Course: Navigate government contracts
The pros and cons of government contracting
Now that you’ve reflected on the type of customer you enjoy working with, let’s explore what it’s like to work for the government. Take a look at this list of pros and cons and reflect on how the information fits with what you value in a partnership.
Pros
There’s over $665 billion on the table for federal contracting, plus more from state governments.
Governments typically pay in full and on time. Contracts can potentially last for years, so they could serve as a source of steady income for your business.
Winning a government contract can signify to potential customers that you’re a reliable supplier.
Once you’re in, it can be easier to navigate the system. You’re also more likely to hear about new jobs or get referrals.
The government closely scrutinizes and holds contractors to high standards. This ensures a more even playing field and honest business deals.
Cons
Economic downturns can lead to spending freezes, budget cuts and canceled contracts.
Plan to spend roughly a year getting your certifications and applying for contracts before you see a profit.
Taking in lots of new information and processes requires time and effort. Consider whether you have the bandwidth and resources to dedicate to learning.
Adjusting to working within a hierarchy can be tough for small businesses. This is especially true for Department of Defense contractors.
Rules and red tape can cause frustration and slowdowns. Expect it to take time to get started and know your capacity for navigating complex systems.