5 steps to creating a successful government contracting business

The most important part of any business endeavor is writing the business plan. The greatest value in writing a business plan is the thought process behind it. Writing a business plan forces you to see and think about all the holes in your plan and your business. Here are the next steps to take to get started launching a business focused on contracting with government clients:

1. Getting Started

  • Get business start-up education.
  • Contact your local Small Business Development Center (SBDC)
  • Educate yourself on entrepreneurship and your industry by joining trade associations, like NaVOBA.
  • Determine your company’s legal entity (sole proprietorship, partnership, LLC, corporation, etc.)
  • If you plan to incorporate, get an Employer Identification Number (EIN): at www.irs.gov/business
  • Select and register a company name that reflects what your company does.

2. Registration:

  • Determine your company’s North American Industry Classification System (NAICS) code(s): www.census.gov/epcd/naics02/naicod02.htm
  • Register your company with Dun & Bradstreet: www.dnb.com
  • Determine your company’s small business classification: SDVOSB, VOSB, 8(a), SDB, WOSB, HUBZone, etc.
  • Register your company on the Central Contractors Registration (CCR): www.ccr.gov
  • Register in the Vendor Information Pages (VIP) at Center for Veterans Enterprise (CVE) at www.vetbiz.gov.
  • Visit www.navoba.com/statetracker to detrmine if your state is vetrepreneur-friendly.
  • Register to become a supplier with your state and local governments.
  • Register and consult with your local Procurement Technical Assistance Center (PTAC)

3. Research

  • Research government and prime contractor targets to find out which agencies and companies are most likely to buy the products and services you provide.
  • Scan FedBizOpps: www.fedbizopps.gov
  • Scan federal agency Office of Small and Disadvantaged Business Utilization (OSDBU) offices: www.osdbu.gov/offices.html>
  • Scan state, county and local government websites.
  • Talk to contracting officers at your local military installations, VA hospital, IRS center, U.S. Army Corps of Engineers office and federal and state offices for local opportunities.
  • Research the “small business” or “supplier diversity” Websites of potential customers to learn about their contracting opportunities.

4. Networking:

  • Based on your initial research, develop a list of 1 to 3 target customers. Start with the ones that are most likely to do business with you.
  • When contacting targeted customers, lead with your ability to solve their problems and meet their needs. Don’t forget to let them know that you are a veteran-owned business.
  • Start with the small business personnel first; Small Business Specialist (SBS) at federal agencies or the Small Business Liaison Officer (SBLO). These people can lead you to the appropriate buyer or contracting officer.
  • Be professional and treat them like any other customer.
  • Fully and completely research your targeted customer’s needs.
  • Develop a 1-page capabilities statement.

  • Develop professional-looking company brochures, business cards and a business capabilities presentation.

5. Proposals:

  • Research other proposals to use as a template (target customers, SBDC, other small businesses, etc)
  • Submit proposals and follow up on leads.
  • Consider rejections as learning opportunities. Ask for specifics about why you didn’t get the job so you can be better prepared next time. Ask for referrals again!
  • When you get a “yes” and you certainly will, ask for specifics again! These are the positive actions you want to repeat time and time again!

Like any sales effort, expect many more rejections than successes. It only takes a few agreements to build a successful business.

 

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In this issue of Veterepreneur  magazine, the National Veteran Owned Business Association honors Military Friendly Chambers.
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In this issue of Veterepreneur magazine, the National Veteran Owned Business Association honors Military Friendly Chambers.

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