Is today your dream day, the day you have been waiting for so long when you would have your own business opened? Congratulations, you have made it But take no offense, if I ask you “can you guarantee absolute success and security of your business in the next couple of years?” Well, I can understand, you’re in a dilemma You’re not sure what to answer – a ‘yes’ or a ‘no’. And, this is natural, given that we cannot predict the future. What’s in store for us or our business’s future cannot be foretold exactly. Imagine, if you had a financial guarantee for the next 5 years or so that whatever the market trends would be, your business will stand ground and remain affixed to its standard, no matter what. Wouldn’t that be wonderful?
Unreal as it may seem to be, it’s very much possible, provided you know how to secure your business financially. Small business consultants might offer you a suit of advices, from reducing your overhead cost to saving more and spending less for the first three years and so on. But what most of them miss out is suggesting you to get an 8(a) certification from the SBA (Small Business Administration), which is the US government’s flagship initiative to help entrepreneurs succeed in the highly evolving business field. Typically, any small business owner can apply for the 8(a) certification but then he/she has to confirm with the eligibility criteria. Here they are –
1. Are you operating your small business or at least 2 years?
Now why is that necessary? Because as per the SBA, businesses that are applying for 8(a) must have a clean track record of public dealings and have demonstrated honest and optimum client servicing in the past 2 years or more. As businesses that gets the 8(a) certification approval are mostly given opportunity to become service providers/ suppliers for federal agencies, so impeccable quality and transparent business policy and implementation is needed. That’s why a good track record for the applicant is sought for.
2. As an 8(a) applicant are you socially and economically disadvantaged?
According to the SBA directives, applicants for 8a certification must be either socially disadvantaged persons or they belong to any economically weak (preferably ethnic minority) section of the society. Among others it is the prime objective of the SBA to initiate the 8(a) program to help the weaker section of the American society to develop entrepreneurial skills, mature and establish them as an intrinsic part of the national economy. If you belong to one of the two categories as mentioned above, you can confidently apply for the certification process.
3. Does your small business firm have updated tax returns and financial statements for every quarter since its inception?
This is also crucial especially when youre applying to get your small business 8(a) certified. The more you have all the tax filing documents up-to-date the better you chances are to get your application selected at one go without refusal.
So what are you waiting for? If you confirm with all of the above eligibility parameters, go ahead and apply for the 8(a) certification. Set your small business on the road to success.
