If you are a small business, the prospect of doing business with the government is an exciting opportunity. Perhaps you have been thinking what the best strategy is in winning government contracts. The reality is that if you win a government contract, then you have the biggest possible customer to deal with.
Trillions of dollars are being used in government spending today. Your business can take advantage of this government spending. Because of this, you should strive to win some government contracts. Another good thing is that the federal government allocates a large percentage of its overall spending for small businesses. If you are an owner of a small business then you should include acquiring contracts from the government in your business objectives. The reason why small businesses are allowed to win government contracts is because government supports and promotes the growth of small businesses.
Since their businesses are small, most of these owners are reluctant to accept government’s invitation for them to bid for government 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.
Bidding for government contracts will pit you only with small businesses like yours and not with large companies. Trying to bid with the lowest possible bid is not the way to win government contracts, so don’t stress yourself with this. 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. What, then would make you win contracts with the biggest customer in the world?
Give the government value for their money and this will rewards you with a contract. It is not useless to emphasize that it is not your low bid that will win you the contract. What is important is the ratio of value and cost. Best value with low cost is the bet but best value is preferred over low cost alone.
39% of government spending is allocated 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. Take time to convince the government that you will be the best service provider or product provider. 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. By giving value for their money, you can win government contracts.