By Helen Callier
It is October and the US Federal Government, the world’s largest single buyer of goods and services, will spend hundreds of billions of dollars in its new fiscal year. This combined with local and state government agencies’ procurements, with billions of dollars to spend annually, makes the government market an ideal arena for small businesses to build their revenue. And given the goals that government agencies have in awarding contracts to small businesses, the government marketplace is an important market for small business to consider as a way to grow and to become successful.
The small businesses that are successful in consistently winning government contracts are not successful by happenstance. Market data show five key strategies that help small businesses to be successful in securing contract awards. Three of these strategies are as follows: 1) Start Small and Grow Over Time, 2) Be Persistent and Stay in the Game, and 3) Propose More and Invest More.
Start Small And Grow Over Time – This strategy allows small businesses to gain a foothold at a target agency account and allows the opportunity to build relationships and gain valuable experience. The Start Small / Grow Over Time strategy involves the small business to:
- Focus on one or two target agencies and seek smaller prime contracts sometimes ranging from $25,000 to $250,000 (varies depending on specific government agency’s procurement process)
Pursue purchase order type contracts for goods or services under $25,000 (will vary)
Team as a subcontractor to a large prime
Another way to leverage this strategy is to team with another small business that offers complimenting or similar products or services which allow your small business to pursue larger contract opportunities with a combined small business team force.
Be Persistent and Stay in the Game – Being persistent is important in landing government contracts. Government agencies’ procurement cycles often take a long time in comparison to the private sector. It may take up to 2 years to win your first contract on the Federal side; and it will take months with most state and local government agencies.
During this long timeframe, successful small businesses stay visible and remain in the sales and marketing game by participating in procurement pre-proposal meetings, attending matchmaking events, researching agency web sites, and networking at government procurement conferences. This strategy can assist you in building relationships and marketing your small business to key persons at targeted agency accounts.
Propose More and Invest More – Many small businesses burn out and quit after failing to win a contract the first or second time proposing. This is counter to those small businesses achieving success and consistently landing work in the government market.
Successful small businesses in the government space are more active. They submit more bids or proposals than those small businesses that give up. If they were unsuccessful in winning a contract award, data show that successful small businesses often seek a post contract award debrief meeting and obtain information on reasons for not winning. This meeting also allows them (successful small businesses) to continue marketing their firm’s services or products, and sometimes can learn about upcoming future opportunities.
In addition, Small Business Administration (SBA) data show that successful small businesses in the Federal market invest more time and money. Note: The same data outcome holds true in local and state market sectors. These small businesses are unique and successful because they consistently market their products or services, regularly meet and nurture relationships with key agency personnel such as Procurement Officers, Project Managers, Contract Administrators, and Small Business Specialists.
Also, those small businesses that are successful in winning projects do the following:
- Keep company profiles updated in key agencies’ small business data bases
Maintain and obtain new certifications, as appropriate, such as small business certification (SBE) or Woman Business Enterprise (WBE) or Small Disabled Veteran Owned Business (SDVOB)
Take advantage of technical assistance training through various agencies and organizations such as Procurement Technical Assistance Centers (PTAC) funded by SBA
Participate in coaching and mentoring programs
Leverage social media and technology, respectively such as Linkedin, Twitter (great for market research too), Pinterest, Youtube, and more
Being in the government market – local, state, federal – require a proactive plan to win and successful small businesses take specific actions that the unsuccessful small businesses have selected not to do. This article provides a glimpse on proven winning strategies to build your small business revenue, achieve growth and a solid business foundation via government contracts.
For more tips and strategies for winning government contracts, make sure to read the November issue of Small Business Today Magazine at www.sbtmagazine.net for part two of this three part series on “Winning Government Procurement Strategies of Successful Small Businesses”. In Part three of this series, helpful resources will be provided to assist your small business toward success in a market that represents hundreds of billions of dollars.
Helen Callier, President of Bradlink LLC, a Technical Services Firm, bestselling author of “Your Money is in the Follow-up”, radio show host and speaker. Tel: 281.312.9981, www.yourmoneyisinthefollowup.com
