The 8(a) Certification can dramatically change the development of a small business. I have personally seen firms go from a single employee to a $10 Million+ concern in a 5-year period in some cases through the 8(a) BD Program. Today I am going to layout the skill tiers for becoming an 8(a) firm and what that means for your business given your personal skills, experience and drive. 

Business Duration Background

To enter the 8(a) Business Development Program, the SBA usually requires a firm to have been in business for at least two years (the "Potential for Success" rule). You can get a waiver if you have 1 tax return and at least $150K in revenue from your firm’s inception, assuming you have substantial previous experience. Basically, you cannot just start on Day 1 with zero experience and get certified.

Value of your Dream Business

The 8(a) Certification is great for any business to have. That said the value of the business to the certification holder will vary by Professional Licensing, Technical Certification, or just Labor Management.

Here is a ranking of those industries based on the "Barriers to Entry" (Skill/Experience needed):

Tier 1: High Barrier (5–10+ Years of Expertise)

Tier 1 requires formal education, specialized degrees, and/or significant "Past Performance" before the government trusts you with a contract.

Computer Programming/Engineering/Management Consulting:

Skill Level – High 4+ Years CS Degree, Bootcamps

Experience – 3-5 Years

Past Performance – Completing IT Contracts for Customers

Scalability – Large ~$15 Million

Profit Margins – High

Tier 2: Medium Barrier (2–5 Years of Expertise)

Tier 2 requires more industry experience than specific training. These require specific certifications or licenses, but not necessarily a 4-year degree.

Security Guards/Logistics and Freight/Solid Waste Collection:

Skill Level – Medium – Often requires several years of experience in the field

Experience – 2-3 Years

Past Performance – Performed on several contracts in your field

Scalability – Medium ~$10 Million

Profit Margins – Moderate/High

Tier 3: Low Barrier (0–2 Years of "Hard" Skill)

Tier 3 is a “Labor Management” business. The skill isn't in the work itself, but in the hiring, scheduling, and bidding of the work and the ability to keep things moving.

Janitorial Services/Landscaping/Facilities Support/Temporary Help:

Skill Level – Low

Experience – 2 Years

Past Performance – Completed a few contracts

Scalability – Large ~$5 Million

Profit Margins – Moderate

Recommendation for a Fast Start

8(a) can accommodate any level of technical skill level. If you are highly skilled in a Tier 1 field, generally you can find a lot of high profit margin work. If you can run a Tier 2 business well, the mixture between skill and hustle can make you a success. In Tier 3 you need to be a hustler, however the 8(a) certification can still provide a fantastic market for your firm.

If you are thinking about starting an 8(a) business and are not sure where to start, I always recommend reaching out to an industry expert such as ez8a. They do not charge for an initial consultation.