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The federal market can be a daunting place. The tendency of many firms is to look at the panoply of contract opportunities and try to say "yes" to as many as possible. Not surprisingly, this shotgun approach yields more frustration than results, and sours many on further pursuit of government business. They walk away from that initial foray convinced that the deck is stacked and the government market is the playground of a select few.
The reality, however, is usually much different. Simply put, federal business is like any other market. You can't just hang out your shingle on Monday and expect to get business on Wednesday. Companies must put in the time and energy to get to know the market and learn which larger participants are winning contracts, then channel that information into a comprehensive business strategy that makes sense. As with any investment, dedicating the resources required for success can yield positive dividends.
Many smaller businesses believe that this isn't a "go-it-alone" process. There are professionals in and out of government that can help your firm decide whether federal business is right for your firm and, if so, how best to pursue opportunities. Some of this information is free from such sources as federal agency small-business advocates. Many also offer Procurement Technical Assistance Centers (PTACs) that provide free advice to small businesses seeking federal market entry. Professional consultants are also available.
No matter what approach you take, though, the bottom line is to do your homework before you jump into the deep end of the pool. Federal business is good business for those that take the time to learn. Understand the government as a customer, because just as the federal market offers opportunities, it also mandates responsibilities for those firms with which it does business.
Getting Started With Subcontracting
No doubt, one of the best ways to learn the federal market or get a foot in the door with a particular agency is to win an opportunity as a subcontractor. I call subcontracting an "earn as you learn" scenario. Working with those who are experienced in this market is a great way to figure out what your market niche may be. I know of countless companies that are ill-suited, at least in their current form, to act as primes because of their lack of resources and experience. But these same companies often make excellent subcontractors given their specialized skills and tenacity. The trick is "stick-to-it-iveness." Unglamorous as that may sound, sticking with something through thick and thin is often a tried and true path to initial success and long-term growth.
Often, getting started is the biggest challenge. While there's no turnkey strategy, there are some common, noteworthy traits that drive success in subcontracting.
Aside from the usual recommendations, such as signing up on the SBA Sub-net and Pro-net systems and visiting agency mentor-protg Web sites, some other steps can make a significant difference for winning subcontracting opportunities.
First, you have to be where the action is. There are many fine groups across the country that hold regular events for federal contractors of all stripes. Companies should pick the organization with a focus closest to their market niche and become a regular participant. Often, these groups invite government speakers to their meetings, offering attendees two key things: one, a chance to network with potential business partners, and two, an opportunity to hear what's on the minds of would-be government customers.
Making one's presence known is a great way to make contacts that can lead to government business. Bear in mind that your next business opportunity could be with the company next to you.
In addition to regular association or industry meetings, many of these groups hold matchmaking events whereby large companies looking for subcontractors and subs looking for opportunities gather in a sort of "speed-dating" for contractors. Even federal agencies such as the Small Business Administration and the General Services Administration (GSA) have such events.
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