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Expert Answers to Biz Questions
Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.
How To Grow Your Small Business With Government Contracts
If you are an entrepreneur who has just started a business, you're most likely looking for buyers of the products or services you offer. Reaching the general market can be tricky, but have you ever thought of selling your products to the government instead? Many entrepreneurs do this because the government has quite a demand for goods and services that might range from uniforms to plumbing supplies to shoring systems for highway work.
Every year, the US government awards billions of dollars in contracts. According to statistics in 2014, the amount of contracts awarded reached 1.1 trillion dollars. This shows that there is a huge opportunity to increase profit by having a contract from the government. It seems difficult to get awarded with these contracts, but the steps aren't that difficult.
The Government Helps Small Businesses
The Federal government is committed to help small businesses by allocating 23% of contracts intended for them. Although big companies have a greater advantage in securing a large government contract, they are not in competition with small businesses.
This isn't just a policy that the government is trying to implement. It's also dictated by Federal laws, so you can be assured that your small business has a place in the government's decision-making process.
It's ideal to begin selling products to the government. Aside from having a steady stream of sales, you won't need to invest heavily in marketing and advertising. All you have to do is to deliver your products or services.
Maximize the Opportunity
With a government contract, you don't have to worry how to dispose your inventory. Instead, your challenge is to ensure you are able to supply the needed items or units.
Some small businesses commit a certain quantity of supply even if the number is beyond their capacity. What they do is outsource to a third party company that can help them produce particular quantities.
For instance, your company has promised to supply some machines that need augmented moldings to the Department of Energy's supply depot. Finding companies that provide this type of procedure can be tricky, but with due diligence you could outsource your order to a company like Weiss-Aug to help you in this type of situation.
Increase Your Network
As an entrepreneur who owns a small business, a government contract is the best starting point to increase your business networks. The first network you will get is the government itself. You will be able to get along with key decision makers whom you can speak directly to in the long run.
Most contracts are also shared with other small businesses. This means you are providing a certain output, which is just part of the whole collaboration process. Such collaborations will expose you with other entrepreneurs who could be valuable partners or clients in the future.
How to Get Started
Here is how you can apply to get government contracts:
- Apply to get a D-U-N-S number
- Register with System for Award Management (SAM)
- Classify your business with NAICS
- Check if your products or services are eligible for GSA
Once you are registered, you can now start looking for opportunities within the government. Every agency has its own website, and this is where a government agency announces its need for procurement.
Conclusion
Getting awarded with government contracts is the goal of for many entrepreneurs. In some cases, the process entails auction or bidding in order to select the most ideal candidate. Nevertheless, there are a lot of government agencies in which the competition is not that tough.
Have you ever thought about applying for government contracts for your business?
Author's Bio:
Carl Aamodt
Title: Super-Connector at Outreach Mama
Carl is a super-connector with Towering SEO and OutreachMama, who helps businesses find their audience online through outreach, partnerships, and networking. He frequently writes about the latest advancements in digital marketing, and focuses his efforts on developing customized blogger outreach plans depending upon the industry and competition.
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