The Ultimate Government Contracting Guide For Beginners in 2024
Summary
TLDRThis video script outlines steps for securing a government contract, emphasizing the importance of adding value and understanding the federal government's needs. It introduces a 'Money Making Idea Matrix' to help businesses identify profitable ideas and scale them. The speaker shares personal insights from owning three multi-million dollar companies, discusses the North American Industry Classification System (NAICS) for aligning business offerings with government interests, and provides actionable advice on networking and leveraging platforms like sam.gov to find contract opportunities. The focus is on patience, persistence, and the joy of entrepreneurship in the government sector.
Takeaways
- 💰 The federal government spends over $600 billion a year on contracts, presenting vast opportunities for businesses.
- 🔑 To secure a government contract, businesses must offer unique value or a compelling reason for the government to choose them over thousands of other contracting companies.
- 🛍️ The ease of doing business is highly valued by the government, similar to the convenience people seek from platforms like Amazon.
- 🤔 Businesses should introspect about their business model, whether they are experts providing specific services or entrepreneurs open to a variety of opportunities.
- 💡 Entrepreneurs are encouraged to dream big and explore ideas that could be of interest to the federal government, considering profitability, scalability, and personal enjoyment.
- ⚠️ A stark reality is highlighted: 80% of black-owned businesses fail within 18 months, emphasizing the need for tough and honest conversations about business sustainability.
- 📈 The presenter shares a 'Money Making Idea Matrix' to help businesses brainstorm and evaluate their ideas for government contracting.
- 🔍 The North American Industry Classification System (NAICS) is crucial for understanding how the government classifies products and services, which helps in aligning business offerings with government needs.
- 🔗 The process of matching business ideas with NAICS codes is likened to currency exchange, translating ideas into recognized categories that the government seeks.
- 📊 The Dynamic Small Business Search website is a valuable resource for identifying small businesses registered for federal contracting and potential partnership opportunities.
- 📞 Persistence is key in government contracting; the presenter suggests contacting at least a hundred companies via email, call, or LinkedIn to increase the chances of securing a contract.
Q & A
What is the annual spending of the federal government on contracts?
-The federal government spends over $600 billion a year on contracts.
What is the key factor that differentiates a business from a hobby in the context of this script?
-The key factor is the ability to make money, as a business that isn't making money is considered a hobby.
What is the significance of the North American Industry Classification System (NAICS) in obtaining a government contract?
-NAICS is used by the federal government to classify products and services they need, helping businesses understand how their offerings are categorized and recognized by the government.
What is the failure rate of black-owned businesses within the first 18 months, according to the script?
-80% of black-owned businesses fail within the first 18 months.
What is the importance of dreaming big when considering ideas for government contracts?
-Dreaming big is important as it allows for the generation of ideas that could potentially be profitable, scalable, and bring joy to the entrepreneur, without being limited by current competition or market constraints.
What is the role of the Dynamic Small Business Search website for those looking to provide their expertise to the government?
-The Dynamic Small Business Search website allows users to look up small businesses registered with the federal government for potential contracting opportunities, helping experts identify companies that may need their services.
What is the recommended approach for contacting potential contracting companies found on the Dynamic Small Business Search website?
-The recommended approach is to contact at least a hundred companies via email, phone, and LinkedIn, repeating the process at least once a week to increase the chances of securing a contract.
What does the script suggest as a starting point for those interested in becoming government contractors?
-The script suggests starting with the expertise or interests one has, identifying profitable needs, and ensuring that the chosen path aligns with the NAICS codes used by the government.
Why is patience important when navigating government contracting websites and processes?
-Patience is important because government contracting websites may load slowly and the process of securing a contract can be time-consuming, requiring persistence and a long-term outlook.
What is the script's advice for those who are experts looking to provide their services to the government?
-The script advises experts to identify their area of expertise, find companies that may require such services using the Dynamic Small Business Search, and actively reach out to these companies to offer their value.
What is the role of LinkedIn in the process of contacting potential government contractors?
-LinkedIn serves as a platform to look up the person of contact, engage with their posts to get on their radar, and send direct messages as part of the outreach strategy to secure a contract.
Outlines
💼 Pursuing Federal Government Contracts
The speaker introduces the topic of securing contracts with the federal government, emphasizing the need to add unique value and solve specific problems. They share their experience owning three multi-million dollar companies and highlight the importance of understanding one's business model and the North American Industry Classification System (NAICS) codes for identifying profitable opportunities. The speaker encourages dreaming big and aligning business ideas with government needs, stressing the importance of patience and persistence in the contracting process.
🔍 Matching Business Ideas with NAICS Codes
The speaker provides a step-by-step guide on how to match business ideas with NAICS codes, which are crucial for understanding government classification of products and services. They demonstrate how to use the NAICS website to find relevant codes and emphasize the importance of patience when dealing with government systems. The speaker also discusses the distinction between being an expert and an entrepreneur in the context of government contracting, and how to identify opportunities that align with personal interests and capabilities.
📞 Building Connections for Government Contracting
The speaker outlines strategies for experts looking to leverage their knowledge in government contracting. They recommend using the Dynamic Small Business Search website to identify potential contracting opportunities and connect with companies that match one's expertise. The speaker advises on the importance of networking, suggesting to contact at least a hundred companies via email, phone, or LinkedIn to increase the chances of securing a contract. They also provide tips on how to engage with potential contacts effectively.
🚀 Exploring Entrepreneurial Paths in Government Contracting
The speaker shifts focus to entrepreneurs, guiding them on how to navigate SAM.gov to find contract opportunities. They explain the process of using NAICS codes to filter opportunities and the benefits of targeting set-aside contracts for small businesses. The speaker encourages entrepreneurs to consider various training topics as potential services they can offer, emphasizing the need to align offerings with government needs and personal enjoyment to ensure a sustainable business model.
🌟 Embracing Opportunities in Government Contracting
In the concluding remarks, the speaker reiterates the importance of offering value and aligning business interests with government needs. They provide a recap of the steps taken throughout the video and encourage viewers to explore the entrepreneurial or expert path in government contracting. The speaker leaves the audience with a sense of hope and the belief that success in government contracting is attainable, urging them to comment with any further questions or topics they wish to explore.
Mindmap
Keywords
💡Government Contract
💡Value Addition
💡Business Model
💡North American Industry Classification System (NAICS)
💡Entrepreneur
💡Expert
💡Reoccurring Revenue
💡Small Business Set-Aside
💡Dynamic Small Business Search (DSBS)
💡System for Award Management (SAM)
💡Profitability
Highlights
The federal government spends over $600 billion a year on contracts, providing ample opportunities for businesses.
To secure a government contract, businesses must offer unique value and solve specific problems for the government.
The presenter emphasizes the importance of client relation skills, as the government seeks easy and efficient solutions.
Understanding one's business model is crucial, whether it's based on expertise or entrepreneurial flexibility.
A 'Money Making Idea Matrix' is introduced to help businesses brainstorm and evaluate their ideas for profitability and scalability.
80% of black-owned businesses fail within 18 months, highlighting the need for tough conversations and strategic planning.
The North American Industry Classification System (NAICS) is essential for understanding how the government classifies products and services.
Businesses should match their ideas with NAICS codes to determine if the government has a need for their offerings.
The Dynamic Small Business Search website is a valuable resource for finding potential partners and opportunities.
Patience is key when navigating government contracting processes, as websites and responses may not be instantaneous.
Being an expert or an entrepreneur in government contracting requires different strategies and approaches.
The SAM (System for Award Management) website is a portal for contract opportunities and set-aside options for small businesses.
Set-asides can significantly reduce competition, making it easier for small businesses to secure contracts.
The presenter shares a personal anecdote about securing a contract without prior certifications, emphasizing the importance of value.
Engaging with potential partners on LinkedIn can increase visibility and the chances of securing a contract.
The presenter encourages viewers to reach out to at least a hundred companies to increase the likelihood of a 'yes'.
The video concludes with a message of hope and the belief that success in government contracting is possible for everyone.
Transcripts
the federal government spends over
$600 billion a year and I'm here to
share with you steps to get a government
contract you have to add value what
problems do you solve why should the
federal government work with you when
there's thousands upon thousands of
different Contracting companies out
there what do you offer that's maybe a
little different perhaps unique or maybe
you offer something that somebody else
offers however you add a little twist or
your client relation skills are amazing
because the federal government wants
their lives to be easy don't we all
isn't that why we shop at places like
Amazon you also have to ask yourself
what is your business model so I'm going
to share my screen and walk through
several things you're going to notice
that throughout this video money making
idea Matrix we're just going to jump
right into it because if you're not
making money this isn't a business it's
not it's something you do for fun maybe
it's a hobby but when it comes to a
business regardless of who your client
is it is all about being able to make
money so you stay in business you know
one stat just to be aware of before I
jump into this
80% of blackowned businesses fail within
18 months I own three multi-million
dollar company so I know it can be done
it's just that we have to have these
tough kind of conversations these raw
honest conversations and that's why
we're beginning here with money because
value is involved with money so you have
to ask yourself what is my money making
idea and I have this Matrix here for you
to help you walk through it so what
you're going to want to do is come up
with ideas what are you interested in
offering to the federal government is
there a profitable need for it is this
something you could scale will this
bring you Joy how long do you want to do
this and you may be asking yourself well
how do I even figure this out where do I
even begin don't ask too many questions
just dream dream like you did when you
were a little kid you just dream what
are some ideas hey initially when I
started out I Lov training I loved
helping with diversity and inclusion I
loved analyzing data I love just being
of help was there a profitable need yes
there's always going to be a need for
diversity and inclusion training is that
something I could scale at that time yes
did it bring me joy immense Joy I even
have a book published on the title it's
surreal how long did I want to do it at
the time I thought hey I'm going to do
it as long as I'm able to do it had no
idea right but what I did have an idea
about is dreaming just like you did when
you a little kid and I knew that
diversity and inclusion training
training data analytics was value added
how there are job openings for it
private sector clients were out there
the federal government spends money on
it I just knew from just checking out
things on Google so dream don't get
caught up in the competition dream this
is just dream you know if you have to
you don't have to type it you can even
use crayons or markers allow yourself to
dream this is so important it's very
very important hey moving on here money
making idea formula this is just as
important as coming up with your
money-making ideas or idea it involves
has to be profitable something you enjoy
there has to be some type of reoccurring
Revenue we're going to talk a little bit
more about this okay but this is the
formula that I have created and this
will help you stay in business so you
may be wondering what in the heck is
this what is n a i CS why is this on her
screen I know so it stands for North
American industry classification system
and what we're going to do is take a
look at some other areas that are
related to this that I have set aside
for you okay so this is the NES website
so I'm going to share this link with you
what's really important is the federal
government they use this n system to
organize to
classify products and services that they
need this is very important because so
many people will say well you know I
offer this medical device private sector
clients love it I know the VA is going
to need it okay maybe maybe not but you
have to at least have an understanding
of how are they classifying it what
terms should you use to even determine
if they really want this is this really
a problem for them that they need you to
solve perhaps it's not or maybe somebody
else is already solving it or there's a
different type of problem out there so
let's go a little deep so what you're
going to end up doing is taking your
ideas and you're going to now correspond
or kind of exchange them with nakes code
so I kind of look at it as like a
currency exchange you know like you're
going to a Cambio and you're exchanging
dollars for a different kind of currency
maybe Canadian dollars or something of
that sort that's basically what you're
doing is you're translating you're
exchanging your ideas with these nakes
codes so you have a good idea of if the
government is interested in these areas
and things of that sort so we're going
to run with it so in order to look up
the different nakes that correspond with
your ideas you should you need to go to
this website and I will provide the link
so you go here and you're going to type
type in the keywords from the list that
you had over here you're going to type
in the different keywords so we are
going to start with training because
that is where I started out in the
government space you're going to see
something interesting and I also want to
share this this is very important as you
go through this journey several of these
links different websites they're not
going to load as fast as uh Tik Tok
Instagram link in Google there's going
to be a little bit of a delay and this
isn't because I'm screen recording it's
just how it is so another thing that's
really important when it comes to steps
to get a government contract you have to
have
patience you must have patience it's
just how it is it's okay it's okay just
take a deep breath it's okay so what I
want you to notice is as follows you
have Apprenticeship Training computer
professional flight look at all of these
wow there's a lot so the area that I
like to focus in on because I found that
a ton of work is typically under this
area is what's called
professional and management development
training okay but I already know that so
if I were to fill this out I would put
down training and then that nak I just
showed you but you're going to put and
populate every single nakes that's that
comes up you may find when you look at
this that you're like you know what hey
Flight Training that sounds kind of cool
I'm also interested in vocational
rehabilitation services hey why not list
all of the NES that are of interest to
you because remember the formula this is
about what brings you not only profit
not only reoccurring Revenue it has to
be something that you like if you don't
like doing it then you might as well
just work for someone and I'm not
suggesting that when you work for
someone that you're miserable what I'm
suggesting is it is such a blessing and
such an honor to be an entrepreneur and
to help fuel the economy but it's
something I love I always knew since a
little girl was going to be an
entrepreneur I love it but there are
some things I don't love there are some
areas that I don't enjoy and we just
don't focus on them with my Flagship
company so own it it's okay it's okay to
own it so you're going to want to go
back through here list all of your ideas
and list all the corresponding NES and
you may need several pieces of paper
because as you notice look at what came
up just under training a lot right a lot
of things here the other big piece when
it comes to steps to get a government
contract involves your business model
and let me explain you have to ask
yourself are you an expert or are you an
entrepreneur you just went through the
steps where you identified all of these
ideas you identified all of these nakes
codes now you have to ask yourself are
you in the position where you yourself
you want to provide said products or
services or are you at the place where
you're like look I am open to anything
that will make me a buck I'm interested
in products Services I heard you can
sell coacher potato chips and pancake
mix and trainers and it I want to do it
all just let's do it KY let's go okay
that's cool you can do it or maybe you
want to do a little both it's okay this
is awesome I'm going to show you what
you need to do for both paths if you
want to be an expert or if you want to
be more of an entrepreneur when I first
started out I was definitely an expert I
had a PhD I was like Dr
Parks I thought everyone was just going
to you know pay me for my expertise and
I love diversity and inclusion and
training and analytics and that's the
approach I took I was the expert I was
the doctor contact the doctor
that's the role I was in so let's take a
look at what that really means and what
that entails for those of you who are
interested in being paid for your
expertise because the federal government
has a variety of
opportunities that speak to you to every
single one of you watching but before I
show you I know you may already be
thinking wow we're this far into the
video and you haven't talked about set
aside or being and Sam or anything like
that that's correct because I had none
of those things when I got my first
contract because you don't need those to
get your first contract you have to add
value so let's take a look at that so
I'm going to share my screen again so
for those of you that want to take more
of the expert route you are going to
want to go to the dynamic small business
search website I will also include the
link below keep in mind this website
takes a long long time too load as I
stated before so what's really cool
about this website is you can look up
any and everything in terms of small
businesses registered with the federal
government to contract with them as a
prime contractor so what I recommend is
that you number one you select the state
where you live because we as people like
to connect with people who are like us
so you're not going to really know where
they go to school or if they're into
sports do they have kids where did they
grow up did they serve in the military
you're not going to know all of that yet
however comma you can at least connect
on the state level hey I live in Florida
you live in Florida oh my gosh I would
love to help you we're both in Florida
we like to help people in which we have
something in common with them we like
that we like the ingroup ingroup is very
important so here what you're going to
do is select the state and you're going
to put in your a nakes code I suggest
just you do one nakes code at a time
because you're going to get so many
results that is going to seem like you
in the cereal aisle at the grocery store
I don't want you to be overwhelmed
whatsoever I want you to have that
feeling when you go out for brunch and
it's a prefix menu and you're like wow
this is great they have seven items in
there this is awesome you don't have so
many things to choose from right okay
let's get into it here so when you
search This I Promise it's going to lead
to this and feel free to to try this on
your own so when you go here you're
going to notice the name of the firm the
point of contact it has their address
and what they do so let's say you are a
trainer your area of expertise is soft
skills so you may glean through here and
say okay they offer project management
process Improvement administrative
support okay you're going through and
you're like okay Global resilience group
they offer diversity equity and
inclusion positive outcomes okay this
involves soft skills maybe that's the
company I want to connect with well you
are in luck cuz guess what did you catch
it here at the top did you see this
you're over
1,500 companies that match his profile
it's insane you can go back here and
drill things down which I'll have to
touch upon in another uh video but for
now at least it's like this hopefully
provides you the confidence to know oh
my gosh there's over 1,500 companies
that could potentially use my expertise
and remember we just used the training
Nate right that's it one Nate 1500 so
the next step is you're going to want to
contact them you can click here and
it'll give you more information keep in
mind it takes a little bit to load we
have tons of information here you have
when the up the profile was last updated
you have the name of the firm you have
their address you have their phone
number all of their websites their email
address you also get more information
about the ownership of the firm this
firm in particular is blackowned other
minority owned self-certified you can
see all of that there and you can also
see the nakes codes so in addition to
6114305
with in your ideas and nakes Matrix
potentially so the next step is you're
going to reach out to the point of
contact shaa shaa yeah I think it's shaa
Willis potentially and you may wonder
what do you say well guess what I have
that for you I have it for
you oh my gosh I love this space so much
because it changed my life being able to
help the federal government with all
these amazing missions it just makes me
so happy so hopefully you have as much
joy as as I do and hopefully you find
this helpful okay so what you're going
to want to do email call LinkedIn if you
don't have a LinkedIn profile we're
going to talk about that in a different
video in the intrum email and call your
goal is to contact at least a hundred
companies because someone's going to say
yes there's no reason when the federal
government spends over $600 billion doar
a year on contracts that you can't at
least earn ear
$50,000 through Government Contracting
so you're going to contact the point of
contact here and you're going to just
send an an email like this put in their
information and you're going to call
email call email I would do this at
least once a week what you're also going
to do is look the person up on LinkedIn
I'm not going to go into great detail
because you may not have a LinkedIn
account for those of you who have a
LinkedIn account simply log into
LinkedIn look up the person and contact
them same thing DM them and here's
another bonus tip in LinkedIn whenever
you engage with one of their post if the
person has any kind of post even if
their last post was from a year ago that
person will be notified that you engaged
with them you're going to end up on
their radar and that's what you want you
want to show them that you have value
there's something that you can offer
that's going to make their life easier
and ultimately make the the life easier
of their government client since they're
registered in this system they're able
and may potentially have federal
government contracts and so you who
wants to be an expert you are an expert
this is the perfect opportunity for you
to have additional Revenue so I'm going
to show this one more time so you can
take a look for those of you who want to
take more of the
entrepreneur PA I have some things for
you too I'm going to share my screen
continue sharing my screen so where
you're going to end up going is
sam.gov now you may be asking yourself
or you may be saying but KY I'm not
registered how am I even going to be
able it's okay promise you I was not
registered in Sam I had zero
certification and I received my very
first contract that was a little less
than
$100,000 how because I offered value and
the agency put me as a subcontractor
through through a p Prime contractor's
contract vehicle so don't get caught up
in the weeds value value rules all so
you're going to go to sam.gov and when
you're here on sam.gov you're going to
go to contract opportunities then you're
going to go to Advanced Search you're
also going to want to make sure you have
this in front of you because you're
going to need your nakes codes because I
want to show you some things that are
very important when you're here you now
want to go to set aside small business
why as a small business and for those
who have contracts with the government
as small business owners you cut out all
this competition they cutting out IBM
and deoe because it can be very
difficult to compete against a large
company I'm not suggesting you can't hey
as a small business owner I have three
Government Contracting companies each
with well over a million dollars of work
on them in total I've won over 50
million we have beat big companies
before but when you're first starting
out or even if you have 10 years
experience in Government Contracting
it's nice to weed in Opportunities and
weed out the competition right you don't
want to have to worry about that so A
total small business this set aside
basically applies to any and all small
businesses soon as you sign up in Sam or
for those of you who are already
registered in Sam more than likely
you're going to be a small business okay
so you're going to go here you're going
to click total small business next we
are going to go to product or service
and you notice that lovely nakes code
comes up again so you're literally going
to either go to your sheet or you can go
here and you're going to cut and paste
the nakes code that you're interested in
and it's going to populate now you may
say well KY why don't you just type in
training it's this is not Google
patience is important this is not Google
this is not YouTube it's best to put
that aside just cut and paste the EG
code it's going to make your life easy
and you probably notice bam
automatically all of these things
populated and what's important is over
here on the right well it's my right
might be your left you want to select
updated date because if not you're going
to get opportunities from 2017 unless
you have a time machine maybe you do I
don't know if you do can we please talk
is that going to be of health so just
literally click update a date okay so
what we're going to do is just review
what's here space mission engineering
course ooh that sounds fun save a back
training sounds like something to help
with back eliminate back pain okay great
retirement webinar ooh academic support
radio radio frequency training project
management training mods introduction
course so you notice a wide variet y of
topics that's why it's very important
especially For You entrepreneurs you
have to ask yourself what not only will
bring you profit what's enjoyable and
what will bring you reoccurring Revenue
because just because the government
wants save a back training does not mean
that's something you even want to offer
but here's the big takeaway the way we
see things the way we want to offer in
products and services don't always align
one to one with how the government
purchases that is why we have the nakes
codes because these all of these
opportunities here fall under training
right they all fall under training so
then you have to ask yourself okay I'm
interested in training I like training
this woman Dr Park says it's profitable
okay so are you okay then with offering
save a back training retirement training
training for the Marine cors if the
answer is yes then that's awesome
because then what you do is you find
experts to serve as employees or 1099
contractors to then execute the work
there is a large company called
management Concepts this is one of their
practices they hone in on Professional
Services training they also offer
Contracting acquisition training and
they have this model where they have
employees they have contractors they
have subcontractors and pretty much the
majority of what they provide is
training it's an amazing business and I
believe their profit margin is anywhere
from 20 to 40% so it's a awesome area
because it fits well with this formula I
want to recap right now because I've
given you all a lot of information but
don't worry because I'm going to dig
deeper into what to look for how to
really examine but I don't want to give
you a 90-minute video because you're
going to end up going uh next I need out
of of this I got it so what I want to
leave you with is hope I want to leave
you with a lot of Hope because
everything is truly possible it is
because it happened for me and I'm not
saying that cuz I'm lucky or I was born
into some privileged family I didn't
serve in the military I didn't work for
the federal government I offered value I
ran with an opportunity and I continue
to offer value so before we kind of
close the same goes for you you want to
offer value you want to look at that
money making idea Matrix explore if
you're an entrepreneur or an expert and
most importantly you want something that
brings you Joy something you enjoy doing
that you're fired up about and I know
this video was helpful or any kind of
topics or anything else you would love
for me to cover please comment below and
don't forget every single thing as
possible take care of you guys
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