Government Contracts Offer Security
The recent pandemic has just shed light on how things can change in the small business marketplace in the blink of an eye. Businesses doing quite well had to rethink their business models quickly to survive.
Becoming a government contractor is one of the best ways to expand your business and have a secure lifeline in unexpected rough times. The United States government is one of the world’s most potent consumers of goods and services. This is a 500 hundred billion-dollar industry that is required to set aside at least 23 percent of these contracts specifically for small businesses.
The Island of Security in Uncertain Times
There needs to be more certainty in business. A powerful client known for paying its bills on time, like our Federal Government, is a great asset.
Also, many of your competitors might dismiss being a government contractor as too much trouble. This means that there could be surprisingly little competition in some spaces. Their shortsightedness can be your company’s advantage.
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 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. 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.
This Is Not An Oversaturated Field
Many small businesses want to avoid dealing 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 brilliant investment. An innovative small business can be in a very favorable position to win government contracts if they follow our guidelines.
Understanding The Marketplace
Working for the government is very unpredictable at first. Contractors can be affected by various factors, such as budget cuts, regulatory pressures, changes in administration, and stringent accounting rules.
However, all marketplaces can be volatile and change rapidly according to the whims of consumers. A company needs to make sure that they have a deep understanding of the end buyer and why they want to use its products and services.
This is also true for the United States Government. Therefore, you will need to develop relationships and cultivate trust that allows you to showcase your competitive advantage. Strategically managing the right relationships might guarantee the federal government a solid client that can assure your business of a bright future.
Government Funding
The United States government is one of the world’s wealthiest and most influential clients. Administrations change, and that can mean a shift in funding priorities. For example, if the government is in energy conservation, that might mean a lot of contracts for those who develop alternative energy alternatives. If a new administration values different things, the funding for alternative energy initiatives might be decreased.
One of the best ways to combat this is by supporting politicians who understand and promote your business. It is essential to keep an eye on the political atmosphere and ensure your voice is heard.
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)
Networking
Networking is critical 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 of no cost to business owners and can offer a treasure trove of information about how to obtain contracts.
This is your opportunity to shine, so make sure you are prepared to present an elevator pitch to better define your company. This is a speech that explains what your business has to offer and how you can help another organization meet its goals. It should be short and straightforward, a 30-second elevator ride at maximum.
Do Your Research And Reap The Rewards.
One of the best things about being a government contractor is that the knowledge is already out there for the small businesses willing to do the work. See what successful government contractors have done and see if you can follow their leads. It is constructive if they have special certifications or clearances that might let you get a leg up on the competition.
You can also start targeting agencies that will need your goods and services. The first rule of business is understanding what your customer is looking for and then providing it in the most efficient way possible. Putting this time, in the beginning will give your great benefits in the future when you are bidding on contracts.
Register For SAM
SAM stands for System Award Management.
To do business with the federal government, you must register your business in the System for Award Management. The government will only hire companies that have 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.