By now, you are already probably aware that small businesses have a very exciting opportunity to do business with the government. You probably have been tinkering about strategies on winning government contracts. After all, the federal government is by far, your biggest possible customer. The International Association of US Government Contractors reports that the regular federal spending is at $530 billion. This is in addition to the $787 billion budgeted for Federal stimulus spending. In total, you have more than $1.3 trillion worth of government spending to take advantage of.Do you want to learn more? Visit Federal Processing Registry for contractors.
If the figures above are not enough to make you strive towards winning government contracts, then perhaps this fact will: the federal government allocates 39% of its overall spending for small businesses. As an owner of a small-time organization, you must have the objective of acquiring contracts from the government. The government supports and promotes the growth of small businesses and it has done so by allowing small-scale businesses to have the chance to win these contracts.
The Big Scare
If you are a small business owner, you probably have doubts whether the government will give time to you. There are many big players out there who have the experience, and who can offer the lowest bid. How can you compete with that? You actually don’t have to. You don’t have to stress yourself over offering the lowest bid. In fact, in doing business with the federal government, you don’t have to be the low bid. Statistics show – and has proven – that 80% of the time, the low bid does not win with the federal government.
Best Value versus Low Cost-So what is the strategy then in winning government contracts? If it is not about being the lowest bid, then what would make you win contracts with the biggest customer in the world? Just like any other businessman, the government would want value for their money. And this does not necessarily mean that they will be choosing the provider that offers the lowest cost. Rather, it is about the ratio of value and cost – the federal government is also looking for best value, instead of low cost. Given that the government allocates 39% of their overall spending to small businesses, then there is plenty of room for you to explore. And you don’t even have to compete with the Big Boys and other Fortune 500 companies – because there is another percentage allocated for them.
Therefore, in winning government contracts, you simply have to know your services and/or products and be able to present them in a very exciting way. You need to be able to convince the government that you will be the best provider of such a product or a service. More importantly, you must be able to show them that you can offer the government with the best value for their money. You should not only go for being the lowest bidder. You should be able to focus on quality – in tandem with cost. That is your best way to do it.