Want To Win Government Contracts? Don't Make These Mistakes

Are you making small mistakes that could be costing you big with government contracts? It's easy to fall into traps. But don’t get down on yourself. I’m here to help clear some things up.?

Mistake #1 - Poor Business Model

The first mistake that so many make, is a poor business model. And you may be wondering, what do you mean by this??

Well, you need to figure out if you're an entrepreneur or an expert. The goal for many entrepreneurs is to have a business model where they sell a product or service and make a consistent profit, with stable monthly revenue.

However, some people, myself included, take the expert route. I focused on training, diversity and inclusion, and data analysis. I thought I wanted to get paid for my time and subject matter expertise. And I did, but it was on an as-needed basis, with one-off opportunities. For example, I might need to train 10 times in March, but only once in August, or not at all in December.

This expert model also applies to one-and-done industries like packing, moving, and sometimes construction. In these cases, you need to consider how many contracts you need each month to meet your financial goals. For example, if your trucking business only earns $1,000 per contract, you might need 20 contracts per month to sustain your business.

If you determine that you need multiple contracts to meet your goals, you'll need to think about:

• What skills do you need to develop to handle a higher volume of work?

• Who do you need to hire to execute the contracts?

• How will you handle staffing, recruiting, selection, onboarding, and payroll?

When you choose the expert route, you may be excited and confident because you've done the work before. That's great, as long as you're prepared to accept the challenges that come with this business model, such as inconsistent income and the need to continually secure new contracts.

On the other side, is the entrepreneurial model, which is basically staffing in the federal government.?

A lot of small businesses (and the big businesses, because in the federal government, you're either small or not small) make their own money, including my flagship company KQ Parks Consulting, in staffing.?

The federal government looks for contractors to support their existing government staff. You may be sitting side-by-side with them helping, and your staff is being paid a set amount of money per hour per month. Typically those contracts are a base plus four, they often last for five years. So you're receiving ongoing revenues every single month, often for five years.

So if you have several of those, let's say each one is $100,000, you have $500,000 in government contracts coming in. Now you have more dependable, stable money, you have a stronger business model, a more predictable business model.?

You can also expand - maybe your focus is IT and you decide you want to get into emergency services, or staffing firefighters. Or maybe you're interested in some training opportunities or one-and-done things. You can definitely go back and forth between the categories, but you need to really understand what you're involved in and what you need to do in order to have a long-lasting business.

Mistake #2 - Too Focused on NAICS Codes

The next thing is I see so many businesses, and I was there too, you're too focused on the NAICS codes. When you reach out to agencies, you speak in terms of your NAICS. When you're looking at things in SAM.gov you're really narrowed in on the NAICS code.?

I remember being at an outreach event with tons of different GovCon people, entrepreneurs, and business development personnel from all types of industries.?

And several of them said “Kizzy, we can tell you're like a little micro company because of the information you have on your business card, you're so focused on your NAICS codes.”

They said look at the other companies, the big companies - are they focused on their NAICS codes? And I did, I was like wow, I was so zoned in, I thought that's what you're supposed to do.

Instead, you should be focused on the value that you're bringing to the table. When you're engaging with the federal government and looking at opportunities, they should be those where you're able to demonstrate with certainty a situation, a solution that you provided, and the outcome.?

Also, keep in mind that some opportunities in which you can and will add value aren’t listed under the NAICS in which you think they should be. So when you're so focused on the NAICS, you're going to miss out.?

Mistake #3 - Relying on Free Advice

I love free advice as much as anyone, but it’s important to recognize its limitations, especially when it comes to winning government contracts. Consider the agencies that offer free advice like the SBA or PTAC.?

The people working there are amazing and committed to helping small businesses, which are the backbone of our economy. However, think about whether these advisors have actually run a government contracting business themselves.

In my early years, I got a lot of free advice from these sources, but none of those advisors had owned a government contracting business. So, while they can help with basic things like registering your business or getting certifications, they might not have the practical experience for more complex issues like pricing, business development, or hiring.

You wouldn’t take financial advice from someone who isn’t financially savvy, right? The same goes for government contracting. You need a mentor who has real experience, someone who has secured and managed millions in government contracts and can guide you based on firsthand knowledge.?

While groups like the SBA are great for understanding the technicalities and can help with things like joint venture programs, for the more practical, day-to-day challenges - like dealing with false claims or staffing issues, you'll benefit from a mentor who has already “been there and done that.” So, look for solid guidance to keep your business flying high.

If you're ready to keep advancing in your government contracting journey, subscribe to my YouTube channel for more tips on how to succeed as a GovCon Winner.

Click here today to subscribe to my 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