The Ultimate Government Contracting Guide for Beginners 2024

Have you recently learned about federal government contracting? I'm here to guide you through what you should do next.?

If you’re already running a business, hold tight - advice is on the way. If you don’t yet have a legal business, establishing one is your first step.?

You can set up a sole proprietorship and obtain a tax ID through the IRS.gov website, or consider creating a corporation such as an LLC, Limited Liability Corp, an S Corp, or a C Corp.

Naming Your Business

For existing businesses, if your company name is highly specific, like “Brenda's Braiding,” you could do a “Doing Business As” (DBA) name. You can abbreviate it to something like “BB Consulting” or “BB Federal,” which offers a broader appeal for government contracts. This strategy helps to make sure that your company name does not negatively influence potential clients’ perceptions, allowing you to present your business in a light that reflects a wide range of products or services.

Thinking of Doing a Nonprofit??

If you’re operating or thinking of starting a nonprofit, only register for federal government contracts if you plan to bid on work available at Grants.gov. Otherwise, it may be more advantageous to establish a for-profit business for federal contracting purposes.

Business Requirements

Every business intending to engage in federal contracts must have a physical address. Virtual addresses or P.O. boxes are not acceptable. Your business location can be your home, an apartment, a mobile home, or a traditional office space. Using SAM.gov is a must for identifying potential contracts and understanding the market. The platform is a valuable resource for finding a variety of contracts available to small businesses.

Are You An Expert or Entrepreneur??

Deciding whether to position yourself as an expert or an entrepreneur in the federal contracting space is non-negotiable. Starting as an expert, like I did, focusing on diversity and inclusion primarily for the Department of Defense, can be rewarding. However, having an entrepreneurial mindset opens up so many opportunities, much like Amazon expanded from books to a big selection of products. The approach can increase your business's revenue, impact, and service offerings.

Setting Up for Payment

Establishing a business bank account is also non-negotiable, as the federal government pays via ACH transfer. Although you can initially use any bank account during registration, a dedicated business account is necessary for long-term operations. Smaller banks often offer more personalized service and may be more willing to work with new businesses.?

Additionally, enabling credit card payments can give you a fast and convenient option for receiving funds, with the government directly depositing money without withholding taxes. It's important to manage your taxes properly to avoid liabilities.

Becoming a Prime Government Contractor

To become a prime contractor, you must register for a Cage Code on SAM.gov, making sure you have all required information such as a physical address, tax ID, business email, and banking details ready. The registration process is thorough and can take a couple of hours, but it's an important step in accessing all the opportunities within federal contracting, which includes over $800 billion in spending. Small businesses automatically qualify for certain set-asides, increasing your chances of winning contracts.

By the way, being registered on SAM.gov is one thing, but actively bidding on contracts is another. There may be a lot of competition out there, but the number of businesses that actively pursue contracts is much smaller. For example, a recent bid with the Navy saw only two companies competing for a contract worth nearly $300,000. Don't let anything hold you back from succeeding.?

Getting Started with SAM.gov

Once you register on SAM.gov, initially, you’ll be issued a UTI number. Then they need to do some verification, and you’ll be given a cage code. The timeframe in between can be from days to weeks. So, during this time, continue searching on SAM.gov. You don't have to log in to do it, and it doesn't cost anything.?

In addition to learning how to find bids, it's important to understand the strategies involved. Be sure to also familiarize yourself with the different documents and And don’t forget to understand everything that’s required to place a bid.?

Although I've dedicated two separate videos and discussions in my Facebook group to these topics, you can begin to familiarize yourself with the process and start getting comfortable with it on your own. Because at the end of the day, in the federal government contracting space, it does require reading, email, and writing.?

But this is no different than anything you've ever been through. It's no different than what your kids may be doing right now. And we do the same thing, whether we're scrolling on Instagram, TikTok, or whatever platform you're on. It's just now it can seem intimidating.?

However, the more you look at it, research has shown you're going to become more familiar, you're going to become more comfortable, that familiarity is going to kick in. So, I suggest that you watch as much content as possible, not only on my YouTube channel but on different channels that are out there. You can also join my Facebook group because the more you learn, apply, and adjust, the more successful you will be. I'm continuously learning, I have mentors, I have coaches, because in order to go all the way in this industry, I need a team, and you do too.?

Figuring Out Funding?

Also, while you're waiting for your cage code to be issued, research funding options. I once received a DM, where a person said that they won a contract, but they're unable to fulfill it, so it was canceled. I asked for more details - and what I have found is, it is super easy to win a contract. However, the challenge comes in funding and or executing the contract.

I don't know what happened with this particular person, but more than likely, they didn't have the funds. So while you're waiting for your cage code, look into funding opportunities. There's a lot of funding opportunities, whether you have a really low credit score, high credit score, or if you're somewhere in between.?

For example, if you're eyeing a contract that requires an upfront investment of $15,000 but promises a profit of $10,000, it's important to devise a funding strategy. I interviewed Antonio, someone who bid on a project with the potential to earn $14,000 in profit each month. You heard that correctly - $14,000 monthly. With that said, you’d be surprised at the opportunities out there.?

Bidding Time?

Once you get the email that says you’ve been granted a cage code, now it's time for you to step out and bid. While it may be a little scary, everything new has a little bit of fear, but so much excitement. There's so much upside, and I'm here for you. I'm cheering you on.?

If you'd like more advice and tips from me about government contracting, then start watching my YouTube videos. Click here now to subscribe to my official YouTube channel.?

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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