Why Small Businesses Should Consider Being Defense Contractors

The Federal Government Offers Great Opportunities For Many Types Of Businesses

The government 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.

Department Of Defense

The Department of Defense is one of the world’s largest consumers of government contracts? However, many companies think this agency only contracts with giant companies supplying tanks and missiles.

Remember, the Department of Defense supplies the Army, Navy, Airforce, and many other defense agencies. They are open to working with small businesses and are fully funded for the rest of this year. In addition, they try to reward at least 20% of their contract to Small businesses. Companies can go to https://business.defense.gov/Small-Business/DoD-Small-Business-Offices/ to learn more about contracting and subcontracting opportunities. 

Innovation and Technology

We must remember that some significant technological innovations came out of this branch of the government. This includes the internet, which is a vital part of our lives and has changed how we view the world.  The Internet was initially a DARPA, the Defense Advanced Research Projects Agency project, GPS, the cell phone, the computer mouse, and drones. 

Being a defense contractor means that you are on the cutting edge of tomorrow’s technology. This is not only a noble pursuit, but it allows you to gain a distinct advantage over other civilian tech companies.

Amazing Benefits

The Department of Defense is known for providing excellent benefits.  Here is a list of some of the great perks of working with this organization:

  • Paid Time Off that can increase every year
  • Tuition Reimbursement
  • Short and Long-Term Disability
  • Life insurance with family options
  • Excellent Medical and Dental benefits

Never Underestimate The Power Of Relationships

As part of understanding your customer, building solid relationships is essential. The government is not a giant cold, faceless entity. People will appreciate the opportunity to speak to you. An impressive interview might win you a supporter that will lobby in favor.

A Fantastic Presentation Is The 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 essential 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 ubiquitous for companies that want to work for the United States government, which is not your typical audience. Therefore, you might not get the greeting and niceties of this business meeting. The government employees are not allowed to react to anything. You should see no feedback until the question and answer period.

Job Security And Work-Life Balance

Startups might sound glamorous, but they are far from secure. The statistics say:

  • 90% of new startups fail.
  • 75% of venture-backed startups fail.
  • Under 50% of companies make it to their fifth year.
  • 33% of startups make it to the 10-year mark.
  • Only 40% of startups turn a profit.
  • 82% of companies that fail do so due to income problems.
  • The highest failure rate occurs within the information industry (63%).

In defense contracting, you are under a pressure cooker to get a product to market and under the control of nervous financiers.  Instead, you have a fixed timeline and a payment schedule already in place. This means no insane 12-hour world days to meet ridiculously impossible deadlines. This allows the government to better manage employees by having realistic milestones that are attainable.

Opportunities For Diversity

The government 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.

Doing Work That Matters

Remember, working for the Department of Defense means that you are actively helping protect the American way of life. The United States is a proud nation that is unique in the opportunities it can offer its citizens. So your company can feel good about working for an organization that keeps our country safe.

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!