The world of Government Contracting is constantly changing and evolving with relationships and partnerships continuing to take center stage as a way, not only to win, but to grow. We caught up with Joe Prezioso, Regional Business Banking Executive at Capital One to discuss how his team can serve as an active partner in helping GovCon win, grow and manage their business – whatever the size or direction.
Unique Challenges
Government contractors face a unique set of challenges when it comes to managing growing and sustaining operations. These challenges span from compliance, to competition, to finance and scalability. The scalability concerns we see quite often.
“There is a drive that suggests winning more contracts will automatically scale the business and while it may seem right that more contracts equal business growth this is normally not the case. Winning contracts without the proper infrastructure to support that expansion can lead to poor performance, missed deliverables, frustrated staff, and possibly poor ratings with CPARS that can impact a company’s chance of winning future work.”
Scaling Sustainably
To successfully scale GovCon must be ready to invest in sustainable capabilities, not just consider contract volume. They need to think about reinvesting in their systems and relationships; to build the proper foundational infrastructure they will need before volume becomes real.
“This is an important shift we see and takes leadership understanding that reinvestment is key. Lowest cost systems and vendors are one thing but they aren’t everything. This can often be difficult for leaders as they must re-evaluate the relationships they’ve had for years, understanding that some of those past partners or advisors may not be the best suited to helping them get to the next level.”
Supporting Relationship Management
“The best way Capital One business bankers support business owners is through a model of what we call relationship management. Our Capital One business bankers are dedicated individuals who engage in important conversation with business owners throughout the year to understand their needs and provide advice that supports their growth.
We’ve made significant investment in technology, providing our customers with access to some of the best tools in the market including supporting move effective receivables and payables for better cash flow. Additionally, we offer comprehensive cash management solutions to help prevent fraud and access both short-term and long-term capital. And, as an SBA preferred lender, we are also able to provide a broad array of lending products and solutions including quick access to capital so they can move quickly.”
Part of the Team
Serving as an active partner with their clients means being part of the team. That includes meeting with CPAs to ensure tax strategies are aligned. It can mean helping leadership understand that investing in technology may be required, even if it impacts short-term margins.
“Things like a solid firm management software that allows them to generate a very robust contract backlog report which is important on the bank side and can help us really sink our teeth into quality data, quality financials so we are providing the right advice and the best support.
It can also mean being part of a critical review of partners to ensure they are being evaluated and considered from the view of the future, not just that of the past. This can include new partnerships, like perhaps staffing companies or others who can support the rapid growth contract wins can require.”
For owners and CEOs who still may wear many hats within a company, it can mean providing the resources, the expertise that may go beyond what they know to reach those higher levels.
CEOs need to focus on the business itself and they need their partners, their business bankers or CPAs, attorneys, or other experts on the staffing and HR side who can help them manage that growth and scalability.
Trust Based on Experience
Understanding that trust is critical to the success of any relationship, Capital One understands the GovCon industry, but also works to understand each individual client’s goals and perspective. “We need to understand their industry, how they operate and how they go to market. Having served leaders and companies just like them for such a long time, we spark conversations that demonstrate knowledge while also actively listening for what is unique.”
Capital One also brings to the table a diverse team of players who can provide additional expertise from the credit lens, the treasury side, the merchant angle. “We’ve invested in our people and strive to cover all aspects of a business because we know customer service is critical. One individual may not be able to solve an issue immediately, but they are backed by a team of experts who can help get it resolved.”
Driven by Culture
From its CEO down, Capital One is focused on doing the right thing. From investing in technology for customers, to enhanced delivery channels there is a focus in helping clients grow their business, and bringing together groups of peers who can help better define and understand what that path is.
That can mean bringing government contractors together to help facilitate conversations that can lead to idea generation, perhaps relationships that will develop into mergers or partnerships.
“Unlike other business relationships that may revolve around an annual meeting. Capital One prefers to meet several times a year to better support ongoing decisions and prepare for what’s ahead. That means looking at business development plans, assessing progress or where adjustments may need to be made and then planning for the next fiscal year and strategy.”
Scalability sometimes has to happen over night, which can be great but that advance and ongoing planning needs to be there to ensure the infrastructure, the financials, the supports are in place.
Never a Wrong Time
Facing unusual change and unpredictability over the past several months there has been a wait and see approach by some that now may make business owners feel a bit stuck or paused. This is where partnerships and relationships are both critical and valuable. Bringing together others in the industry for CEO roundtables, leveraging insight from multiple business channels, Capital One can facilitate that collaborative environment of sharing lessons learned, best practices, and can set the stage for future relationships that can help business owners get ‘unstuck’ and moving forward.
The Right Conversations
“As entrepreneurs, many business owners ave ideas of where they want to go, ideas for new directions or services, potential advantages or scenarios for success. Your business partners should be comfortable playing devil’s advocate. That means being very direct in laying out the risks if you do move toward a certain idea, and the risks if you don’t.”
Starting with existing partners and business relationships, business owners also need to be very direct. That means asking the question – how can you help my business grow and grow sustainably? Take in the response. Consider the options. Then look to the actions of that advisor. “We want to be on the same side of the table with our clients, sitting shoulder to shoulder helping them prepare for and attack whatever comes next. We want to be able to help them anticipate and prepare, to position them to succeed.”
To learn more about Capital One’s business banking products and services, please visit https://www.capitalone.com/small-business/bank
