How to Win Government Contracts as a Small Business
There’s a source of fresh income potential that far too few small company owners identify in their pursuit for improved small business finance and new consumer opportunities: the US government. The federal government is a massive institution that, like any other company, requires the procurement of products and services in order to run properly. You may be one of those suppliers thanks to government contracts for small enterprises.
The federal government frequently contracts firms of all sizes for anything from military vehicles and equipment to paper clips and Post-its. If you sell to businesses or nonprofits, there’s a strong chance you’ll be able to sell your services to government entities as well.
Despite these advantages, even small company owners that are aware of government programs have challenges.
I highly recommend this video from GovKidMethod who gives a wealth of contracting information below.
Get Registered and win your first goverment contract!
Let’s speak about how to get started with government contracting now that you’ve been convinced of the usefulness of government contracts for small businesses. As you might expect, there are a few more procedures required in becoming a contractual vendor for the US government, one of which is enrolling in the System for Award Management.
Get your DUNS number first.
Before applying for government contracts, you must first get a Dun & Bradstreet DUNS Number for each of your company’s physical locations. Using the online DUNS Request Service, you can get a DUNS Number for free.
Look up the NAICS code for your business.
A North American Industry Classification System (NAICS) designation is also required for most firms.
Now that you’ve been persuaded of the importance of government contracts for your company’s industry, country, and economic sector, let’s go on to the next step. This code is required to register your company.
For help finding your industry code, contact the Small Business Administration (SBA). Keep in mind that if your company works in many industries or sectors, you may need to disclose multiple NAICS numbers.
Determine the size of your company.
You might think that selecting the size of your company doesn’t need much thinking. However, in order to be eligible for federal contracts for small enterprises, you must meet the SBA’s size requirements.
The SBA has a Size Standards Tool that uses your NAICS number to assist you quickly answer this issue.
Get the ball rolling by Bidding for your first government contract
There are actions you may take in addition to registering on SAMS to uncover federal contracting opportunities that are a good fit for your company’s goods or services.
The following are the key methods for locating government contracts for bid:
- Go to SAM.gov and look around.
SAM.gov is the federal contracting website to go to if you’re looking for a contract for $25,000 or more. You may also look at contracts that have already been granted, which may help you prepare future offers.
- Look for a way to work as a subcontractor.
While the SAM.gov database deals with direct contracts with government agencies (known as prime contracts in official speak), there is another type of government contract that small companies could look into: subcontracting.
Subcontracting possibilities, as the name implies, entail negotiating contracts with current government contractors to execute projects.
Start Marketing to Agencies to win your first Government Contract
You can promote your small company directly to either targeted agencies or prime contractors if you’re in a very specialized industry or know exactly which government agency your small business is best suited to contract with. To do so, you’d use SAM.gov and SUB-Net to look for current procurement requirements. Then you may explain to those agencies why your organization is the best candidate for the job.
Procurement conferences, business gatherings, and even contract matchmaking events provide opportunities to network with agency decision-makers.
Even if an agency doesn’t have a current contract opening, taking advantage of direct marketing possibilities will help your company establish itself as a prominent “contract player” in your field of business among the government contracting community. Look into it. Burnt out?… check out this!
SBA’s government contracting assistance programs
The government understands that not every small company owner has the same chances. Who is why government agencies offer small disadvantaged enterprises that qualify for SBA’s small business programs priority treatment when considering bids.
Here are some of the government contracting aid programs you should be aware of to guarantee that your small business has access to every opportunity available:
• Small businesses run by women
The government sets aside particular contracts for industries where women-owned small companies are discriminated against. Furthermore, the federal government tightened contracting regulations in order to increase the likelihood of economically disadvantaged women-owned small companies getting federal contracts.
Visit the SBA’s official website to learn more about the advantages of women-owned companies.
• Disadvantaged small businesses
Socially and economically disadvantaged people operate small companies.
People who are economically disadvantaged are eligible to engage in this program. By earmarking roughly 10% of federal contract revenues each year for this initiative, the government provides additional contract chances to disadvantaged business leaders.
To see if your company qualifies as a small disadvantaged business, go to this website.
• Small company operated by a service-disabled veteran
Under this program, veterans, particularly service-disabled veterans, are eligible for specific set-aside contracts. Every fiscal year, the Department of Veterans Affairs (VA) devotes a significant amount of its federal contracting money to service-disabled veteran-owned small companies.
Veterans and service-disabled veterans do not just receive special treatment from the VA. Other federal agencies, such as the Department of Defense, provide set-aside possibilities to earn more government contracts.
Conclusion
It’s critical to develop a government-focused marketing plan, consider a value-based understanding of your company’s scope and abilities, establish a government-specific web presence, and have government-focused capabilities statements for each agency when marketing your products or services to the government. So let’s get out there Tech Rookies and win some goverment contracts!
Want more? Check out some of my other articles
[…] However, making sales a priority in your business can be challenging. You need to dedicate time and resources to the effort, and it can be difficult to measure the results. I also wrote about how a small business can win government contracts here. […]