When the pandemic hit, the commercial industry was hit hard too. A lot of businesses closed down, not to mention the global supply chain was severely hampered. Through it all, the government contracting industry persisted and stood strong.
It’s a great industry to be a part of, there are a lot of perks, like profit and stability. Let’s get you ready for government contracting.
- Your goals for the business should be parallel to government contracting.
You won’t get your first federal contract overnight. There are a lot of trials before you can thrive in this industry. You need to be patient, focused, and knowledgeable in your field.
Remember to play to your strengths. Weigh the plus and negative sides of federal contracting before getting into the game. This move should help your company grow in the long run. To your strengths.
For small businesses, sba.gov can offer a lot of assistance programs:
- 8(a) Business Development program, designed to assist mall disadvantaged businesses, 5% of federal contracting dollars will be awarded to these businesses.https://www.sba.gov/federal-contracting/contracting-assistance-programs/8a-business-development-program
- Women-Owned Small Business Federal Contracting Program, is a program that seeks to level the field for women-owned small businesses when it comes to government contracting. Take a look here: https://www.sba.gov/federal-contracting/contracting-assistance-programs/women-owned-small-business-federal-contracting-program
- The HUBZone program is aimed to assist small businesses in historically underutilized business zones. At least 3% of federal contract dollars are set-aside for HUBZones each year. https://www.sba.gov/federal-contracting/contracting-assistance-programs/hubzone-program
- Veteran assistance programs, for veteran-owned small businesses. This will help them access federal contracts and surplus personal property. https://www.sba.gov/federal-contracting/contracting-assistance-programs/veteran-assistance-programs
- Study the market you are going to be a part of.
Do your research. If you enter the government contracting industry just because of the lucrative profits and do not have a game plan, chances are, you won’t thrive in this world.
Create a plan, set your target federal agency, and then dig in. What does this agency demand from its contractors? How much does it usually get to spend on its contracts? Who has previously won contracts with the agency (your would-be competition)?
- Know The Federal Acquisition Regulation.
If you even want to get your foot in the door, then the FAR should be your new handbook. It has every rule and regulation for you to begin, maintain, and start anew in government contracting
- Learn more about the government regulations on businesses.
There are a lot of regulations that you need to be compliant with, including federal, state, and even local regulations. There are rules that may overlap. There are rules that are confusing too.
If you want to get a leg-up and want to simply do the work rather than burying yourself in countless rules and regulations; you may want to consider getting help on government contract accounting. Peter Witts CPA PC is always ready to help government contractors. It’s time you get a consult, today.