Government Contracting Part II: Should You Make the Leap into Government Contracting?

By Marsha Ford, 7th Feb 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/1yq76r25/
Posted in Wikinut>Business>Business Opportunities

As appealing, lucrative, and worthwhile government contracting can be, you have to be ready.

Gear Up for Government Contracting
Reasons Not to Pursue Government Contracts...Yet
What You Can do to Prepare for Government Contracting

Gear Up for Government Contracting

Courtesy: photos8.com

Government contracting can be very good for businesses. But, it can also present devastating downsides for companies not prepared to take the plunge. Government contracting takes a great deal of time, money, commitment, and other resources, and those businesses not prepared for these realities can find themselves deep in the hole with nothing to show for it.

Government contracting is not for the faint of heart, and for some, government contracting should not even be considered without first having all the pieces in place.

Reasons Not to Pursue Government Contracts...Yet

While there are exceptions, I recommend to my proposal clients that businesses in the following categories not spend their time, money, and resources on pursuing government contracts:

1. Businesses less than two years old – These businesses often lack the past performance history required to qualify for government contracting consideration.

2. Businesses strapped for cash or in the red – It costs money to pursue government contracts, sometimes a lot of money. And another government contracting requirement is that potential companies be solvent. It might seem counterproductive, but the time to pursue government contracting is when your finances are good, not when you’re barely hanging on.

3. Businesses that do not have a clear, viable, and focused plan for working with the government –Without a clear plan and approach to pursuing government contracts, businesses can easily find themselves and their resources spread too thin, and wasting their energy pursuing contracts that they are not adequately suited for.

4. Businesses without the manpower and resources to deliver on the contracts – Businesses that do not have the resources, manpower, or connections to readily meet a government contract’s service or product requirements should not pursue the contracts. Failure to perform according to a contract’s requirements is a sure way to limit or eliminate a company’s chances of winning future contracts.

What You Can do to Prepare for Government Contracting

So, what should businesses do if they would like to pursue contracts? What steps should they take if they are not yet ready to pursue government contracts, but would like to be? Even companies first opening their doors can take steps to prepare and position themselves for government contracting. There are small steps and large ones, but they are all worth taking if government contracting is a goal. For three good reasons, see Part I.

The following are steps businesses can take to prepare and position themselves for government contracting, and each of them will be covered in detail in continuing articles. As an added benefit, some of these steps can also help in acquiring non-government clientele.

1. Preparing Company Materials and Profile
2. Participating in Government-Sponsored Organizations
3. Completing Government Filings and Registrations
4. Networking and Partnerships
5. Building Your Performance History
6. Budgeting for Contract Proposals
7. Understanding Federal Contracting Rules and Regulations

With the right preparation and planning, it is possible to enter and succeed in government contracting. And once you've reached that point, you are sure to find the path more than rewarding.

Meet the author

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/