Doing business with the government is something very exciting especially if you are a small business. Maybe you are interested in doing business with the government but you are not sure how to be able to win some of these contracts. Winning contracts would make you a business with one of the biggest possible customers in the country.
Government spending today has already reached trillions. Your business can take advantage of this government spending. 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. 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. Studies have shown that most of the time, the lowest bidder does not win the contract with the federal government.
So winning government contracts is not really about being the lowest bidder. What, then would make you win contracts with the biggest customer in the world?
Most people want value for their money and this is precisely what government wants also – value for their money. As we have already mentioned, this does not mean that they will always choose the lowest bid. The ratio of value and cost is the important thing. Government looks for best value instead of low cost.
Government spending gives 39% of the budget to small businesses. What this means is that there is plenty of room for your to explore. There is no competition with large businesses in trying to win contracts since they have their own percentage of government spending allocated for them.
You can win a contract by knowing your products and services by heart and presenting them in a very interesting way. You should be able to answer why the government should give you the contract in a very convincing way. Show them that you only offer the best value for your money. It is not only about offering the lowest bid; but with your low bid, you are also offering quality. This is the best way to win government contracts.