Round 'Em Up

The firm: Computer manufacturer Gateway Inc., based in North Sioux City, South Dakota

The slice: This year, the company will increase the dollar amount it sets aside for small, disadvantaged and women-owned businesses by 16 percent. Last year, Gateway awarded contracts totaling several million dollars to more than 1,000 small businesses.

The criteria: "Whether it's a product or service, we require high quality, on-time delivery, very good service and [a good] warranty," says Bob McMaster, manager of materials process improvement. Gateway also looks for competitive pricing and a drive to achieve customer satisfaction.

The hook: There are a few, actually. First, you must have an attractive, professional-looking brochure describing your products and your company. Second, you need to make a positive first impression. Third, Gateway seeks small-business owners who are aggressive, who follow through on commitments, who respond quickly to requests for information, and who can demonstrate their superiority over the competition.

The spin: "Know what you're up against as far as competition goes," McMaster says. "And I think it's a real advantage to do some research on the company you're trying to sell to."

The connection: Gateway does the approaching--so don't barrage the company with phone calls and letters. To find subcontractors, the company regularly peruses publications such as the Try Us Directory, a publication of small, minority-owned businesses, and the Thomas Register of American Manufacturers. Gateway also relies on local SBA offices and Small Business Development Centers for leads.

This article was originally published in the August 1998 print edition of Entrepreneur with the headline: Round 'Em Up.