Securing contracts with local, state or federal government agencies can offer many benefits and advantages. These partnerships usually come with a strong degree of stability as governments are typically looking for long-term contracts and don’t change their vendors as frequently. Additionally, winning government contracts helps to boost your reputation and authority in your industry. Plus, collecting payments is usually much easier as their financial workflow is streamlined and well optimized.
So what can you do to improve your chances of winning those coveted government contracts?
There are a number of things to keep in mind when moving in this direction. A good starting point is often to target small contracts initially and establish a few wins. This will help build a long-term relationship with government agencies and reinforces your ability to effectively complete the work outlined in the contract.
Staying focused and targeted on a few specific areas that complement your expertise will typically go much further than stretching yourself too broad.
Government buyers are not always looking for the lowest price but rather, the overall quality for the price. With this in mind, ensure that you’re offering exceptional quality along with a competitive price. Providing low-quality deliverables will negatively affect your ability to secure future contracts, regardless of how competitive your pricing is.
For more helpful tips on winning government contracts and learning more about government funding options, read on below.
From Ron Flavin:
Investing time and resources long before preparing your first government contracting proposal is the single most important step you can take to help your business win a government contract. In my experience, when it comes to responding to a government contract request for proposal (RFP), most entrepreneurs wait until the last minute to get started. And when their proposal doesn’t get selected, they wonder why.
Before you begin developing your proposal, you should know everything you possibly can about your target. This is critical because you want to be sure to tailor your proposal to best meet the needs of your target government customer.
There are a lot of excellent resources available to help you research and understand your target government customer, the competitive landscape, contract volume and more. Here are some of the go-to resources that I use before responding to a government contracting request for proposal:
- GSA eLibrary - here you can find everything you want to know about GSA (General Services Administration) contract awards.
- Beta.Sam.gov - this is a new site that is replacing the former FedBizOps site. Here is where you can search for current, past and upcoming government contracting requests for proposals.
- Schedule Sales Query - this site enables you to uncover sales, business size, and NAICS information for Federal Supply Schedule Contractors (competitive landscape).
- Vendor Support Center - here you can find a host of tools and resources to help you win government contracts.
All business owners want to grow their revenue. One cost-effective strategy for growing revenue and increasing sales is to win government contracts. This occurs when a governmental agency signs a contract to purchase goods and/or services from a small business. However, it is important to note that merely signing a contract does not guarantee that the governmental agency will indeed make those purchases.
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Important Industry Happenings
- How to Win a Government Contract (via Entrepreneur)
- The Secret To Winning Government Contracts Isn't What You Think (via Forbes)
- 6 Steps to Win More Government Contracts (via Inc.)