If you are a small business, the prospect of doing business with the government is an exciting opportunity. You might be asking yourself what the best way is of winning contracts with the government. Winning a government contract is having the biggest possible customer as your client.
Trillions of dollars are being used in government spending today. This is government spending that you can take advantage of. This should make you strive towards winning government contracts. Another good thing is that the federal government allocates a large percentage of its overall spending for small businesses. This should encourage small businesses to have an objective of winning contracts from the government. Government supports and promotes the growth of small businesses and this is the reason why they allow small scale businesses to have a chance to win contracts.
Sometimes because of the size of their businesses, small business owners have a strong doubt of the government’s good intention to use small businesses for their contracts. This is because there are a lot of bigger businesses that have experience and who can offer the lowest bid. it would be very difficult to compete with these businesses.
The reality is that you don’t have to compete with big business when it comes to winning government contracts. 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.
Being the lowest bidder is not a guarantee to winning government contrats. So you might be wondering how your small business can win contracts with the biggest customer?
Value for their money is what the government wants just like any other businessman. 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. Government looks for best value instead of 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. Since there is also a percentage of spending allocated for large businesses, you don’t have to compete with 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. You should be able to answer why the government should give you the contract in a very convincing way. If you can convince the government that you can offer them the best value for their money. It is not only about offering the lowest bid; but with your low bid, you are also offering quality. The best way to win government contracts are in your hands.