If you’re like the majority of small business owners, you’re attracted to the thought of government contracting, but don’t know where to begin necessarily. Don’t be fooled. While there can be some advantage to being a little business, especially one possessed by users of certain historically under-represented groups, government contracting is not an easy row to hoe.
The pursuing questions cover some cornerstones you’ll want to ensure form a good part of your base before you start building your business in this competitive market. Are you a recognized business? Government entities are risk averse. They want to know that your business is viable, responsible, and able before awarding you any funded work publicly.
We’ll discuss the ability part shortly, but to begin with the fundamentals, this means your business should be certified to do business in the state where the government entity you’re soliciting resides. Your personnel will need to have any necessary licenses or qualifications to execute the task you’re proposing to do. You ought to have all proper insurances set up, including liability, workers’ compensation, and automobile.
If required in your field of practice, you may want to acquire surety bonding, so would have to have that romantic relationship founded already. You’ll should also have the infrastructure in place, like a good computer system, the correct software to take care of any documents or reporting that might be asked of you, and a high-speed web connection. You’ll be likely to meet cyber-security requirements as well – an extremely important concern – so will want to be sure you have the proper resources open to comply.
- Department, the
- Experience with tests frameworks
- The impact of the risk event taking place to the project or business
- Assign key duties and focuses on
You will also want to be sure you have a professional-looking internet site, as this is actually the first place authorities buyers will look for information about your business, products, and services – and to gauge your legitimacy and capacity. Are you capable of doing the ongoing work? There is typically a section in virtually any obtain proposal (RFP) that requests your company’s features and past performance. Sometimes this can be based on individual team member resumes; other times the business itself must have performed comparable work for entities (definitely not government) of similar size and scope.
You will typically be asked to provide project descriptions and details along with contact information for the research at the company or business where you performed the task. The better your history of delivering effective, on-time, under-budget results, the stronger your position when it comes to winning government contracts. Can you afford to operate in the national government market? Two factors here enter into play.
The first is whether you are able the inevitable investment in business development staff, time, and resources that is required to successfully pursue government contracts. The development cycle can be long: up to 2 yrs before winning your first contract. The next factor makes consideration after you’ve gained an agreement: Despite all the government’s best intentions (quick payment works, for example), delays in payment occur. How long can your business to foot the bill for ongoing payroll and overhead expenses before your “lucrative” government contracting opportunity threatens to put you out of business?
Or think about projects what your location is likely to order and offer materials in advance, preceding to payment? Is in which a strong relationship with your bank or investment company Here, an established line of credit and an operating knowledge of difference funding resources becomes essential. How are you going to actually perform the task? It is an incredible feeling to win a government contract. It is also terrifying – because you now must perform.
There is no room to fail once you’ve stepped into this industry – at least not if you want to stay in it. Possessing a well-thought-out plan of strategy, a proven technique for delivering similar services, a strong team of experienced staff, and the versatility to problem-solve the right path through the difficulties that will undoubtedly arise can make or break your project performance. All of these factors interact to create you up for failure or success in government contracting.
For assistance in considering through these challenges as they connect with your specific business, you can reach out to your local Small Business Development Center (SBDC). The SBDC’s business advisement services are free, and confidential, funded by taxpayer dollars to help small businesses thrive and grow. Today Schedule an appointment!