The federal government spends over 700 billion per year on government contracting. Exciting, right?
Here are some steps to help you get started:
1). Incorporate Your Company:
You can form an LLC or an S or C-Corp with the state of your choosing. We tend to prefer Delaware for a variety of reasons. One reason being: Delaware doesn’t impose income tax on corporations registered in the state which don’t do business in the state. For more reasons please reach out to us.
2). Secure Your EIN:
Your Employer Identification Number is like a social security number for your business. You will need it to open a bank account in your company’s name plus you need it for when you file your company’s taxes plus a host of other reasons.
3). Get A Business Checking Account:
So you now have your corporate documents and your EIN so it’s time to open a business bank account (preferably a checking account). Why do you need a separate bank account for your company? It separates personal assets from business assets. It makes things simpler when it comes to tax time. Quite a few prime contractors require it before doing business with you. And it also shows that you’re a professional.
4). Write A Capability Statement:
This one sheet should list your…capabilities (products and/or services), past performance (if any), contact information, and your NAICS codes.
5). Register On Sam.gov:
The System for Award Management (SAM.gov) is an official website of the U.S. Government. There is no cost to use SAM.gov. You can use this site to: Register to do business with the U.S. Government. Update, renew, or check the status of your entity registration.
Sam registration is mandatory to be awarded federal contracts. Also, again, it is free to do so.
6). Start Reading Solicitations:
There is a saying that 90% of government contracting is administrative work and a major part of that is reading…and reading….and reading solicitations. Read solicitations that appeal to your wheelhouse and then…
7). Start Writing Proposals:
The most crucial aspect of winning contracts is delivering stellar proposals. A lot of companies hire outside proposal writers to assist with this area. There are many companies in the field. Please do your research and proceed accordingly.