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EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 1 | A Resource Guide for Maryland’s Small, Minority- and Women-Owned Businesses Expanding Opportunities 2015 a special supplement to

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Page 1: Expanding Opportunities - Amazon S3€¦ · Don’t miss the 2015 Greater Baltimore Committee’s. BriDGinG the Gap aChievement awarDs. Celebrate successful minority- and women-owned

EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 1 |

A Resource Guide for Maryland’s Small, Minority- and Women-Owned Businesses

Expanding Opportunities

2015a special supplement to

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Gap Financing For Small Businesses Flexible Terms, Below Market Rates &

Subordinated Financing

Neighborhood BusinessWorks has you Covered.

410.514.7237 Michael haloskey - Director, Business lenDing PrograMs

EQUAL HOUSINGOPPORTUNITY

dhcd.maryland.gov (click on the neighBorhooDs taB)

Larry Hogan, GovernorBoyd K. Rutherford, Lt. Governor

Kenneth C. Holt, SecretaryEllington Churchill, Jr., Deputy Secretary

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EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 1 |

CONTENTS 2 Lt. Governor’s message

3 Governor’s message

5 Special Secretary’s message

6 The art of failing up

8 Is your business focused

on the right figures?

10 Stay primed for new

opportunities

13 The Pathway

to State Procurement

15 eMaryland Marketplace

Vendor Tips

16 Success Stories

22 Core compentency

25 Access to Capital

28 Joint ventures

Jimmy RheeSpecial Secretary

Herb JordanDeputy Secretary

Alison TavikDirector of Communications

This resource guide is prepared in collaboration with

the Governor’s Office of Minority Affairs by the staff of

Suzanne E. Fischer-HuettnerPublisher

Thomas Baden Jr.Editor

Erin CunninghamSpecial Products Editor

Maria KellyComptroller

Tracy BumbaAudience Development Director

Jay BlankenshipAdvertising Director

Darice DixonAccount Manager

Shundrey PattersonAccount Manager

Lynn TalbertAccount Manager

Jason WhongDigital Editor

Stephanie DickardDigital Content Producer

Sean WallaceAssistant Editor

Maximilian FranzSenior Photographer

Mogan CookAdvertising & Events Coordinator

Clare M. SheehanOperations & Events Assistant

Maura WeryGraphic Designer

GOVERNOR’S OFFICE OF MINORITY AFFAIRS

WE ARE A REFLECTION OF THE COMMUNITIES WE SERVE.Our commitment to diversity is reflected in our history as well as our future. Partnering with small and diverse businesses helps us provide greater value to our customers and the communities we serve. It is a tradition we are proud of and a commitment we will continue to honor for years to come.

pepcoholdings.com

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| 2 | EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES

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EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 3 |

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Natural Gas.

Achieving it takes commitment.

Joan Hairston at 703-750-4733.

Don’t miss the 2015 Greater Baltimore Committee’s

BriDGinG the Gap aChievement awarDs

Celebrate successful minority- and women-owned businesses and honor those striving to enhance the role and impact of minority- and women-owned businesses in the regional economy.

Thursday, November 12, 2015, 6 p.m.

Renaissance Baltimore Harborplace Hotel

202 E. Pratt Street, Baltimore, MD 21202

Hear from keynote speaker Tiffany Eubanks-Saunders,

senior vice president and enterprise services executive

for Bank of America.

Register online at www.gbc.org/events

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EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 5 |

MESSAGE FROM SPECIAL SECRETARY RHEEDear Friends:

Maryland is open for business. Economic growth and customer service are statewide priorities across all State agencies.

I have been both an entrepreneur and a public servant, so I understand the unique challenges facing small businesses – particularly those that want to work within the public sector where the prerequisites of success include well-defined core competencies, strong capital and a solid understanding of the policies and programs that govern public procurement.

GOMA is focused on enabling more firms to engage in the Minority Business Enterprise and Small Business Reserve programs. We help connect business owners to valuable resources and conduct a variety of educational program to help build your procurement knowledge. These live workshops, matchmaking events and online programs are offered throughout the year.

Maryland is fortunate to have a very passionate group of stakeholders – legislators and policy makers, professional groups and business owners. GOMA’s staff members are equally as passionate about delivering superior customer service, so please reach out and let us know how we can assist you. By working together, we can ensure the success of our small business com-munity.

Sincerely,

Jimmy Rhee Special Secretary

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| 6 | EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES

Building a business from the ground up re-quires vision, determination, and a sheer will to succeed against all odds. And while success is a key driver, failure – properly examined and processed – yields dividends far beyond

the act of failing itself. “The Art of Failing Up” then, is extracting valuable truths from failure while never con-ceding to defeat.

As a business owner starting from scratch eight years ago (with very limited resources), I have had my share of failures. In some instances, so severe that I had to question whether or not entrepreneurship was the right thing for me. But in every case, after carefully thinking

through, I discovered three important maxims: 1) I had the resolve to endure without breaking; 2) there was al-ways a lesson to be learned; and 3) greater opportunities emerged every time.

The 14 years of comprehensive program and project management experience I accumulated prior to starting my company were extremely rewarding. But none of this expertise prepared me for the ongoing challenges I would face as a woman in a male-dominated construction man-agement industry. It became so frustrating that I would often consider quitting. Were it not for the steadfast encouragement provided by my family, mentors, and friends, I probably would have gone back to working

The art ofBy Necole Parker // The ELOCEN Group

El Andariego has the recipe for energy savings.The BGE Smart Energy Savers Program® is helping business owners and managers in and around Baltimore save energy and money. Jaime Vasquez, owner of El Andariego Restaurant in Ashton, discovered the recipe for lower energy costs. Installing high-efficiency lighting fixtures throughout his 3,000-square-foot restaurant reduced lighting-related energy use by 70%. And financial incentives cut the total project cost to less than $300, so he recovered his investment in less than 3 months!

Find out how your business can save up to 80% on energy upgrades.

Visit BGESmartEnergy.com or call 877.685.7377.

BGESmartEnergy.com | 877.685.7377

This program supports the EmPOWER Maryland Energy Efficiency Act.

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EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 7 |

for someone else long ago. But whenever I got to the point of feeling this way, I would always reflect back on words of inspiration my father instilled into each of his children, “Never ever give up. You can do any-thing you put your mind to, and don’t let anyone tell you different.” Whenever you feel like you have reached the point of breaking, “never ever give up,”

which reaffirms your strength to keep pressing forward.

With all of my accumulated failures, I would not take any

of them back. In fact, every single failure has produced an equally important les-son. One of the first things I learned as an entrepreneur is that I didn’t have the option of having bad days. No matter how severe a cri-sis has escalated or how dire a problem has be-come, it’s important to find a way to provide customer service excel-

lence, put the right people in the right posi t ions best

suited to match their skill sets,

and leading through example. By doing this, greater team collaboration will emerge, allowing you to work more on your business rather than just working in it.

Business success is an ongoing journey, not a pre-determined destination. As such, commit to allowing failures to shape your company’s present and future path. This year alone, our proposal win rate decreased dramatically from previous years. But I consider this a substantial victory rather than an outright failure. While we have not secured as many new contracts as we would like, we have been able to engage in a number of debriefs that have helped to better refine our proposal processes.

Failure is a rewarding stepping stone to success as long as you are willing to embrace and learn from the experiences.

The ELOCEN Group is one of the nation’s premiere program and project management firms offering leading edge consulting services in construction manage-ment, interior design, in-formation technology and facilities/logistics. Their highly-skilled staff has amassed industry knowl-edge and proven experi-ence, resulting in the successful completion of multiple projects totaling over 40 million square feet in new con-struction and renovation space managed.

Capitol Technology UniversityGoucher CollegeHood CollegeJohns Hopkins UniversityLoyola University MarylandMaryland Institute College of ArtMcDaniel CollegeMount St. Mary’s UniversityNotre Dame of Maryland UniversitySt. John’s CollegeStevenson UniversityWashington Adventist UniversityWashington College

MICUA is proud to support expanded opportunities for

minority- and women-owned businesses.

www.micua.org/mbe

FAILING UP

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| 8 | EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES

Why do most small businesses fail and only a few thrive? My experience has shown me that although the holy grail of growth for small businesses is elusive, it is not im-possible. Many entrepreneurs are familiar

with the books, “The E-Myth,” and “Good To Great,” which espouse the need for “duplicable systems” and “unique value propositions.” However, as someone who consulted hundreds of business owners, I have come to understand that the real reason that many businesses fail is because they focus on the wrong figures. Sales forecasting reflects the numbers you have to achieve annually, quarterly and monthly and is an essential part of business planning. However, the forecasts alone are just the starting point. Business owners should focus on the activities needed to achieve the results.

Prior to returning to entrepreneurship full time, one of my previous roles was consulting with small business owners

Is your business focused By Deborah Owens // Owens Media Group

“Creating an environment that rewards behavior that leads to results is what most successful business have in common.”

— Deborah Owens, CEO, Owens Media Group

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EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 9 |

It is the policy of Howard County Government to encourage increased participation by Minority, Women and Disabled Business Enterprises in the procurement of all goods and services through all solicitations by the County.

Howard County, Maryland, Office of Purchasing, Department of County AdministrationEqual Business Opportunity Program, Darla H. Herbold, CPPO, Purchasing Administrator

Contact us to find out how your business can benefit from the Equal Business Opportunity Program by getting certified as an EBO vendor.

Howard County Office of Purchasing , 6751 Columbia Gateway Drive, Ste. 501 Columbia, MD 21046, 410-313-6370 Phone 410-313-6388 Fax

www.howardcountymd.gov/purchasing

“Get Howard County EBO Certified!”It’s Free, Quick and Easy!

ON THERIGHT FIGURES?

in the financial services industry to help them grow. Their busi-ness model was similar to a franchise model,

but they owned only a percentage of the economic interest. The real benefit to

this type of structure was that owners had corporate branding and oper-ational systems similar to what the aforementioned books recommend for entrepreneurial success. In the-ory, franchise systems certainly make sense. Ever watch the Mom and Pop shops on the CNBC series The

Profit, and observed how difficult it is to survive in chaos? On

my initial visit the of-fices all looked really

busy with systems and processes that seemed to

be executed f l a w l e s s l y . The phones

were ring-ing and

employees were helping customers. But when I analyzed the num-bers, most of them weren’t growing.

It took me a little while to figure out why, but after a few years I could discern within 10 minutes of arriving at the location if the business was successful. How? During my first visit to a facility I would ask for a cup of coffee and proceed to the break room with the owner. If there was a chart or white board displayed that listed individual goals for types of business activity and recognition for each employee, I knew I had struck gold. This process became the model that I introduced to underperforming locations. While this was no panacea for their growth, it was a major step in the right direction. If the owner was hesitant to fully embrace the system and his/her team didn’t buy in, you couldn’t change their results.

Remember, the key is not the what, but the how. The white-board with numbers on it meant nothing – typical sales forecasting. The secret sauce was the public display and real time measurement by team members. Some offices even had a bell that they would ring or would high five each other as they met their goals. Creating an environment that rewards behavior that leads to results is what most successful business have in common. The real key is to focus on the figures that really count.

Deborah Owens is The Wealth Coach™-Financial expert, author and nationally recognized public speaker. She is on a mission to close the wealth gap for women and minorities. Ms. Owens is CEO of Owens Media Group, which provides executive leadership, sales coach-ing and training for organizations and companies.

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| 10 | EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES

As a small business, going through the process to receive certification pro-vides a special opportu-nity to help compete in

the marketplace and take advantage of business opportunities with the state, local and federal government. Taking the time to understand the process and register your business is just one step. Registering your business on the various profile and vendor procurement systems keeps your business, services and specialties ac-cessible to the vast network of gov-

ernment agencies looking to utilize small businesses as part of set aside

requirements each year.

Additionally, many government agencies and large corpora-tions that work with small businesses re-quire registration in their system as part of their procurement

process. Even with proper certifications, if not registered in these individual systems, you may not be eligible to respond or be considered for new business opportunities. Be sure to review and refresh your contact and business information, client references, and contract information in these systems annually to position your company well to cultivate new opportunities.

•Ensureyourregistrationsandonlinedirectory listings with state, local and federal agencies are updated annually. • Take the time to earmark renewals for your business information and contact information in the System for Award Management (SAM) (www.sam.gov), as well as your SBA profile and Dun & Bradstreet profile. •Makealistandsetannualreviewsofyouronline directories to ensure all information on your company is accurate.

Stay primed forAnita A, Brightman APR, Fellow PRSA // a. Bright Idea Advertising and Public Relations

“It’s important to set your parameters for the type of business opportunities you’re interested in.”

– Anita Brightman

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EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 11 |

NEWOPPORTUNITIES

Once on board and set up with these various systems, the opportunities are endless – which can be exciting, and daunting. It’s important to set your parameters for the type of business opportunities you’re interested in. Set up alerts based on your area of expertise to help access those most applicable for your consideration. Plan to go to events and conferences offered by these agencies - this is your opportunity to meet potential vendor partners and form relationships beyond the standard request for proposal pro-cess. Each county and even various offices within the state system have their own process for making the public aware of opportunities, so research the procurement areas of each entity and check back often.

•Areyouregisteredandup-to-date?•SystemforAwardManagement(SAM)www.sam.gov•Dun&Bradstreetwww.dnb.com•eMarylandMarketplacewww.emarylandmarketplace.com•SBASmallBusinessDynamicSearchwww.dsbs.sba.gov

Anita Brightman is the president and founder of a. Bright Idea. This full-service advertising and public relations agency, headquartered in Bel Air, is proficient in multiple disciplines, offering clients an integrated approach and multidimensional solutions to their communication challenges.

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MARYLAND DEPARTMENT OF GENERAL SERVICES

DGS Delivers Better, Smarter, Faster!Larry Hogan

GOVERNORBoyd Rutherford

LT. GOVERNORC. Gail Bassette

SECRETARY

Expanding Opportunities for local, small, minority, woman and veteran-owned businesses

NUMEROUS CONTRACT OPPORTUNITIESin CONSTRUCTION, FACILITIES MAINTENANCE

and ENERGY SERVICES!Building capacity in our small business community through exciting new initiatives such as our Small Business Growth & Development Training Progam to help you

position your business to successfully compete and WIN contracts!Register your business at emarylandmarketplace.com TODAY for easy access to State procurement opportunities.

For more information, visit the Business Opportunities page at dgs.maryland.gov or call 410-767-1492.

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EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 13 |

for MAXIMIZING your

VENDOR REGISTRATIONTake your time selecting your businesses commodity codesThe commodity codes you select are the key to receiving relevant bid solicitation notifications. Selecting codes that are not specific to your business may result in receiving an abundance of no-tifications for products/services your company does not provide. This can become overwhelming and frustrating. On the other hand, limiting your code selection to only a few codes you find quickly may result in missed opportunities. Once registered, monitor the notices you receive and contact the Help Desk at 410-767-1492 if you need to make adjustments.

1Keep your eMaryland Marketplace profile up-to-dateChanges in your business may require changes to your eMaryland Marketplace profile. If the person who receives the email notifications from eMaryland Marketplace leaves your company, it is import-ant to update the email address to ensure future opportunities are not missed. If your company expands business to begin providing additional products and/or services, it is important to update your commodity codes to include the new products/services. If your business moves locations or changes contact information, be sure to update your eMaryland Marketplace profile to reflect these changes.

2

DO NOT share login informationSharing login information can lead to many problems for a business, so it is important that each user requiring access to eMaryland Marketplace be set up with their own unique login ID and password. There is no limit to the number of users that can be set up with access to a business profile.

Utilize the online Quick Reference Guides for step-by-step instructionseMaryland Marketplace provides a series of Quick Reference Guides to assist users with navigating eMaryland Marketplace and completing standard processes within the system. These guides are available online through a link on the eMaryland Marketplace homepage (www.emarylandmarket-place.com). Each guide covers a different topic and provides step-by-step instructions (with screen shots) to help you complete the process.

4Do not forget to complete your annual Small Business Reserve self-certificationSelf-certification in the Small Business Reserve (SBR) Program requires each business to re-certify annually. You will begin to receive reminder emails from eMaryland Marketplace before your ex-piration date. If you fail to re-certify before the certification expiration date, your business will be removed from the SBR Program and the SBR directory until you re-register your business.

5

5Tips

3

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2Join the SBR

Maryland operates a special procurement program just for small business. The Small Business Reserve Program (SBR) is a race and gender neutral program that requires 23 designated State agencies to direct 10 percent of their spending with SBR firms.

Vendors in this program bid on prime contracts. Every small business owner should join the SBR. Vendor enrollment takes

place within eMarylandMarketplace where first-time registrants are prompted through the process. If you are already registered in eMarylandMarketplace, but are not in the SBR, contact the Help

Desk at 410-767-1492 for special instructions.

www.emarylandmarketplace.com

3Maryland‘s Minority Business Enterprise (MBE) Program provides

opportunities for small minority- and women-owned firms to participate in State contracting and procurement. While

certification is not required, only certified MBE firms can meet MBE goals and help reach the State’s overall minority participa-tion goal. MDOT’s Office of Minority Business Enterprise is the

State’s official certification agency. To determine if you meet the program’s eligibility standards, visit their website or attend one of their free monthly workshops to gain valuable information

about the application process.

www.mdot.maryland.gov (Minority/Disadvantaged Business Enterprise)

Seek MBE Certification

Buying is done at the agency level. The best way to identify which agencies buy what you sell is to become a registered vendor on eMarylandMarketplace, the State’s online procurement portal. Vendors register for free and receive email

notifications of bid solicitations posted by State agencies as well as those posted by county and city buyers.

www.emarylandmarketplace.com

Forecasting reports can also help identify potential opportunities. These annual reports are published by agency/department on the Governor’s Office of Minority

Affair’s (GOMA) website under the Forecasting tab.

www.goma.maryland.gov

Determine if the State of Maryland buys what you sell

1

4Get familiar with the purchasing process and the rules gov-erning procurement by reading through the Annotated Code of Maryland (State Finance & Procurement Article 14) and

COMAR Title 21.www.dsd.state.md.us.

Learn the rules of State procurement

The Pathway to State Procurement

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8Developing new business in any market takes a lot of hard work. Be prepared to

invest 9- to 12-months into building a new relationship before winning any work. Per-sistence and repeated contacts with your

potential customers will pay off in the long run, so don’t give up.

Stick with it

5Make sure your business is well positioned to partic-ipate on government contracts. Tap into the many free and/or low-cost resources available to small

business owners like financing and loan programs, skills training, business development, and much

more. Visit the resource section of GOMA’s website to learn more.

www.goma.maryland.gov

Get help

6Traditional marketing, business development and sales strategies always apply. This is particularly true when leveraging your MBE

certification as a subcontractor. Distribute your one-page capabilities statement to prime contractors, maintain your website and collateral

print materials, engage in social media and never leave the office without a pocket full of businesses cards. The Internet offers many great ideas and strategies for marketing a small business. A great

resource for small businesses is the U.S. Small Business Administra-tion (SBA) website.

www.sba.gov (keyword: Marketing)

Market your business

7The opportunity to meet face-to-face and shake hands with a poten-tial customer is priceless. Attend pre-bid meetings frequently (date, time and location will be noted in the solicitation) to connect with

prime contractors as well as agency buyers. Attend outreach events and procurement fairs, particularly when your potential customers

are participating as an exhibitor or vendor. Becoming an active member of social and/or professional organizations is also a great

way to connect with high-level business leaders.

Visit GOMA’s online event calendar to see what events are happening in your area.

www.goma.maryland.gov

Put yourself in front of your customers

The Pathway to State Procurement

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| 16 | EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES

SUCCESSStories

TAKES OFFBy Meg TullySpecial to The Daily Record

Maurice Bruce takes his business cards every-where, and it is a practice that has helped him grow his catering business from a part-time endeavor out of his apartment kitchen to a 50-employee operation with sites around the

state. As someone who calls himself an “accidental entrepreneur,”

Bruce has a go-getter attitude that allowed him to shift from traditional private catering to food service, cafeterias, concession stands and state agency meetings.

“Every door that was open I ran in it and asked questions, and people were always willing to help me,” Bruce said about the success of his business, Simply Good LLC.

He now is the exclusive caterer and concession provider at the Prince George’s Sports and Learning Complex and has ca-tered events for U.S. senators and a Maryland governor.

He credits many of his accomplishments to a small $25,000, five-year contract with the Maryland Department of Health and Mental Hygiene (DHMD). It was his first contract under the state’s Small Business Reserve (SBR) Program, which designates 23 state agencies to spend 10 percent of their procurement dol-lars with SBR vendors.

Through the contract, Simply Good provided catering for meetings held all over the state for councils of doctors.

Bruce found it benefited his business in two major ways: first, he had input from doctors in crafting several healthy break-fast and lunch menus, and second, he was able to use the expo-sure to win contracts with other state agencies.

He has developed the healthy menu options into something he uses for the rest of his business, and it came in handy when ESPN was holding the Reebok Crossfit Games at one of the facilities where Bruce had a contract. They wanted to bring in an outside caterer, but when he showed them his existing healthy menu they were able to work together to feed about 5,000 peo-ple with strict diets.

And at the DHMH meetings, Bruce started leaving his busi-ness cards.

“Once a month or every other month I would get a call say-ing you catered a lunch I was at for DHMH and I would like to use your service,” Bruce said.

He estimates that $25,000 contract brought him at least $100,000 worth of business, if not more.

Bruce graduated in 1997 with a bachelor’s degree in hotel/restaurant management from the University of Maryland, East-

Md. Catering Business

Owner Bruce credits state contracts, programs for success

D’Mitri Wade, an employee at Simply Good LLC, a catering and hospitality company, works in the kitchen at the Prince George’s County Sports and Learning Complex in Landover.(The Daily Record/Maximilian Franz)

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EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 17 |

“Once a month or every

other month I would get

a call saying you catered a lunch I was at for DHMH and I would

like to use your service.” – Maurice Bruce,

Simply Good LLC, owner

ern Shore. He jumped into managing restaurants, an industry in which he had worked since age 14.

One weekend, he wanted to earn a little extra. His college roommate worked at the Social Security Administration in Woodlawn and told him that every other Friday workers there or-dered lunch. Bruce offered to sell some dinners to the employees, bringing them salmon with rice pilaf, pound cake and a canned soda. Before long, someone asked him to cater a private party.

He started the business on the side and realized he needed to make it official when he did an event for Baltimore City and they asked for his business information in order to pay the invoice. It was then that a friend helped him complete all the required pa-perwork to officially start his business, and a year later he decided to focus on the business full-time.

His first big break came when a college friend needed someone to provide lunch and breakfasts at a charter school in Washing-ton, D.C. Soon, he had food service contracts for seven schools. After that, he got involved in the state’s Small Business Reserve and started doing more state work, such as for DHMH and the Department of Aging.

More than 5,400 companies are registered in the SBR Pro-gram, according to the state’s website. Those companies can bid within an exclusive marketplace as prime contractors, and the pa-perwork is limited and straightforward, so it is approachable for small business owners.

“It’s a door being opened and exposure into the entire state,” he said about SBR opportunities.

The Department of Housing and Community Development gave Simply Good a certificate of appreciation for running their cafeteria after two years, and the company still runs that cafeteria today.

Signing up for the SBR Program was easy. In fact, Bruce was recently talking to a business owner friend and telling him about it. The friend replied he did not have time.

“How much time do you got?” Bruce asked. “Ten minutes? That’s all it takes. We’re doing it right now.”

Ten minutes later, the friend had completed the online vendor registration process and was in the system. Bruce says the annual renewal process is even easier.

Bruce now has deals worked out to provide  Chick-fil-A and Nathan’s Hot Dog products, and as he has grown he has had more negotiating power when purchasing in general.

For someone who never set out to be a business owner, Bruce is where he belongs.

“Once I got into it, I fell in love with it,” he concluded with a smile.

Maurice Bruce, owner of Simply Good LLC, says Maryland’s SBR program opened doors for him.

(The Daily Record/Maximilian Franz)

Maurice Bruce, owner of Simply Good LLC, holds sandwich platters in a café at the Prince George’s County Sports and Learning Complex.(The Daily Record/ Maximilian Franz)

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| 18 | EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES

SUCCESSStories

By Erin [email protected]

Tracey Sheets’ concrete pumping business has jobs at about a dozen sites in Maryland, northern Virginia and Washington, D.C.

And that is just in one day.Business for the Eldersburg-based firm, Aar-

on’s Concrete Pumping, is booming, Sheets, the firm’s pres-ident and CEO, said.

The company, which places concrete for structural foundations and more, does primarily commercial work. In fact, 85 percent of its business comes from commercial projects.

That includes water treatment plants, schools, bridges and other structures.

And none of it would have been possible without her participation in Maryland’s Minority Business Enterprise (MBE) Program, Sheets said.

The MBE Program helps small, minority- and wom-en-owned firms work in the State contracting arena as ei-ther a prime or sub-contractor. In fiscal year 2014, $2.1 billion was awarded to firms certified as MBEs. The cer-tification process is conducted by the Office of Minority Business Enterprise at the Maryland Department of Trans-portation. Once certified, firms can remain in the program as long as they continue to meet the eligibility standards.

The program, Sheets said, has made all the difference for her business.

Sheets was working in the mortgage business in 2003 when she decided to make a change and start Aaron’s Con-crete Pumping Inc. with her brother, Joshua Sheets.

They began with one or two concrete pumps and quickly grew. With the residential real estate market at its peak in Maryland when the firm began, the bulk of Sheets’ business was residential.

“The economy was booming,” she said. “No mat-ter how many trucks we had, it wasn’t enough. Then, it crashed.”

When the economic recession hit and construction dried up in Maryland — about 2007 — Sheets said she was left with $75,000 in equipment payments and very little work.

MBE DESIGNATIONBusiness thrives with

Small, Eldersburg-based firm competing for large projects

Tracy Sheets, president and CEO of Aaron’s Concrete Pumping Inc., surveys a work site at Back River Wastewater Treatment Facility in Essex.(The Daily Record/Maximilian Franz)

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EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 19 |

As an MBE-designated

firm, Aaron’s Concrete

Pumping had something extra to

offer prime contractors that were

bidding to win state-funded

contracts.

With limited business to go after, Sheets said her small firm, which employs about 20 people today, struggled to secure big contracts.

“If they [prime contractors] don’t know who you are, and you’re not the big guy in town, they don’t need to talk to you,” she said.

Because she was the majority owner in the firm and had financed its start, Sheets said she was encouraged to apply for the state’s MBE program.

MBE firms must meet five eligibility standards based on minority status, ownership, control, the personal net worth of the owner(s), and the size of the business. Afri-can American, Hispanic Americans, Asian Americans, Na-tive Americans and women are presumed to be socially and economically disadvantaged minorities. Nearly every state-funded contract contains a goal for MBE participation and only certified firms can be counted toward meeting the goal.

As an MBE-designated firm, Aaron’s Concrete Pump-ing had something extra to offer prime contractors that were bidding to win state-funded contracts. It turned out to be the competitive edge she needed to get her foot in the door.

Even as an MBE, competition is tough, she said; but today she lets her experience and her past performance speak for her.

“I think the hardest part was proving that you actually know what you’re talking about,” she said.

It took a lot of perseverance to establish Aaron’s Concrete Pumping as a reliable subcontractor, but now that Sheets has a reputation for delivering top quality work, op-portunities continue to open up for her company.

Aaron’s Concrete Pumping has about a dozen active job sites in Maryland, northern Virginia and Washington DC.(The Daily Record/Maximilian Franz)

Tracy Sheets (left) says her business has continued grow with help from the state’s MBE Program.(The Daily Record/Maximilian Franz)

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| 20 | EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES

SUCCESSStories

By Meg TullySpecial to The Daily Record

Think of a major bridge or large structure project in the Baltimore or Washington, D.C., area, and there’s a good chance Gene-sis Steel Service, Inc. provided skilled union ironworkers to help complete it.

The specialized company worked on M&T Stadium in Baltimore, the wading pool at the Lincoln Memorial

and just completed work at the National Museum of Afri-can American History and Culture in Washington, D.C. The firm has erected and reinforced steel on about 75 percent of any bridge in Maryland in the past 15 years, said Genesis Steel Service president Roland Peed.

Genesis provides union ironworkers who specialize in reinforcing steel, post-tension and structural steel erec-tion. Because the work requires great skill, Genesis is a subcontractor that works directly for a prime contractor employed by a large entity or working for state or federal governments.

Peed and business partner vice president James Ayers-man employ about 100 people on average. Incorporated in 1985, Genesis Steel started actively taking on work in 1988.

The business has been a certified as a Minority Busi-ness Enterprise (MBE) for more than 25 years.

Maryland’s MBE program, established in 1978, is one of the oldest minority inclusion programs in the nation. It is a procurement program that strives to eliminate dis-crimination in the public sector marketplace by creating opportunities for small minority- and women-owned businesses. The state’s overall MBE goals is 29 percent, but individual goals are set on a contract-by-contract basis and nearly every contact has a minority participation goal. Only the work of certified MBEs can be counted toward the goal, so it is a real “value added” proposition for firms

REPUTATION OVER 25 YEARS

Genesis Steel Service grows

Firm’s MBE certification helps it secure contracting jobs

Roland Peed, president of Genesis Steel Service Inc., says MBE certification helped him secure contracting jobs.(The Daily Record/Maximilian Franz)

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that want to work on state-funded contracts. “We provide an excellent service to the prime contrac-

tor,” Peed said. “They don’t have the specialty employees that we have. With us being able to help them meet their MBE goal, it has been very successful for us.”

Peed was an ironworker himself, starting apprentice school in 1969 at Baltimore’s Ironworker Local Number 16.

When he went into business, it took him several years to build a good clientele of prime contractors. Ayersman joined him at the helm in 1988. At the time, they both still worked as ironworkers, but gradually cut back as the business demanded more of their time.

“It’s a tough road to go, it takes time,” Peed said. “You build one or two relationships and do a good job. Word gets around.”

At first, he was anxious to take work — any work. Now, they know all of their clients and feel comfortable that they will pay on time and work well together.

Still, Peed reports that they were fortunate. They only had to weed out one or two clients with which they would rather not do work over the more than 25 years they have been doing business.

Ayersman said it takes about five years for a subcon-

tracting business to establish itself. “For subcontracting to be successful, long-term, it

takes time to develop relationships,” he said. “Everybody wants to get into business. You’ve got to have controlled growth. Don’t be in a hurry.”

EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 21 |

“It’s a tough road to go, it takes time.

You build one or two

relationships and do a good job then word gets around.”

— Roland Peed, President, Genesis Steel Service, Inc.,

president

Roland Peed inspects cables on a job site.(The Daily Record/Maximilian Franz)

Roland Peed, president of Genesis Steel Service Inc., says developing relationships are key to his success.(The Daily Record/Maximilian Franz)

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Being an entrepreneur isn’t easy. It’s stressful, engulf-ing and often frustrating. It’s also creative, flexible and very rewarding. Most successful entrepreneurs will tell you that they reached out for help along the way and for many, the Governor’s Office of

Minority Affairs (GOMA) has been a valued resource.“Outreach is one of our core missions,” stated GOMA’s

Special Secretary Jimmy Rhee. “We want to make sure busi-ness owners have the tools they need to compete ef-fectively and succeed.

Ellie D’Sa, owner of DSA Designs, has been in business for seven years. She’s been attending GOMA outreach events since becoming certified as a Minority Business Enterprise (MBE) in 2012.

“The networking opportunities have been well worth the time I’ve invested,” D’Sa said. “I think GOMA does a great job of reaching both new and established entrepreneurs. The content is very good.”

Sandy Asirvatham agrees. An artist slash entrepre-neur for over 20 years, she recently went into partnership with a long-time colleague and they formed a new company. Sandy is just now seeing herself as a businessperson.

“Business development falls to me and I have come to un-derstand that there’s a big difference in how you approach business in the public sector,” Asirvatham said. “These events

have helped me understand what I should be doing and how to get my company out there.”

GOMA conducts seminars, workshops and webinars that are focused on helping small and minority business own-ers learn to navigate the procurement process with confi-dence. Ready, Set, GROW! is a workshop series unlike any other. Following a brief overview of the Minority Business Enterprise and Small Business Reserve programs, partici-

pants actually meet with State procurement officers to discuss real time opportunities. The Engage Maryland live classroom sessions and webinars address specific information and skills

small business owners should know such as MBE Rights and Responsibilities and the Anatomy of a Bid.

All of GOMA’s outreach programs are free. You can learn more about them and sign-up to receive notices of GOMA’s outreach events at www.goma.maryland.gov.

“There’s some really valu-able information online, but nothing compares with talking to the people who understand the world where you want to be,” Asirvatham remarked. “Being able to ask questions of the right people as I learn the nuances of public contracting is very comforting. I will definitely continue attending GOMA’s events.”

GOMA’s outreach program helps small businesses make big connections

Engagement is Key to SUCCESS

Business owners network with State buyers at a Ready, Set, GROW! program at Bowie State University.

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EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 23 |

Md. firms follow in footsteps of Microsoft, Appleby Margie HyslopSpecial to the Daily Record

Core competency: as a business principle it has been talked about for decades; in practice, it is the fundamental capability that businesses must update

and maintain in order to grow and endure.“No company can do well if it does not

have a competitive advantage so that the customer can conclude that what they are getting is better or cheaper,” University of Maryland, Robert H. Smith School of Busi-ness professor Anil K. Gupta said.

The way companies create that advan-tage “is to have a core competency that is proprietary — that is, not easy for a compet-itor to replicate or neutralize,” said Gupta, who is Michael Dingman Chair in Strategy, Globalization and Entrepreneurship at the business school in College Park.

The capability that provides the compet-itive advantage can come from a company’s culture, organization, people, a breakthrough product or discovery and often is a combina-tion of such factors.

Consider, Gupta said, “What was it about Apple that allowed it to create trans-formational products?”

“Clearly top leadership matters,” said Gupta, noting that Apple co-founder Steve Jobs, the mind behind the iPod, was think-ing through his vision for the iPhone, which came later, for six to eight years.

Business leaders need to be students of human nature, consumers, technology and trends, Gupta said.

Applying what they learn, business lead-ers must envision what customers want and what their business will need to offer cus-tomers in the future.

Charles Darwin’s finding that survivors are not always the most intelligent or the strongest, but those that best respond to change, “absolutely” applies to businesses, Gupta said.

Even to giants such as Microsoft.Microsoft’s operating system — first

MS-DOS, then Windows — was the core of that company.

And Windows, which emerged as a suc-cess in 1995, did not become a hit overnight.

“Work on Windows started around

1984 — it took 11 years to get it right,” Gupta noted.

“How can a company stay committed for 11 years? Conviction and persistence,” Gupta said.

Now the Windows operating system is a “commodity” and people go to a browser, Gupta said.

So “companies need to look at core com-petencies in a dynamic rather than static manner,” Gupta said, and that is even “more true today” when companies are less verti-cally integrated.

“No company lives in a vacuum [and] competing in a market requires integrating your competencies with those of your busi-ness partners,” Gupta said.

For example, smartphones use appli-cations created by many companies. Tai-wan-based manufacturer Foxconn makes Apple’s iPad and iPhone, plus electronic products sold by other companies.

TISTA Science and Technology Corpo-ration president and chairman Ahmed R. Ali agrees that business leaders must concentrate on what the company does best.

“Having a strong core management —

Developing your CORE COMPETENCY

Omar S. Muhammad serves as director of the Entrepreneurial Development & Assistance Center at Morgan State University.

(The Daily Record/Maximilian Franz)

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| 24 | EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES

The University System of MarylandWants Your Business

Minority and Small BusinessCome Check Us OutUsmd.edu/usm/procurement

UMCP Service Center Victoria Leatherwood 301-405-5850 [email protected] Service Center Kathy Bordenski 410-706-5122 [email protected]

not only the CEO but senior executives — causes a company to have the right focus,” said Ali, whose company, based in Rockville, began as a provider of cybersecurity services to federal agencies and later added health care information technology and state and local government to its service and client portfolios.

“Sometimes small businesses pursue anything that comes their way — that’s not the right model,” Ali, who earned bachelor’s and master’s degrees in information systems management and business, said.

“The price has to make sense — for new companies I don’t recommend pursuing LPTA (lowest priced technically acceptable) contracts,” said Ali, a U.S. Navy veteran who worked for more than half a dozen federal agencies before starting his own company.

“Best-value contracts are the best way to go” Ali said.

Those criteria allow contracts to be awarded based on critical factors, rather than chiefly price. That’s particularly important to service companies, like TISTA, that require experi-enced senior engineers, who command certain salaries, to deliver a product.

Ali established strong operations and in-frastructure in his company before hiring ex-ecutives to help the business break into new sectors.

Companies with that solid base may be able to afford to take some risk, and the risk might be worth-while when it gives them a chance to demonstrate their abilities and get their “foot in the door” with a new customer, he said.

In any case, tapping and sharing the knowledge base of new hires and investing in training employees are important, Ali said.

But outsourcing some functions can make sense, especially if a company uses it as a way, not only to access, but to gain expertise and to supplement employees’ training, he said.

It also is important for a company to stay relevant to the

community it serves by doing some good for those in the field where the company works.

“If they like what you stand for, it’s an added benefit when you’re being weighed against a close competitor,” Ali said.

For the Entrepreneurial Development & Assistance Center at Morgan State University, which relies on a grant for basic support, demonstrating what the organization stands for was not the prob-lem.

But finding a way to connect more entrepreneurs “to resources for venture management and growth,” as its mission states, was a challenge.

“We did a lot of business plans, one-on-one,” EDAC director Omar S. Muhammad recalled.

With just himself and one other staffer to do the work, their reach was limited and they were getting “burned out,” Muhammad said.

“We had to find a way to reach more peo-ple,” Muhammad said.

So in 2004 they put together a subject matter expert team and a network to help.

Bringing those experts together with en-trepreneurs, largely through targeted con-ferences, became “our core competency,” Muhammad said.

In 2005 EDAC began holding conferences to teach young people how to start a business

and manage money.In 2006 EDAC added conferences for women business owners. Last year they held special conferences for entrepreneurs who are

mothers as well as women entrepreneurs who have served in the military. Now EDAC is putting together training and strategic alli-ances to help ex-offenders who have been released from prison start businesses.

The conference exposure has brought EDAC a unique kind of brand identity, more money and greater resources and has even brought in volunteers, Mohammad said.

“Having a strong core management — not only the CEO but senior executives — causes a company to have the right focus.”

— Omar S. Muhammad

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EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 25 |

By Meg TullySpecial to The Daily Record

A chance meeting at a networking event turned out to be a turning point for gen-eral contractor DeQuan’s Construction.

Claretta Rideout, president and man-aging director of the Catonsville-based

company, was attending a small business networking event when she met some representatives from PNC Bank who specialized in small-business lending. That meeting would take her company, then about seven years old, on an upward trajectory.

Before that point, Rideout had only secured loans of about $30,000 at a time. She hadn’t gotten much direction on small business lending, and was busy at the helm of her business.

But about eight years later, DeQuan’s has access to a $300,000 line of credit and has been able to secure performance bonds on projects as big as $3.6 million. This July, her company was named the Woman’s Busi-ness of the Year by the Maryland Minority Contractors Association.

The capital helped her fund labor, equipment and materials for bigger projects.

Securing capital investment and financing helps small businesses increase inventory to meet demand, finance new hires and expand their business. For public contractors, it can be a key component when dealing with long contract payment cycles. Yet access to capital

Critical to success of small businesses

STATEWIDE FUNDING AND INCENTIVE

PROGRAMSMost business owners are not aware of the financial resources

available through the State of Maryland. This includes tax credits and specialized financing and incentive resources for small busi-nesses, veteran-owned businesses and minority- and women-owned businesses. The State also offers assistance with a variety of needs including modernization of manufacturing and equipment, land ac-quisition and infrastructure improvements, machinery and equipment purchases, development of commercial opportunities and financing for the economically disadvantaged. Visit the Department of Busi-ness and Economic Development’s website to learn more about the programs or call the Office of Finance Programs at 877-821-0099 to determine your eligibility for certain programs.

http://business.maryland.gov/fund/programs-for-businesses

Claretta Rideout, president and managing director of DeQuan’s Construction says access to capital was key to the success of her business.(The Daily Record/Maximilian Franz)

Access TO CAPITAL

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| 26 | EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES

can be a challenge if the right connec-tions aren’t made.

Reaching out to small businessRideout was able to build a relation-

ship at PNC and work with them over time, taking advantage of SBA secured loans. DeQuan’s recently completed the ICC Eastern Operations Center and a 24-classroom renovation at Laurel Ele-mentary School.

“It made a major change,” Rideout said. “I went from being a small [busi-ness] to a medium-sized business. From handling a $50,000 project, it enabled me to be able to bid and finance any-thing over $100,000 — now $3 mil-lion.”

One of the people who guided Ride-out was Ramsey Harris, a vice president at PNC who leads the Community Re-investment Act initiative in the Balti-more metropolitan area. That initiative focuses on lending to small businesses located in low-to-moderate income areas, including minority-owned busi-nesses, and achieved the high-est rating from the Office of the Comptroller of the Currency, an independent bureau within the U.S. Department of the Treasury — “outstanding” for the most re-cent rating cycle, 2009-2012.

“Acquiring capital and se-curing financing for any small business is vital to the lifeblood and success of a small business,” Harris said. “They all need work-ing capital at their reach during times of shortfall with revenue, in between sales cycles, and also so they’re not always having to tap into their savings and liquid re-serve.”

He helps businesses find the right lending solutions, whether it is a line of credit, credit card (including offers like zero percent APR for the first 18 months), term loan, or vehicle or equipment loan.

“We are very much passionate, committed and take a stand for small businesses,” Harris said.

Bigger pictureIt’s not clear how big of a chal-

lenge access to capital is, but it is

obvious that it is important to Main Street businesses.

The National Federation of Indepen-dent Businesses reported in June that only 5 percent of business owners in the monthly survey reported that their bor-rowing needs were not satisfied, which the federation described as historically low. Thirty-two percent said their credit needs were met, and 49 percent did not want a loan.

“For most of the recession, record numbers of firms have been on the ‘credit sidelines,’ seeing no good reason to borrow,” the NFIB said. “But May and June readings suggest that the credit appetite of owners might be increasing.”

The National Small Business Asso-ciation, meanwhile, is making access to capital one of its top 10 priorities as over March 2015.

“Start-up and expanding small busi-nesses frequently do not have the assets necessary for a traditional bank loan, and smaller loans generally are less-prof-itable for banks,” NSBA stated in a let-

ter to the House Committee on Small Business. “In fact, according to NSBA’s 2014 Year-End Economic Report, 22 percent of small business owners re-ported being able to obtain adequate financing.”

That survey also found only about 2 percent of businesses rely on venture capital or angel investors — most used credit cards, earnings of the business or a bank loan. Nearly one-third used no financing at all.

Government helps bridge the gapSome businesses are able to take ad-

vantage of governmental programs that help provide financing or loan guaran-tees to improve loan terms and approv-als.

Maryland Gov. Larry Hogan has announced he plans to dramatically in-crease one such loan program — Neigh-borhood BusinessWorks — from $5 million to $50 million by 2019.

Michael Haloskey, director of busi-ness lending at the Maryland De-

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EXPANDING OPPORTUNITIES | A RESOURCE GUIDE FOR MARYLAND’S SMALL, MINORITY-AND WOMEN-OWNED BUSINESSES | 27 |

• Work with a CPA at least once a year to make sure all of your financial documentation is solid. Banks rely on financial documents like where the revenue is coming from, profit and loss state-ments, and balance sheets, when qualifying a business. For a traditional loan, banks usually re-quire two years of tax filings.

• Develop a business plan that explains who you are, what expertise you bring to the table, and what the money will be used for. “Banks can’t approve everyone, so my suggestion to a small business owner is to stand out,” Harris said.

• Consider financial credit classes to beef up your financial education. Banks often look at personal credit scores when considering lending. Develop a relationship with a banker if you need help im-proving your credit.

TIPS OF THE TRADE

Advice from Ramsey Harris on a successful loan/credit application

“Acquiring capital and securing financing for any small business is vital to the lifeblood and success of a small business. They all need working capital at their reach during times of shortfall with revenue, in between sales cycles, and also so they’re not always having to tap into their savings and liquid reserve.”

– Ramsey Harris, PNC, vice president

partment of Housing and Community Development, said the program provides critical gap financing to leverage both pub-lic and private capital to replace vacant, blighted properties with thriving businesses.

“Ninety percent of businesses are small businesses and they drive our economy, so it’s very important,” Haloskey said.

Since significant renovations need to be done on historic properties, the costs can be higher and businesses have challenges obtaining all of the needed financing from traditional sources like banks. Yet success-ful businesses will bring back foot traffic, increase sales tax revenues, payroll taxes and property taxes.

“Usually you’ll find you need one proj-ect and it turns out to be a catalyst for fu-ture investment to bring other businesses in,” he said.

The program applies to designated Sustainable Communities — there are currently 86 statewide — that often have vacant commercial buildings.

A prime example is the Handlebar Café in Fells Point, a $1.3 million project that secured $500,000 through the Neighbor-hood BusinessWorks Program.

It is expected to produce 15 full-time jobs and transform a former garage into a restaurant/café, retail bike shop and bike service center. Led by former professional bike racer Marla Streb and her husband, Mark Fitzgerald, it will promote biking in Baltimore and healthy lifestyles.

After 30 years in banking, Haloskey said his advice to small business owners seeking capital is to develop a fully defined business plan. He advises entrepreneurs to seek out a local small business development corps for assistance on the business plan and mar-ket research. Local economic development agencies can also help inform companies what government programs are out there to help.who

When an entrepreneur is really commit-

ted to what they are doing, they will ex-haust every possible resource in search of the capital needed to get their idea off the ground, he said. . Finding the right pro-gram, whether it’s with a commercial bank or a government-funded program isn’t al-ways easy, but it is worth the effort and energy.

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By Erin [email protected]

Small businesses can pool re-sources and expertise to increase potential opportunities by part-nering with another small busi-ness through what is known as

a joint venture.A joint venture is a strategic alliance

where two or more people or companies agree to contribute goods, services and/or capital to a common commercial en-terprise. It may sound like a partnership, but legally a joint venture is a different entity formed for a particular purpose or project, while a partnership is formed to run a business in common. Each mem-ber of the joint venture retains owner-ship of his or her property and shares only the expenses of the particular proj-ect.

For small business owners who work well in a collaborative environment, a joint venture can offer access to new markets, greater capacity, shared risk and costs as well as access to greater re-sources and increased technical exper-tise.

Forming a joint venture is a major

decision, so take the time to understand the pros and cons as well as the legal as-pects of forming this new entity.

According to David B. Rudow, a mem-ber at Adelberg, Rudow, Dorf & Hendler LLC, joint ventures take many forms, the most common of which is a limited liability company or LLC. When he counsels clients, Rudow says he advises them to clearly define who the owners of the joint venture are.

He says that splitting the partnerships equally can be difficult and advises that one partner have majority ownership.

“You can have joint ventures with any number of people,” he said. “As the number of joint ventures increases it get exponen-tially more difficult to manage.”

Small businesses in Maryland are having real success with joint ventures. One exam-ple is the Partners for the Revitalization of Baltimore City Schools – a joint venture between two Minority Business Enter-prise firms: Brailsford & Dunlavely, Inc. and McKissack & McKissack called “City School Partners” for short.

The City School Partners joint venture won a $60 million renovation and replace-ment contract being managed by the Mary-land Stadium Authority that will impact 23 to 28 schools over the next five years.

McKissack & McKissack is a woman/minority-owned organization specializ-ing in architecture and interiors, pro-gram and construction management, planning and facilities management, environmental engineering and trans-portation. They have offices nationwide.

Brailsford & Dunlavey is a minori-ty-owned business with a nationwide portfolio of large public projects and significant experience in large K-12 ed-ucational improvement programs.

Williad Mangrum, a senior vice pres-ident with Brailsford & Dunlavey, be-lieves joint ventures can be very valuable to both partners.

“You want a partnership that con-nects complimentary services and de-livers a comprehensive package,” said Mangrum. “For small businesses, one of the great things about a joint venture is that you share the risks, and of course, the re-wards.”

Don’t dismiss an opportunity that may be out of reach for your company. Instead, find a good strategic partner and start talking about forming a joint venture. Properly planned and executed, joint ventures can help your small business take on bigger and bolder projects.

Joint ventures present opportunities

Strategic partners help firms take on bigger, bolder projects

FOR SMALL BUSINESSES

Financial RegulationGovernor’s Workforce Investment Board

Maryland Racing Commission

Labor & IndustryOccupational & Professional LicensingUnemployment Insurance

Workforce Development & Adult Learning

www.dllr.maryland.gov | DLLR/MARYLAND | @MD_DLLRLarry Hogan, Governor • Boyd K. Rutherford, Lt. Governor • Kelly M. Schulz, Secretary

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WhoReads the Record?

Lisa Rusyniak

She’s Successful.She’s Influential.She’s Informed.

And, She Reads...

“The Daily Record gives me

access to the information I

need to make decisions. As

President & CEO of Goodwill

Industries of the Chesapeake,

Inc., I rely on information to

help our stores grow and to

be aware of policies that

affect the individuals we

serve. The content is timely

and a part of my daily routine.

For your own edition or digital access, visit https://subscribe.thedailyrecord.com/H5ZWRTR.

”President & CEO, Goodwill Industries of the Chesapeake Inc.

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GOMAMINORITY AFFAIRSGOVERNOR’S OFFICE OF

The Governor’s Office of Minority Affairs (GOMA) fosters an environment where entrepreneurs can thrive across all areas of

commerce. We support the economic growth of Maryland’s small businesses and proactively work toward connecting minority- and women-owned firms to procurement programs in the State

contracting marketplace. Our passionate staff ensures compliance within the participating agencies, creates networking opportunities with State buyers and conducts statewide educational programs for

the purpose of assisting small business owners as they develop the skills necessary to navigate

the procurement process with confidence.

Visit our website to learn more or contact our office to schedule

a presentation for your organization on the Minority Business Enterprise and Small Business Reserve programs.

410-767-8232

www.goma.maryland.gov