brown paper pulled up in the middle with exposing the myths written in the middle

Exposing the Myths of Small Business Government Contracting

Did you know that the U.S. government actually has a goal to award nearly one-quarter of its prime contracts to small businesses? Furthermore, Congress approves over $1 trillion in spending just about every year. Though this is great news, a good number of small businesses are still hesitant to get involved. Much of the resistance is due to a number of myths and misconceptions that are still being perpetuated. If you’re wondering how to get government contracts for your small business, here are some of these common misbeliefs and the actual truth behind each of them.

Myth: My Business is Too Small to be Competitive…

Truth: As mentioned above, the U.S. government sets aside a certain amount of money each year to specifically be spent on contracts with small businesses. That means for many contracts, larger organizations simply don’t qualify. When we take size out of the equation, the opportunities become much more attainable. (You can learn more about the various programs for small businesses here.)

Myth: The Lower Bidder Always Wins…

Truth: Sure, there will be times when another candidate is chosen based on the lowest price, but this is actually more of an exception than a rule. In fact, the Federal Government as well as state agencies have the right to award government contracts to whichever candidate they feel is best suited, regardless of the actual bid amount. Be competitive but confident in your company’s ability to provide quality goods or services, and you’ll have a very good chance of winning.

Myth: It Takes Forever to Get Paid…

Truth: Despite the horror stories you may have heard about on the news or read about in the paper, most government contracts are paid in a very timely manner. In fact, the average turnaround for remittance of monies owed is around 30 days, sometimes even less. Additionally, there are other options available to you when time is of the essence. For instance, government contract factoring allows you to collect what’s rightfully yours upfront without the hassle of waiting.

Myth: I’ll Spend a lot of Money and Time and May Not Even Win…

Truth: While government contracting does involve an investment of time, money and resources, the outcome isn’t nearly as bleak as you may think. In fact, a recent report by American Express OPEN found that small businesses seeking a government contract for three years or less were awarded their first contract in just one year and after only three unsuccessful bids. The old adage that “you can’t win them all” can be applied here, as with any other business dealing, but success is certainly not impossible.

Myth: It’s Way Too Complicated…

Truth: While there’s definitely a learning curve when it comes to understanding how to get government contracts, working with Federal or state agencies is really not all that different from doing business with other large organizations. It may take a bit of trial and error, but getting the process down to a science isn’t nearly as difficult as one might think. These tips should help cut down on the trial and error:

Tips to Writing a Flawless Government Proposal
Government Contracting- Rules You Need to Know
How to Bid for a Government Contract…and WIN
The Secret to Getting the Right Government Contract

If you’ve considered the possibility of bidding on a government contract but were hesitant due to one or more of the above misconceptions, the truths exposed above should help you make a more informed decision.

Follow us on Facebook and Twitter for more Government Contracting Tips.