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.
Why Listen to Me?
During my 40-plus years in business, I have gained extensive experience and insights into what makes government contractors successful. First and foremost, I have started and operated three successful small businesses, including my current venture, a podcast called “CEO To Rainmaker.”
As a senior commercial banker for over 20 years, I worked with over 8,000 CEOs across various industries, especially government contractors, in the financing arena. I have been a college professor of Entrepreneurship, appeared on radio and TV as an expert, and have worked with SCORE and the SBDCs as a business counselor and mentor.
Additionally, I wrote a book on small business finance and have spoken at various SBA events and small business workshops. My goal is to share the valuable lessons learned from these experiences to help you succeed in government contracting.
Strategies for Success
Fifty percent of businesses started today will be out of business within five years, and 67% will be out of business within ten years. However, these mortality rates can significantly decrease if small business owners implement the following strategies. Many successful government contractors we have worked with have utilized these ideas to enhance their success in landing government contracts for small businesses.
1. Maintain Accurate Financial Systems
Establish and maintain accurate company financial accounting systems. Hire a qualified employee to manage these systems and consider engaging a competent outside CPA familiar with accounting rules unique to government contractors.
2. Set Monthly Numerical Goals
Establish monthly numerical goals, referred to as Key Performance Indicators (KPIs). This will help you measure progress and stay on track.
3. Adapt to External Changes
Pay attention to events in your external environment and modify your business model accordingly. Staying adaptable will help you respond to market shifts and emerging opportunities.
4. Hire Talented People
Recruit exceptionally talented individuals and compensate them above the market rate. High-quality employees can drive your business forward and enhance overall performance.
5. Build Strong Customer Relationships
Turn your customers into “raving fans” by providing frequent, high-touch personal service. This approach will generate positive word-of-mouth advertising and strengthen client loyalty. This is especially true with federal procurement as well as with local state, county, and city government buyers.
6. Utilize Social Media Marketing
Hire or outsource an expert social media marketing professional to enhance your online presence and reach your target audience effectively.
7. Choose the Right Banker
Select a commercial banker who understands the government contracting industry and is willing to take the time to understand your business’s unique needs.
8. Enhance Executive Skills
Increase the level of your executive skills by recruiting a mentor or coach. This guidance can help you navigate challenges and make informed decisions.
9. Focus on Long-Term Vision
Dedicate fifteen percent of your average work week to thinking about your company’s long-term vision. This practice will ensure you remain aligned with your strategic goals.
10. Manage Cash Flow
Manage your cash flow in 90-day increments. Create a budget and adhere to it to maintain financial stability and support sustainable growth.
It’s Not Easy, but It’s Simple
Remember that government procurement officers are people just like you and me. They have their own needs and desires and want to do a good job. Ensure that all your efforts in securing state and federal contracts align with making the lives of your immediate government contacts easier.
For more tips on how to maintain a healthy business, below is the link to my podcast https://ceotorainmaker.buzzsprout.com
By Eugene E. Valdez, Certified Business Coach
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