Readiness Checklist

Before pursuing government contracts, first consider the investment in time and resources your company needs to enter the government marketplace. Asking yourself these questions will help you determine whether these contracts are right for your business.

1. Are you an established business?

Government contractors are required to meet all criteria necessary to do business within their region, include abiding by all regulatory and licensing requirements. If you do not have a business license, you are not ready to sell to the government. Do you have sufficient financial resources and cash flow to handle current obligations as well as those you would encounter under a government contract? Insurance and, where required, surety bonding, are both essential when planning to do business with government agencies.

2. Does your business plan include government contracting?

Small businesses need to properly align their business plans to address the specifics of the government market.

3. Can you afford to sell to the government?

It can take longer to receive payment for government work — sometimes up to 45 days or longer after the work is completed. Can you cover your overhead until the payment arrives?

4. Does your company have a sales history?

If you do not have an established business with a sales history, you are not ready to sell to the government.

5. Have you done the necessary market research to determine the government’s demand for your product or service?

If you have met the above criteria, you should conduct proper market research and analysis to determine if the government buys your product or service, as well as which agencies purchase the product and/or service routinely. Consider starting with local agencies and identify subcontracting opportunities that can help you obtain a past performance record with the government. Research which agencies or departments you need to target your sales towards.

6. Is your company capable of e-commerce? Do you have a website?

Having a website is important and may require e-commerce to win and perform on contracts.

If you answered yes to the above questions, you may be ready for government contracting!