- Get ready: The federal procurement process is not an easy process to navigate. The first thing to understand is that federal procurement has its own unique set of rules and regulations which you must learn, called the Federal Acquisition Regulations (FAR). Under the FAR, selling to the government is not simply a matter of offering a fair price for good products to the right person. Instead, the government acquisition process is an animal unto itself, likely consisting of competitive (or sealed) bidding, among other buying procedures. So you need to learn about this process.
It is also a good idea to study the agency you may be targeting, and figure out how your product or service might fit in to its needs. Realize that the agency will look critically at your business, especially your financial status, staffing, history and track record.
- Pick a niche: Government agencies are required to meet various small business procurement goals. For instance, an agency may be looking to contract with a minority-owned business to help it meet its federally-mandated goals. Note, however, that any small business can bid on government contracts, but the ones below are given a special leg-up. They are:
- Women-owned businesses: A woman-owned business is one that is owned and controlled 51% or more by a woman or women.
- A small disadvantaged business: A small disadvantaged business is one that is 51% or more owned, controlled and operated by a person who is socially and economically disadvantaged. African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans, and Native Americans are presumed to meet this standard. Other entrepreneurs can qualify by showing, via a “preponderance of the evidence,” that they are disadvantaged.
- A veteran-owned business: This is a business that is owned 51% by a veteran.
- A service-disabled veteran-owned business: This business is owned 51% by one or more service-disabled veterans. The Veterans Administration confirms the disability.
- Get a CCR profile: To bid on government contracts, you need to register with the Central Contractor Registry (CCR). To register, you prepare a profile of your business explaining what it is you offer and what makes you unique. This “elevator pitch” needs to sell you in a short amount of time, so make it snappy (and be sure to mention your Web site.)
- Locate the contracting opportunities: For many small businesses, this is the hard part, but I have two great tips to make the search easier. First, contact the small-business liaison within each agency; each has one. If you meet with the agency’s small business specialist, understand that he or she is not the buyer but rather, a person who will point you in the right direction.
Second, consider attending a “Business Matchmaking” event. Business Matchmaking is a United States Small Business Administration program that is sort of like speed dating; it is a place where small business can have quick get-to-know-you meetings with government and corporate procurement officers.
Business Matchmaking is the brainstorm of Hector Barreto, the administrator of the SBA who recently resigned. According to Barreto, traditionally most of these government contracts went to small businesses “inside the beltway” (in and near Washington, D.C.) Barreto figured that other small business people around the country might like to earn some of these contracts, so he teamed up with Hewlett Packard and created Business Matchmaking, a sort of traveling road show of procurement opportunities.
- Sell: In the end, it is still business we are talking about. The steps above will get you in front of the right government contact with a possible contract, but then it is up to you to create rapport, explain why your business is better and different, and get them excited about what you have to offer, or, in other words, sell.
Forecast and Marketing to Government Agencies
Welcome to this quick tutorial on effectively managing your government business pipeline using Bidspeed. We'll walk...
