Making the Most of Industry Days

Working with the government requires a significant resource investment in marketing your products or services to program offices that buy what you sell. One of the most valuable resources available to you is the industry day. Many government agencies host regular industry days to meet with the business community. These events provide an opportunity for business representatives to network and gain insight into government agencies.

Some industry days follow a lecture format with agency officials providing information on how to do business with them, while others will have a more conversational style where contractors can talk with potential customers. The "style" or format of a given industry day will ultimately set the tone for the event, and can impact the openness of attendees towards networking. However, being prepared will help you get the most out of these events. Here are some tips to guide you in preparing for your next industry day:

Target the Right Agencies. The agency's OSDBU office can help you identify which industry days specifically target small business. Visit the agency's web site for additional information. Industry days are also often published on FedBizOpps.gov and on industry/association sites.

Review the Agenda. If an agenda is available, review it in advance. If the agenda has multiple sessions with at least an hour between sessions, then you should be prepared to use this time to network. An agenda with a limited number of sessions and/or time between sessions is likely to be more informational in nature. Use your time to talk to the agency's representatives. Get business cards of potential teaming partners and follow-up at a later time.

Do Your Homework.Understanding the agency will provide you with the necessary foundation to 1) understand the environment where you want to do work; 2) allow you to effectively discuss relevant topics and participate at the event; and 3) allow you to create a game plan to follow up on the information provided. Remember, industry days provide you with an opportunity to speak directly with agency representatives. You should be prepared to hold a productive conversation with them. This means having an understanding of their environment and upcoming opportunities; and knowing how your products/services are relevant to their needs.

Prepare to Network. Situate yourself so you are in an area with plenty of people around you so you can introduce yourself. Be prepared to discuss the agency with others and to talk about your company and its products/services. Unless it's an absolute emergency, leave the outside business for later. It is impossible to network when you are on the phone discussing other business. Be sure to bring plenty of current business cards and brochures!

Keep these tips in mind the next time you sign-up for an industry day. It's a great way to start building new relationships and reinforce existing ones.

Stimulus Packages Changes COBRA Requirements

Our accountant, Glen Todd of Glen Todd & Company PC, sent me a very interesting email. He forwarded what he considered a really good synopsis by McKenna Long & Aldridge LLP of a very serious provision of the Stimulus Act. On February 18, 2009, McKenna Long sent out a Corporate Advisory entitled “Employers Required to Front COBRA Costs Beginning March 1, 2009.” According to the information they provided, there is a section in the Stimulus Act that relates to the COBRA subsidy. The Act changes the COBRA requirements for businesses. Previously, only companies with 20 or more employees were required to provide COBRA to eligible terminated employees. Now, each state will dictate the company size where COBRA requirements kick in – in Maryland, where we're headquartered, it is 2 employees.

The other big issue with the change is that the Act requires the employers to pay 65% of the premiums for the COBRA-covered employees for up to nine months, where previously the employee paid 100%. The employer will be reimbursed by the government later in the form of tax credits, or a direct reimbursement if the company’s tax liability doesn’t cover the premium cost. This could cause huge problems to small businesses who can’t afford to pay the 65% premium for employees who are no longer working for them.

In a nutshell, the McKenna Long newsletter says “If you sponsor a group health plan, you must act quickly to implement the new requirements by March 1, 2009 (or earlier where coverage terminates before the end of the month, e.g., on date of termination of employment).” Note: McKenna Long’s newsletter states that their information is “only a summary of portions of the Stimulus Act.” They recommend contacting them or your own attorney for more information about the subsidized premiums for continuation coverage and assistance in revising your forms.” For more information on McKenna Long, visit http://www.mckennalong.com.

I read the information and my blood ran cold. The implications and impact on small businesses probably will be extreme. With the cost of health insurance already being high, am I being expected to front the 65% of the monthly continuation costs for an employee that no longer works for me? Imagine laying off employees because you can't pay them and then having to pay their COBRA coverage. It doesn't make sense. I thought the Stimulus Act was supposed to help small businesses. The financial impact will affect how and if companies offer health plans to their employees and may result in companies cancelling the plans they already offer.

The newsletter continues saying “the company must subsidize both the cost of COBRA continuation coverage and state-mandated health continuation coverage (collectively referred to in this alert as “COBRA”) elected by the Eligible Individual. McKenna Long indicated the definition of eligible individual as “any employee who is involuntarily terminated between September 1, 2008 and December 31, 2009 (employees terminated for gross misconduct or voluntarily terminating are not eligible); and the employee’s spouse and dependents.”

To help determine if a company is subject to State mandates, McKenna Long provided this link to COBRA Continuation Coverage for Small Firm Employees (http://www.statehealthfacts.org/comparemapdetail.jsp?ind=357&cat=7&sub=88&yr=18&typ=5&cha=586).

Their newsletter has a list of 12 bullets with action items and 4 key dates beginning on March 1 and ending on April 30, 2009. This is not a lot of time to review the provision, make decisions and implement a plan to address the new requirements.

Since this is an overview, there is probably information that the McKenna Long newsletter does not address. To make good decisions, I need to find out how this will specifically impact my business. My first calls on Monday morning were to our insurance broker, accountant and attorney so I understand the financial, legal and paperwork implications of this provision. My recommendation to other small business is do the same.

Stimulus Package Small Business Goals

The stimulus package talks about helping small business, but doesn't contain any numbers or goals. Small business esneed to be proactive to ensure that there are measurable goals included in the language. Small businesses should contact the Senate Small Business Committee and ask them to adopt the government-wide goals that currently exist and include the language in the stimulus package. The Senate Small Business Committee Chair is Senator Mary Landrieu. The Committee phone number is (202) 224-5175.

On Point Washington Technology Article

In case you missed it, Matthew Weigelt wrote a really good article on the Obama administration and how it can benefit small businesses. It's an interesting article because he not only talks about the new opportunities that could come for veteran-owned and woman-owned businesses, but also discusses the potential negative impact to Alaska Native Corporations (ANCs). His article appears in the January 2009 issue of Washington Technology or can be found on line at http://washingtontechnology.com/articles/2009/01/12/winners-and-one-possible-loser.aspx.

It's a well rounded article and I particularly like the attention Mr. Weigelt paid to the woman-owned business contracting program. We've been hearing for years about how this program is supposed to go into effect. We'll see if the Mr. Obama and his SBA Administrator nominee, Karen Mills, will be able to implement a program that makes sense and doesn't lock out the majority of woman-owned businesses.