Doing Business with the Federal Government

 Yes, I know.  You do not need to repeat it. But since you likely will, so will I.  “That is like saying I am from the government and I am here to help.”

Got that out of your system? 

You can do business with the federal government and it can be a profitable partnership.  And that includes start-ups. Yes, I know. You are asking “but George, how is that possible?” as you roll your eyes. 

Well, start with the defense industry.  You may engage in some red tape, but preparation and planning are essential to initial success.  The U. S. Dept. of Defense (DOD) awarded $445 billion in contracts in 2020.  Perhaps equally, if not more important, the Pentagon actively seeks and recruits technologically oriented firms to solve challenges they cannot easily overcome. As noted in the link on this post, DOD awarded $1.5 billion in early stage funding to 1,635 small businesses.

While I can go on, I suggest you read this excellent article by Mrinal Menon and Jeff Decker, PhD in Fast Company.  Fast Company is one of my new “must reads”.  If you are a technology oriented company, you likely will not regret it. Link to article:

https://www.fastcompany.com/90634168/why-the-defense-industry-could-be-the-most-transformative-market-for-startups

Furniture Manufacturing – An Excellent Example of a Chaotic Industry

If you read previous blog entries, you know the Federal Reserve of Richmond produces wonderful data, analysis, reports, and articles.  This is an outstanding example of the latter.  It includes two links.

The first link is a story about the furniture manufacturing industry in North Carolina.  The author is Mr. John Mullen and is part of the economic history.

As you read the piece, you will see the growth of the furniture industry in NC from a cottage industry to a powerhouse.  This was due mainly to raw materials and lower costs.  Then the impact of the World Trade Organization and automation that cost approximately 60,000 jobs over 20 years.  And finally, the steps NC took to restore some of the glory of this industry.

Link:  https://www.richmondfed.org/-/media/richmondfedorg/publications/research/econ_focus/2020/q4/economic_history.pdf

The second part is commentary by the Richmond Fed president, Tom Barkin.  He does an excellent job noting the various mismatches based on a video roundtable with key industry leaders and stakeholders.  It is worth a read and certainly compliments Mr. Mullen’s story.

Link:  https://www.richmondfed.org/-/media/richmondfedorg/publications/research/econ_focus/2020/q4/presidents_message.pdf

Innovation at Development Services During COVID

Since we can see the light at the end of the tunnel, I thought I would share with you an innovative program started in the permitting department of Prince William County.

Yes, I started my series on my favorite business rankings and why. However, I thought would take a break and post a couple of different articles. I will get back to the rankings.

The permitting group in the County is formally known as the Prince William County Department of Development Services (DDS).  The program I will highlight is the “Temporary Outdoor Seating for Restaurants".

First and foremost, I did not create it.  Steve Hall did. I only administered it.  It is a brilliant concept that as a tool allowed restaurants, bars, cafes, etc. to add seating capacity during COVID.  He built it off the existing Temporary Activity Permit application and process. For a start, Mr. Hall trimmed the existing Temporary Activity Permit (TAP) application and reduced the number of required materials. 

In addition, the actual approval process was streamlined. In order to receive approval, an application had to be reviewed by seven local and state departments. Each one looked at the application for their area of concern and expertise. For example, VA department of health staff ensured that the Governor’s Executive Orders pertaining to COVID were accounted for and enforced.  In this case, it means that the wearing of masks and social distancing are enforced and monitored.

The Fire Marshal staff reviewed the application to ensure all fire safety regulations were adhered to and that if the seating was in a parking lot, fire protection could get to the fire with absolutely no barriers.  Other reviewing agencies are the County transportation department, the state transportation department, finance staff, police, and the building department team.  In some cases additional permits would be required. An example if a tent over 900 sq. ft. was set up. We accepted email approvals, another innovation.

In recognition of the impact of COVID to the service industry, the Board of County Supervisors reduced the application fee to $5.00 per restaurant or café.

The introduction package included a step by step guide to drawing the site of the outdoor seating on the County GIS mapping app.  Mr. Hall had help from our outstanding DDS IT team. The application could take about 30 minutes to 1 hour depending on how easy you could use the County mapping platform to draw boundaries.  We communicated to 57 restaurant and café owners in Prince William County about this initiative.  We issued 28 conditional letters of approval.

I am immensely pleased to play a role in this innovative program.  Across the U.S. you saw governments at all levels offer various initiatives to help the local business base survive COVID.  This is just one example of hundreds.  Our program helped 28 restaurants increase their capacity for customers. It was put together in a matter of days with a team of County employees (and that included applications, instructions, and program descriptions, etc.).

The next time you think government does not care, ponder this post. We do and we always have and we always will.

The link to the program: 

https://www.pwcva.gov/department/development-services/temporary-outdoor-seating

What I Learned (Or Relearned) During the Pandemic

I thought long and hard before I decided to post this.  The final reason was a Zoom presentation I did. 

What the pandemic taught me most of all.  I can without a doubt say I am a theatre actor, not a TV star.  I like a live audience. I feed off an audience. I can change my presentation style based on the reactions I see from an audience. 

During the Zoom presentation, I could see no reaction.  No feelings in the air. It was very challenging.

My mother was right, I am an actor and I usually excel with an audience.

What else did I learn? Yes, I love my family. However, I also enjoy spending time with them.  My wife is extremely intelligent, notices small things, and very thoughtful toward others.  Oh, and she is an outstanding cook.

My daughter is funny, never forgets anything, has the greatest facial expressions, can do a monologue on several interesting subjects for 15 or more minutes. These monologues are educational and structured.  She can be quite sarcastic and very stubborn.  I wonder where she gets that from.

My son is a joy on facetime. He has an infectious laugh and his voice is getting deeper (or is it a setting on his iPhone?).  He also has a winning eye roll, as in “you cannot be serious!!”  He also walks around his home with his phone talking to you. One time we were in a pocket as we talked; he was at the gym working out.  We could hear every word and he could hear us. Hmmm, perhaps a good short story, “A Day in James’ Pocket”. Nahhhh, limited audience.

In my job, I deeply appreciate working around others.  Working from home is okay, but I miss an office environment.  Just the hum of conversations, copiers running, walking around saying hi, etc. I just miss it.  And finally, two more appreciations – I cherish a finely crafted and formatted email; and people who leave a voice message and repeat their name and phone number. 

I know, you are thinking “gee George, what took you so long?”.  I always knew it, I just got an excellent reminder of how fortunate I am.  

My Favorite Business Rankings – I

So much of what we see today is rankings. I think it took off with David Letterman’s Top Ten List…(I hope people remember this).

Frankly, I get sick of reading all of them.  Often I will read the methodology. Sometimes you know after reading it that the ranking is utterly useless. 

However, over the this one and the next two posts I highlight my favorite rankings and why. 

First up is the INC 5000. This ranking is billed as the definitive list of the fastest growing private companies in the US. 

It is a fascinating list to sort through. Thanks to great sort options you can actually find clusters of private fast growth companies.  You can sort by state and industry too. The write-up on each firm is very helpful and a link to the company is also listed. You can search past rankings to 2015.

One unique point.  You may think INC scours the US looking for these firms.  Not really, it is decided by application.  So each firm must apply through INC for inclusion in the annual ranking.

Three more reasons I really like this one. Some the names are priceless.  Second, individual stories are very well done. And third, good data on privately held firms.

Link:  https://www.inc.com/inc5000/2020

Home-Based Businesses – Part II

 In my April post, I highlighted a brief article about Home-Based Businesses (HBB).  HBBs are far more prevalent than I think most people realize.  For example, a team of researchers claim that one in six businesses in 2014 is an HBB. Since COVID, I suspect that number has increased.  Indeed, our own data validates this.

This begs a few questions.  How do we regulate HBBs so it will not disrupt a neighborhood; how do we encourage the formation of more HBBs; how do we determine appropriate criteria for a HBB; and how do we build a next generation framework.

Prince William County, VA

In Prince William County, VA we issue three main types of home-based business identifications.  The top two are:

• Home Employment Certificate
  
  https://www.pwcva.gov/department/zoning-administration/home-employment-certificate
  
  
• Home Occupation Certificate - Office
  
  https://www.pwcva.gov/department/zoning-administration/home-occupation-certificate-office-within-residence

The third is a Home Occupation Certificate – Childcare.

https://www.pwcva.gov/department/zoning-administration/family-day-home-child-care-within-residence

This is the simplest explanation to receive approval for a home-based business.  You must first fill out the appropriate form, and then meet with County zoning staff to receive approval. If your home-based business is approved, you must then get a Business and Professional Occupational License (BPOL). It really is a tax form. 

Depending on what you are doing in your home, you may be subject to additional ordinances and rules.  That is why I included the links to each certificate.

Historical Perspective

If you enjoy a historical perspective and concrete examples of what communities are doing, then you will enjoy this paper.  For this post, I refer you to an excellent paper by Olivia Gonzalez and Nolan Gray. The title is “Zoning for Opportunity:  A Survey of Home-Based Business Regulations”.

Link:  https://www.thecgo.org/wp-content/uploads/2020/03/zoning-for-opportunity.pdf

Home-Based Businesses – Part I

 We romanticize home-based businesses (HBB).  Just look at the examples often given, Amazon, Hewlett Packard, Apple, Disney, Dell, Harley Davidson, and Facebook to name a few. 

We look at these and other companies and reflect on better times and the ruggedness of starting a home-based business or HBB.  In other words, a rag to riches story; or starting at the bottom and climbing to the top.

In reality, these companies are the exception. In addition, like most other endeavors romanticized, the actual events do not fit the story. 

I am not going to dwell on the story of a rag to rich story.  Rather (you guessed it) another post on permitting and zoning.

We visualize the individual hard at work in their garage or at a dining room table, hunching down to finalize a product or service.  It is as American as apple pie. 

But a HBB has challenges. I am only reviewing the permitting process. 

In many US cities and counties, homes are subject to zoning and permitting.  These ordinances go back a century or more.  While the nature of business has changed due primarily to adapting technology, the zoning and permitting has not.  The link to the article is a brief on this subject matter. The publication is “City Journal” and the authors are Olivia Gonzalez and Nolan Gray.

 https://www.city-journal.org/covid-19-rise-of-home-based-businesses

Part II will be posted next month.