If you're looking to build your resources and expand your business, getting government contracts is the best solution for you. Having government agencies as clients can be a real asset for companies. Government contracts can offer numerous benefits for small businesses. Companies should look for contracts that best match their scope of work and business qualifications. Although sometimes it may take a lot of time and resources to get one, they are crucially worth it for the future of your business. Here are five main benefits of getting government contracts:

Benefits of Getting Government Contracts

Consistent Payment.

With a government contract, you will keep on receiving monthly revenue. Government contracts are usually long–term contracts. So, a company can have a stable cash flow with considerable profit margins. This is very important as having a cash flow in a business is ideal for consistent growth. Also, in case of emergencies having cash flow within your business would be to your advantage.

More Connections.

Having government contracts will open you to more opportunities as future clients will find you attractive and have more trust in your company. It will also increase your networking potentials as you'll be more likely to develop relationships with people who will introduce you to more lucrative opportunities. As you get new business opportunities, if you become able to delight your clients, these clients will give referrals to work with you. Hence a chain of new business opportunities will be created for your company.

Strengthen Your Company’s Value.

Additional revenue will lead to an increased workflow thereby increasing the overall value of your company. This will be highly beneficial in the future as if you decide to apply for a loan or credit you have higher chances of winning the contract. It increases the credibility of your company and helps in building a good reputation. As credibility is the number one factor for building a loyal customer base hence these contracts can help you with that. A business will earn a considerable profit margin along with that it will also earn goodwill which is clearly an intangible asset for the company. Goodwill helps in building a relationship that ultimately supports the long–term success of the business.

Four Things to Note Before Applying for a Government Contract.

1) Assess Your Business 

For your business to get a government contract it first needs to qualify for the bidding process. You have to perform a simple evaluation of your business to know if you are capable of winning a contract or not.

• Does your business have a good track record of delivering quality goods on time and on a budget?
• Is your reputation in the industry strong?
• Does your business qualify for being small?

Always remember that the Federal Government prefers to work with reliable, established, and trustworthy businesses.  Primarily the organization that offers better experience and price is more likely to win the contract.

2) Meet the Basic Requirements.

Before your business can compete for government contracts you have to ensure that you’ve met some basic requirements. It is really important to carefully check whether or not these essential requirements are met. As first government agencies will check your proposal. So, make sure all the evaluation factors and requirements are met beforehand.  Click here for more details on Federal Contracting Basic Requirements

3) Types Of Contract.

 There are different types of government contracts, and you need to be informed on the type of contract, you want to apply for. The government has divided contracts into different types so that opportunities are fairly divided among different kinds of businesses. Click here for more details on Federal Contracting/Types of Contracts

4) Know Where to Find and Apply for Government Contracts.

There are many databases you can use to find government contracts among which includes:

Beta Sam

 It serves as a database of all government contractors. Companies looking for government contracts or grants should be registered in this system. Government agencies are required to advertise contracts over $25,000 on the Betasam database. Many Federal Business Opportunities can be found on this website.

Dynamic Small Business Search (DSBS).

You can use the Dynamic Small Business Search database to search for available government contracts and other small businesses to work with. With your provided details you would easily be matched to available contracts. This database is basically used by government agencies to find small business contractors.

Federal Procurement Data.

With this Federal Procurement Database, you will see which agencies have contracts, agencies to buy from, and with whom these agencies have contracts. Having your hand on this information, you will have an idea of which agency to market your contract to.

USA Spending

With USASpending.gov you will be able to track the revenues issued out by the government. This searchable database has information on each federal contract. You can use this information to identify potential opportunities.

Bonus Tip: How to Win Contracts.

Prepare to Invest.

Winning a business contract takes more preparation than you think. Businesses that have succeeded in winning contracts devote time and money to the preparation. You need to be prepared with many things like the compelling proposal, carefully reviewing solicitation documents, providing all the essential information. A company must be clear about what the government is expecting and how they can provide a solution that the government is looking for.

Find an Advisor.

Try attending information sessions, networking events, webinars that government agencies hold. If you don’t know someone that has been involved in federal contracting it can be difficult for you to get it on your own.

Diversify Your Clients.

There are active federal contractors among small business owners. Varying your clients insulates you against cutbacks in one agency.

Don’t give up trying again. 

Even if you don’t win the contract you applied for, keep on applying for other available contract opportunities. As there are different types of contracts, the probability is you will win that which best matches your ability.

Build strong networks: 

Having strong networks can increase your chance of winning government contracts. It will also make your proposal strong. Hence, in long term focus on building strong networks.