Small Business Advice: How to Win Government Contracts
An increasing number of government contracts have been given to small businesses in recent years. And with Congress being clearly on the side of small businesses and the federal government even setting up micro-contracting procedures (to facilitate smaller contracts), the prospects are rather good.
If you want your small business to get your piece of this pie, be guided by the following tips
Be sure that you qualify as a small business.1.
First off, incorporate your small business. “Small business,” as per SBA’s definition, is based on how many people are working in the business and how much it’s making annually on average. The North American Industry Classification System (NAICS), on the other hand, qualifies small businesses according to industry.
Build a good standing.
A small business can only be eligible for a government contract if it is in good standing in the state or states where they do business. This means having updated licenses, franchise taxes, annual reports, and other requirements. A non-compliant small business can lose its authority to do business in the state, which turn diminishes its chances of securing a government contract.
Register your business
The System for Award Management (SAM) website handles the registration process for all small businesses taking a shot at a government contract. This website is not only meant to store your pertinent information as required by government agents, but it is also lets you market your business and make it stand out above the rest in your category. Also, doing business with the U.S. government requires you to have a DUNS Number, which is essentially a unique nine-digit number that serves to identify each of your business locations.
As soon as your small business has met all the requirements, you are now ready to become a government vendor. The SBA website has a feature that match small business owners with suitable government contracting opportunities. You can also check out the Federal Business Opportunities (FBO) website, where you can find business opportunities more than $25,000, including bidding information.
Take full advantage of certain programs.
Some programs are actually designed for specific types of small businesses (for example, women-owned and veteran-owned businesses). All key information, from regulations to opportunities, can be found in the FBO website.
Many small businesses will find government contracts to be such a profitable and yet mostly untapped source of revenue. The process is not the simplest, but thankfully, a lot of resources are available to help those who would like to do business with the government. Of course, it is important to assess the credibility of the these resources to ensure that only the correct information is received.