CONNECTING SMALL BUSINESS TO RESOURCES
LEARN MORE ABOUT THE OF GETTING GOVERNMENT BUSINESS
Businesses that already do business with the government know that government contracts can be an integral piece of their success puzzle. But for many, the concept is shrouded in mystery and the misperception that it’s too complicated or that their business is too small or that it simply doesn’t offer anything the government wants.
According to Lisa McGinty, the Executive Director of The Montgomery Area Chamber of Commerce’s Business Resource Center, these ideas are untrue. “Almost any business can go after government contracts, whether city, county, state or federal,” she said. “Government entities all operate like independent nations, and any product or service you offer, from office supplies to civil engineering services, is likely something they need.”
There are specific processes and steps that must be followed, but the potential pros far outweigh the cons. “Getting started is a procedure, but the bottom line is, you can do it,” said Thomas Taylor, Senior Small Business Advisor and Procurement Specialist at the Alabama Small Business Development Center Network’s Small Business Development Center (SBDC), located at Alabama State University. “Government contracts are absolutely worth pursuing. I would advise any business, especially a small business, to look into them. The opportunities are really endless.”
Indeed, government contracts can aid you in increasing your business’ size, abilities and profits. “I have seen a small business of just 1 to 2 people grow quickly due mainly to it getting a federal government contract,” said Temisha Young, Director, Community Strategies. Taylor echoed Young. “Contracts really expand your opportunities by expanding your revenue and growing your business,” he said.
READ ON TO FIND THE FACTS AND A FEW VALUABLE TIPS FROM AREA EXPERTS.
FACE THE FACTS - Some Quick Insights
FACT: GOVERNMENT CONTRACTS ARE DIFFERENT FROM OTHER CONTRACTS YOUR BUSINESS PURSUES.
“Everybody can do it, but it is not necessarily for everybody,” said Taylor. “It all depends on you as a business owner and depends on what your goals are. It is all about readiness, all about being properly equipped. You start by finding out what a particular contract is asking for and then ask, ‘Do I have the capability to provide that?’”
FACT: YOUR BUSINESS IS NOT TOO SMALL TO GET GOVERNMENT CONTRACTS.
Federal government entities are actually required to do a certain amount of business with small and minority owned companies. Seventy-five percent of the contracts with NASA are with small businesses. In addition, the large businesses in contract with the federal government have a requirement to sub-contract out to small businesses.
Here at home, the city started The Small and Minority Business Initiative to increase the participation of small and minority businesses in their contracts. “They set a goal for 30 percent of its contracts going to these businesses in our area,” said Young. “And the county is now building a similar program.”
FACT: IT’S EASIER THAN YOU THINK.
“Thinking that it is too convoluted, too hard, too much trouble keeps so many businesses from even trying, and it’s just not true,” Young said. McGinty agreed. “Doing business with the government is actually pretty simple,” she said. “Every contracting authority has a central listing of contractors, and you start by getting yourself on that listing.” Then, you watch for contracts being offered and research who has gotten contracts before — just like you would for any business opportunity. Next, figure out if/how you need to build your business to be competitive. “And then submit a bid,” McGinty said.
FACT: THERE IS A LOT OF HELP AVAILABLE. AND MOST OF IT IS FREE.
The rules and procedures for every level of government are different, but the SBDC is here to help. “The SBDC exists for that reason, to walk businesses through the process and provide the hands-on technical assistance and coaching they need to enhance their operational readiness and help them have a better chance to be successful,” Taylor said. “And there is no charge for our help.” “At the Chamber, we have great relationship with Taylor and The Small Business Development Center,” McGinty said. “They provide valuable counseling, and we use them often.”
A MAJOR DON’T
Thomas Taylor has been the Senior Small Business Advisor and Procurement Specialist at the Small Business Development Center for seven years, so he’s seen some mistakes made. Here’s a big one to avoid: “Don’t misrepresent your core competencies,” he said. “People do it in eagerness to get the contract, looking at the money, but then they get in trouble when they can’t deliver. Just do what you do, and do it well. That’s the way to succeed with this, and with anything.”
GO FOR IT - START WITH THESE STEPS TO GO AFTER GOVERNMENT CONTRACTS.
- Get a Data Universal Numbering Systems (DUNS) number online for free at fedgov.dnb.com/webform.
- Register your business on the federal government contractors database — the System for Award Management.
- Register as a vendor for state contracts, sign up to receive Requests for Proposals (RFPs) and search for state contract opportunities at purchasing.alabama.gov.
- For the City of Montgomery and Montgomery County, start by registering and requesting to be added to their bid lists. Call 334-241-2605 for the city and 334-832-1269 for the county.
NEXT:
- Do a little homework. Learn the differences between different government agencies — what they do, what they are looking for, etc.
- Get some references ready. The government (at any level) strongly considers past performance.
- Review available contracts.
- Submit a bid.
FOR ADDITIONAL HELP, CONTACT THE BUSINESS RESOURCE CENTER
Bonus Fact: DID YOU KNOW?
EVERY YEAR, THE U.S. GOVERNMENT AND ITS AGENCIES PROCURE APPROXIMATELY $4 BILLION IN GOODS AND SERVICES FALLING INTO MORE THAN 4,000 CATEGORIES. FOR MANY PRODUCTS AND SERVICES, THE U.S. GOVERNMENT IS THE BIGGEST BUYER ON THE PLANET. (Source: Entrepreneur magazine)
INSIDER INFO
Lynn M. Carter, President of Southeast Cherokee Construction in Montgomery, knows the benefits of going after and getting government contracts first-hand. She shared some of her wisdom.
“We have gotten contracts through the Small Business Administration’s ‘set-aside’ opportunities, and these contracts have allowed us to expand our geographical market and our customer base, so they are absolutely worth pursuing. But, it does take continual work.”
HER TIPS:
- Just because you get one of the SBA “set-aside” designations (for small businesses in general, for female owned, veteran owned, etc.), your work isn’t done. “That is just a tool to open doors.”
- Be persistent and form lasting relationships.
- Face-to-face marketing is key. “Take advantage of the events and conferences put on by various agencies and the Chamber, the SBA, etc. These events allow you to market to various customers from numerous locations/installations all in one day/place and are great for time management and for limiting travel expenses.”
Learn more about government contracts and find resources at montgomerychamber.com and coba.alasu.edu.
