Government Contracting: Small Business Growth Secrets Ft Shirley Collier

I had a chance to talk with Shirley Collier from Scale to Market. Our conversation was about one of my favorite topics - which is profitability in the federal government space.?

Shirley brings a wealth of knowledge and experience, backed by evidence and real-world results. So grab your notepads and get ready to act on her valuable knowledge.

Growth in the Federal Space for Small Businesses

When asked about how to achieve growth in the federal contracting for small businesses, Shirley mentioned three main points:

1. Be innovative in your work. As a small business, you need to distinguish yourself from.?
2. Be disciplined in your approach to the federal marketplace.
3. Be customer-focused by listening carefully to your clients and be prepared to adapt your products, services, and organizational structure based on their needs.

Shirley says small government contractors go through very defined phases of growth, and understanding these phases is important for success.

Figuring Out the Startup Phase

For companies in the startup phase, especially solo entrepreneurs, Shirley offers this advice:??

1. Understand what you don't know - Starting and growing a small business in the federal sector is one of the hardest things you'll ever do.
2. Learn how the federal government procures - Understand the Federal Acquisition Regulation (FAR) and take advantage of free resources like PTACs and SBDCs.
3. Develop relationships - If you're currently working for a larger contractor, leverage those connections with other contractors, competitors, program managers, and small business offices.
4. Build the foundational things - Get the necessary socioeconomic certifications. Set up a good cost accounting system (QuickBooks can work for starters and has good job costing capabilities) Learn how to recruit effectively.?

Understanding “Butts in Seats” Contracts

Shirley explains that “butts in seats” contracts are basically staffing requirements. Federal agencies often contract out positions because hiring through the federal system can be complex and time-consuming.?

In these contracts, the individual gets their direction from someone in the government, although they're employed through your company.?

While some may advise against these contracts, Shirley says that large companies like Booz Allen do some staffing. These contracts can be a great way to get your foot in the door with an agency.

Growing from $5 Million to $25 Million

The growth phase of $5M to $25M is Shirley's favorite to work with. Here's what companies need to focus on:

1. Pivot your strategy, staff, focus, and organizational structure.
2. Bring outsourced services in-house (accounting, recruiting, HR, business development).
3. Develop an executive team and learn to delegate authority.
4. Implement more disciplined business development practices.
5. Prepare for future growth and potential exit strategies.

Shirley shared an inspiring example of a client who grew from a $5 million 8(a) firm to a $20 million company in only18 months. The reason for their success was:

1. Knowing their unique strength (AI for fraud detection)
2. Conducting market research to confirm demand
3. Creating a focused two-year growth plan
4. Having the courage to let go of less profitable contracts
5. Putting all their energy into their specialized area

Challenges at Different Growth Stages

Shirley says that each stage of growth comes with its own challenges. You must understand that what you're going through is normal and expected. She recommends:

1. Learning from industry best practices
2. Applying purposeful thinking to your business
3. Developing good habits specific to each growth stage
4. Using the experiences of others who have gone through similar challenges

Shirley uses the adage, “Our thoughts lead to words. Words lead to actions. Actions become habits, and our habits are our lives.”?

She encourages business owners to start with their thinking and integrate it into behaviors and actions in the company.

What Makes Good Strategy for Small Business Contractors

Strategy is important at every stage of growth. Shirley breaks it down into two main categories:

1. Where to play - Which agencies, contract vehicles, and opportunities to pursue
2. How to win - Market positioning, expertise, products/services to provide, and differentiators

She stresses that strategy is an ongoing process that should be integrated into your company culture. Encourage all employees to think strategically and look for ways to better serve your clients. Shirley notes, “Where there is chaos and uncertainty, there's opportunity.”

Shirley’s Recipe Analogy

Shirley uses a cooking analogy to explain strategy development. Just like in cooking, you may have the ingredients (your capabilities and resources), but you need a recipe (your strategy).?

This includes knowing which ingredients to add first, how to combine them, and the techniques to use. Just as in cooking, in business strategy, there are secret ingredients and specific techniques that can make all the difference.

Common Mistakes and How to Avoid Them

The biggest mistake Shirley sees is small businesses “proposing themselves to death.”?

Responding to every RFP that seems relevant can be expensive and often fruitless if you haven't been shaping the opportunity beforehand.

Instead, focus on:

1. Building relationships with decision-makers in federal agencies
2. Shaping upcoming opportunities (which can be done ethically and legally)
3. Proving your competence, reliability, and innovation before the RFP hits the street

The Power of Staffing Contracts

Shirley also shared an example of a relationship with IBM, where they use small businesses to fulfill internal staffing opportunities.?

She says that staffing can be a big money-maker, even though it may not sound as exciting as other areas like weapons, planes, computers, or AI. Many companies are involved in staffing, and it can be a great, profitable niche. Now, here’s some other amazing advice from Shirley:

1. Use data to inform your decisions - Use public data sources like FPDS to understand buying strategies and upcoming opportunities.
2. Gather human intelligence -? Listen carefully to your clients, show empathy, and strive to become a trusted advisor.
3. Be there for your clients - Focus on helping solve their problems and achieve success.

I know this is a lot of great stuff to soak up from Shirley! Save this newsletter to keep it readily available for you. Also, if you want more practical tips on becoming a GovCon Winner, then subscribe to my official YouTube channel today.?

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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