What our clients say

Supplier Diversity FAQs

The following is a list of some of our most frequently asked questions about supplier diversity certification and supplier diversity programs.

What is supplier diversity?
Supplier diversity is a proactive business practice of including diverse vendors into a supply chain. It is a sustainable strategy that has a positive bottom-line impact.

What does being a certified business mean?
Being certified means going through an application process (usually conducted by a 3rd-party) demonstrating that the business is owned, operated and controlled by an individual(s) that meet the status criteria being certified.

Why should my business be certified?
Certification provides access to business opportunities that might not otherwise be available to you. Being certified does not guarantee contracts or performance. It does, however, verify a potentially desirable characteristic about your business.

What are certifiable statuses and/or criteria?
Generally, certifiable companies meet one or more of the following ownership and control criteria:

• Minority-owned
• Woman-owned
• Small/Disadvantaged
• Veteran/Service Disabled Veteran-owned

Other certifiable statuses exist and there are distinct certifications for each status class.

Is my company eligible for certification?
A good initial rule of thumb is that a company must be at least 51% owned and controlled by individual(s) that meet the status criteria.

My spouse and I each own 50% of the business; one of us fits the status criteria, the other does not. Can we be certified?
Usually not; if the company is in fact operated, managed and controlled in majority by the owner who fits the status criteria, the organizational documentation may be changed to accurately reflect that majority ownership and control of the business resides with the individual qualifying to be certified.

If a business is eligible for more than one certification, is there one that is more important than others?
There is no "best" certification and the certification(s) pursued should be dependent upon the clients and industry sectors targeted for business. Different certifications can lead to different business opportunities. Certification is best viewed as a tool; and the more tools the better. Companies often seek different types of vendors, and the more criteria that you can verifiably meet, the greater your ability to pursue contracts.

How can being certified help my business?

• Increased exposure by being included in certified business databases that are used to source vendors
• Access to networking events targeting certified suppliers
• Potential competitive advantage when bidding against non-certified suppliers
• Inclusion as a potential subcontractor with prime suppliers that have to meet diversity requirements
• Stronger relationships with customers that have supplier diversity programs

How long does the certification process take and how much does it cost?
The process can range from 30 to 90 days once a complete application is submitted. There are differences in each agency’s requirements, and the complexity of a business’ ownership and management structure can impact the time required to compile all of the relevant information. Costs vary based on the certification and this information is easily obtained on the websites of the certifying agencies.

How can Sarah Lyu Consulting assist me?
In addition to having gone through several certifications itself, Sarah Lyu Consulting has helped numerous diverse businesses obtain their certifications. Also, we have worked on behalf of corporations that wanted to ensure that existing suppliers were properly certified.