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Reverse the Trend – Identify Your Government Niche, Expand Your Business

Businesses Avoiding Government Contracts

Small firms are increasingly finding it difficult to hire enough staff to do the job that is currently available. As a result, from 19,000 firms a few years ago to 14,000 firms today, there are fewer GSA Schedule companies. This decrease is primarily due to the closure of small businesses, which has significantly raised revenue for each firm on the timetable. The $1MM per small business with a GSA Schedule has increased to $1.3MM.

Some would ask why they would want to enter the government market while businesses are leaving, if that is the trend.

Today, I'd like to present a counterintuitive argument for why breaking the trend can be quite advantageous to a company.

Federal Government is Everywhere

Here are the major metropolitan areas where the federal government employs the most people. A business that sells goods or services would be wise to invest in any of these areas. Businesses that offer products are typically not restricted by their location.

Government Business is Large


If the government sector were an industry, it would rank among the Top 10 in terms of sales. It makes up a sizable portion of the economy.

Small Businesses Have a Manageable Contract Grouping


The federal government wants to cooperate with small businesses. As a result, the government requires that nearly all contracts valued at more than $3,000 but less than $100,000 go to approved small businesses.

Consistent Business


In contrast to the private sector, where spending varies more during the economic cycle, government spending is steady. Furthermore, during these periods, the government typically increases spending.

Fair Process


The government's purchase process is very open and transparent, unlike some private sector transactions. Many of the goods and services required by government agencies are purchased from vendors who meet specific criteria. In order to obtain certain goods and services, they follow defined procedures. Contracting can grow into a successful business if you are prepared to put in the time to become familiar with these rules.

Large Growth Opportunity


Selling goods and services to government organizations has helped many small businesses grow into larger ones.

Makes you a Safe Choice for All Customers


Being a vendor for the federal government carries some level of distinction. If you are already doing business with the government, prospective clients will view your company as thoroughly vetted.

Increases Likelihood Your Business Gets Purchased


Last but not least, working with the federal government defies logic in that small businesses with solid connections within a particular agency may occasionally be strategically bought for those connections that a major company may want or need.

I always recommend an industry expert that can help you buck the trend if you're considering it, but are unsure where to begin. Advance GSA or Fedvital are both solid starting points, neither charge for an initial consultation.


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