Standing out from the competition is essential for attracting new clients and growing your small business. One way you can set yourself apart is by getting certified.
Small business certifications can give businesses credibility that non-certified companies don’t have as well as access to certain opportunities depending on your industry.
Let’s look at some small business certifications worth getting, including who issues them, the companies that qualify and the requirements. These include:
The U.S. government spends more than $650 billion on products and services each year, making it the largest consumer in the world. And they set aside a certain amount of money to spend on products and services from businesses with specific certifications.
If you have one of the certifications listed below, you’ll get an opportunity to bid on contracts that other small businesses don’t have access to.
The U.S. government awards at least 5% of its contracts to certified women-owned small businesses every year.
If you’re the owner or co-owner of a woman-owned business, you may qualify for one of two types of certifications:
To qualify for both certifications, your business must be:
To earn an EDWOSB designation, your business must meet the above WOSB Federal Contract program requirements and the following:
To remain certified, you must complete an attestation form every year. Every three years, an SBA representative or third party will conduct a more in-depth review of your business to make sure it still meets the certification requirements. They must also update their SAM.gov profile annually to ensure their Dynamic Small Business Search (DSBS) profile remains active.
The Historically Underutilized Business (HUB) Zone program targets small businesses in urban and rural areas with high unemployment rates and low household incomes.
HUBZone-certified small businesses get preferential access to certain contracts, plus a 10% price evaluation preference. So, if you bid up to 10% more than other qualified businesses, you can still win the contract.
To qualify for a HUBZone Program certification:
After receiving your certification, you must confirm that your business still meets the program requirements yearly. You must undergo a more extensive review of your business’s eligibility every three years.
The 8a Business Development Program aims to assist people who have historically been at an economic disadvantage due to racial, ethnic and cultural biases.
If your small business is at least 51% owned and controlled by socially and economically disadvantaged people as defined by the SBA, you may be eligible for certification.
To qualify, you must have:
Businesses that earn this designation may partner with other certified minority-owned businesses to bid on larger contracts they may not otherwise be able to complete.
Certification is good for nine years, and you don’t need to re-certify annually as you do for some of the other designations on this list.
If you’re one of the 16.5 million vets in the U.S. today, you may be eligible for contracts the federal government sets aside for veteran-owned businesses each year.
You may qualify for one of two types of certifications:
To be eligible for these certifications, you must have the following:
Additionally, for the SDVOSB certification, you must
Fully and permanently incapacitated veteran business owners unable to handle daily operations may qualify for the certification if their spouse or appointed, permanent caregiver assists in management.
SBA veteran-owned certification lets your company compete for VA and other sole-source and set-aside contracts. Each year, the VA reserves 7% of contracts for eligible VOSBs and SDVOSBs. Certified SDVOSBs receive at least 5% of federal contracting funds annually. Contracts are also available through other socioeconomic programs.
The Small Disadvantaged Business (SDB) Certification allows businesses to self-represent as small disadvantaged businesses for federal prime contracts and subcontracts. The Biden-Harris Administration increased emphasis on SDBs for designated federal contract procurement in 2021.
To self-represent, businesses must be:
To register, you must sign up at SAM.gov. This certification does not expire unless the business no longer meets requirements.
Government certifications are just one type that can help move your business forward. You can also obtain certifications through private organizations dedicated to supporting specific groups of people.
The National Minority Supplier Development Council’s (NMSDC) mission is to level the playing field for minority-owned businesses by creating equal opportunities for wealth-building and socioeconomic equality.
The NMSDC defines a minority as someone who is at least 25%:
When you get certified as a Minority Business Entity (MBE), you gain access to education, training, networking opportunities and contracts that aren’t accessible to the general public.
You must meet the following requirements to qualify for certification.
Issued by the National LGBT Chamber of Commerce (NGLCC), businesses with the LGBTBE certification enjoy unique opportunities to grow their business.
The NGLCC connects certified businesses with professionals actively looking to work with LGBT-owned companies. The organization also provides workshops, mentorship and leadership training.
To qualify for certification, your business must be:
Depending on your business type, you may need to obtain specific certifications before you begin working. For example, plumbers, electricians, HVAC operators and other skilled tradespeople must be certified to work legally in many states.
Other professionals, like auto mechanics and fitness instructors, don’t typically need a certification. But that doesn’t mean being ASE-certified or getting your NASM certification won’t help you attract more clients and grow your business.
Many industries offer voluntary certifications that might be worth checking out.
Many states, counties and cities offer certifications to qualifying small businesses. Depending on where you live, you may first need to receive certification from the SBA to secure a local certification.
Running a small business can be a 24/7 job. At NEXT, we give you 24/7 DIY access to manage your coverage on your schedule.
You can choose from general liability, workers’ compensation, professional liability, commercial auto, commercial property and tools and equipment coverage.
Complete our online application to see coverage options, get a quote, and purchase a policy. It takes about 10 minutes. After payment, you’ll get access to your certificate of coverage.
Our licensed, U.S.-based insurance professionals are ready and waiting to help if you have questions during the process.
Get started with your free online quote today.
You can find Kim trying new recipes and cheering the 49ers.
