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One of the first steps to a successful business is making the right decision about which state you should file. Why Delaware? Delaware is an extremely popular state to set up a new business. They have a variety of laws and policies that are very attractive to young companies. Delaware has great tax benefits. There are no taxes for companies that operate outside the borders of Delaware. So you are not paying any type of Delaware State Taxes if you have no physical office within the state. The following tax benefits also apply to Delaware: You do not have to collect sales tax from customers.  This makes it easy to start an online business and stay competitive in the e-commerce market.  You may have to pay a gross receipts tax if you do business in the state, but the tax is fairly low and only applies in certain situations. Delaware has no corporate tax on interest or other investment income in a Delaware holding company.  This includes fixed-income or equity investment gains which are also not taxed on the state level. The state has no personal/business property tax.  The county-level estate taxes are fairly low.  This is extremely beneficial if you happen to own tangible property such as an office building. No value-added taxes, use tax, or even inventory tax. Delaware has no inheritance tax. No capital shares or stock transfer taxes.  This is great for businesses who are expecting to obtain venture funding. The state has no tax on intangible assets such as trademarks, patents, and naming rights.  This is great for intangible asset holding companies. The Delaware Court of Chancery The laws of Delaware are extremely business-friendly. The Court of Chancery is a non-trial court dedicated solely to businesses. It handles issues that involve real property and commercial litigation. This court operates with only judges that specialize in complex corporate law. The Chancery Court does not have juries. This allows for a fast and efficient system of justice. The Delaware laws are favorable to business when compared to other states. Courts often use Delaware business precedents to settle disputes. The state’s robust legal systems allow businesses to feel confident about filing in that state. Asset protection Delaware LLCs protect an LLC owner’s assets. An LLC structure is attractive to startups because it protects their assets from lawsuits.  In addition, Delaware is one of the few states that only allows a charging order as the sole remedy for collecting a debt. A court issues a charging order to direct an LLC manager to pay the creditor for the debtor-owner’s personal creditor any distributions of income or profits that would otherwise be distributed to the debtor-member. Creditors with a charging order usually can only obtain the owner/debtor’s financial rights and cannot participate in the management of the LLC. This means the creditor cannot order the LLC to make a distribution subject to its charging order. Usually, creditors who obtain charging orders end up with nothing because they can’t order the LLC to make any distributions. A lot of other states treat single-member LLC as a disregarded entity and allow judgment collectors to pierce the corporate veil and go after the single member’s personal assets.    Starting a Delaware liability company is a great way to protect your assets from lawsuits. Protecting your privacy Delaware does not require it’s LLCs to list members’ names and addresses in their filings. The names of the members are only found in the operating agreement, which is private. This allows ownership and management information to be available through public records. Delaware corporations can also be filed without listing shareholders, directors, or officers in the public record as long as you use third-party incorporation services. The state does have a Franchise tax payment requirement every year where the corporation must list the names and addresses of the company’s director and one officer. Shareholders do not have to be listed and still have privacy protection. Delaware has great investor appeal Investors love a company that incorporates in Delaware. Everyone ranging from venture capitalists and angel investors to private equity firms loves Delaware’s business-friendly laws. Overall, investors understand the Delawares system and banks often prefer Delaware corporations. If going public is a goal then it is wise to incorporate in Delaware from the very beginning rather than having to convert the company to a domestic Delaware entity at a later time. This saves both time and costs in the long run. Overall filing a business in Delaware makes you much more attractive to investors and gives you more options for funding. What are the advantages of filing your business in your home state instead of Delaware? Taxes are paid where your business is making money. If your business operates mostly in another state then you are still liable to pay taxes to that state. A business does not often receive the supposed tax benefit of Delaware unless they are a multi-million dollar operation. This is true even if you conduct most of your business online. For example, you live in the state of California, it’s a particularly bad idea to form a Delaware LLC, because you’ll be seen as doing business in California no matter where your company is formed. You will have to file as a foreign entity in your residential state. If Delaware is not your home state that means you will automatically have to keep up with two businesses. A domestic business in Delaware on top of registering as a foreign business in your residential state. This means extra filing costs and administrative fees and headaches. So filing in Delaware leads to the following additional costs: Paying for an extra Registered Agent, Paying annual reports in 2 states, Having tax liabilities in 2 states, Dealing with the headaches of maintaining 2 LLCs Privacy laws First, there are three other states that allow LLCs to keep their ownership information private. These states are New Mexico, Nevada, and Wyoming. If you in one of these three states, then the… Continue reading Should a new business file in Delaware or their home state?

The most important decision when starting a business is deciding what type of business entity best suits your needs. The business entity you choose can have serious consequences regarding liability and taxation. This article will help you better understand your options by comparing two of the most popular choices. What is a business entity? C-corporation (c-corp) are separate entities from their owners. A c-corp consists of shareholders (the owners), a board of directors, and officers who have control over the corporation. One person can fulfill all these functions. One or more natural persons create a business entity to carry on a trade or business. Business owners often favor corporations and LLCs because they offer several layers of protection for their owners. The following are types of business entities: Limited liability company: A registered business with limited liability for all members Professional limited liability company: An LLC structure for professionals, such as doctors and accountants C-corporation: An incorporated business composed of shareholders, directors, and officers S-corporation: An incorporated business that is taxed as a pass-through entity Professional corporation: A corporate structure for professionals, such as doctors and accountants B-corporation: A for-profit corporation that is certified for meeting social and environmental standards What is personal liability? Personal liability means that your personal assets will be exposed if one of your co-owners or employees commits an unlawful action that injures someone, such as writing a defamatory article or post. If there is a judgment against your company, it can be satisfied by reaching into your bank account, home, or automobile simply because of your status as an owner of the company. Nonprofit: Corporations: A formed primarily to benefit the public interest rather than earn a profit. You also need to be aware of different taxation among different business entities. Business entities have a great effect on government taxation. Before we get to corporations and limited liability companies, let’s talk about some other business entity options which include: Sole proprietorship: A business that is unincorporated with one owner or jointly owned by a married couple General partnership: A business that is unincorporated with two or more owners Limited partnership: A business that is registered and composed of active, general partners and passive, limited partners This is great for the type of person who truly enjoys independence and wants to make their own rules without answering to others. You are your company and are okay with there being no formal division. The business and the owner are legally the same. From the IRS’s perspective, the business is not a taxable entity. The company assets and liabilities belong directly to the company owner. Sole Proprietorship If your company is going to be fairly small a sole proprietorship might be the right business entity for your needs. You, as the owner, will be in control of all day to day decisions and profits. The greatest disadvantage of a sole proprietorship is that there is unlimited liability. The owner will be personally responsible for business debts and losses. Partnerships A partnership is similar to a sole proprietorship except that there is more than one individual that owns the business. The liability of the partners for the debts of the company is unlimited and this means that each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts of the business. If you are someone who enjoys working with a team and does not want to shoulder all the responsibility for the company yourself, a partnership might work for you. If you have the right blend of personalities you can complement each other quite well and be stronger than any of the partners could ever be on their own. As with sole proprietorships, the business and the owners (two or more) are legally the same. A partnership is not a taxable entity under federal law. Limited Partnership A limited partnership contains two distinct types of partners: General Partners Limited Partners The general partners run the day to day activities of the business. The general partners are also personally liable for a business’s debts and liabilities. The limited partners do not have much to do with the way a company is run. They have limited liability concerning a business’s debts and they usually pay fewer taxes regarding the profit. These are silent investors who bring in money but do not run the business. If you want to retain primary authority in your organization but definitely could use some other sources of cash than a limited partnership would be a great compromise. C-Corporation The great advantage of a c-corp is that the owner/owners are not personally liable for the debts and liabilities of the company. The disadvantage is that there is double taxation on profits. The government will tax the corporation as a separate entity. You should think of the corporation as a fake person in the eyes of the Internal Revenue Service. This is a great model for those who really want to start a company that is quite large in scope and size. However, you will be answerable to your shareholders for good and bad outcomes of your business decisions. S-Corporation It should also be noted that corporations have a lot of regulations regarding paperwork and documentation. This is not an entity for you if you want to be footloose and fancy-free. If your corporation has fewer than 100 shareholders who are all individuals, not corporations; have only one class of stock, and be owned by U.S. citizens or resident aliens you could turn your business into an S-Corporation (s-corp). An s corp is not subject to double taxation as a c corp is. An s corp’s revenue is not taxed at the corporate level. It is only taxed when paying out as salaries or dividends to shareholders. An s-corp is often a better choice than a c-corp for most small businesses. Limited Liability Company (LLC)… Continue reading Which is the best business for you, corporation or LLC?

Understanding The Federal Contracting System General Services Administration, also known as GSA, is responsible for acquiring the goods and services needed by federal agencies. As a result, the United States government needs everything and is a super consumer worth 500 billion dollars. The government uses schedules to purchase goods and services. When there is a need in an agency, it is called a schedule award. A company needs to bid for the award. Once the award is won, it signifies a signed contract between the business and the government. This means that learning how to bid for these government contracts is extremely important to succeed with this lucrative customer. The First Step Is Registering With SAM To do business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not been written in the SAM directory. Please read one of the helpful blog articles on our site, Everything You Need to Know About SAM for Small Businesses.  These blogs will help give you all the information you need to understand how we can help make the process easy for you. In addition, Sam Directory will happily guide you through this often confusing process. Get The Bid Package After you have ascertained the government contract you want to bid on, you must contact the agency and request a bid package. This package is also often called the solicitation package. After you receive the package, review it carefully. Find out what the purchasing office wants to buy and determine if your company can meet the requirements. The Bid Package should contain the following: the buyer’s contact information, including name, address, phone number, and e-mail address, are listed on the bid notice. When you request the bid package, make sure to also ask for amendments. Where Do You Find Government Contracts For Bidding Search for opportunities at the following SAM.gov. Federal agencies are required to publish all contracts above $25,000 on SAM.gov. This means that there are many contracts advertised there at any given time. Contact a procurement officer for information on contracts below the $25,000 threshold for publishing. Look To Your Local PTAC Office Procurement Technical Assistance Centers PTACs provide free assistance in government contracting. They will help you identify bidding opportunities and if your company meets specific criteria to work with the government. You can also find out if your business can be certified as 8(a), WOSB., or HUBZone. New Bidding Techniques Auction — A government buying technique where the bidding continues until no competitor is willing to submit a far better (i.e., lower) bid. The method is usually mentioned as “reverse auction” because the govt is trying to find a rock bottom price, not the very best price. It is essential to research and ensure you can cover your costs in an auction process. However, do not get caught up in the moment’s excitement and make calm rational decisions. Bundling — a way where the government consolidates two or more requirements commonly bought separately into one contract. The support contracts of the many military bases, which require a spread of labor disciplines to stay at the bottom operating, are being bid in this manner. In bundling, make sure that you carefully read all the provisions. It is essential not to ignore the project management aspect of this type of bidding. The Bid The Federal government has the following type of solicitations for bidding: Request for Quotation (RFQ). This type is for contracts below $150,000 with a simplified acquisition procedure. Request for Proposal (RFP). This type of solicitation asks vendors to propose in response to the government’s request. You can (and often will) discuss delivery details, technical requirements, and specifications with the contracting officer when you bid on that type of solicitation. Invitation for Bid (IFB). The “lowest bid wins” or “sealed bid” type of solicitation. No discussion or price negotiation is implied here. Request for Information (RFI). This is primarily to research the market and evaluate the interest and capabilities of contractors in a specific niche. Be sure you read the solicitation requirements carefully. A solicitation package will include documents, technical conditions, attachments, and more. There are standard contracting forms for most federal government contracts under RFP and IFB solicitations. As for needed documents, they are listed in the solicitation. Contact your contracting officer if you have questions. You must understand everything about the solicitation you are bidding on. Also, look to FARs (Federal Acquisitions Regulations) that govern the solicitation you are to respond to ensure you know the regulations and requirements. Small Business Administration Certifications A Small Business Administration certification is an excellent way for your business to stand out in the marketplace. Certifications can help you access specialized funding and scholarships, allow you to compete for set-aside contracts, and can be a great bonus to potential clients. Here are some certifications to consider for your small business: Women-Owned Small Business Federal Contract Program (WOSBs) 8(a) Business Development Program The Service-Disabled Veteran-Owned Small Business Concern Procurement Program(SDVOSB) Historically Underutilized Business Zone Program (HUBZone) Networking Sometimes the most challenging step is getting your foot in the door. Networking is vital when trying to secure government contracts. The Small Business Administration (SBA) is a great resource and hosts many events throughout the year. These events are usually at no cost to business owners and can offer a treasure trove of information about obtaining contracts from various agencies.  This is your opportunity to shine, so make sure you are prepared to present an elevator pitch to define your company better. This speech explains what your business has to offer and how you can help another organization meet its goals. It should be short and simple, no longer than a 30-second elevator ride.

The United States Government Is A Very Powerful Client With Deep Pockets The Federal government usually spends billions of dollars a year on goods and services. This makes the U.S. government an extremely attractive client. There are few other organizations with this type of spending power and clout. The government also tends to buy goods and services in bulk. If your business has the infrastructure to handle large orders, then the government can help you grow substantially at an accelerated pace. Government agencies also buy goods and services in large quantities. Large orders can be a double-edged sword for small businesses. However, if managed correctly, they can help you grow substantially and rapidly. Why Work For The Government? There are many compelling reasons to work for the Federal Government.  We will go into in-depth detail about how a small business can benefit significantly from being a government contractor. Being A Government Contractor Is A Great Way To Make Your Business Stand Out In An Overcrowded Field Business can be very competitive. Working on government projects is a great way to make a mark in an oversaturated market. The government has a great deal of work specifically set aside for small businesses. Also, many small businesses often do not want to deal with the hassle of working with the government, and sometimes there can be surprisingly little competition for a government project. That is why utilizing Sam Directory to handle all the confusing registration requirements is a very smart investment.  Never Underestimate The Power Of Relationships As part of understanding your customer, it is very important to build strong relationships within the government agencies. The government is not a giant cold faceless entity. It is made up of people and they will appreciate the opportunity to speak to you face to face. An impressive interview might win you a supporter that will lobby in your favor. A Fantastic Presentation Is A Key To Success Having a good presentation is vital to winning over the federal government. You want to be able to make an excellent impression that goes beyond just having a great price point. It is important to understand that this is not your typical business client. Because the presentation to the United States is so different from presenting to other businesses, many companies get flustered.  Let us guide you through this often intimidating process. Be Prepared To Give An Oral Presentation Oral presentations are very common for companies who want to work for the United States government. This is going to be a different audience. You might not get the greeting and niceties that usually come with this type of business meeting. The government employees are not allowed to react to anything that is said. You should be used to seeing no feedback until the question and answer period. You Still Need To Make Yourself Stand Out The federal government will watch many groups of people from various other companies. They have a point system and award the contract to the business that scores the most points. The government will often see the basic material being presented numerous times. Your presentation must be unique and memorable in a positive way. Your company needs to catch their attention. Small Business Administration Certifications A Small Business Administration certification is a great way for your business to stand out in the marketplace. Certifications can help you gain access to specialized funding and scholarships, allow you to compete for set-aside contracts, and can be a great bonus to potential clients. Here are some certifications to consider for your small business: Women-Owned Small Business Federal Contract Program (WOSBs) 8(a) Business Development Program The Service-Disabled Veteran-Owned Small Business Concern Procurement Program(SDVOSB) Historically Underutilized Business Zone Program (HUBZone) Special Programs Help is available from special small business programs that encourage participation by small businesses and help these businesses navigate the government contracting maze This includes small businesses owned by minority and traditionally disadvantaged groups. These programs, which are administered by the Small Business Administration (SBA), assist small businesses on how to obtain both large business and government procurements. Publications The government has issued some publications to also assist small businesses. They are as follows:  Selling to the Military: Has all the information needed about items the military is currently looking to purchase. This includes contact information for the buying offices and the Small Business Office. Small Business Specialists for DoD: This is a listing of names, addresses, and phone numbers for all the resources you need to do business with the Department of Defense which is one of the most well-funded purchasers in the government. Participating in the VA Acquisition Program: This publication covers general information about how and what the Veterans Administration buys. Understand The Chain Of Command In the private sector, you might have a boss or manager whom you report to daily. The chain of command is usually very straightforward. In the world of government contracting, you might have several people to report to, including managers from other contracting companies. There can be a steep learning curve when it comes to managing the expectations of several government employees at once.  However, there are endless opportunities and one can gain priceless experience by working with several agencies. Many departments in the federal government contain hundreds of agencies. These places have a wide variety of needs that can easily be filled by small businesses. Working with one agency often opens the door to other departments, making the scope of opportunities endless. How Do You Get Started Working With The Government? SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process.  Is very important building As a smart… Continue reading Smart Ways For Small Businesses To Market To The Federal Government

What is the ASVAB? The Armed Services Vocational Aptitude Battery (ASVAB) is one of the most important exams for military personal. The ASVAB measures aptitude and intelligence for various branches of the military. Most people will take the test while they are in high school as teenagers. The military uses the ASVAB to determine how to place new recruits in the proper branch and job best suited to their skills. Education In order to enter the military one, must at a minimum possess a high school diploma or GED. The Coast Guard requires 15 college credits alongside a GED to be eligible for enrollment. You do not have to have a degree to take the test but without the minimum qualifications to enter the military, your scores will be useless. What is the format of the ASVAB? The ASVAB is a multiple-choice exam that is made up of nine different sections that in total take approximately 3 hours to complete. The sections of the test are as follows: Arithmetic Reasoning Word Knowledge Verbal Expression General Science Paragraph Comprehension Mathematics Knowledge Electronics information Automotive and Shop Information Mechanical Comprehension Assembling Objects The test taker will usually have more time with the reading-intensive questions that are often found in the Paragraph Comprehension portion fo the exam. These will take around 2 minutes per question to complete when compared to the 30 seconds per question of some of the other sections. Three versions of the test The MET-site ASVAB This exam is given at a Mobile Examination Test site. This test is used solely for enlistment into one of the military services. Test sites are located in different cities. You will need to be referred by a recruiter to take the MET-site ASVAB. The MET is a multiple-choice test where you write your answer on a separate answer sheet. Since it is a pen and paper test, answers can be changed. You are given a set amount of time, so you must do your best to answer all the questions in the time given. Unlike the CAT-ASVAB, you may not leave the testing room if you finish before the other testers. You should plan on spending several hours at the MET-site when taking this version of the ASVAB. Scoring the MET-site ASVABThe test administrator sends test results back to the MEPS. The test administrator will give you a sealed envelope, which contains your unverified test scores to take back to your recruiter. You will get your verified scores later oncer your answer sheet has been officially scanned in the system. Subtest Questions Time Content General Science (GS) 25 11 General principles of biological and physical sciences Arithmetic Reasoning (AR) 30 36 Simple word problems that require simple calculations Word Knowledge (WK) 35 11 The correct meaning of a word; occasionally antonyms (words withopposite meanings) Paragraph Comprehension (PC) 15 13 Questions based on several paragraphs (usually a few hundredwords) that you read Mathematics Knowledge (MK) 25 24 High-school math, including algebra and geometry Electronics Information (EI) 20 9 Electrical principles, basic electronic circuitry, andelectronic terminology Auto & Shop Information (AS) 25 11 Knowledge of automobiles, shop terminology, and tool use Mechanical Comprehension (MC) 25 19 Basic mechanical and physical principles Assembling Objects (AO) 25 15 Spatial orientation The CAT-ASVAB The CAT-ASVAB is very popular. This version of the exam is done on the computer which allows for flexible start times and self-paced responses. The CAT takes about an hour and a half. The exam covers the same materials as the MET-site ASVAB. It does divide Auto Shop into 2 subtests which consist of Auto Information and Shop Information. Computerized Adaptive Testing means that if the correct answer is chosen, the next question will be harder. If the answer given is incorrect, the next question will be easier. This also means that once an answer is selected on the CAT it cannot be changed. Although you can speed through the CAT at your own pace, the test does have a time limit. If you finish a subtest before the time limit is reached, you automatically go on to the next test. Unlike the MET-site ASVAB you may leave the test room as soon as you are finished. Scoring the CAT-ASVABYour CAT-ASVAB subtest scores are computed using formulas that take into account the difficulty of the test question and correctness of the answer. Test scores are good for two years. Subtest Questions Time Content General Science (GS) 16 8 General principles of biological and physical sciences Arithmetic Reasoning (AR) 16 39 Simple word problems that require simple calculations Word Knowledge (WK) 16 8 The correct meaning of a word; occasionally antonyms (words withopposite meanings) Paragraph Comprehension (PC) 11 22 Questions based on several paragraphs (usually a few hundredwords) that you read Mathematics Knowledge (MK) 16 20 High-school math, including algebra and geometry Electronics Information (EI) 16 8 Electrical principles, basic electronic circuitry, andelectronic terminology Auto Information (AI) 11 7 Knowledge of automobiles, and tool use Shop Information (SI) 11 6 Knowledge of shop procedures Mechanical Comprehension (MC) 16 20 Basic mechanical and physical principles Assembling Objects (AO) 16 16 Spatial orientation The Student ASVAB Explained The Student ASVAB is used for career exploration for high school and college students. This version is given in high schools, colleges, and vocational schools. This exam is done on pen and paper and is usually around 3 hours long. The result is then sent to your school so you can explore career options with your counselor (post-test interpretation). You will be given an inventory of interest in which you can use your exam results to identify a college major and explore different occupations that are available in the military. Scoring The Armed Forces Qualification Test Score (AFQT) is the percentile score given after the test is graded. This may seem confusing since you take the ASVAB, but the ASVAB gives you an AFQT score. The score of 31 is the lowest score allowed by any brach of the military.… Continue reading Everything You Need to Know about the ASVAB

The Federal Government Wants To Help Small Businesses Succeed Unlike other markets, the federal government wants to ensure that small businesses receive a substantial chunk of the $500 billion contracting pie. This makes the Federal government one of the most potent consumers of goods and services in the world, and they want to help small businesses win these contracts. Small Businesses Are Given Special Consideration When It Comes To Government Contracts In many markets, small businesses are often outcompeted by larger organizations that have access to almost unlimited resources. So this set aside might increase a small business’s chances of winning a lucrative bid. The federal government must set aside at least 23 percent of its total spending specifically for small businesses. As a result, several small companies have made a fortune just on federal government contract awards. The Federal Government Has Government Personnel That Are Strictly Utilized to Help Small Businesses Be More Competitive In Securing Government Contracts Here are some examples: SBA Procurement Center Representative (PCR): Procurement Center Representatives are often located at a significant government buying office, even though they technically work for the Small Business Administration. They will identify items and services that small businesses could produce or provide and try to get them “set aside” for small businesses, which means that only small businesses can bid for the contracts.  Competition Advocate: This person is responsible for promoting full and open competition at high management levels in the significant buying offices. They are supposed to challenge overly restrictive statements of work and contract clauses that can prove to be burdensome. They also try to expand competition for items by offering challenges to requirements that are not deemed necessary for the performance or essential physical characteristics.  Small Business Specialists (SBS): The law requires every government buying location to have a Small Business Specialist. These specialists work specifically with small businesses to help them do business with that office. Larger government offices might have entire staff, while smaller offices might only have a part-time person assigned to that task. Central government buying offices have full-time staff, while smaller offices have a part-time person assigned to that task.  SBA Commercial Marketing Representative (CMR): Commercial Marketing Representatives keep track of large companies working for their departments. These representatives are often the go-to for fantastic small business subcontracting opportunities.  It is wise to utilize this group of highly specialized government personnel as they are an invaluable resource for small businesses to obtain government contracts. Special Programs Help is available from special small business programs that encourage participation by small businesses and help these businesses navigate the government contracting maze. This includes small businesses owned by minority and traditionally disadvantaged groups. These programs, administered by the Small Business Administration (SBA), assist small businesses in obtaining both large enterprise and government procurements. Here is a list of websites provided by the government to help small businesses obtain contracting information. Counseling The government also offers more personalized guidance through counseling. There are also commercial counseling programs. The Procurement Technical Assistance Centers or PTACs offer valuable assistance to small businesses. They can be found in educational institutions. These counselors are well known for their expertise. There is also a government-backed membership organization called the National Contracts Management Association.  The PTACs help small businesses locate marketing opportunities and assist with various e-commerce issues. They can also help you prepare financial reports, procurement forms, and contractual paperwork and guide quality assurance. Most of their services are free though there can be a nominal charge for services such as electronic bid matching. You can contact one of the regional directors at The Association of Procurement Technical Assistance Centers for more information. In addition, the website www.sellingtothegovernment.net could help you locate a PTAC near you. National Contracts Management Association The National Contracts Management Association (NCMA) is a government-supported organization that started years ago (1959). It was created to help companies do business with the federal government. The organization provides certification programs and educational seminars for small businesses. They also print a monthly magazine called Contract Management. The fee for new membership is $120 and can be renewed at $100 per year. Small Business Administration Certifications A Small Business Administration certification is an excellent way for your business to stand out in the marketplace. Certifications can help you access specialized funding and scholarships, allow you to compete for set-aside contracts, and can be a great bonus to potential clients. Here are some certifications to consider for your small business: Women-Owned Small Business Federal Contract Program (WOSBs) 8(a) Business Development Program The Service-Disabled Veteran-Owned Small Business Concern Procurement Program(SDVOSB) Historically Underutilized Business Zone Program (HUBZone) How Do You Get Started Working With The Government? SAM stands for System Award Management. To do business with the federal government, you must register your business in the System for Award Management. In addition, the government will not hire any type of business that has not been written in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you essential information about this process. As an innovative entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this critical first step to becoming a government contractor. How Do You Get Started Working With The Government? For example, the following are the steps to apply for a federal grant: Step 1: Obtain a DUNS Number Step 2: Register with SAM Step 3: Register with Grants.gov You might be wondering what SAM means and how you register with the site. Go to sam. Directory to find people willing to make this as easy as possible. Then, check out our informative article Everything A Small Business Needs to Know About the SAM Directory, which should quickly answer most of your questions.

Have A Clear Understanding Of The Government’s Accounting Requirements The Financial Accounting Standards Board (FASB) states that contractors must comply with the following to work with the government: Federal Acquisition Regulations (FAR) Cost Accounting Standards FAR agency supplements Understanding Audits Your company should be clear on what the DCAA considers the responsibilities of federal contract actors. They include the following: timeliness of payments to subcontractors documentation of contractor oversight of subcontractors documentation of enforcement of flow downs documentation of support for subcontractor billings documentation of subcontractor reviews Surprise Audits Government audits can occur without any type of advance notice. Therefore, contractors must always be prepared to receive a solid evaluation.  A surprise audit that reports non-compliance with federal accounting regulations can have negative consequences, including contract termination, and payments can be withheld unless improvements are in place. In addition, this can be very time-consuming and stressful. Keeping Ahead of Technological Innovations Keeping pace with stringent government accounting policies allows a company to truly understand governmental purposes, needs, and more extensive processes and then use that knowledge to manage and methodically grow the company.  Luckily today, many cutting-edge technologies can take the pressure off by making even the most complex accounting procedures quite simple. These innovations help a contractor comply with government requirements, permitting employment of systems for management and growth while adapting to keep in step with ever-incoming changes in conditions. Also, having a solid accounting system will only improve your company in the long run. Rules Of Timekeeping And Accounting Government contractors have to maintain rigorous schedules when compared to the private sector. Therefore, your business must comply with a set standard of rules and regulations when reporting on how many hours worked in a certain period. The Financial Accounting Standards Board (FASB) states that contractors must comply with the following to work with the government: Federal Acquisition Regulations (FAR) Cost Accounting Standards FAR agency supplements Simplified Procedures In 1994 the Federal Acquisition Act FASA simplified the buying procedures of the government. Many of the more harsh restrictions on government purchases were removed for any purchase less than $100,000. Now agencies use much simpler procedures for analyzing and soliciting bids up to $100,000. However, the government must still advertise all purchases over $25,000 at www.fbo.gov. These simplified procedures mean that approval levels are lower, there is much less documentation, and administrative details are not as complex. The government now has to reserve purchases that are between $2,500 and $100,000 for small businesses. The exception is the contracting officer cannot obtain offers from two or more small businesses that are competitive in price and quality. Purchases that do not exceed $2,500 individually or through multiple items are considered micro-purchases. These do not require competitive quotes but are not limited to small businesses. Micro-purchases are often made using government-issued purchase cards or typical credit cards. Contracting Officers The Federal Government always conducts any kind of procurement business through contracting officers. These contracting officers have the authority to bind the government to a contract unless otherwise stated in writing. Therefore, ensure that the person you are dealing with is the contracting officer authorized to represent the agency or office that will award the contract. Procurement Government procurement has constantly been advancing many national, economic, and social objectives. Accordingly, government contractors must comply with the rules and regulations of labor standard statutes. This will include the Service Contract Act, Contract Work Hours and Safety Standards Act, and other requirements that further socio-economic objectives, except for specific contracts where such legislation is stated explicitly as non-applicable. Bidding The government usually makes sure contracts are competitive through sealed bidding. First, the agency makes sure that its requirements are accurate and complete. Then an Invitation For Bid or IFB is issued. The IFB will describe the type of product or service the government procures. It also includes: Preparation Instructions  Conditions of Purchase Packaging  Delivery  The Key To Winning A Government Contract Is To Pay Attention To the Guidelines You must read closely what the request for proposals or RFPs wants in your bid. Make sure that you are aware of deadlines and who is handling the requests. Usually, small businesses have 6 to 8 weeks to submit an offer, but this can vary, depending on the agency.  Make Use Of Government-Provided Free Tools. You can identify contracting opportunities online by utilizing this forecasting tool that lets you see what opportunities are available. You can study the government contracts that are a couple of years old to see what requirements are needed to win the job. This puts you in an excellent position to have all your research completed when the contract is about to expire, and you put in your proposal. Make Sure You Are Organized Having solid financial records and a straightforward thought-out process goes a long way to impress government agencies that you can handle the job. In addition, it presents a professional demeanor that is quite impressive. The System for Awards Management or SAM Directory To qualify for government contracting jobs, you must first register with the federal government supplier database, which is called the System for Award Management or SAM, for short.  This allows you to be certified by the Small Business Administration (SBA). This gives you the Dun & Bradstreet Number (DUNS Number). You will also identify Your North American Industry Classification System. See our informative blogs to find out everything you need to know about SAM for small Businesses and an in-depth look at what is required for lucrative federal contracting opportunities.

Are you a business owner looking to expand your market reach and increase profitability? Bidding on government contracts might be the perfect solution for you. The federal government alone purchases millions of dollars worth of goods and services every year from private sector businesses. But with a complex bidding process, it can be intimidating to dive into this market. But don’t worry, we have got you covered. In this blog, we will walk you through the benefits and opportunities of bidding on government contracts. 1. Diversify Your Revenue Streams Bidding on government contracts can provide significant financial benefits to your business. By winning a government contract, you can tap into a stable revenue stream that comes with a guaranteed payment schedule. This can help your business stay afloat during otherwise lean times. Besides, by putting your hat in the ring for government contracts, you can also spread your risk by diversifying your revenue streams. It prevents you from relying on a single customer base, a crucial part of any thriving business. 2. Access to Large Market Usually, government contracts often require certain levels of expertise, experience and a quality profile to participate in the bidding process. If you meet these set standards, you will have an excellent opportunity to tap into a vast new customer base for your SMEs. As such, bidding on government contracts can help you reach a more diverse and significant market beyond your traditional territories. 3. Better Payment Terms Agencies responsible for the issuance of government contracts can take long to release payments compared to other known customers. Nonetheless, with an established reputation, trust and respect, you can even enjoy early payments, which can be crucial for the cash flow and sustainability of your business. 4. Increased Brand Visibility Establishing a partnership with the government enables SMEs to boost their marketing efforts without extra expenses. Publicizing, networking, and showcasing your business can be an open knowledge in government dealings. Simply put, winning a government contract opens a wide door for excellent branding and market visibility without extra marketing expenses. 5. Boost Opportunities for Growth and Expansion Winning a government contract can work to develop your business by providing a platform for innovation and expansion. It offers an excellent opportunity to develop new approaches in service, better systems, and other innovations. It could also help you establish a new business relationship with other companies from which you can learn, borrow and adopt better practices to help your business grow. Bidding for government contracts is a potentially lucrative opportunity for SMEs. The potential advantages come in multiples, from access to a vast market, and more consistent revenue streams, to better payment policies. Winning a government contract can diversify your business, increase brand visibility, and facilitate growth and development for your business. It may not be as easy and straightforward as it seems, but by following due processes, and partnering with industry experts, you can reap significant benefits from bidding on government contracts. Why not consider bidding on those lucrative government contracts today and take your business to the next level. Where Do You Find Government Contracts For Bidding Search for opportunities at the following SAM.gov. Federal agencies are required to publish all contracts above $25,000 on SAM.gov. This means that there are many contracts advertised there at any given time. Contact a procurement officer for information on contracts below the $25,000 threshold for publishing. Look To Your Local PTAC Office Procurement Technical Assistance Centers or PTACs provide free assistance in government contracting. They will help you identify bidding opportunities and if your company meets specific criteria to work with the government. You can also find out if your business can be certified as 8(a), WOSB., or HUBZone. Understanding The Federal Contracting System General Services Administration, also known as GSA, is responsible for acquiring the goods and services needed by federal agencies. As a result, the United States government needs everything and is a super consumer worth billions of dollars. The government uses schedules to purchase goods and services. When there is a need in an agency, it is called a schedule award. Small businesses can bid for it. Once the award is won, the winning bid signifies a signed contract between the company and the government. This means that learning how to bid for these government contracts is extremely important to succeed with this lucrative customer. Get The Bid Package After you have ascertained the government contract that you want to bid on, it is important to contact the agency and request a bid package. This package is also often called the solicitation package. After you receive the package, review it carefully. Find out what the purchasing office is wanting to buy and figure out if your company can meet the requirements. The Bid Package should contain the following: the buyer’s contact information including name, address, phone number, and e-mail address are listed on the bid notice. When you request the bid package, make sure to also ask for amendments. Networking Sometimes the most challenging step is getting your foot in the door. Networking is vital when trying to secure government contracts. The Small Business Administration (SBA) is a great resource and hosts many events throughout the year. These events are usually at no cost to business owners and can offer a treasure trove of information about obtaining contracts from various agencies.  How Do You Get Started Working With The Government? SAM stands for System Award Management. In order to do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process. As a smart entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this important first step to becoming a government… Continue reading Why Small Business Should Consider Bidding On Government Contracts

Innovation Is Key The government needs to be very careful about how they handle money that taxpayers provide. They are tasked with ensuring things go smoothly and no unnecessary risks are taken. This is a great opportunity for a small business that prides itself on finding innovative solutions to age-old problems. The United States government is open to fresh perspectives and ideas that can streamline their systems or save money. Do not be afraid to think outside the box when you bid for government contracts. Your new ways of doing things could be just the thing to make you stand apart from the other companies vying for the same opportunity. They are particularly keen to listen to ideas that have been proven in the private sector. Flex Your Expertise This is not the time to be shy about your business’s accomplishments. Being a small business does not automatically mean you are the competition’s underdog. Bigger is certainly not always better.  Small businesses can often prove to be more agile and efficient and have better response times when compared to their larger counterparts. A larger organization might not have the flexibility to pivot the way you can, which allows small businesses to be able to think on their feet during crises. Smaller companies can also provide more personalized customer services, which all consumers appreciate. Narrow In On The Customer’s Needs The United States government is a customer just like any other. However, this customer has deep pockets and unlimited needs. A small business can cater to the government by following a strategy in which the customer’s needs always come first. Identify the government agency’s pain points and offer them your innovative solutions to their problems. This type of discipline always wins big points with the government. Be Precise And Follow Directions Naturally, the government is a stickler for following rules and regulations. It is shocking how many bids get tossed out because companies need to follow basic directions. Be aware of deadlines, and do not leave anything black when filling out forms. The request for proposals or RFPs has very specific instructions, and you must take everything seriously. Just consider it like filing your income taxes, and do not take unnecessary shortcuts. Be Strategic In Which Agencies You Target Covid-19 has not had a major impact on government spending. In 2020, over 1.55 trillion dollars were spent on just Covid response efforts. This increase in spending has made the budgets for 2021 higher for several agencies. The Department of Defense has increased its budget by 800 million dollars compared to 2020. NASA has requested a 12 percent increase in its agency funding, and the Veteran Administration agencies asked for 14 percent more money in 2021. It is a great idea to strategically target agencies experiencing this type of budget boom to secure government contracts. Streamlining and Modernizing Information Technology Did you know that the Internal Revenue Service, the Veteran’s Affairs Department, Defense Department, and the Transportation Department are operating on computer systems over 50 years old? Some still use 1970 IBM mainframe computers that store information on floppy disks! This has caused the government to pass the Modernizing Government Technology Act, also known as the MGT. The MGT has authorized 100 hundred million dollars to modernize the federal government’s Information Technology systems in 2018. Then another 150 million dollars were added to the MGT in 2019. The Consolidated Appropriations Act added billions of dollars to upgrade the government’s I.T. systems and update infrastructure. So small businesses that can help the government reduce redundancies, save money, and streamline government technology have a great chance of obtaining very profitable government contracts in 2020 and beyond. There Will Be An Increase In IT Spending The demand for information technology services in the federal government has created ample opportunities for companies in this field. More and more companies are doing away with having local servers and personal devices to handle modern software applications. Now more than ever, companies are relying on cloud computing to maintain multiple copies of the data to mitigate instances of security threats, data loss, and data breaches. The government is no exception. They understand that cloud computing will lower costs significantly and help them manage their data more efficiently. Small businesses that understand how to utilize cloud computing should be in a very good position to cash in on this new wave of data management architecture. Cyber Security Will Also Be A Lucrative Field As the world becomes increasingly higher-tech, security breaches are more likely to be in data management than on the battlefields. The government needs to stay several steps ahead of those who wish to exploit undiscovered vulnerabilities in our systems. This is why cybersecurity will be a very lucrative area for government contractors. This is particularly true in 2020, which will be an election year. Cybersecurity will be used to protect voter databases and voting machines. Cybersecurity is also going to be a big part of government protection when it comes to cyberattacks on supply chains. Contractors that can help manage these constant threats to government security will be in high demand. Make Sure You Get A CAGE Code (Commercial and Government Entity) This code is five characters and unique to your business. It’s your ID code, and government agencies will identify your business using this code. It is a bit like a social security number for your business. If your business includes more than one facility, then you will need multiple CAGE codes. Each location must have its unique code, and each location must be registered separately with SAM. How Do You Get Started Working With The Government? SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small… Continue reading The Small Business Secrets To Winning Government Contracts

How Do I Know That Being A Government Contractor Is Right For My Company? There is very little certainty in business. Having a powerful client that is known for paying its bills on time, like our Federal Government, is a great asset. Also, many of your competitors might be dismissing the idea of being a government contractor as being too much trouble. This means that there could be surprisingly little competition in some spaces. Their shortsightedness can be your company’s advantage. The Government Is Required To Set Aside A Certain Percentage Of Contracts For Women-Owned Small Businesses At least five percent of government contracts have to be awarded to women-owned small businesses. To qualify for these set-asides, a business must have the following: Meet small business size standard for primary NAICS code and contract At least 51% unconditionally and directly owned by women who are U.S. citizens* The woman must manage the day-to-day operations The woman must make long-term decisions for the business A woman must hold the highest officer position The woman must work at the business full-time during normal working hours To qualify as economically disadvantaged through the EDWOSB program, a woman must meet these requirements: Have a personal net worth of $750,000 or less. The fair market value of all assets must be $6 million or less. Have an adjusted gross yearly income (averaged over the three years before the certification) of less than $350,000.  Small Businesses Are Given Special Consideration When It Comes To Government Contracts In many markets, small businesses are often outcompeted by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid. The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards. What Qualifies As A Small Business? To be considered a small business, a company has to meet the following requirements: A business must meet small business size standards. Part of a business must be within the U.S. A business must operate mainly within the U.S. or make a significant contribution to the U.S. economy through the payment of taxes or the use of American products, materials, or labor. A business must be independently owned and operated. A business cannot be dominant in its field on a national basis. The first thing a small business must do to qualify for government contracts is to register with the SAM Directory. Make Sure You Receive Certification To be eligible to compete for woman-owned small business set-asides or receive sole-source awards, you must either be certified by a Small Business Administration (SBA) approved Third-Party Certifier (TPC), OR self-certify following current SBA regulations. There are currently four SBA-approved TPCs. They are:        El Paso Hispanic Chamber of Commerce        National Women Business Owners Corporation        US Women’s Chamber of Commerce        Women’s Business Enterprise National Council (WBENC) You can learn more about the requirements for the government’s woman-owned small business certification requirements on the SBA’s website. Registering With SAM Directory Also Gives You Access To Valuable Grants Government grants are alike free money from the government that you do not have to pay back. You have to register in SAM before you can apply for Federal Grants. For example, here is a listing of the best government grants for women: Grants.gov National Association for the Self-Employed Growth Grants Eileen Fisher Women-Owned Business Grant Program Amber Grant IdeaCafe Grant #GIRLBOSS Foundation Grant Cartier Women’s Initiative Award GrantsforWomen.org FedEx Small Business Grant Read our article, Government Grants, A Guide to Free Money! to find out more about how registering for SAM can help provide great funding opportunities for your business. Think About Subcontracting Subcontracting with a prime contractor rather than the government means that you do not have to worry about the strict rules and regulations that are part of working directly with the government. This is because the subcontractor is answerable to the prime contractor, not the government. Luckily, prime contractors are always on the lookout for companies that can help them complete these important government projects. Subcontracting has many advantages for less experienced businesses. Do Your Research Once you have selected some agencies that require your goods and services, it is very important to research your customers. Luckily, nowadays you can find out a lot about an organization online. At the end of the day, the United States government is a customer just like any other. However, this customer has deep pockets and unlimited needs. A small business can cater to the government by following a strategy in which the customer’s needs always come first. Identify what the government agency’s pain points are and then offer them your innovative solutions to their problems. This type of discipline always wins big points with the government. Here are a couple of examples of how you can find the information you need to win lucrative government contracts: Inquire about the vendor Outreach Sessions and when will they be held Inquire how your company’s products/services could help with the agency’s missions Request meetings with Agency Program managers leading the contract requirements you’re pursuing If you would like to do additional research, you can also check www.fbo.gov, an online listing of government contracts that detail all contracts with a value exceeding $25,000. Another available resource is www.usaspending.gov, a site that details how government money is spent, what agency is issuing awards, and who the federal government is buying from. What Is The SAM Directory? SAM stands for System Award Management. To do any business with the federal government, you must register your business in the System for Award Management. The government will not hire any type of business that has not registered in the SAM directory. We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process. Luckily our site takes this… Continue reading Why Women-Owned Businesses Should Consider Being Federal Contractors