We all know that the path of small business can be perilous. In a political, economic and consumer climate that seems to stack the deck inexorably in favor of big business, sometimes it can feel as though the little guy can never catch a break. Independent coffee shops and micro roasters can provide the very best coffee and most unique customer experience… But they’ll still be met with frustration when patrons walk straight past them to get to Starbucks. Delicatessens can tear their hair out trying to source the best ingredients and use them to create delectable sandwiches, yet find that their clientele has been conditioned to head for Subway or McDonald’s when they’re hungry. Of course, this frustration isn’t just limited to the service industry. From engineering and construction to the creative arts, numerous small businesses are driven to the point of madness when they just can’t seem to find the right customers.
However, there’s one customer that will never grow tired of using small businesses. One with deep pockets and boundless loyalty for those prepared to earn it… The government. That’s right, it’s a requirement that the government give 23% of its yearly contracts to small businesses. A state, federal or local government contract can be a blessing for a small business. But getting one can be challenging. Here are some ways in which you can boost your chances of landing a government contract for your small business…
- Know their needs… They may not be the same as your B2B clients
As this engineering firm is quick to point out, when dealing with municipal bodies it’s important to remember that their needs will differ somewhat from those of other private companies. Like them you’ll need to plan your services around complementing their in-house resources. If you’re a stalwart B2B veteran, this may require you to unlearn some habits. Government entities have different priorities and strengths to your clientele in the private sector. The better you’re able to demonstrate that you understand your needs and can tailor your services accordingly, the better your chances of winning a lucrative contract.
- Make sure that you actually are a small business
Depending on where you operate you may need to double check that your enterprise fits within the parameters of a small business in the eyes of your government. What actually constitutes a small business may vary depending on your government and your industry.
US businesses, for example, will need to check their North American Industry Classification (NAICS) code for your business here, and then find your appropriate code in the Table of Small Business Size Standards. Here you’ll find listed the maximum number of employees and / or gross profit margins a business must have.
- Register your business
Assuming that you fall within your government’s parameters for small business standards you’ll next need to register with the appropriate systems. Again, in the US this is the System for Awards Management (SAM). registration is free and once completed you will be entered into the Dynamic Small Business Search (DSBS) database. In the US you’ll also need a Dun & Bradstreet Number (D-U-N-S) for each of your physical premises.
- Know where to look for contracts
Finally, before you can bid on contracts you need to know where to look for them. SUB.net is a good place to start while FedBizOpps is the government’s directory for federal business opportunities. Wherever you do business, it’s likely that your government has similar directories.
When you know how to net government contracts, you may find that you have a brand-new best customer!
