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Networking is like a spider web.
The bigger and more intricate the web, the higher the chance of landing large, juicy contracts.
And one Sunnyvale organization is making sure that local businesses have the largest possible network in place to catch any opportunities that might float their way.
The Industry Council for Small Business Development, which meets on the third Wednesday of each month at the Sunnyvale Ramada Inn, is made up of almost 120 businesses—primarily businesses in the Bay Area. These include corporate giants like Lockheed Martin, Northrop Grumman, and Cisco Systems as well as small companies that are beginning to grow.
Even though large corporations like Lockheed and Cisco can take people into space or transmit images around the globe at the speed of light, they still need outside help to take care of their computer systems, security concerns, nametags and the influx of new ideas. At the same time, there are small businesses everywhere that can take care of these needs, if only they can be put in contact with those potential customers.
Carla Cobb Davis, chief executive officer for DBC Commercial Group, a real estate company, and Financial Group, a mortgage company, is one local business owner who has benefited from the council's work. She said much of her business is based on referrals, so large networks like that set up by the council have helped spread her name.
From 1996 until about 18 months ago, Davis' company was based here in Sunnyvale. But after a rise in rent prices she moved to San Jose. But that has not stopped Davis from keeping involved in the Sunnyvale community. She still participates with the Chamber of Commerce and holds personal and professional ties with the area.
"We just left the location there, we didn't leave the people," Davis said. "[Sunnyvale] is a big part of our business lives and our personal lives."
She said that while she has yet to land a coveted government contract, the council's network has allowed her to do business with a number of companies who have.
That sort of networking—where companies meet not only with larger corporations but also with other smaller businesses—is a primary focus of the council. Each month, the council meets to offer members the opportunity to interact and trade services with each other.
At these meetings, company representatives present their businesses and needs in front of an audience of smaller companies looking to do business. In addition, one small company, selected from all the members, presents what it can do for the large corporations in attendance. At each meeting, three companies selected from the member pool set up information booths to further publicize their services as well as provide contact information.
In addition to the monthly meetings, there are periodic larger meetings, such as the Nov. 13 Mini Trade Fair. Davis, vice president of programs for the council, said that such meetings—which she helps organize—give all the members of the council a chance to network and present the different services or products they offer.
And by facilitating networking between businesses of all sizes, the council makes sure the community will be included in company growth.
"It makes good business sense to put money back into the community you live in," said Charleen Hamel, part of Cisco's Supplier Diversity program and president-elect for the council. "You have to help the community you live in flourish, and the only way you can do that is to get corporate America to do business in those areas."
Current council President Carol Trammell, manager of Supplier Diversity for Lockheed's Space Systems section, said she would prefer to give her business to the companies surrounding hers.
"It brings money back into the community," Trammell said. "I'd rather have us buy here locally than off in Texas somewhere."
But altruism is not the only reason these companies are "giving back" to their host communities.
Any company with large government contracts must work with small businesses to satisfy set regulations.
According to Hamel, the council was formed in 1986 to help promote small-business interaction with—at the time—companies that worked specifically with the Department of Defense. It was centered here in Sunnyvale because of the city's close proximity to large areas like San Francisco and the growing Silicon Valley and nearby defense giants like Lockheed Martin and Moffett Field.
The council has since opened up to include all companies that do business with the federal government, working under regulations set by the Small Business Administration.
According to Federal Acquisition Regulations, companies like Lockheed—called prime contractors—are required to have at least 23 percent of their business done with small businesses. Trammell said that within that figure, five percent must come from women-owned businesses, another five percent from minority-owned businesses and just less than five percent from other groups, including veteran-owned companies.
Trammell said that while Lockheed is careful to make sure it meets the guidelines, her company would never award a contract based on status alone. She said that often the job can simply be done more efficiently—and cheaper—by small, independent companies instead of global corporations.
Some companies, like Cisco, take part in the programs without any sort of explicit rules. Hamel said that while Cisco itself is not a prime contractor with the federal government, many of its customers are, so it runs its diversity programs as if they were under the same umbrella.
Beyond helping businesses grow, the council has also helped small businesses maintain their services during tough times.
Local companies have been hit twice recently, with poor economic climates nationally since the Sept. 11 attacks, and locally in what Davis called the "dot-bomb" series of high-tech closures.
But by keeping small businesses connected, and maintaining commercial and professional ties, the council has helped many small- and mid-sized businesses weather the storm.
By tying small businesses to large corporations with large contracts, the council also allows members of larger groups to share their experience and ideas with their smaller counterparts, something that Hamel said is a primary goal of the council.
"It's extremely rewarding for me to help mentor and grow a small business," Hamel said. "That, for me, is what the council is all about."
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