is completed online, so it is virtually impossible to get a live person to assist. The USWCC requires the application be completed in one sitting—it cannot be completed partially and saved to be completed later. This means that the applicant should be completely ready to apply prior to starting, or risk getting almost done, being interrupted, and then having to restart from the beginning. 

While some of the certifications outlined above are accepted by some states, some states and city governments have their own certification requirements.  

Where to Begin? 

Determine your target market and competitive landscape. 

• If you’ve never worked on a government contract before, it may make sense to expand your corporate business first. If you’ve only performed work for federal, state, or local government, consider expanding your reach in that sector with existing clients before breaking into private sector work.  
• Are you in a field where women do not traditionally own businesses? For example, many marketing communications companies are women-owned. While certification can still be a good business growth strategy, keep in mind you’ll be competing with a large number of competitors who may have more extensive past experience with large corporations and government entities.  

On the other hand, few construction companies, IT firms, and software development companies are women-owned. Corporations, federal and state governments have a hard time finding qualified WBEs and WOSBs with the necessary experience and capacity to meet their needs in these areas. That creates an opportunity to quickly win contracts with these customers. 

Even if you’re in an industry where women predominate, do not be discouraged from becoming certified. While it may be more challenging to land a contract quickly, you can certainly do so with a well-considered outreach and marketing strategy. 

Determine whether you have the capacity and financial resources to handle large contracts. 

Many corporate and government contracts require vendors to hire a qualified team and begin work immediately while waiting several months before invoices are paid. Large corporations often have extended payment terms, such as 45, 60, or even 90 days. Do you have the resources, either in cash or access to a line of credit, to carry your operating expenses during that time? 

Do you have adequate staff, or access to skilled contractors willing to commit to the duration of a contract, to complete the work if you win a large contract? 

Also evaluate your back-office operations. Do you have the resources (staff and software) to properly run a project, including required updates, invoicing, time tracking, and the many details required by corporations and government?  

Who are your current customers?

If you are already doing business with a large corporation or government entity due to past employment or through your personal network, becoming certified is an ideal opportunity to extend that relationship. Contact the company or government entity’s procurement or supply diversity office to discuss. 

Consider subcontracting opportunities. 

If you realize your company is not yet ready to handle a large contract on your own, subcontracting your services to a larger business is an ideal way to gain new business, learn more about working on larger contracts, and expand your reach. Many large government contractors have supplier diversity goals, purchasing agents focused on those goals, and are actively looking for certified vendors.  

What Exactly Will Be Evaluated? 

Remember that the purpose of certification is to confirm that women are the majority owner(s) and are actively involved in running the company. Certifying entities are not evaluating the financial health of your business. For many of them, there are no requirements to demonstrate profitability or even that your company has a current list of customers. Their sole purpose is to establish that your company has been properly set up, is paying taxes, has a process to track basic accounting documents (such as income statements and balance sheets), and that there are not non-qualifying people controlling the company in the background.  

A few examples: 

A construction company that has been in business for 20 years, with one owner who runs the company as President. He decides to appoint his wife, a retired schoolteacher, as CEO so he can be certified as a woman-owned business to win more government contracts. The wife has no industry expertise in construction and according to the company’s bylaws, the position of CEO does not have the authority to overrule the President. This company would not meet the standards of being a woman-owned business. 

A woman with 10 years’ experience purchases 100% ownership from an established company, owned for the past 20 years by one man. Once the sale is completed, the previous owner retires with no ownership stake or involvement in the company. The new owner owns 90% of the company and runs the company with a male Chief Operating Officer who owns 10%. As outlined in the company bylaws, key decisions are decided by most shareholders. Since the woman owns 90% of the company, this company does meet the standards. 

A husband and wife start a new business where the wife owns 51% and the husband owns 49%. Both have industry experience and expertise. The company has been in business for a year but is not showing a profit. The wife is the CEO, determining company strategy and business development. The husband is President and runs the day-to-day operations. Because the company bylaws stipulate that the CEO has the power to overrule and remove the President, this company meets the standards. (If the bylaws did not include this stipulation the company would not likely qualify.) 

The Importance of Organization 

Certification is built on proof that your company is properly set up, with adherence to corporate governance standards, and that women own and control the day-to-day operations of the business. This proof can be found in your corporate or LLC documents, bylaws, tax returns, and financial statements, to name a few.  

Every certification process requires similar documentation. Organization makes the process of application and renewal much easier, and in the process, you’ll have established a habit of keeping important company information updated and organized. 

Download the required documentation and create a checklist. Required documentation for: 

WOSB/EDWOSB (from the SBA) 

WBENC 

NWBOC 

USWCC 

Secure Your Files 

Establish a password-protected digital folder on a cloud drive. This information includes private personal information, so be sure it is secure and available to the primary business owner and a second trusted person as backup. Review the required documentation and save it into this folder. Use subfolders to make it easier to find, such as Corporate Documents, Owner Information, Financial Documents, and any other file structure that makes sense to you.  

Keep Up with Documentation 

If your company is a corporation or LLC, minutes from annual meetings of the shareholders and directors are often required. Templates for these documents can be found online and customized for your business.  

But what if you are the sole owner of your company and you don’t have a board of directors? Minutes are still required, even if you are documenting a meeting with yourself. Having the discipline to keep these records will ensure the liability protection afforded by having a separate legal business entity cannot be challenged if your company were to be sued.  

Realize that certifications need to be renewed annually, meaning you’ll need updated financials, tax returns, meeting minutes, and any other documents that may be new. Keep these files organized and up to date to make renewals less time-consuming. 

Time to Hunt! 

Once you’ve completed the application process, be sure you’re monitoring email to catch any correspondence from the certifying organization. If they are seeking more information or clarification, there is usually a limited time frame to respond. 

Begin working on your company’s outreach and marketing strategy to put in place once you are awarded certification. Third-party certification organizations such as WBENC and NWBOC host annual national conferences and regional events where you’ll have opportunities to meet with buyers from many organizations, and to network with other women businesses.  

Focus your efforts by making a list of corporations or government agencies where your products and services would be a good fit and choose a few of these events to attend. It’s a great way to meet buyers face-to-face. Be sure to have a process in place to follow up on opportunities. 

Publicize your certification to potential customers by including approved icons that identify you as certified on your company website, social media pages, on your email and business card.  

SBA WOSB/EDWOSB logos 

WBENC certified logos  

Capitalize on Certification Benefits 

Be sure to utilize all the benefits of being a certified woman-owned business. For example, many corporate supplier diversity departments have a budget to assist women-owned businesses to grow and may offer scholarships to executive education programs through major universities.  

WBENC offers a number of programs, including a partnership with Dartmouth College’s Tuck School of Business Executive Education program where women business owners can learn more about running a business from the college’s faculty. Many other prestigious business schools offer these programs and the cost to attend can be covered with a scholarship from your current or potential clients. 

Seek Help When Needed 

Finally, consider working with one of the many companies that offer help getting certified, identifying contract opportunities and marketing assistance. The quality varies widely, as does the cost. If you decide to utilize these services, be sure to do your research. Ask for referrals from other business owners and references from any company you are considering using.  

Drive Business with Your Certification 

While becoming certified as a woman-owned business can be complicated and will require an investment of time and self-education, it is also an opportunity to expand your company into new markets and larger contracts. Do your homework, consider whether your company is a good candidate, organize your records, and plan how to best leverage the certification through business development, networking, and executive education opportunities.  

Additional Resources

• WOSB.Certify.sba.gov The Women-Owned Small Business Federal Contract Program (WOSB Program) is to help provide a level playing field for women business owners. The federal government limits competition for certain contracts to businesses that participate in the WOSB Program. These contracts are specific industries where WOSBs are underrepresented. 
• WOSB and EDWOSB Certification Options This table details certification options available to Women-Owned Small Businesses and Economically Disadvantaged Women-Owned Small Businesses 
• How to Get Certified as a Woman-Owned Business (U.S. Chamber of Commerce) 
• Sole Source Contracts for certified WOSB  
• Benefits of SBA Certifications for Women-Owned Businesses  
• Business Certifications Explained: The Basics  
• How Women-Owned Businesses Can Win Federal Contracts 
• WBENC (Women’s Business Enterprise National Council)  
• NWBOC (National Women Business Owners Corporation)  
• USWCC (U.S. Women’s Chamber of Commerce)