According to collected data from the Treasury Department, the federal government eclipsed the $6 trillion spending mark in the 2020 fiscal year. This is the first time in our government’s history that spending has reached such a dollar amount.
Largely, spending was dominated by health care thanks to the global pandemic, but small businesses everywhere are taking notice of the opportunity at hand. So, how do you take advantage of all that spending?
The answer is complicated, but if you can take advantage, securing a federal contract can put your small business on the up and up. There is more than one way to do business with the government, but contracting vehicles have proven to be the most lucrative for small businesses.
You would be surprised how many companies qualify for government contracts. Don’t be left in the dust by your competition; take advantage of that record spending in 2020 and watch your small business rise from the ashes, and have success in times of hardship.
Government contracts are an enormous financial opportunity for small businesses across the country. The U.S government requires so much purchasing that it is required by law for them to buy from small businesses.
In a recent article, Forbes said that government contracting is recession-proof. If your business is struggling due to a lack of consumers or the current pandemic, selling to the federal government could be critical to future success.
The federal government aims to award a quarter of all contracting dollars to small businesses, giving them a significant advantage over large corporations.
This opens the door for companies all across the country, no matter how small, to secure a quality client that will deliver consistent pay.
If you offer a worthwhile product or service, you can expand your business to the federal government and take advantage of their enormous spending capacity.
Though there is some healthy competition, federal spending can give you a trustworthy and consistent customer to sell to. Other benefits from selling to the federal government include:
Additionally, receiving a seal of approval from the government shows that your company is worthy of any business. It displays that you went through a difficult vetting process, and your product or service is superior enough for the largest consumer in the world.
Like every good thing, there is fine print to government contracting. Numerous challenges will present themselves, and your small business needs to be prepared to handle them. That’s why hiring someone like Government Services Exchange will expedite the process and ensure your chances of approval.
The federal government has a laundry list of rules and regulations. Every contractor registered under the System for Award Management (SAM) must abide by the regulations.
Adhering to these strict rules is a challenge for businesses large and small. With the guidance of GSE, you can guarantee that you’ll be prepared to follow these ordinances.
As we can see from the new spending report, the government is not afraid to purchase. This develops a wide range of sellers hoping to receive contracts with a federal, state, or local agency.
Don’t worry, though, if you sell your product or service well and run a quality business, it can turn into a long-term agreement that will provide consistent pay for your business. Not to mention, it features far less competition than the open market.
Your small business must meet specific qualifications to be approved to bid on or win government contracts. Most companies with 500 employees or fewer and under $7.5 million in assets will qualify as small businesses.
However, certain companies in the cybersecurity and information technology industries can make up to $30 million and still be considered small businesses.
First things first, you are required to register with the SAM and receive your CAGE code. Once you’ve done that, the federal government is prepared to accept an entity.
When your small business is accepted and receives a CAGE code, you are on your way to selling to the federal government. Remember, your company must remain compliant with the standards on the agreed-upon contract.
There is always healthy competition when it comes to specific government contracts, so marketing is essential.
If your company is not correctly registered or not sufficiently marketing products to buyers, your small business will suffer and not take advantage of all that federal spending.
As we speak, government purchasers are evaluating their options and looking to award contracts for 2021. To make sure your small business is prepared, you need help.
GSE provides a dedicated team that is experienced in government spending from local agencies to the federal level. If you need to get a SAM registration in place or want to optimize your proposals for contracts, we can help your small business every step of the way.
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Five Obstacles to Obtaining a Government Contract
