EZCertify.com in the Press
EZcertify.com
BY CHET DEMBECK, Business Writer
One week after his retirement last year, Richard J. Otero decided it was time to go back
to work. The 60-year-old Edgewater resident had every right to lay back and take it easy
after founding and running his own software and telecommunications company for 19 years,
but a desire to help minority businesses with a new software product made him put the golf
clubs away. As a minority businessman, Mr. Otero knew how difficult it was to become
certified by the Small Business Administration as a small disadvantaged business. It's not
uncommon for the paperwork to exceed 500 pages. In fact, the process is so complicated
that consultants and lawyers routinely charge fees ranging from $10,000 to as much as
$25,000 to complete the work.
"It's tantamount to writing a Ph.D. dissertation," Mr. Otero said. So when the
idea struck him it was time to develop a software program that would walk an applicant
through the certifying process, Mr. Otero became energized.
Many months and $2 million later, Mr. Otero and his 12-member research team have brought
EZcertify.com to market. Using an approach similar to Intuit's popular TurboTax income tax
filing program, the new CD-ROM, which cost $149.95, walks an applicant through the
certifying process by using a series of questions.
But more importantly, it allows minority businesses to complete the arduous process in
half a day instead of spending months sweating over reams of paper.
I've had many minority business owners tell me they simply can't afford to take the time
off to complete the certification," Mr. Otero added. Being certified can be the
difference between success and failure for many minority businesses. Because once a
business is certified as being disadvantaged, such a company can bid 10 percent higher
than non-minority firms and still lock in a government contract.
But first they must be approved.
That's where Mr. Otero's software program comes into play. It helps to eliminate mistakes,
which is critical to becoming certified as a disadvantaged minority business. A survey
conducted by EZcertify.com shows that because of errors made on the certification
applications only 30 percent of them get approved. According to Mr. Otero, his program
could boost the approval rate up to 100 percent.
Even though it's estimated that by 2000, there will be 13 million minorities or women-run
businesses who are eligible to become part of the program, only a small percentage are
currently taking advantage of it.
This is one reason EZcertify.com launched its Web site recently at www.ezcertify.com. The
site offers a free interactive test that can tell most applicants if they qualify to
become a certified disadvantaged business owner. So far, even without advertising, the
site has pulled in more than 60,000 hits. But Mr. Otero said this is just the beginning.
Over the next 90 days EZcertify.com will be conducting a media blitz. In addition, in
October it will also bring its second offering to market.
The new CD-ROM will make it possible for minority businesses to easily apply for
certification in the longer term 8a disadvantaged set aside program. Under this program
minority businesses can win government contracts for years without even bidding. If all
goes well, Mr. Otero said EZcertify.com could be pumping out annual revenue of $100
million three years down the road. Does this mean EZcertify.com could launch an initial
public offering or possibly be bought out by Intuit or some other big software player in
the future? "All those are possibilities," Mr. Otero said. "It's important
to have an exit strategy."
Published 11/14/99, The Capital, Annapolis, Md.
Copyright © 1999 The Capital, Annapolis, Md.
Reprinted with Permission
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