Job Security No Longer Exists.
Many people think that starting a business is just too risky. However, the workforce no longer offers the security it once did. Companies do not take care of employees for a lifetime and then provide them with a large pension for retirement like they did a generation ago. People are often replaced, and those who switch employers regularly actually make more money. There is a sense that there is no longer any loyalty to employers or employees. This type of environment makes starting your business not seem so risky.
Only The Rich Can Start Businesses
It used to be that you needed quite a bit of money to start a business. This often meant taking out high-risk loans or being at the mercy of a strict venture capitalist. This is no longer the case. Modern technology has made starting a business straightforward, even if you do not have tons of money for investment. Cloud bases services like Shopify allow you to have an e-commerce shop for very little money. There are also ways to make money by just having an affiliate marketing website. Travelerrr is a great place to begin if you want to start a business in the multi-billion dollar travel industry.
Lack Of Knowledge
Often people have not been exposed to entrepreneurship and therefore simply do not understand the process of starting a business. However, today’s world provides vast knowledge on the subject. There is an enormous number of entrepreneurs’ networks that you can join. Here are just a few:
- PartnerUp
- StartupNation
- Biznik
- Perfect Business
These networks are great ways to learn about entrepreneurship and make many great, long-lasting connections.
What Is Government Contracting?
Government contracting is when specific government agencies contract with private companies for particular goods or services. The agencies usually put out a contract or often a request for proposal (RFP), and various companies can place bids for the project. Once an agency selects a particular business, a contract is signed, and that business is now considered a government contractor.
Why Work For The Government?
There are many compelling reasons to work for the Federal Government. We will detail how a small business can benefit significantly from being a government contractor.
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 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)
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. So this set aside actually 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. However, many small businesses fail to realize that the government has an abundance of websites to help them find these government contracting opportunities.
The United States Government Is A Very Powerful Client With Deep Pockets
The Federal government usually spends around 500 billion dollars a year on goods and services. This makes the U.S. government a lovely 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. So 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, they can help you grow substantially and rapidly if managed correctly.
Register For SAM
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. 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 a savvy entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this essential first step to becoming a government contractor.
Networking
Networking is vital when trying to secure government contracts. The Small Business Administration (SBA) is a great resource and hosts many events. These are usually free to business owners.
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.
Government Contracts Can Be Very Lucrative For Small Businesses
The United States government issues 500 billion dollars in federal contracts every year. They also set aside 23 billion dollars specifically for small businesses. However, many small businesses find the process of winning government contracts daunting and give up before even really trying.
To do any 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 like 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 very easy for you. In addition, Sam Directory will happily guide you through this often confusing process.
Sam Directory will guide you through the process of writing a successful government contract proposal. We are invested in your success and want to help you succeed in winning a lucrative federal contract.