By Gloria Larkin, Expert Guest Editor – Government Contracting and owner of TargetGov
This is the first installment in a three part series detailing mistakes companies can make when entering into the government contracting market. Even successful contractors will tell you that they have made many mistakes learning the ropes in this market. After all, it is a tough, complicated and rigorous market that demands expertise, dedication and perseverance before success is achieved.
While all contractors have made mistakes when trying to enter or become more successful in the government market, successful business owners have learned from their mistakes, make the necessary changes and move forward to greater business opportunities and larger contracts.
As you read through the top three killer mistakes listed here, note those that you recognize and make the changes now. You will start to see benefits and the doors that were slammed tight will start to open for your business.
Killer Mistake #1
Does Your Business Look Like a Risky Business?
This is a core issue with government contracting. Often we are talking about not just thousands or hundreds of thousands, but millions of dollars in contracts. Contracting officers and other decision-makers have been trained to choose the least risky of options. As tax-payers, this is a good thing. And a business people who want to win contracts, once you know and understand this, you can take the steps needed to make your business stable, secure and as capable as possible.
What Exactly Does a Risky Business Look Like?
A risky business has no track record. It has no customers that could be asked for a reference. It has no bank account. It has no credit history. It has no web site. The owners use AOL, Gmail, Yahoo and other free email services for government communications. The business has not been registered in CCR. There is no commercial phone number, just a cell phone. It has no employees and no record of making tax payments.
Since all government contracting officers are, by the nature of their jobs and their legal responsibilities, risk-adverse, the more steps you can take to mitigate the risks the better your chances are of being successful.
Take These Steps to Mitigate Risk
There are specific steps you can take to make your business be as stable and secure as possible. First, know the requirements of being a government contractor. For instance, all federal contractors must be registered in the Central Contractor Registry (CCR), a federal government web site located at www.ccr.gov. When you successfully register at CCR (or with your state or local government if you choose to target them first), you show that you understand and have the legal basics required (company name, bank accounts, etc.)
If you have sold products or services to anyone else, you will want to ask three to five of your customers to be a reference for you. Contracting officers will check references and if your references are good, and are willing to say so, this makes you much less risky than those businesses that have no references (or ever worse, have negative references!)
Other Steps That Will Build Your Credibility
Create a professional web site describing your services and products and clearly define how you fit into the government market. You can use the Capability Statement format described in the previous issue of MEA if you need help with the recommended content. Use an email address containing your website name. Never use AOL, Gmail, Yahoo or other free email services for government contracting communications as they make you appear fly-by-night and unprofessional.
Use a commercial phone number listed in the name of your business. This phone number would be used as the main, or corporate, contact number. Government also wants a separate fax number as well. It is fine to use your cell phone as your direct line, but not as a main business number.
Eliminating this killer-mistake will help you turn the corner to success in the government contracting market. Use this tip to build a healthy, stable and secure government contracting business.
* Source: FPDS.gov
About Gloria
Gloria Berthold Larkin is president of TargetGov and an expert in business development in the government and corporate business markets. She is a dynamic speaker and book author and is very adept at negotiating the government contracting maze on behalf of clients. Visit www.targetgov.com or call toll-free 1-866-579-1346 for more information.