Business training program gives company the skills to win bids: founder of Wichita Cleaning Company calls it 'Mini MBA'.

Everyone knows Ed Givens. At least it seems so at the Wichita Home Show. Customers, friends and even competitors stop by his Givens Cleaning Contractors Inc. booth to say hello.

Givens greets each person warmly and always seems to have time to chat. By the end of the show, Givens will have landed nearly as much business in four days as he did in the first full year he ran his company.

Givens launched Givens Carpet Cleaning in 1972 to supplement income from his job at Continental Trailways. By 1979 he had three employees and enough work to leave the bus company.

But credit a U.S. Small Business Administration program with helping Givens learn business strategies that would help him grow his company to 90 employees and an expected $2 million in revenue this year.

After 19 years in business, Givens was recruited by the SBA to enter its 8(a) business development program in 1991.

"They approached me about joining," says Givens, "But I didn't think we met the requirements. Lucky for me they persisted."

The SBA 8(a) program helps socially and economically disadvantaged businesses compete, both in the private sector and for federal government contracts. The federal government sets aside a percentage of contracts for 8(a) program participants, but those businesses still must compete among themselves.

At the time he joined, Givens had revenue of $40,000 and was putting in 16-hour days.

Through 8(a), the SBA helped Givens create a business plan, learn the bidding process and improve his long-term planning and financial management skills.

He landed his first government contract in 1994, providing custodial services to Fort Riley, an Army base in Kansas. The company quickly added 20 employees and was able to secure financing for payroll, equipment and supplies. It was the first of many contracts with the military.

While in the 8(a) program, Givens attended SBA-sponsored executive education programs at basic and advanced levels.

"Each school lasts a week. It's amazing what you can learn in that time," says Givens. "Paperwork, financing, business management. It's like a mini MBA. It was a totally new experience. I learned to do things I thought I'd never be able to do. I wanted to master everything. I'm still learning."

He also learned the value of networking. "Just talking to some of the other people there led to a contract with Bechtel in Las Vegas. Your best contacts come from talking to people."

In Wichita, there are 20 to 25 companies in the 8(a) program at any given time. One or two graduate each year.

"He is exactly the type of person this program was designed for," says Edgar Poindexter, SBA administrator of Wichita's 8(a) program. "He always follows through, he's worked hard for everything he's gotten, and he's built a business for his family."

Shortly after the company was certified for the 8(a) program, Givens' son, Darryl, left his executive job at Sprint to join his father.

"I had no intention of ever joining the business, and I certainly didn't know what 8(a) was, but my dad persuaded me," says Darryl.

Today, sons Darryl, Edward Jr. and Charles run the day-to-day operations.

"Some people have the wrong idea about the 8(a) program" says Darryl. "They think that if they join they'll just be handed contracts. It doesn't work that way. What it does is give us the tools and the opportunities to grow our business. The government environment is just as competitive as the commercial environment. If you don't perform, you won't last long."

In 2001, Ed Givens was honored by the Small Business Administration as SBA 8(a) Regional Graduate of the Year.

"Building this business has been like raising children," says Givens. "Some parts were pretty tough, but you'd never give it up for anything."

Because Givens has graduated, Givens Cleaning can no longer compete for 8(a) contracts, but it has diversified. The company now provides fire- and water-damage restoration, mold remediation, duct cleaning and more. It is one of a handful of companies in the Midwest with a certified restorer on staff.

Darryl Givens plans to concentrate on increasing profits and steady growth.

"Our janitorial business has dropped off, but we see substantial increases in specialty services every year. The risks and costs to get into a new area are higher, but the margins are higher, too," he says.

"We have to continue to reinvent our business every three to five years. That's what the market demands. You can't rest."

GIVENS CLEANING CONTRACTORS INC.

Edward Givens 

250 N. Pennsylvania St., Wichita, Kan. 67214

[phone]

www.givenscleaning.com (not yet operational)

Year Founded: 1972

Annual Revenue: $2 million

Number of employees: 90

About this program ...

What: Assists firms owned and controlled by economically and socially disadvantaged individuals to enter and succeed in the economic mainstream. Firms apply to participate in a nine-year program. SBA uses a number of tools, ranging from contract support to management and technical assistance.

Who: In addition to being owned and controlled by one or more disadvantaged individuals, applicants must meet SBA requirements for size, be in business at least two years, and display success potential and good character.

First step: Contact local SBA district office, which is listed at www.sba.gov and in the phone book. Some district offices have 8(a) orientation workshop.

Stages: Four-year developmental helps 8(a) certified firms overcome economic disadvantages by providing business development assistance. Five-year transitional stage helps participants overcome remaining elements of economic disadvantage and prepare to exit the program.

Other statistics: The number of small businesses in the program is about 7,000. Aleut 42% of 8(a) firms are still in business nine years after acceptance into the program, compared with 29% of all small businesses.