As a small business owner, do you understand the ways government contracting can benefit your company? Our government is the single largest purchaser of goods and services in the world.
As a small business owner, you know the importance of attracting the right clientele for growth. You also know that if you have a thorough understanding of your client base and their needs, pain points, and budget concerns, you will be able to turn those clients into loyal customers and, in the best case scenarios, brand promoters.
While this will be different for every business, based on the services and products they sell, one thing is for certain. If you can land the government as a client, you are golden.
You may be asking why these contracts are so highly sought after. We are here to tell you why federal contracts are good for your small business and which small business industries could benefit the most.
Why are these contracts so good for entrepreneurs?
For many industries, a government contract can benefit your small business in both long term and short-term ways. With the government on your side, you will increase your revenue (short-term) and, more importantly, boost your brand (long-term, which can lead to a long-term revenue increase).
Another important aspect of having the government on your side is the impression this will give to customers and potential clients. If people see that the federal government trusts you, they will be more likely to feel comfortable using your services for their own projects.
Too good to be true?
Now you know what is attractive about landing a contract with the government for your company, but you are probably wondering how attainable it is.
The federal law requires that about 23 percent of all contract dollars go to small businesses and, with the U.S. spending about 500 billion dollars on these contracts, that means there are major dollars given to small businesses all over the country.
As an entrepreneur, this is a great opportunity! Not only will the government prove to be one of the best clients you could possibly land, but you will feel safe, as their payments are guaranteed to be prompt and consistent.
Now, this isn’t to say that the process is super easy; don’t let us fool you. Not just any entrepreneur should apply. But, if your industry can seriously help the government or provide the government with a handy service, you should definitely try to reach out and take advantage of these contracts.
Before you set out to land a contract, make sure to study all the regulations surrounding the contracts. Yes, as a small business owner you are busy – we understand that – but we promise this isn’t a waste of time!
Make sure you realize what these contracts entail, and ensure they are right for you and your business. While, yes, there is a ton of money out there available to the right small businesses, these contracts aren’t right for every entrepreneur.
Some industries just aren’t useful to the government. However, don’t make the mistake of thinking that only construction or military businesses will receive these contracts. You may be surprised at how many small businesses across the country are rewarded with federal contracts.
Make sure you research and learn about all possible opportunities for your small business. If you find that your company can provide a service that the government lists, then it is worth your time and effort to try to win that bid.
How to Win Government Contract Bids
Once you decide that you can provide the U.S. with all your awesome services, the next step is to do the necessary research and land that win! Here are five winning tips that your company should take advantage of:
• Get certified.
Becoming certified will increase your chance of winning a contract. It will set you apart from the competition, and you can become certified based on specifics to your company. If you are a minority, women, or veteran owned/operated business, there are plenty of programs available to aid you in your certification.
• Be targeted.
This is important for a win. Target your services or needs to fit exactly what the government needs.
• Market yourself.
Make sure to market your business. Get your foot in the door and reach out to agencies contracting offices. Network. Get your company’s name out there and in people’s minds.
• Identify opportunities.
Once you have determined the agencies most likely to buy from you, now is the time to bid on contracts. Use all tools available to you, and stay in close contact with agency offices.