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Thursday, February 15, 2024

10 Tips to Expand Your Small Business Client Base Mix For Stability In Government Contracting

1. A mix of commercial and government business is good. In fact, most small business federal government contractors who move from commercial to government work, remain in commercial business.  They separate government from commercial work in unique cost centers of the company for pricing and cost control purposes, recognizing the market and competitive differences in the two venues.

 Cost Center Strategic Planning 

2. Your marketing efforts must be sensitized to swings in world events, geopolitics, domestic priorities and technology trends. 
3. The over 100 federal government agencies all have the same small business contracting requirement under the law. Focus on government contacting applications for your core business by exploring agencies other than those with whom you have been doing business.

SAM Contract Opportunities
4. Industry partners are an excellent way to move into new fields.

Small Business Teaming 

5. Keep an eye on USA Spends and a close view of the domestic vs. foreign emphasis in the federal budget.  (War vs. bridge repairs). 

 USA Spends

6. Remember there is not much agencies of the federal government do not buy and they buy in huge quantities. 

 7. If your high-end navy IT customer requires support, security or related services, it is likely his or her counterpart in the Department of Agriculture or Health and Human services requires the same expertise.   This rule holds true for other services as well.

8. Maintain Your Capability Statement current with evolving trends and your growth. Seek to utilize it as a vital tool in your company marketing program.

9. Preserve your credit rating and your finances in top shape to respond effectively when opportunities arise. 
Government contracting contains certain front-end loaded risks that must be anticipated and managed. Many of these are addressed in the following article.Managing Risk.  Federal government agencies do not always appreciate the cash cash flow and financing challenges for the small enterprise in the timing of awards and funding.The wise small business manages this risk with a solid credit rating and lines of credit to buffer those types of challenges.

10. Remember market research is a continuing and ongoing process.

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