SBA advice lets startup stand out.

Ten years ago, when Elise Hernandez considered creating a technology services firm, she didn't think about the challenges of being a Hispanic woman in the business world, and particularly the difficulties she might encounter in the male-dominated IT arena.

She simply saw a need, and knew she had the business experience and drive to build a solid company.

After spending the majority of her career in sales and management at big technology corporations, Hernandez and her husband, John McGuire, decided to move to northern Minnesota in 1996, and develop Ideal System Solutions Inc., a value-added reseller for manufacturers such as Hewlett Packard Co., International Business Machines Corp. and Cisco Systems Inc.

Although Hernandez envisioned a company that could grow steadily as a reseller, she didn't anticipate that help from the Small Business Administration, and even her own gender and ethnicity, would give ISS a much broader scope than she'd planned.

At one of her first meetings, a customer asked Hernandez if ISS was an 8(a)-certified company, since it had more than $1 million earmarked to spend with that type of firm.

The SBA's 8(a) program helps small, disadvantaged businesses compete for federal contracts. It also offers training. Although ISS was serving commercial clients, the chance to obtain government contracts was intriguing.

"You better believe I called the SBA right away," she said, laughing. "That million dollars is what got me interested, but the more I learned about the program, the more compelling it sounded."

The process for 8(a) certification is time-consuming, with a thorough screening to ensure that those who apply are not merely a small part of a much larger company. Hernandez qualified since ISS is both woman-owned and Hispanic-owned. Becoming an 8(a)-certified vendor allowed her to broaden her business, she said.

"If it hadn't been for this program, I probably wouldn't have gone in some of the directions I chose," she noted. "There are so many organizations doing technology sales and solutions in the commercial space, and this program has allowed me to go outside the box and distinguish the company from competitors."

Hernandez credits the program for much of the company's growth, which has clocked in at about 35 percent per year and reached $30 million in 2007. Having SBA advice available through the 8(a) program has been a boon for business.

"The matchmaking events, seminars, and government agency networking they do has helped us obtain contracts," she said. "It's helped define the company as we develop partnerships with manufacturers."

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The amount of SBA-fueled networking expanded the company's vision. ISS began to offer services such as network assessment and infrastructure modeling because of partnerships that blossomed out of SBA events.

"We're a 19-person company, so we can't do everything," she said. "But with these partners, we can be an end-to-end solution provider to our customers, and that's huge."

For example, a customer can call ISS with a need for a branch-office data center, and the company will draw on its reseller prowess to put storage and network machines in place, but will also tap into strategic partnerships to offer employee training, help-desk services, software applications, and identity management.

ISS is also certified as an SBA HUB-Zone business, which gives federal contracting preferences, because it's located in an area in need of economic development.

Over the past decade, ISS and Hernandez have won high-profile recognition. ISS was named to Hispanic Business magazine's list of 100 fastest-growing U.S. Hispanic companies and has been recognized as a top business by Government Var magazine and DiversityBusiness.com.

Recently, Hernandez was named SBA Minnesota Minority Small Business Person of the Year. The agency noted the strength of ISS's staffing organization, which offers certified technicians, as well as its spectrum of IT solutions and products.

"Elise has built many strong relationships that are serving the business well" said Randy Czaia, assistant district director at the SBA Minnesota District Office. "She's very driven to succeed, and gradually has built her organization up over time, putting more and more pieces in place for growth."

Although the 8(a) program is nearing its end for ISS--the designation is only in place for nine years--Hernandez is confident that the SBA has given her a solid foundation for expansion.

"I'm not the type of person who wants a massive company, or to be at my job for 60 hours a week instead of with my family," she said. "So, to be able to run the company with efficiency is crucial, and I feel like with this team and the SBA's help, we have that."

HERNANDEZ'S BIGGEST RISK?

"The biggest risk taken, for me personally, was leaving a successful sales career and launching Ideal System Solutions."

HER BIGGEST CHALLENGE?

"Finding ways to maintain and improve profitability."

HER ADVICE FOR A STARTUP?

"Begin with a comprehensive marketing plan and analysis. Research should include methodologies, a competitive and strategic analysis, economics of your business and a solid marketing plan. Keep in mind that your business should constantly be evolving, which means having the flexibility and adaptability to make the necessary changes within your organization to keep pace with your market."

Ideal System Solutions Inc. * 10900 73rd Ave. N., Suite 122, Maple Grove, Minn. 55369 * (888) 696-3344 www.idealssi.com * Founded 1996 * 19 employees * 2007 revenue: $30 million