The Government Can Really Increase The Standing Of A New Business
The government is one of the most powerful consumers in the world. Being a government contractor is a wonderful way for any new business to grow its reputation in the digital marketplace as well as other forms of advertising. It is a fantastic way to build a strong reputation in a relatively short amount of time.
Government Contracts Offer Security In These Uncertain Times.
Covid-19 has halted a lot of different industries. However, the government must continue to move forward for the health and welfare of its people. Government contracting can be a shining light in the pandemic darkness and provide a lifeline to many new struggling businesses who are trying to survive this unprecedented situation.
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 greatly 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.
Can A New Small Business Really Compete For Government Contracts?
The Federal Government is required to reward a certain amount of its contract to small businesses. In fact, last year the Federal government awarded 25% of its contracts to small businesses.
In 2019 the U.S. Small Business Administration announced that the Federal government awarded a total of $105.7 Billion worth of contracts for goods and services to small businesses. This marks the first time that more than $100 billion dollars have been awarded to small businesses and marks a 5 million dollar increase from the previous year.
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. 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.
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.
The Federal Government Offers Great Opportunities For Many Types Of Businesses
The government actually designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows underserved groups to have a real chance to get awarded lucrative government contracts.
The Government Is Fantastic For New Businesses
The government has a lot of demand but it goes out of its way to make sure all competition is open and fair. It will need to work with almost any business for products and services with competitive pricing.
The United States government is known for running with high levels of precision and accuracy. Therefore, ensuring the government contracts are fulfilled is an excellent way for a new small business to streamline its process and delivery methods.
Working With The Government Is Great For Marketing
The government is one of the most powerful consumers in the world. Being a government contractor is a beautiful way for any business to grow its reputation in the digital marketplace as well as in other forms of advertising. It is a fantastic way to build a strong reputation in a relatively short time.
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 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.
Registering With The SAM Directory Also Has Other Important Advantages
You must register with the SAM directory to apply for government grants.
A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs in the Catalog of Federal Domestic Assistance (CFDA).
A grant is different from a loan because it is money your business does not have to pay back. So, registering for the SAM directory gives you access to free money!
What Is A Federal Grant?
A grant may be a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs within the Catalog of Federal Domestic Assistance (CFDA).
The following are the steps to apply for a grant:
- Step 1: Obtain a DUNS Number
- Step 2: Register with SAM
- Step 3: Register with Grants.gov