Turning a Con Into a Pro

On the surface, some could argue that small, disadvantaged businesses actually have a leg up on their larger competitors in the federal IT channel. After all, the government mandates that a certain percentage of all contracting be awarded to businesses owned by women, minorities and disabled veterans, as well as those located in designated HUBZones. If you fall into one of those categories, you must be picking up cash off the pavement, right?

Not exactly. As the old saying goes, there's no such thing as a free lunch--especially in Washington. Read our feature and you'll find out that the percentage of federal dollars actually going to small businesses is decreasing, and that government agencies continue to have an abysmal record for hitting their set-aside targets. Add to that the fierceness of competition among small businesses for government work, and the whole landscape changes.

We've profiled 25 disadvantaged solution providers and what makes them successful. The common elements behind their success: a focus on specific markets and partnerships with key vendors and larger integrators.

As many inside the Beltway say, the top 10 integrators control the market. For VARs, especially small disadvantaged ones, accommodating that select group with expertise, a strong portfolio and a proven track record is as important as pleasing the government customers--maybe more so. And the solution provider that has a relationship with a government agency and can help the large integrator broker a deal is hard to beat.

All of this adds up to marketing. Disadvantaged VARs need to demonstrate mettle and promote their value to succeed. The onus is on them to understand the requirements of government customers and systems integrators, and to win deals--and extra margin--through services and experience that competitors can't match. Once their foot is in the door, it becomes far easier to break in again.

The 25 disadvantaged solution providers profiled have broken the code for success and have learned how to truly use their special status to their advantage. The ultimate test will be whether they can graduate off this list.