1. Introduction: Landing Bigger, Better Clients
Small business and big contracts go hand-in-hand more often than many entrepreneurs realize. As the owner of a small business--even if you’re a sole proprietor--you can bid on public and private sector contracts that have the potential to dramatically increase your revenue and strengthen your prospects for long-term growth.
That’s good news for the 40 percent of small business owners who said in a 2015 survey by The UPS Store and Inc. that their greatest marketing challenge is getting new customers. By targeting large corporations and government agencies, you can generate more revenue from a single client than you may be able to realize by continuing to focus on smaller accounts.
How big is the opportunity? The federal government alone buys nearly $100 billion worth of goods and services from small businesses each year, the U.S. Small Business Administration reports. And the U.S. House of Representatives Small Business Committee website notes that the law “requires that 23 percent of all federal prime contract dollars be awarded to small businesses.”
Large corporations also seek out relationships with small business vendors, service providers, and consultants. For some, small companies play a key role in meeting their supplier diversity targets or fulfilling small business subcontractor requirements in their own contracts with government agencies. Other big businesses have signed onto projects like Supplier Connection, “an initiative to grow small businesses and create jobs.”
Government contracts and contacts
These free online resources can support your company’s move into government contracting and help ensure that your small business competes effectively in this lucrative market.
• The U.S. Small Business Administration offers training through its online Government Contracting Classroom.
• The General Services Administration’s FedBizOpps.Gov maintains a database you can search to learn which federal agencies need your products or services. To qualify as a contractor, you must register your company with the GSA’s System for Award Management.