3 Government Contracting Mistakes You Must Avoid in 2024

I’m not going to sugarcoat it for you…There are 3 big mistakes that you need to avoid in 2024 if you want to be a true GovCon Winner. To some people, these mistakes may seem minor, but believe me when I tell you they can have a major impact on your business.?

1. Choosing the Wrong Business Model?

One of the biggest mistakes in government contracting isn’t understanding the difference between being an entrepreneur and an expert. Are you selling a product or service and making a profit from it? That's the entrepreneurial path, which offers continuous and stable monthly revenue.?

Many, however, fall into the expert route. This includes services like training, diversity, inclusion, and data analysis, where income can be erratic and unpredictable. The expert model may sound appealing initially, but it often leads to financial instability.?

You could have a lot of work in March and then have almost nothing in August or December. Sometimes inconsistency like this makes it challenging to manage finances and pay your team.

On the other hand, the entrepreneurial path, particularly in government staffing, opens the door to more consistent revenue. This approach involves long-term contracts, often lasting years, ensuring a steady flow of income.

2. Overemphasis on NAICS Codes

Another common mistake is an overemphasis on NAICS (North American Industry Classification System) codes. While it's important to understand your industry classification, focusing solely on NAICS codes can limit your opportunities. I remember being at an outreach event where I was told my focus on NAICS codes made my business seem small. With that said, you must focus on the value you bring. Government agencies are looking for contractors who provide solutions and outcomes. Be intentional about showing your ability to add value, and you'll stand out.?

3. Relying Only on Free Advice

Free advice from agencies like SBA and PTAC is helpful, but be careful. These organizations are great for basics, but they often lack important information. In my early years, I spent a lot of time soaking up free advice, only to realize that none of those advisors had run a successful government contracting business. Very disappointing, right??

What you need is a mentor with real, hands-on experience in government contracting. Someone who's been there, done that, and is still doing it. A combination of free resources and experienced mentorship is important for your journey.

With these in mind, you'll avoid unnecessary setbacks.You're a GovCon winner, so go out there and make your mark. Don’t forget to keep up with my latest tips on my official YouTube channel. Click here now to subscribe. ________________________________________________________________

I’m the author of the newly released book “The GovCon Winners Way: How To Win Government Contracts Faster Than Trying to Do It Alone!” At 28, I was awarded my first 5-figure federal government contract. I own and operate multiple government contracting businesses and have over $50 million in federal government contract awards. Today, I’ve helped my students win over $3M in Federal Government Contracts in less than 6 months, and I’ll help you, too!?

-#EverythingIsPossible