How to Win Government Contracts for Your Small Business: Everything You Need to Know
Have you wondered how to win government contracts for your small business? Did you even consider it as a remote possibility? If you offer a great product or service that is useful to the Federal Government, there is no reason why you cannot aim to win a federal contract.3 min read
Have you wondered how to win government contracts for your small business? Did you even consider it as a remote possibility? If you offer a great product or service that is useful to the Federal Government, there is no reason why you cannot aim to win a federal contract.
A federal contract can turn a small business into a huge conglomerate if the contract is successful. No matter the size of your business, you can aim high and work to win a government contract.
Why Seek Government Contracts for Small Business?
Just like any other large organization, the Federal Government often needs to buy goods and services to operate optimally. From toilet paper to military vehicles, all of these items are contracted out by the government. If you sell to other businesses or organizations, there is no reason why you cannot market to the government also.
While there are multiple opportunities for your business, there are some reasons why many business owners avoid getting into government contracts:
- The process can be intimidating. Many assume their company would never be considered because of its size, age, and other factors.
- Dealing with red tape and a lot of paperwork can be daunting.
Although there are some drawbacks, there are many more good reasons why you should consider seeking a government contract for your business. You could be missing out on a huge opportunity.
There are several reasons why you should work to get a government contract:
- The government is the biggest buyer in the word. It contracts up to $350 billion worth of federal contracts.
- There is a favorability for small businesses. By law, 23 percent of those contracts must be provided to small businesses.
- There is information available for the business owner to utilize when making a bid, which is very helpful and not common in non-federal contracts.
How to Win Government Contracts
Many business owners have utilized government contracts to help grow their businesses. The U.S. government uses more products and services than any other entity. Winning government contracts can be a game changer for your business.
All government agencies do not work the same way, so you will need to have a strategy to have the best outcome:
- When you are going to compete for government contracts, you need to carefully evaluate your product or service to determine exactly what you want to sell. To get a contract, you will have to meet a need of the agency you are attempting to partner with.
- Create consistency for your brand. All of your marketing needs to accurately reflect and represent what your organization does and how it stands out from your competition. The first impression left by your business is crucial. Pay attention to the image you are sending with the culture and messaging used in your business. Your brand serves as your promise to the market.
- Locate your company’s NAICS Code. This is the North American Industry Classification System code. This will classify the industry and company for your business. The code is required to register a business. You can call the Small Business Association to get your industry code. If your company works within many industries, you may need more than one code.
- Register for the System for Award Management, or SAM. This registers you to provide work for government agencies. It also lets you create a profile for your business so that procurement officers can easily locate your service or product. You need to update your SAM profile once a year to keep it active. It is best to update your profile quarterly at the bare minimum if you are committed to getting a contract.
- Determine the size of your business. Most do not give much thought to your business size since you know how large or small it is. For the purpose of getting a government contract for your small business, you will need qualify the size of your business according to SBA guidelines. You have to be defined as a small business to qualify for the special considerations by the government.
If you need help with getting a government contract, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.