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 for 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. 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. 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 great technological innovations came out of this branch of the government. This includes the internet, 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 a noble pursuit and allows you to gain a distinct advantage over other civilian tech companies.
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 already have a fixed timeline and payment schedule. This means no insane 12-hour world days to meet ridiculously impossible deadlines. This allows the government to better manage employees by having attainable milestones.
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.
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. The government will only hire businesses that have registered in the SAM directory.
We have an article on our site, Everything You Need to Know About SAM for Small Businesses, that gives you important information about this process.
As a smart entrepreneur, you have already used our site to register in the SAM directory. Congratulations on taking this important first step to become 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 do I need to register for the Sam Directory?
You will need the following :
- A Data Universal Numbering System or DUNS from Dun and Bradstreet
- Your Tax Identification Number or TIN
- A Social Security Number if you are a Sole Proprietor.
CAGE Code (Commercial and Government Entity)
This code is five characters and unique to your business. It’s your ID code, and government agencies will identify your business using it. It is a bit like a social security number for your business. You will need multiple CAGE codes if your business includes more than one facility. Each location must have its unique code, and each location must be registered separately with SAM.
Never Underestimate The Power Of Relationships
As part of understanding your customer, building strong relationships with government agencies is very important. The government is not a giant cold, faceless entity. It is made up of people, and they will appreciate the opportunity to speak to you face-to-face. An impressive interview might win you a supporter that will lobby in your favor.
A Fantastic Presentation Is The Key To Success
Having a good presentation is vital to winning over the federal government. You want to make an excellent impression beyond having a great price point. It is important 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 need more support. Let us guide you through this often intimidating process.
Be Prepared To Give An Oral Presentation
Oral presentations are very common for companies who want to work for the United States government. This is going to be a different audience. You might need to get the greeting and niceties that usually come with this business meeting. Government employees are not allowed to react to anything that is said. You should be used to seeing no feedback until the question and answer period.
You Still Need To Make Yourself Stand Out
The federal government will watch many groups of people from various other companies. They have a point system and award the contract to the business that scores the most points. The government will often see the basic material being presented numerous times. Your presentation must be unique and memorable in a positive way. Your company needs to catch their attention.