In good times and bad, the government must continue to serve the public, and a small business has just as much opportunity as a large one to win contracts. In fact, when competing in the government market, small businesses—especially certified small businesses—can often operate at an advantage.
Review the following ways that government contracting is good for small companies and determine if your business might be suitable.
1. The government wants to work with certified small businesses.
Federal mandates specify that nearly all government contracts over $3,000 and under $100,000 be reserved for certified small businesses.
2. Government spending is consistent.
Unlike spending in the private sector, government spending is somewhat predictable year after year.
3. The government pays its bills.
While slow collections and some unpaid debts are part of working in the private sector, the government typically pays within 30 days if you follow billing specifications.
4. Decision making is transparent.
Unlike some private sector buying, the government’s purchasing system is extremely transparent. Government agencies buy many of the products and services they need from suppliers who meet certain qualifications. They apply standardized procedures to purchase those goods and services. If you are willing to spend the time required to familiarize yourself with these guidelines, contracting can become a lucrative business.
5. Location doesn’t matter.
Federal offices are located around the country, so you typically do not have to live and work near Washington, D.C., to do contracting work for the federal government.
OPEN Forum: Government Contracting is a program designed to connect small business owners to government contracting opportunities, which are an often-overlooked revenue stream. To learn more about how to take advantage of this $500 billion opportunity, visit www.openforum.com/governmentcontracting.
Photo: HELLA BITTER, JOMAREE PINKARD, MEMBER SINCE 99
