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Winning Government Contracts for Small Business
The Federal Government spends more than $700 Billion per year
The States spend over $4 Trillion
The Small Business Opportunity
A minimum of 23% of all federal purchases must be fulfilled by small businesses, creating an extremely attractive and profitable market for small business. These contracts are for products and services which range from construction to equipment to technology development to staffing services, making it the world's largest consumer of goods and services. See the definition of small business here.
Add to that trillions of dollars of spending at the State and Local level, and you will see that government contracting can offer not only highly profitable revenue streams, but also steady and reliable ones.
The Benefits
The private sector continues to shrink, and more and more businesses today are on life support, struggling just to pay their bills and keep their doors open. Government spending, however, is fairly consistent. In 2008, federal government agencies spent approximately $518 billion on contracts for goods and services, $456 billion in 2007, and $423 billion in 2006. 2009 was projected to be over $700 billion.
Businesses selling to the private sector are having enormous difficulty collecting payments on time, if they can collect on a payment owed at all. A government contract is like cash in the bank - they typically pay within 30 days, as long as you follow the proper procedures to bill them.
Even in recessionary times, the government must keep spending in order to serve the public. Its goal is to have small business be involved in a large part of this work.
With over $700 billion in economic recovery funds still left to be spent, the potential for small businesses to make it big in government contracting has never been greater.
The Challenge
Even with a federally mandated goal of 23% of government contracts being awarded to small businesses, the number of small businesses currently bidding and performing on government contracts is still very low. Government quotas for spending on all types of small businesses are not being met.
Here is the problem: most small business owners do not know how to apply for government contracts or whether they even qualify to. They don't know how to find jobs to bid on, and they lack the time and expertise required to handle the red-tape, bureaucracy, and paperwork that go hand-in-hand with government contracts.
Newcomers to the government bidding process might assume that a low price is all it takes to win a government bid. Not true. Past performance is almost always rated higher than price. Your bid package needs to sell the government on the benefits of working with your business. It is a given that getting government work requires paperwork, and that paperwork needs to be flawless in order to be accepted.
The Solution
So how can a typical small business owner navigate the complex government marketplace to success and profits?
Well, you could rent some larger office space and hire people to help you find, bid and win projects. A competent market researcher costs about $75,000 to $100,000 per year, and a good government sales person will add another $80,000 to $200,000.
You could spend at least 40 hours or more per week researching jobs, reading government documents, trying to decipher paperwork, or surfing the web to figure out what you need to do.
Or, you can take advantage of an affordable solution specifically designed by Government Bid Support to help small businesses win government contracts. We can give you the edge you need to succeed and profit in the world's largest marketplace.
Get started immediately by requesting a free consultation and review of your business, or check out our services for more information.