If you've been paying attention to the news and popular media in the past few weeks, you are sure to have heard about the meeting between Jon Stewart and Jim Cramer. Their debate is already going down as one of the most controversial in history. However, how many people are talking about the House decision on the SBA budget that came out at almost the same time?
Not many.
This is for the simple reason that, to most people, small business government contracting just isn't as 'sexy.' It is a dry, difficult topic which few people partake in and even fewer truly understand. However, it is just this topic with which you, the small businessperson, should be familiarizing yourself during these times.
As one of the benefits of the stimulus package, a House panel decided to approve a vastly larger budget for the SBA in 2010. This increase of over $700 million roughly triples the budget for next year, providing a wide array of advantages to the small business owners interested in doing work with the federal government.
The SBA is the small business owner’s best friend in the federal government. It is literally their job to make sure that you get contracts and money; adding to their powers is going to make it much more likely that a small business will be able to get a contract.
For one thing, the federal appropriation to subsidize SBA loans has been put back into place, which will make it easier to get funding and money from the Small Business Association. This will raise the overall amount of loans the SBA can back to over $28 billion. This is going to increase federal contracting opportunities over time.
By getting started now, your business can be perfectly positioned in time to get access to some of the stimulus billions. This decision to increase funding to the SBA is likely to add just that much more opportunity for your company!
Showing posts with label federal contracting. Show all posts
Showing posts with label federal contracting. Show all posts
Thursday, April 2, 2009
Tuesday, February 17, 2009
Step 7: Final Thoughts
Hello again readers, and welcome back yet again to Gateway to Government, the small business resource for government contracting. Over the past week I have been writing a new tip each day on government contracting. Well, it has been a long seven days but I think everyone should have learned something from our Seven Steps series! Today we finish up with the final, and in many ways most important step to being a successful government contractor.
Step 7 – Relax!
In the past I have noticed that business owners and employees tend to start to panic as the prospect of government contracting is raised or comes near. Don’t! Stress causes mistakes, difficulties, and shorter life-spans. If you are reading this, you know that contracting is a valuable step for any business to take, but it doesn’t have to be as difficult as you think – Gateway makes contracting easy for you.
We’ve taken all the necessary steps to make sure your contracting experience is as painless as possible. Don’t worry, with Gateway the process is simplified and we eliminate the hassle of bidding, as well as give you some major competitive advantages in the federal contracting arena. We can provide answers or solutions to any questions, comments, or concerns you may have. Gateway guarantees that contracting through us will be as simple as 1, 2, 3 – so stay calm, relax, and get ready to get started!
Remember:
"The question is not and should not be whether or not the government buys your products, because they do. The question is whether or not they buy it from you."
Gateway will help you to make sure that they do!
Step 7 – Relax!
In the past I have noticed that business owners and employees tend to start to panic as the prospect of government contracting is raised or comes near. Don’t! Stress causes mistakes, difficulties, and shorter life-spans. If you are reading this, you know that contracting is a valuable step for any business to take, but it doesn’t have to be as difficult as you think – Gateway makes contracting easy for you.
We’ve taken all the necessary steps to make sure your contracting experience is as painless as possible. Don’t worry, with Gateway the process is simplified and we eliminate the hassle of bidding, as well as give you some major competitive advantages in the federal contracting arena. We can provide answers or solutions to any questions, comments, or concerns you may have. Gateway guarantees that contracting through us will be as simple as 1, 2, 3 – so stay calm, relax, and get ready to get started!
Remember:
"The question is not and should not be whether or not the government buys your products, because they do. The question is whether or not they buy it from you."
Gateway will help you to make sure that they do!
Monday, February 16, 2009
Step 6: Don't Use the Deadline
Welcome back to Gateway to Government’s blog and the Seven Steps series! I hope everyone had a pleasant weekend and is ready to continue learning how to do business with the government through the Gateway program. Today we will take a look at how deadlines can impact government contracting.
Step 6 – Don’t Wait Until the Last Second
Though this may seem like another obvious idea, time and time again we have seen people submit their information just minutes before the deadline – only to find a major problem with no time to correct it. Every government bid and every bid we send you will have a deadline – a date and time – prominently displayed. This 'timestamp' is the absolute last chance to submit your information – if the bid is not full, complete, and accurate or is not received by that deadline, all of the time and effort you have put into your project will have been to no avail. The government will NOT accept late bids! Delivery or sending timestamps are also not important – it is when the document is received that matters, not when you mail it. If your bid gets delayed in the mail, or you get a flat tire trying to deliver it just before the deadline... Too bad! For this reason it is highly recommended that none of our clients use the final deadline.
By sending your details in well ahead of this time, we can work out any kinks or issues there may be with your submission. We review all of the bids and make sure they arrive on time in the right hands. This will help to ensure that your bid is submitted in the best possible fashion and that your experience is as painless as possible!
Step 6 – Don’t Wait Until the Last Second
Though this may seem like another obvious idea, time and time again we have seen people submit their information just minutes before the deadline – only to find a major problem with no time to correct it. Every government bid and every bid we send you will have a deadline – a date and time – prominently displayed. This 'timestamp' is the absolute last chance to submit your information – if the bid is not full, complete, and accurate or is not received by that deadline, all of the time and effort you have put into your project will have been to no avail. The government will NOT accept late bids! Delivery or sending timestamps are also not important – it is when the document is received that matters, not when you mail it. If your bid gets delayed in the mail, or you get a flat tire trying to deliver it just before the deadline... Too bad! For this reason it is highly recommended that none of our clients use the final deadline.
By sending your details in well ahead of this time, we can work out any kinks or issues there may be with your submission. We review all of the bids and make sure they arrive on time in the right hands. This will help to ensure that your bid is submitted in the best possible fashion and that your experience is as painless as possible!
Friday, February 13, 2009
Step 5: Bid to Your Capabilities
Welcome again to Gateway to Government’s blog. Today is step five in our Seven Steps series. Today we will look at the bidding process; deciding what to bid on is obviously important. Many companies have gone out of business because they took on a task too large for them or went broke waiting for the government to pay them!
Step 5 – Don’t Bid on Something You Can’t Do
This may seem like common sense, but sometimes what one thinks is expected in a contract isn’t. Review everything and make sure that your business is capable of all of the elements, both technically and financially! I have heard of many cases where small companies put in a bid and won a great government contract but ended up going out of business because they couldn’t support the finances while waiting to get paid (in most instances, the government pays after job completion).
Once you have read the fine print and asked all of your questions, review the entire contract again. For instance, one contractor (not one of our members!) lost over $18,000 on a bid because they hadn’t realized that they needed to train others to help with installation of their product. They though that they were going to be able to do all the work themselves!
Again, reading the bid requirements is vital to knowing what your company can and cannot fulfill. Examine the requirements and compare them to your capabilities, then review your business’ financial situation – can you afford to float the full cost of the contract potentially for months while awaiting completion and payment? While Gateway does its best to send bids related to your business, it is ultimately up to you to review the bid and decide whether or not your company can handle the contract.
Step 5 – Don’t Bid on Something You Can’t Do
This may seem like common sense, but sometimes what one thinks is expected in a contract isn’t. Review everything and make sure that your business is capable of all of the elements, both technically and financially! I have heard of many cases where small companies put in a bid and won a great government contract but ended up going out of business because they couldn’t support the finances while waiting to get paid (in most instances, the government pays after job completion).
Once you have read the fine print and asked all of your questions, review the entire contract again. For instance, one contractor (not one of our members!) lost over $18,000 on a bid because they hadn’t realized that they needed to train others to help with installation of their product. They though that they were going to be able to do all the work themselves!
Again, reading the bid requirements is vital to knowing what your company can and cannot fulfill. Examine the requirements and compare them to your capabilities, then review your business’ financial situation – can you afford to float the full cost of the contract potentially for months while awaiting completion and payment? While Gateway does its best to send bids related to your business, it is ultimately up to you to review the bid and decide whether or not your company can handle the contract.
Thursday, February 12, 2009
Step 4: Ask the Right Questions
Good morning yet again to everyone and welcome back to Gateway to Government’s blog, filled with tips and advice for our partners and small businesses wanting to do work with the government. As you know, each day this week I have been focusing on one step which will help you maximize your advantages so that your business can get and maintain government contracts. Today is step number four in the Seven Steps series.
Step 4 – Ask The Right Questions
Asking questions is vital to government contracting. There are many types of questions that can and should be asked (for a more detailed rundown, click here). However, the wrong questions or ones posed to the wrong person can be destructive to a business’s chances at getting a contract, so be sure that you know what – and who! – to ask. Be sure to know exactly what it is you want to know. Going into this process with any sort of ambiguity can be disastrous... Without a definitive sense of the goal, your questions can easily lead to more confusion.
In addition, if you ask a question about a contract you are working on or a solicitation you intend to bid on, get it in writing. Anything said verbally or informally is not binding, and action taken based on what is said is not legally defensible. Also make sure that the person you ask is the right person – an answer given by someone without the proper authority over a contract is the same as an answer given by, say, your grandmother. Or the five year old down the street. Or anyone else; unless given by someone with the proper authority, an answer, even in writing, is useless.
In short, if you are going to ask a question, make sure of four things:
1) Exactly what you want to know,
2) How to ask (context, beware of ambiguity, etc. more here)
3) Who to ask,
4) Get it in writing!
If you as one of our members have ANY questions about how to proceed at all, please contact us. We are here for you and we want to help. Gateway knows what to ask, who to talk to, and wants to make your experience with government contracting as hassle-free and painless as possible. If anything about the bidding or contracting process is confusing, please don’t hesitate to contact a member of our team anytime – if we don’t answer immediately, we will get back to you as soon as possible. We want your business to grow and prosper through this lucrative market as much as you do!
Step 4 – Ask The Right Questions
Asking questions is vital to government contracting. There are many types of questions that can and should be asked (for a more detailed rundown, click here). However, the wrong questions or ones posed to the wrong person can be destructive to a business’s chances at getting a contract, so be sure that you know what – and who! – to ask. Be sure to know exactly what it is you want to know. Going into this process with any sort of ambiguity can be disastrous... Without a definitive sense of the goal, your questions can easily lead to more confusion.
In addition, if you ask a question about a contract you are working on or a solicitation you intend to bid on, get it in writing. Anything said verbally or informally is not binding, and action taken based on what is said is not legally defensible. Also make sure that the person you ask is the right person – an answer given by someone without the proper authority over a contract is the same as an answer given by, say, your grandmother. Or the five year old down the street. Or anyone else; unless given by someone with the proper authority, an answer, even in writing, is useless.
In short, if you are going to ask a question, make sure of four things:
1) Exactly what you want to know,
2) How to ask (context, beware of ambiguity, etc. more here)
3) Who to ask,
4) Get it in writing!
If you as one of our members have ANY questions about how to proceed at all, please contact us. We are here for you and we want to help. Gateway knows what to ask, who to talk to, and wants to make your experience with government contracting as hassle-free and painless as possible. If anything about the bidding or contracting process is confusing, please don’t hesitate to contact a member of our team anytime – if we don’t answer immediately, we will get back to you as soon as possible. We want your business to grow and prosper through this lucrative market as much as you do!
Wednesday, February 11, 2009
Step 3: Price Yourself to Perfection
Hello everyone! Welcome yet again to another installation of Gateway to Government’s Seven Steps for Successful Contracting. Each day this week I will focus on ways you can gain an advantage over competitors and maximize your small business’s chances of getting government contracts. Each step will examine different aspects of federal contracting, all with the goal of increasing your business. Today is Step 3 of 7, focusing on how to price your bids for government work.
Step 3 – Realistic Pricing
As it would be with any business venture, the pricing of your product or service for government contracting is very important. With government, pricing is not always the only factor (some contracts are based on ‘best value,’ but it is always a strong consideration. Contracts worth thousands, even millions of dollars have been won or lost literally by a one-cent difference in bid price. Research your product and know what it is worth – but don’t cut so thin that you aren’t going to make any money! Remember to include your costs, overhead, time, and profit into the price, just as you would any other contract. However, be careful – in some circumstances, the government can come back to you and ask for documentation explaining how you can to your pricing.
The government always expects a discount; however, they don’t want you to sell yourself short. President Obama recently said “small businesses are the backbone of our nation's economy and we must protect this great resource.” His statement affirms that while the government does expect you to give a good price for your service or product – generally under the MSRP for goods, for example – it doesn’t have to be under its value. Many contracts are awarded solely on price, so be sure that you can be competitive! However, as you know, not all of them are. Gateway will indicate which projects are based on price, and which are on ‘best value,’ meaning that other factors are evaluated, and what they are. Factors can include delivery time, performance history, and a wide range of other possibilities, but all will be detailed in the bidding documents.
Step 3 – Realistic Pricing
As it would be with any business venture, the pricing of your product or service for government contracting is very important. With government, pricing is not always the only factor (some contracts are based on ‘best value,’ but it is always a strong consideration. Contracts worth thousands, even millions of dollars have been won or lost literally by a one-cent difference in bid price. Research your product and know what it is worth – but don’t cut so thin that you aren’t going to make any money! Remember to include your costs, overhead, time, and profit into the price, just as you would any other contract. However, be careful – in some circumstances, the government can come back to you and ask for documentation explaining how you can to your pricing.
The government always expects a discount; however, they don’t want you to sell yourself short. President Obama recently said “small businesses are the backbone of our nation's economy and we must protect this great resource.” His statement affirms that while the government does expect you to give a good price for your service or product – generally under the MSRP for goods, for example – it doesn’t have to be under its value. Many contracts are awarded solely on price, so be sure that you can be competitive! However, as you know, not all of them are. Gateway will indicate which projects are based on price, and which are on ‘best value,’ meaning that other factors are evaluated, and what they are. Factors can include delivery time, performance history, and a wide range of other possibilities, but all will be detailed in the bidding documents.
Tuesday, February 10, 2009
Step 2: Research and Know Your Material
Good morning again everyone! Today we see the second installment of Gateway to Government’s Seven Steps series. These steps are designed to help you as a small business owner or employee to gain an advantage over your competitors in the field of government contracting. Each step will look at a different but useful aspect of doing business with the federal government.
Step 2 – Research
Research is vital to any business venture, as we all know. Would you as a small business owner leap into anything without knowing a little bit about it? A little bit of background research can go a long way with government contracting, and can make the vital difference between winning a bid and languishing in the pool of those that ‘just bid.’
Take a few minutes to do some research on what the bid is asking for. Is it looking for a product that will be chosen purely on price? Something as simple as a Google search can turn up pricing from your competitors! Is the price you offer competitive enough to go up against other contractors, or do you compete on service? Delivery time? Bulk goods? Know what your competitive advantage is and you will be able to leverage it.
In addition, know what you are talking about. As you’ve seen here and so many times before, background research is very important. Be sure that you know your products and services and are knowledgeable in the area in which you are bidding. Not knowing the latest advancements in your field could be the reason you won’t get the bid – such as recommending the most ‘up-to-date’ Windows 2000 or XP, when actually Windows Vista is the most recent release.
Step 2 – Research
Research is vital to any business venture, as we all know. Would you as a small business owner leap into anything without knowing a little bit about it? A little bit of background research can go a long way with government contracting, and can make the vital difference between winning a bid and languishing in the pool of those that ‘just bid.’
Take a few minutes to do some research on what the bid is asking for. Is it looking for a product that will be chosen purely on price? Something as simple as a Google search can turn up pricing from your competitors! Is the price you offer competitive enough to go up against other contractors, or do you compete on service? Delivery time? Bulk goods? Know what your competitive advantage is and you will be able to leverage it.
In addition, know what you are talking about. As you’ve seen here and so many times before, background research is very important. Be sure that you know your products and services and are knowledgeable in the area in which you are bidding. Not knowing the latest advancements in your field could be the reason you won’t get the bid – such as recommending the most ‘up-to-date’ Windows 2000 or XP, when actually Windows Vista is the most recent release.
Thursday, February 5, 2009
Federal Contracting: Terrifying Prospect or Lucrative Opportunity?
The federal government is well-known as the largest purchaser in the world. It uses so many products and services that it is literally a market in and of itself – the range of things the government purchases for its needs is so diverse that many companies exist entirely to sell to the government. However, the labyrinthine sets of rules and procedures can make it a terrifying area of business for the uninitiated.
The first United States government purchase was performed in the 1770s, when General George Washington directed Philip J. Schuyler to buy weaponry from Major Duncan at Schenectady, with a guarantee to pay for the goods upon delivery. Since then, opportunities to sell to the federal government have expanded greatly; though a large portion of the federal contracting budget is still set aside for military and defense purposes, more money is spent on a much wider range of opportunities that most people realize.
Believe it or not, currently only about 5% of businesses in the United States actually do business with the government. This is despite the fact that it generally spends, on average, over a billion dollars a day, on everything from janitorial services to dog treats to IT services to research. Why is that?
The rules governing the federal procurement process are incredibly intricate. If the contracting field is new to you, you are going to find out just how difficult it can be – this is one of the most complex arenas that there is in business. Fortunately, there are plenty of people and businesses willing to help, and it is possible to acquire a working knowledge of the process, policies, and procedures that apply to your business and how to navigate the government contracting arena.
One piece of good news is that the government tries to do a lot of its business through small contractors. The U.S government has federally and legally mandated goals and procedures designed to favor small businesses. Every federal agency has a small business contracting goal – a percentage of its budget each year is ‘set aside’ specifically for a variety of types of small businesses, ranging in amount depending on the agency. Businesses are eligible for these set-aside goals if they fit the description, be it small, woman-owned, minority-owned, or any in a wide array of other categories.
Small contractors can work with the government without a large office staff or support system, but only if they understand how everything works. Unlike other customers, you cannot simply walk into a government office and make a sales pitch. There is a huge array of protocols that must be met before you can do business with the government – but if you know your rights and are familiar with government programs, contracting can be extremely lucrative for anyone willing to accept the time, effort, and expense of getting started. You also don’t have to do it alone – there are many companies out there willing to direct you along the correct path and to help you get going.
Everyone knows about the current declining economy, said by some to be the worst since the Great Depression. Small businesses should definitely consider utilizing government contracting as a source of income. The federal bailout means that there are going to be hundreds of billions of dollars of extra contracting money spent in the next few years. These dollars will have to be spent somewhere – and not all of them are going to be on the multi-million dollar contracts – the companies that win the large contracts started out winning small contracts. Your business sells products or services that the government buys, and the time to get started with federal contracting is now. In short, federal contracting is both: a terrifying prospect AND a lucrative opportunity. Navigating the maze can be dangerous but the risk is well worth the potential reward!
Working with Gateway to the Government, your business can penetrate the complex web of doing federal contracting. Through our partnership program, you gain access to everything – all of the advantages of the small business set-aside programs and the lucrative field of contracting – without having to accept the huge amount of time, effort, and expense of getting started.
The first United States government purchase was performed in the 1770s, when General George Washington directed Philip J. Schuyler to buy weaponry from Major Duncan at Schenectady, with a guarantee to pay for the goods upon delivery. Since then, opportunities to sell to the federal government have expanded greatly; though a large portion of the federal contracting budget is still set aside for military and defense purposes, more money is spent on a much wider range of opportunities that most people realize.
Believe it or not, currently only about 5% of businesses in the United States actually do business with the government. This is despite the fact that it generally spends, on average, over a billion dollars a day, on everything from janitorial services to dog treats to IT services to research. Why is that?
The rules governing the federal procurement process are incredibly intricate. If the contracting field is new to you, you are going to find out just how difficult it can be – this is one of the most complex arenas that there is in business. Fortunately, there are plenty of people and businesses willing to help, and it is possible to acquire a working knowledge of the process, policies, and procedures that apply to your business and how to navigate the government contracting arena.
One piece of good news is that the government tries to do a lot of its business through small contractors. The U.S government has federally and legally mandated goals and procedures designed to favor small businesses. Every federal agency has a small business contracting goal – a percentage of its budget each year is ‘set aside’ specifically for a variety of types of small businesses, ranging in amount depending on the agency. Businesses are eligible for these set-aside goals if they fit the description, be it small, woman-owned, minority-owned, or any in a wide array of other categories.
Small contractors can work with the government without a large office staff or support system, but only if they understand how everything works. Unlike other customers, you cannot simply walk into a government office and make a sales pitch. There is a huge array of protocols that must be met before you can do business with the government – but if you know your rights and are familiar with government programs, contracting can be extremely lucrative for anyone willing to accept the time, effort, and expense of getting started. You also don’t have to do it alone – there are many companies out there willing to direct you along the correct path and to help you get going.
Everyone knows about the current declining economy, said by some to be the worst since the Great Depression. Small businesses should definitely consider utilizing government contracting as a source of income. The federal bailout means that there are going to be hundreds of billions of dollars of extra contracting money spent in the next few years. These dollars will have to be spent somewhere – and not all of them are going to be on the multi-million dollar contracts – the companies that win the large contracts started out winning small contracts. Your business sells products or services that the government buys, and the time to get started with federal contracting is now. In short, federal contracting is both: a terrifying prospect AND a lucrative opportunity. Navigating the maze can be dangerous but the risk is well worth the potential reward!
Working with Gateway to the Government, your business can penetrate the complex web of doing federal contracting. Through our partnership program, you gain access to everything – all of the advantages of the small business set-aside programs and the lucrative field of contracting – without having to accept the huge amount of time, effort, and expense of getting started.
Monday, January 19, 2009
Poker Night
This past Saturday night was a significant night for my roommate and I: it was our first time hosting poker night. The night before I left him alone for dinner and our apartment was how it always looked; by the time I got back, I thought I had walked onto a movie set. Our dining room table was in the middle of the living room with extra leaves already inserted, a second card table by the kitchen, hundreds of poker chips already placed in baggies, along with the house rules, explanations of the chip amounts, and hand explanations posted on each wall (we had several players just learning the game). I couldn't believe my eyes! He had even cleaned the kitchen in the process.
I couldn't help but comparing the novice poker players we had over with businesses having to take the same risks with government contracting. I know I had difficulty the first time I played. I didn't know what combination of cards were the best, I didn't know when to fold or place my bets, and I really couldn't tell if people were lying to me or not. When our contracting business first opened its doors, we had no idea how to read the contracts. In most, there were dozens of pages of instructions, and half the time we weren't sure which were worth bidding on. We also didn't have any contacts at the time and when we made friends in the industry, we weren't sure who we could trust. We've grown since then, having completed contracts and found trustworthy individuals within the contracting community and hope to help others grow as well through Gateway to the Government.
I couldn't help but comparing the novice poker players we had over with businesses having to take the same risks with government contracting. I know I had difficulty the first time I played. I didn't know what combination of cards were the best, I didn't know when to fold or place my bets, and I really couldn't tell if people were lying to me or not. When our contracting business first opened its doors, we had no idea how to read the contracts. In most, there were dozens of pages of instructions, and half the time we weren't sure which were worth bidding on. We also didn't have any contacts at the time and when we made friends in the industry, we weren't sure who we could trust. We've grown since then, having completed contracts and found trustworthy individuals within the contracting community and hope to help others grow as well through Gateway to the Government.
One thing that I learned from my recent poker night, as I'm sure my friends did too, is that planning ahead makes everything better. My roommate had taken the precautionary steps: talked to everyone involved to find the best time to host, figured out what needed to be worked on, and set everything up ahead of time. Because of all of these steps, the night went very smoothly. No one was upset by the end of the night, nothing was broken or lost, several people had learned a new game, and there wasn't any confusion regarding who had won or why. I found out that my roommate had hosted many such friendly poker nights during his college days and knew exactly what needed to be done. Government contracting is the same way - having someone who has experience and knows what needs to be done can ensure that everything moves smoothly. Businesses can benefit from taking risks - just like a poker player - but until the player knows the rules, it can be a great way to gamble and lose, especially to the experienced players. A friendly contractor such as Gateway is willing to take the "gamble" out of contracting, allowing your business to use our winning cards.
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