By Eugene E. Valdez, Certified Business Coach
You have decided government contracting will be one of your revenue streams. That is a great choice…if you can achieve sustainability. Many companies win a few contracts but never figure out how to win contracts consistently and, more importantly, profitably.
In this article, you will learn “The Top Ten Ways A Government Contractor Can Achieve Long Term Sustainability.”
Why should you listen to me? During my 40 years plus business career, I have done a multitude of things. First & foremost, I have started and operated three successful small businesses. (The current one is a podcast called “CEO To Rainmaker”). As a senior commercial banker for over 20 years, I worked with over 8,000 CEOs in a variety of industries (especially government contractors) in the financing arena. I have been a college professor of Entrepreneurship and have appeared on radio and TV as an expert on this subject. I have worked with SCORE and the SBDCs as a business counselor, mentor, and I have written a book on small business finance. I have appeared as an expert guest at various SBA events and as a guest speaker at small business workshops and seminars. I am telling you all this not to boast but to share that I have gained a strong perspective as to why some government contractors are very successful, and some are not.
Fifty percent of businesses started today will be out of business within five years, and 67% will be out of business within ten years. These mortality rate percentages can significantly decrease if small business owners implement these ten strategies. (Many successful government contractors we worked with have used these ideas to be more successful.)
Here they are:
- Maintain accurate company financial accounting systems and hire a qualified employee to run manage the systems. Hire a competent outside CPA who is familiar with the accounting rules unique to government contractors.
- Establish monthly numerical goals, referred to as Key Performance Indicators or KPIs.
- Pay attention to events in your external environment & modify your business model accordingly.
- Hire exceptionally talented people and pay them above market.
- Turn your customers into “raving fans” (as per Ken Blanchard) by providing frequent high-touch personal service. This will create “word of mouth” advertising.
- Hire or outsource an expert social media marketing professional
- Choose the right commercial banker who understands the government contracting industry and will take the time to understand your business.
- Increase the level of your executive skills and recruit a mentor or coach
- Spend fifteen % of your average work week thinking about your long-term vision of the company.
- Manage your cash flow in 90-day increments, create a budget and follow it.
For more tips on how to maintain a healthy business, below is the link to my podcast https://ceotorainmaker.buzzsprout.com