On Business: My Rationale Explained
If you are a small business, the prospect of doing business with the government is an exciting opportunity. Perhaps you have been thinking what the best strategy is in winning government contracts. Winning a government contract is having the biggest possible customer as your client.
Recent statistics show that the government is already spending trillions of dollars each year. With this amount of government spending, it is possible for small businesses to take advantage of it. This should make you strive towards winning government contracts. If you don’t already know, there is a certain percentage of the budget allocated for small businesses. Winning government contracts should then be one of the objectives of any small business. The reason why small businesses are allowed to win government contracts is because government supports and promotes the growth of small businesses.
Since their businesses are small, most of these owners are reluctant to accept government’s invitation for them to bid for government contracts. Small businesses sometimes feel inadequate when they have to compete with large businesses that have more experience and can give the lowest possible bid. Winning contracts would be next to impossible if they have to compete with large businesses.
To win government contracts, you don’t compete with large businesses but with small businesses like yours. And if you will do business with the government you don’t have to offer the lowest bid. To encourage you, you need to know that lowest bidders don’t often win contracts with the government, and this has been shown to happen 80% of the time.
So winning government contracts is not really about being the lowest bidder. If it is not the lowets bidder, who, then, can win government contracts?
Value for their money is what the government wants just like any other businessman. It is not useless to emphasize that it is not your low bid that will win you the contract. The ratio of value and cost is the important thing. Government looks for best value instead of low cost.
The government allocated 39% of its spending to small businesses. What this means is that there is plenty of room for your to explore. Since there is also a percentage of spending allocated for large businesses, you don’t have to compete with them.
Knowing your products and services well and presenting them in an exciting manner to the government can help you win a contract. You need to convince the government that you will be the best provider of the service or product. Show them that you only offer the best value for your money. If you are bidding a low cost, then it should be backed by quality services. The best way to win government contracts are in your hands.