Taking on government contracts is a great way for businesses to get regular income because the government is always investing a lot of money in the economy. Government contracts tend to go to larger companies so a lot of small businesses don’t even consider it, but if you go about it in the right way, you do still have a chance of getting your foot in the door and winning some contracts.
When you start to build that relationship, it’s likely that more work will come your way and that can really help you to drive growth. Having regular government contracts to fall back on means that you’ll always have a steady income, even when your sales in the private sector are low. If you haven’t looked into government contracts before, here are a few ways that you can get them.
If you start bidding on government contracts that are worth $100,000, you’re not likely to get anywhere. Those big contracts are going to go to bigger companies that already have a close relationship with the government. If you’re going to win contracts, you need to start small. Look for government contracts on the contracting opportunity finder and focus on ones that are worth a few thousand. You’re far more likely to get those ones and it’s a good chance to prove yourself. When you’ve taken on a few smaller contracts, then you’ll be able to start bidding on the bigger contracts.
Consider Government Regulations
There are a lot of regulations about how government entities have to operate, and those regulations extend to their partners. They won’t work with companies that don’t meet the same standards as them. Health and safety is a big one so make sure that everything is up to code, and you should also hire government cleaning services so you can be sure that your office meets the government’s cleanliness standards. It’s likely that they’ll want to see your business before they award you the contract so it’s important that everything is in line with their regulations.
Prove Financial Responsibility
This is a big one because government organizations won’t want to partner with a business that can’t handle their finances properly. If you’ve got any issues with your business finances, it’s important that you deal with them properly before you start bidding on any contracts. You also need to make sure that you’ve got reports and forecasts that you can include in your bid to show that you can manage your finances properly and the business is equipped to handle the contract.
The honest truth is, you’re not going to win your first bid for a government contract. You probably won’t win the second or the third either. It can take up to 2 years at least before you start winning any government contracts, which is why it’s important to be persistent. Don’t be disheartened when you don’t win contracts, just start looking for the next one to bid on and carry on. Eventually, if you’re patient, you will start to win those contracts and build a good relationship with the government.
Winning government contracts is going to take time and hard work, but once you start building that relationship, it can help your business so much.