Tap into the Biggest Spender :: Doing Business with the Federal Government

Tracy Johnson for Business.gov

With the looming recession upon us, businesses are starting to cut back their budgets for goods and services, while the government has plans to increase spending in an effort to boost the economy.  Small business owners feeling the economic crunch are starting to take notice of the big spender named Uncle Sam and seeing how they may get a cut of those Federal dollars.

Compared to a shark pool of big named government contractors, entering into the Federal market is no easy task.  As a small business; however, you have some advantages in this venture.  The federal government has a number of programs and services that help small business successfully compete for federal contracts.  As with any new business venture, it’s important to understand the opportunities available to expand your business and what to expect when entering into a contractual relationship.  Doing business with the federal government is a process with several unique requirements that are unlike other contractual relationships in the private sector.

Where to Start?
The U.S. Small Business Administration offers a FREE online course to introduce small business owners to the world of government contracting.

How does the government buy?

The government is only able to purchase goods and services that are pre-approved and available through government schedules.  GSA (U.S. General Services Administration) provides one of the broadest, government-wide contract vehicles.  As the most well-known name in government contracting, the GSA offers a free training guide for “Obtaining a GSA Schedules Contract.” The GSA also provides a lot of solid advice for small business owners through the Office of Small Business Utilization.  This office’s sole mission is to promote increased access to GSA’s nationwide procurement opportunities.

Why small companies, like me?

Government agencies offer businesses the opportunity to sell billions of dollars worth of products and services.  Many government agencies require that some percentage of the procurements be set aside for small businesses.  Often times these requirements are met by a small business owner being a “sub” on a contract with a large company as the “prime.”

An entry point

Being a sub-contractor is the most common entry point into selling to the government.  The Federal government wants to hire someone they know and trust, which often means someone they have done work with in the past.  This can make entering into this market extremely challenging with a slow ramp-up period.  A great entry point is to apply to be a “sub” on a contract.  Find a company with which you can partner to provide a more comprehensive offering to the government.  If your product or service offers unique value, the “prime” contractor will be glad to have you join their team, because it will increase their chances (and in turn, YOUR chances) of being awarded a government contract.

Think you are ready to do business with Uncle Sam? Start the registration process now to become a Federal contractor.

Already registered? Find Opportunities now!