What Does This Mean For Small Businesses That Want To Be Government Contractors?
The Federal government must also set aside a certain amount of contracts for small businesses. At least 23 percent of government contracts will be awarded to small businesses. Smaller companies do not have to worry about being outcompeted by large companies with unlimited resources.
How Do I Know Government Contracting 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 dismiss 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 to get ahead and obtain some very lucrative contracts.
Understanding The Marketplace,
It might initially feel like working for the government is very unpredictable. 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 ensure 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. 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
As we have stated before, the United States government is one of the wealthiest and most powerful clients in the world. However, no one has unlimited resources. Administrations change, and that can often mean a shift in funding priorities. For example, if the government is into energy conservation, that might mean a lot of contracts for those who develop energy alternatives. If a new administration comes into power that values different things, then the funding for alternative energy initiatives might be decreased.
One of the best ways to combat this is by supporting politicians that understand and promote your type of business. It is important 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
Sometimes the hardest step is getting your foot in the door. Networking is extremely important 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.
Do Your Research
Once you have selected some agencies that need 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 they will 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, which details how government money is spent, the agency issuing awards, and who the federal government buys from.
How Do I Get On A Schedule
Collect all the documents you need and submit them to the GSA. A procurement officer will review your paperwork and either approve or decline your submission. This process requires some attention to detail.
Innovation Is Key
The government needs to be very careful about how they handle money that is provided by taxpayers. They ensure 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 proven in the private sector.
The First Step Is Registering With SAM
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 registered 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. Sam Directory will happily guide you through this often confusing process.