Skeet Shares
stuff I find interesting
Wednesday, January 3, 2007
A blog for small businesses
As a small-business owner I frequently miss important news that can have a huge impact on my ability to operate. I subscribe to magazines and websites that keep me up-to-date on my own industry-related news, but they don’t always have the information I need as a sole proprietor. It’s obvious from their content that they focus more on large operations that have multiple locations, employ hundreds or even thousands of workers and have to deal with employee benefits, worker’s comp, insurance, tax and inventory problems commiserate with their size. I don’t have employees and I specialize in inspections, so I don't carry a materials inventory. My professional subscriptions aren’t terribly interested in the day-to-day operation of my business. For instance, I had to go elsewhere to discover that the government services inspection contracts I’ve been eyeing have a loophole that is not in my favor. This concerns the Tax Increase Prevention and Reconciliation Act of 2005, which is supposed to benefit small businesses.

“Unfortunately, tucked away in the small print, and even unbeknownst to some who voted for the bill in Congress, was a little provision which stated that any business that has a contract with government at the local, state or federal level will have 3% of their payments withheld starting in 2011. And, to add insult to injury, there are even some in Congress who are now trying to push legislation to move that implementation date up.”

It’s rather disconcerting to know that laws which are supposed to benefit me will instead penalize me. Read the rest of the article and see. It's good that I found this information prior to submitting my proposal. I'll adjust my bid, but it will probably cost me the contract. Pity the business that gets it and has to lose a bite of their profit down the road because they weren't aware enough.

I’m pleased that I’ve discovered this alternate source of business advice that caters to businesses like mine, and glad that IncParadise.com sponsored this post, thus encouraging me to share the news with you.

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3 Comments:
Blogger Crunchy Carpets said...
What a bizarre law!....

My fave is the people that call to come to my dh's "office" and the others calling to speak to the accounting department or marketing dept.

I am so tempted to go 'hold please'!

Blogger Patrick said...
If the law does not impact on you until 2011, you shouldn't let that stop you today. Carpe Diem!

The idea is to make hay while the sun shines and not be troubled by what's down the road. You want to get as much interaction NOW as you can, bumbye you can adjust as the 2011 date draws nearer. But don't throw away opportunities because of what may be happening years from now.

Go foah Broke!

There are many good points in your article. I would like to supplement them with some information.

For an all-volunteer site, dedicated to small businesses who wish to succeed in federal government contracting, please see the below site:

http://www.smalltofeds.blogspot.com/
The federal government will contract in excess of $80B to small businesses in the next fiscal year.

There are over 50 agencies or "Departments" in the federal government. Each of these agencies has a statutory obligation to contract from small business for over 20% of everything it buys.

Contracting officers must file reports annually demonstrating they have fulfilled this requirement. Not fulfilling the requirement can put agency annual funding in jeopardy. Small business has a motivated customer in federal government contracting officers and buyers.

Large business, under federal procurement law, must prepare and submit annual "Small Business Contracting Plans" for approval by the local Defense Contract Management Area Office (DCMAO) nearest their headquarters. These plans must include auditable statistics regarding the previous 12 month period in terms of contracting to small businesses and the goals forecast for the next year.

The federal government can legally terminate a contract in a large business for not meeting small business contracting goals. Approved small business plans must accompany large business contract proposals submitted to federal government agencies. Small businesses have motivated customers in large business subcontract managers, administrators and buyers.

There are set-aside opportunities available for small entities,veterans, disabled veterans, women and minorities. All it takes is navigating the system, persistance, asking questions, registering, marketing, teaming and working hard.

Small Business America is good at that.

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