What is Certification?

What are business certifications?

Many business owners are unaware of certifications and the potential benefits that a business can receive through certification. As a business owner, understanding the benefits of business certification may be the “secret sauce” to increasing sales and revenue for your company.


What are the benefits of certification?

One of the key benefits is providing an edge to your business when seeking contracts. Many businesses and municipalities have a specific number of contracts, either in dollars or percentages they need to award to certified firms. Obtaining certification is the only way to gain access to these contracts that are exclusively available and set aside to certified firms and can also limit competition. There are intangible benefits from resources and mentorship programs, to workshops, seminars and national conferences.

Certifications also serve as a valuable marketing tool as many governments and corporations have databases that include all firms which larger companies utilize to find certified firms to do business with.


What are the types of certifications?

There are various types of certification programs. Below is a general overview:

The Federal government is the largest procurer/buyer of goods and services in the United States. If your business is looking to do business with the federal government, then certifications like the 8(a) program or the WOSB/EDWOSB certification programs could provide the greatest benefit. Companies that have these certifications can benefit from preferential treatment when federal government agencies are seeking vendors and suppliers to do business with.

Many businesses provide goods and services that would benefit local and state governments.    There are state and local specific certifications that may be beneficial.  It depends on where your business is located and/or what cities or states you are looking to do business with. Each locale is different.

Business certifications such as the WBENC and the NMSDC can help companies that are targeting commercial clients. The main benefit of these certification programs is that they provide nationwide coverage. If your company is targeting commercial clients throughout the United States, then these third party certifications would provide the greatest benefit to your company.

The process to apply for these certifications can be overwhelming and intimidating. Nevada Business Advisors is here to assist your company through this process.

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Disclaimer: Nevada Business Advisors does not offer legal or tax advice, but instead educates clients. This information is intended to be used as a guide prior to consultation with an attorney or CPA familiar with your specific situation. Nevada Business Advisors is not a substitute for the advice of an attorney or CPA. If you require professional advice, you should seek the services of an attorney or CPA licensed in tax and legal services. Nevada Business Advisors can assist with services listed but there is no guarantee of the outcome as it will be dependent upon the agency, lender, certifying organization, etc. and their qualifications.

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