Understanding Three of the Most Common Questions About Government Contracting
Selling to the government is a great way to help grow your sales and profits. While selling to the government may seem complicated at first, our experts are available to help guide you through the process.
Get started by understanding three of the most common questions small business owners have about selling to the government.
1. What Does the Government Buy?
According to the Small Business Administration, government agencies buy a wide variety of goods and services each year via contracts with various businesses, which can be a critical tool for small businesses.
The government agencies that participate in these contracts are responsible for obtaining the goods and services that support their missions through the procurement process. This is an important opportunity for businesses, giving owners the chance to hear from procurement officers from a large number of organizations at various levels.
An exchange like this helps procurement officials learn more about the diversity of small business, while business owners get to learn about what opportunities are available for small, minority-, women-, and veteran-owned businesses.
2. Does the Government Need My Product?
A common misconception that many business owners have when considering whether or not to market to government buyers is that the government doesn’t need their product or service. Not true! The government purchases everything from pencils to railroad equipment! With this kind of scope, there’s a good chance your product or service is in the budget.
Ram Basnet, Branch Manager of the Small Business Administration in our area, stated that “with the proximity of several military bases and projects overseen by U.S. Army Corps of Engineers in our area, there are significant federal contracting opportunities for small businesses.”
3. How Much Does the Government Buy?
In 1953, The Small Business Act passed, requiring that the federal government set aside 23% of their contracting dollars for small businesses.
For the fiscal year of 2019, the federal government’s prime contracting spending was well over $500 billion. This translates into about $115 billion that went toward small businesses and their development.
Get Started Selling to the Government
Education is key to understanding and competing for government contracts. At the Missouri Small Business Development Center at Missouri State University, we offer regular trainings to help small businesses work with the government. We also partner with the Missouri Procurement Technical Assistance Centers’ procurement specialists to answer questions and educate business owners.