Dear Professor Bruce:
As a small business owner, I am struggling in the current economic climate. I need an increase in sales and client base that I can rely on. What can I do and where can I go for help to increase revenue and my client base?
Answer:
You are not alone. Many small businesses are struggling to build a reliable client base. The government, given its proven payment record and more than $500 billion in annual spending, can be a small business owner's greatest client. In fact, in today's economy, the federal government is one of the few organizations that is increasing spending through the recently announced $787 billion economic stimulus.
For small businesses to be able to capitalize on opportunities with the government, they must first become "contract-ready." Lourdes Martin Rosa, American Express OPEN Adviser on Government Contracting, provides these tips on how to register a business to become eligible for federal contracting opportunities:
1. Gather the information you will need. Pull together your business's federal tax ID number (also known as an EIN), your DUNS code, NAICS code and business' checking account number. For help on where to find this information, view OPEN BOOK: Government Contracting (www.openforum.com/governmentcontracting) a step-by-step guide to help businesses get started on government contracting.
2. Register on the Central Contractor Registration (www.ccr.gov). This is the profile government agencies will use to research potential clients -- so fill it out completely and accurately. If your business qualifies to be an 8(a), woman-owned, veteran-owned, small and disadvantaged firm, or if you are located in a HUB Zone -- get certified and update your CCR profile. There are contracting goals set by the government to do business with these firms, so it pays to classify your business as such.
3. Finally, do market research by checking out government contracting opportunities through Federal Business Opportunities (www.fbo.gov) to determine what kinds of contracts would be a good fit for your business' capabilities. Take note of contracts that have already been awarded and research the firms that won them. They will provide excellent case studies for how to make your own bid successful. Also consider subcontracting and teaming. Large firms with government contracts also have small business contracting goals. Research which firms in your industry hold contracts and contact them to determine how your company can help fulfill their goals. Subcontracting is an excellent way to gain exposure to government contracting and might ultimately help you win a contract of your own.
For further information, please visit www.giveme5.com.
(Bruce Freeman, The Small Business Professor, is president of ProLine Communications in Livingston, N.J. E-mail questions to Bruce(at)SmallBusinessProf.com. For more stories visit scrippsnews.com)
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