Strategic Consulting Solutions, Inc.


Business Development in Government Contracting

Business development involves identifying and qualifying new business opportunities and then determining which to pursue. Doing business with the Government can be difficult, time consuming, and at times, can lack profitability.  The best thing you can do is fundamentally understand your business practices, your capabilities, and your business goals, as well as the process of acquiring contracts.

According to the New York Times, of the more than 20 million small businesses in the United States, “only about 500,000 are currently in a position to do business with the federal government” largely because they know how to get the work.  An important note to take into account is that the government usually won’t give a contract to a business if it lacks a positive cash flow and if it hasn’t been in business for at least two years.

Companies can increase their ability to compete and win contracts if they invest in and optimize their business development and capture management and tools. Some questions to think about before embarking on the path of building business in the federal government:

  • Do you have the capabilities to execute on multiple types of contracts?
  • Is your management team strong and fully capable?
  • Have you audited yourself? What are your strengths and weaknesses?
  • Are your rates competitive?
  • Can you help create the requirements that are going to become part of the Statement of Work?
  • Can you ensure your customer that you can pass an audit, and execute contract actions without delay and problems?

If your answers to these questions are no, or I don’t know, then you need to reevaluate.  Once you know where to improve your business processes, your management approach becomes the very way you do business, making it easier to win new customers and, more importantly, retain them as customers. While the journey to assess, understand, and optimize your business practices can be lengthy, once established, these processes will drive the company, increasing your probability of capturing the deals you pursue.

If you don’t know how to audit yourself, or how to fix your weaknesses, reach out to a company that can help you.  Seek guidance from advisors and consultants who understand the cycle and processes of government acquisition.  This way, you can avoid major mistakes or the loss of a viable contract and become much more successful in your ability to make the decision of when to bid or not bid on certain contracts.  Whatever happens, don’t get overoptimistic, complacent, or disheartened.

To learn more, check out our resources page for additional information.

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