Government Contracting Part I: Government Contracts are Still Worth Pursuing

Marsha Ford By Marsha Ford, 7th Feb 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/ty3rgnpb/
Posted in Wikinut>Business>Business Opportunities

Given the current economy and calls for cutting government spending, you might think this is not the time to pursue government contracts. But here are three reasons why you may want to rethink that assumption.

The Government Still Needs You

Given the state of our economy, there have been serious plans and efforts to streamline the federal government in order to reduce our national deficit. Without a doubt, we as business owners are still in for hard times, and the field of government contracting has gotten a bit more tenuous. But, it is still navigable, and if you are ready, there are three great reasons to consider government contracting.

Government contracting can be very lucrative for a business.

Even with spending cuts, the government spends billions of dollars a year to obtain products and services from businesses. The federal government is not only the largest employer in the US, but is also the largest buyer of goods and services. But the government itself actually produces very little, and must look to businesses to fill those gaps. Companies looking to “go where the money is” are certainly not wrong for considering government contracts.

The government won’t be going out of “business.”

Regardless of our current economic climate or political opinions, government is not going anywhere. As long as we have a country, we’ll have a government, and that government will continue to spend money on contracts. The world of government contracting is wide open, with product and service requirements covering everything from paperclips and janitorial services to buildings and large-scale department staffing. And as the wave of staffing cuts and retirements hit the government, someone will have to step in. That someone will have to be businesses.

The government presents a relatively stable source of revenue.

While many government contracts are short-term (less than a year), many of them are long-term, presenting opportunities for businesses to work with the government for a year or more. Long-term contracts can also span multiple years; usually up to five years before they have to be open to new businesses. And, if a company is able to get on one of the General Services Administration’s (GSA) Schedules, then that company is in a position to receive multiple contract awards, from multiple government agencies, for many, many years.

None of this is in any way to suggest government contracting will be easy; but it is worth pursuing if your business is in a position to take advantage. The first step is determining whether or not your business is ready for the challenging, but rewarding, arena of government contracting.

Tags

Contracting, Contracts, Government Contracts, Government Spending

Meet the author

author avatar Marsha Ford
I've been a freelance writer and editor for more than 10 years, writing on a variety of topics. I also run a blog on business writing: http://writingbizblog.blogspot.com/

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Comments

author avatar Retired
16th Feb 2011 (#)

Another outstanding piece of work. Great job.

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author avatar Marsha Ford
16th Feb 2011 (#)

Thanks!

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