How many job opportunities are missed because your company lacks the capacity, or there are job requirements you can't fulfill? If your company passed on the chance to compete, it might be time to consider teaming.Business relationships can take different forms, and the structure you use will determine how you compete. Teaming relationships are usually developed between two or more companies that want to compete for a specific solicitation. Ultimately, an agreement creates a new entity that has its own EIN (employer identification number) and is usually only in place through the contract's term.
There are a few benefits to forming a teaming relationship; in addition to building capacity, teaming also allows you to leverage the socioeconomic status of both companies (for example, service-disabled-veteran-owned, woman-owned, 8(a), etc.). There are drawbacks, too - the new entity must still meet the SBA's size standard if you are bidding on federal work.
This is one instance where being a veteran business owner can confer a distinct advantage. Veterans who team with other small businesses get to bid on work they would not otherwise qualify for, and the partner gains access to work for which it would not have the chance to compete. Either way, more work is better.
Louis J. Celli is CEO of the Northeast Veterans Business Resource Center. Readers can send questions for "On Point" to email@example.com.