By Terry Stroud, SBTDC/PTAC Counselor at Fayetteville State University
Hokulani, LLC, formed in 2014, is a Fayetteville, NC-based company that fills a niche by providing business consultant services. Transitioning out of the military, the client sought assistance for his company startup from various resources. I first met the client while conducting a class at the VBOC Entrepreneur Boot Camp for Disabled Veterans held at the campus of Fayetteville State University. After the event, the client and I discussed the SBTDC/PTAC services available to small businesses in North Carolina.
He became a client of the SBTDC/PTAC in March of 2015. In our first counseling session, the client discussed goals for his company with a company development focus geared towards eventual participation in the 8(a) program. With the basic information gained by attending the VBOC classes, he had already proceeded in securing his basic state and federal registrations necessary for government contracting. We had several discussions regarding where his company is as a startup and where it will have to progress to in order to be admitted into the 8(a) program. As we mapped out a strategy for his company, we reviewed his best avenues for beginning to generate the ever crucial financial track record. I stressed the need for the client to secure Micro Purchase and Subcontracting opportunities, and we reviewed where and how to seek and secure these opportunities. As part of our initial assistance to the client, we also stressed the importance and use of his company’s Capability Statement, and how securing business as a subcontractor is necessary to “build” his Capability Statement’s relevant content.
Over the next two months, the client and I kept in touch, working on the company development items outlined during our first meetings as he proceeded to get his business into operation. Two months after our first meeting, I received the first email from the client detailing his success in securing subcontracting performance on a DOD contract. As of this article, the client has secured four Task Orders on the contracts totaling $37,292.92 over a three-month period of performance. As these are five-year IDIQ’s, the client’s potential revenue for subcontracting during the life of the contracts could total almost $750,000 in federal government subcontracting revenue for his company. This will go a long way in “building” the financial track record performance section of his company’s capability statement in his NAICS. The client is laying the groundwork for progressing beyond subcontracting, transitioning into prime contracting in the future.
In starting his business, the client did his research, sought assistance from resource providers, and put in much time and effort doing his homework. This client is an example to others that success as a startup company in government contracting is possible. I will continue to support the client with PTAC assistance and look forward to his future successes.