3 Steps To Getting Your Feet Wet In Government Contracting
1. Maximizing Your Potential: The Importance of Understanding the Government Contracting Process & Positioning.?
The first Stepping stone to getting “your feet wet” in government contracting is understanding the process of hiring someone that does.?
It's crucial to have a solid understanding of the process and requirements involved. From navigating complex regulations to bidding and winning contracts, success in this field requires a comprehensive understanding of the process.?
Not only will this increase your chances of success, but it will also ensure that you are able to operate in compliance with all regulations and standards. Whether you're a seasoned contractor or just getting started, taking the time to understand the process will set you apart and position you for success.?
However you don’t have to do this alone, you can outsource the business development for example to our firm where we do what is called “Contracting full lifecycle management.”?
Full lifecycle management for government contracting typically includes the following services:
These services cover the entire process of obtaining and executing a government contract, from initial review of solicitations to successful completion of the contract requirements. By utilizing full lifecycle management services, companies can ensure that they are effectively managing all aspects of their government contracts and meeting all obligations and regulations.
Not interested in outsourcing there here are the minimal deliverables you are going to want to have prior to starting in GovCon:?
The foundation is not just a punch list, it’s your starting position in a race that is ever changing. You can jump to the front or spend years trying to get to the starting line. The difference is how you come into the race.?
A strong foundation for a company prior to getting into government contracting includes the following; a solid business plan and financial stability, experience in the industry and a good track record, having a clear understanding of the procurement process and government regulations, strong relationships with suppliers, vendors and subcontractors, a strong team with the relevant skills and expertise, effective internal systems and processes, a commitment to ethical business practices and compliance with all laws and regulations.?
It’s not as complicated once you write it down, having these elements in place can increase a company's chances of success when bidding on government contracts and reduce the risk of legal and financial issues.
A unique strategy is to buy an already established business that checks all of these boxes also called the investment thesis or “Buybox,” then bolt-on government contracting to diversify its revenue streams and increase gross revenue, or stabilize revenue through long term contracts. If you want to have general conversation about government contracting you can book a call here .
2. Investing in relationship capital: How to cultivate and hold key relationships that create a cash generating machine.??
Relationship capital refers to the value of a company's relationships with its stakeholders, including customers, suppliers, vendors, employees, partners, and investors. It encompasses the trust, goodwill, reputation, and mutual understanding that a company has built up over time with these stakeholders, and can be leveraged to create new opportunities and growth.?
Relationship capital can play a crucial role in a company's success, as it can help to establish strategic partnerships, secure customers, attract talented employees, and raise additional funding.
Monetizing relationships, talents, and partnerships as assets is often referred to as "network effect". The network effect refers to the value of a company's platform, products or services increasing as more people use it, allowing the company to leverage its existing relationships, talents, and partnerships to generate revenue.
How relationship capital applies to past performance hurdles?
Past performance is often considered the top hurdle that new government contractors face in securing contracts from government agencies. This is because past performance is one of the most important factors considered by agencies when evaluating potential contractors.
Statistics show that government agencies rely heavily on past performance when making procurement decisions. For example, a study by the Federal Acquisition Institute found that past performance was the most important factor considered by agencies when making source selection decisions, with over 90% of agencies indicating that past performance was either very important or extremely important.
This emphasis on past performance creates a significant challenge for new government contractors who have limited or no prior experience working with government agencies. Without a track record of successful past performance, new contractors may struggle to compete against established contractors who have a long history of delivering high-quality work.
However, new government contractors can overcome this hurdle by building a strong relationship capital and leveraging the network effect. By establishing partnerships with other contractors and establishing a reputation for high-quality work, new contractors can demonstrate their ability to deliver results and overcome the challenge of limited past performance.
Investing in relationship capital and leveraging the network effect can significantly impact the success of a government contractor in the following ways:
Investing in relationship capital and leveraging the network effect can have a positive impact on the success of a government contractor by creating new business opportunities, improving performance, increasing efficiency, and strengthening relationships with key players.
Having relationship capital and using the network effect is the key differentiator in taking "what we could do", to "what we are doing", and carrying it through to "what we have done."
Cultivating authentic and genuine relationships with your network is a key to success in government contracting. Relationships based on aligned interests and mutually beneficial outcomes can help to establish trust and create opportunities for collaboration.?One way to cultivate relationships is by identifying and solving problems that are important to the target, such as helping contracting offices or officers.?
For example, by offering solutions to inefficiencies or challenges in the procurement process, a contractor can demonstrate their expertise and commitment to helping the contracting officers achieve their goals. This can help to establish trust and create a strong relationship that can benefit both parties.
Additionally, getting strategic partners to invest their time, resources, and capital in pursuit of government contracting can be a powerful way to build relationships. This can be achieved by offering attractive investment opportunities, such as joint ventures, that align the interests of both parties and provide a mutually beneficial outcome.
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Don’t come empty handed, try to give before asking, and focus on collaboration, that will lead to a deep connection over time.?
The Key to building bulletproof relationships is not just about backyard barbecues and golf games that include investors, executives, sales team, or key employees and even prime/subcontractors, but figuring out what drives those relationships and where heights and limits can be reached by broadening the network. The more you understand them the more you will get rewarded, deep ties lead to deep pockets.?
Recruiting & Talent Management - Building the right team to tackle anything that comes your way!?
Pulled out of a chapter of my book “The Acquisition Codex”
It's important to keep in mind that each individual will have their own motivations and priorities, so it's important to tailor your approach to their specific needs and concerns. It's also a good idea to be transparent and upfront about your own motivations and constraints, and to be willing to negotiate and find a mutually beneficial arrangement.?
A creating strategy that is very cost-effective is to create an attractive job posting or post on LinkedIn and other job boards as a way to attract qualified candidates. This would fall under contract employment. When selecting candidates to become board members in an M&A deal, it's important to consider the following factors:
It's also important to ensure that the board has the necessary skills and expertise to effectively oversee the M&A or GovCon process and to consider the balance of power among board members. You can look at their past performance, recommendations, or reviews.
3. Strategic planning making the right moves: The opening, mid game, and end game when it comes to looking at the big picture
Money is a byproduct of the mission and succeeding on the vision by bringing it into fruition.?
Strategic planning and operations are closely tied in a divide and conquer management style. The divide and conquer approach involves breaking down complex tasks into smaller, manageable parts and assigning them to individual team members or departments. This approach allows managers to focus on specific areas of the business and develop specialized expertise, leading to improved efficiency and effectiveness.
In the context of strategic planning, the divide and conquer approach can help to align operations with the overall goals and objectives of the company. By breaking down the strategic plan into smaller, manageable tasks, managers can ensure that all aspects of the company's operations are aligned with the strategic direction and working towards common goals.
For example, if a company's strategic plan is to expand into new markets, the divide and conquer approach could involve assigning specific departments or teams to focus on market research, product development, and sales and marketing. By breaking down the strategic plan into smaller, manageable tasks, each team can focus on their specific area of expertise and contribute to the overall success of the company.
The divide and conquer management style can be a powerful tool for aligning strategic planning with operations. By breaking down complex tasks into smaller, manageable parts, managers can ensure that all aspects of the company are working together towards common goals and objectives, leading to improved efficiency and effectiveness.
The government contracting landscape can be compared to a chess board in terms of the strategic planning and execution required for success. Each team member can be considered a piece on the chess board, each with a unique role to play in pushing progress towards the overall goal.
Just as a chess player must plan each move carefully, considering the strengths and weaknesses of each piece and how they work together, a government contractor must also plan their approach to the contracting landscape, considering the strengths and weaknesses of each team member and how they can best support the overall strategy.
For example, just as a bishop in chess can control diagonals, a team member responsible for market research can control the information flow and provide critical insights into the market. A rook, which controls vertical and horizontal movements, can be compared to a team member responsible for business development, who is responsible for pursuing new opportunities and expanding the company's reach.
In the same way, each team member's role and responsibilities must be carefully coordinated and aligned with the overall strategy to ensure success on the government contracting landscape. By working together and leveraging each team member's strengths, a government contractor can make progress towards their goals and achieve success.
Comparing the government contracting landscape to a chess board can help to illustrate the importance of strategic planning and coordination in achieving success. Each team member plays a critical role in pushing progress towards the overall goal, and their contributions must be carefully aligned and coordinated to achieve the desired outcome.
In the context of government contracting, the opening, mid-game, and end game can be seen as distinct phases of the process, each with its own objectives and challenges.
The opening, The mid-game, The end game
The opening, or the initial phase, is focused on establishing a presence in the government contracting landscape and developing relationships with key stakeholders. This can involve conducting market research, building a strong proposal, and networking with contracting officers. The goal of this phase is to lay the foundation for future success and to secure initial contracts.
The mid-game, or the growth phase, is focused on expanding the company's reach and consolidating its position in the market. This can involve pursuing new opportunities, building strategic partnerships, and expanding the company's offerings. The goal of this phase is to increase revenue and market share, and to establish the company as a trusted and reliable partner in the government contracting landscape.
The end game, or the exit phase, is focused on realizing the return on investment and transitioning the business to the next phase. This can involve pursuing an acquisition, divesting assets, or positioning the company for continued growth. The goal of this phase is to maximize value for the company and its stakeholders and to ensure a successful exit.
Looking at the big picture, it's important to have a clear vision and objectives for each phase of the process. This can help to ensure that the company stays focused and aligned with its goals, and that each phase supports the overall strategy. By considering the big picture and keeping the end game in mind, a company can effectively navigate the government contracting landscape and achieve success.
I hope you enjoyed this one, please send me a message for specific topics you want covered.
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