Winning Government Contracts for Small Businesses
If you are a small business, the prospect of doing business with the government is an exciting opportunity. Perhaps you have been thinking what the best strategy is in winning government contracts. The reality is that if you win a government contract, then you have the biggest possible customer to deal with.
Government spending today has already reached trillions. This is government spending that you can take advantage of. Winning government contracts is something that small business should strive for. If you don’t already know, there is a certain percentage of the budget allocated for small businesses. If you are an owner of a small business then you should include acquiring contracts from the government in your business objectives. The growth of small businesses is supported and promoted by the government and it has done so by allowing small-scale businesses to have the chance to win these contracts.
Since their businesses are small, most of these owners are reluctant to accept government’s invitation for them to bid for government contracts. The reason for this apprehension is the feeling of inadequacy in the presence of large businesses that have more experience and are capable of giving a low bid. it would be very difficult to compete with these businesses.
Bidding for government contracts will pit you only with small businesses like yours and not with large companies. And if you will do business with the government you don’t have to offer the lowest bid. It has been proven that 80% of the time, the low bid does not win with the federal government.
If you want to win contract with the government, don’t focus so much on giving the lowest bid since this is not the surest way of winning one. What, then would make you win contracts with the biggest customer in the world?
Give the government value for their money and this will rewards you with a contract. We have already mentioned above that it is not always the lowest bidder that wins the contract. What is important is the ratio of value and cost. It is the best value that the federal government is looking for and not the low cost.
The government allocated 39% of its spending to small businesses. What this means is that there is plenty of room for your to explore. There is no competition with large businesses in trying to win contracts since they have their own percentage of government spending allocated for them.
To be able to win government contracts, it is important that you know your services or products and be able to present them in a very exciting way. Take time to convince the government that you will be the best service provider or product provider. If you can convince the government that you can offer them the best value for their money. If you are bidding a low cost, then it should be backed by quality services. By giving value for their money, you can win government contracts.