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 contracts would make you a business with one of the biggest possible customers in the country.
Recent statistics show that the government is already spending trillions of dollars each year. With this amount of government spending, it is possible for small businesses to take advantage of it. Winning government contracts is something that small business should strive for. Government spending allocates a certain percentage for use with small businesses. Winning government contracts should then be one of the objectives of any small business. The reason why small businesses are allowed to win government contracts is because government supports and promotes the growth of small businesses.
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. Small businesses sometimes feel inadequate when they have to compete with large businesses that have more experience and can give the lowest possible bid. They think that competing with these large businesses would not give them any chances of winning.
The reality is that you don’t have to compete with big business when it comes to winning government contracts. You don’t have to stress yourself over offering the lowest bid if you will do business with the federal government. To encourage you, you need to know that lowest bidders don’t often win contracts with the government, and this has been shown to happen 80% of the time.
So winning government contracts is not really about being the lowest bidder. So you might be wondering how your small business can win contracts with the biggest customer?
Most people want value for their money and this is precisely what government wants also – value for their money. It is not useless to emphasize that it is not your low bid that will win you the contract. But, it is about the ratio of value and cost. Government looks for best value instead of low cost.
39% of government spending is allocated to small businesses. 39% is a relatively large percentage, so there is plenty of chances to be able to work with the government. Since there is also a percentage of spending allocated for large businesses, you don’t have to compete with them.
Knowing your products and services well and presenting them in an exciting manner to the government can help you win a contract. You should be able to answer why the government should give you the contract in a very convincing way. It is also very important to show them that you can offer the government the best value for their money. Offer them quality with your low bid. This is the best way to win government contracts.