How to Secure Multi-Million Dollar Government Contracts
Summary
TLDRThe speaker introduces a free tool designed to help businesses secure government contracts and achieve predictable income. Emphasizing the importance of a strategic approach, the transcript outlines steps for qualification, activation, and optimization, alongside a '10% rule of thumb' for winning bids. The tool, a govcon calculator, is positioned as a means to strategically plan and scale business revenue, with examples illustrating how increasing bid rates and contract values can exponentially grow a business. The message encourages overcoming limiting beliefs and taking advantage of government contracting opportunities to significantly boost income.
Takeaways
- 🔗 The importance of using a free tool to predict and plan for a six-figure, million-dollar, or even multi-billion-dollar business.
- 💼 Success in government contracting requires doing the groundwork such as creating a marketing strategy, networking, and outlining capabilities and offerings.
- 💰 Understanding the necessity of researching pricing structures to maximize revenue and not leave money on the table.
- 📈 The speaker emphasizes the need for strategic planning to achieve financial goals, including getting qualified, activated, and optimizing before strategically planning to get paid.
- 🎯 The '10% rule of thumb' suggests that for every 10 bids submitted, one can expect to win one, serving as a baseline for beginners in government contracting.
- 📊 The significance of using a calculator tool to estimate the potential income from government contracts based on bid submission rates and win rates.
- 🚀 The potential for exponential business growth through increasing bid rates, improving at bidding, or pursuing larger contracts and partnerships.
- 🤝 The value of teaming up with other businesses to leverage time, build capacity, and pursue more contracts.
- 📉 The acknowledgment that not winning every bid is normal, and the win rate will fluctuate but is expected to increase with experience.
- 📈 The script illustrates how to calculate and plan for achieving a specific annual income through government contracts, adjusting for contract duration and monthly invoicing.
- 💡 The final takeaway is the empowerment to believe in one's own value and the transformative potential of government contracting for personal and business growth.
Q & A
What is the purpose of the tool mentioned in the transcript?
-The tool is designed to help individuals and businesses predict their income from government contracts, providing a strategy to achieve financial goals and ensuring predictable income.
What is the significance of the '10% rule' in the context of government contract bidding?
-The '10% rule' is a rule of thumb suggesting that for every 10 bids submitted, one can expect to win one. It serves as a baseline to estimate the potential number of contracts won and helps in strategic planning.
What is the importance of doing the work before expecting success in government contracts?
-Before expecting success, it's crucial to create a marketing strategy, network, have an outreach plan, define capabilities, research pricing structures, and understand the value proposition to the government to increase the chances of winning contracts.
How does the speaker suggest one should approach the process of securing government contracts?
-The speaker suggests a strategic approach that includes getting qualified, activated, optimized, and planning to get paid on purpose. This involves understanding the bidding process, improving bid quality, and leveraging partnerships to go after larger contracts.
What is the role of the govcon calculator in the process of securing government contracts?
-The govcon calculator is a tool that helps users estimate the potential income from government contracts based on the number of bids submitted, the win rate, and the average value of the bids. It aids in strategic planning and goal setting.
What is the speaker's advice for someone new to government contract bidding?
-For newcomers, the speaker advises following the 10% rule of thumb for estimating wins and emphasizes the importance of submitting bids, improving bid quality, and learning from debriefs to increase the win rate over time.
How can an increase in the win rate impact the annual revenue of a business?
-An increase in the win rate can significantly boost annual revenue. For example, if the win rate doubles from 10% to 20%, the business can potentially double its secured contracts and, consequently, its revenue.
What is the simplified acquisition rule mentioned in the transcript, and how does it apply to government contracts?
-The simplified acquisition rule refers to contracts that are under $100,000. The speaker uses this rule as an example to illustrate how bidding on such contracts can lead to substantial annual revenues if done strategically.
How can teaming up with other businesses or individuals impact the capacity to secure larger government contracts?
-Teaming up with others can leverage combined time, skills, and capacities, enabling the joint venture to pursue and secure larger contracts that individual businesses might not be able to handle on their own.
What is the potential impact of investing in a class to learn about government contract bidding?
-Investing in a class can provide valuable knowledge and strategies for securing government contracts, potentially leading to significant income growth and business expansion, making it a worthwhile investment.
Outlines
💼 Leveraging Government Contracts for Predictable Income
This paragraph discusses the strategy of securing government contracts to ensure a predictable income stream. It introduces a free tool designed to help users calculate their potential earnings and emphasizes the importance of doing the groundwork, such as creating a marketing strategy, networking, and understanding one's capabilities and value proposition to the government. The speaker also highlights the necessity of researching pricing structures and the importance of not leaving money on the table. The paragraph concludes with the idea that even with the right tools, success requires effort and strategic planning.
📈 Strategic Bidding to Increase Contract Win Rates
The second paragraph delves into the specifics of how to increase the chances of winning government contracts. It introduces the '10% rule of thumb,' suggesting that for every 10 bids submitted, one should expect to win one contract. The speaker encourages continuous improvement and learning from debriefs to enhance the bid win rate. The paragraph also explores the potential for growth by increasing the number of bids or improving the win rate, and the impact this can have on annual revenue. It concludes with the idea that strategic planning and purposeful action can significantly scale a business.
🚀 Scaling Business Through Effective Bidding and Teamwork
The final paragraph focuses on the exponential growth potential of a business through effective bidding on government contracts. It discusses the possibility of increasing the bid win rate and the strategic approach of teaming up with other businesses to leverage resources and pursue larger contracts. The speaker provides examples of how doubling the win rate or the number of bids can significantly increase monthly and annual revenues. The paragraph concludes with an encouragement to invest in knowledge and skills to capitalize on government contracting opportunities, emphasizing the transformative potential for individuals and businesses.
Mindmap
Keywords
💡Predictable Income
💡Government Contracts
💡Marketing Strategy
💡Outreach Plan
💡Capabilities
💡Pricing Structures
💡Govcon Calculator
💡Bidding
💡10% Rule of Thumb
💡Simplified Acquisition Rule
💡Strategic Planning
Highlights
A free tool is introduced to help predict income from government contracts.
The importance of doing the groundwork before utilizing the predictive tool is emphasized.
The necessity of creating a marketing strategy and an outreach plan for government contracts is discussed.
Understanding one's capabilities and value proposition to the government is highlighted.
The need for researching pricing structures and strategies to maximize profit is mentioned.
A strategy for positioning oneself effectively in government contracting situations is suggested.
The 'Govcon Calculator' is introduced as a tool to accelerate the achievement of financial goals.
The '10% rule' for winning bids as a baseline guideline is presented.
The potential for a high win rate on the first bid submission is acknowledged.
Calculations are provided to demonstrate how to reach a quarter of a million dollars in monthly revenue.
The impact of increasing the number of bids on securing larger contracts is explained.
The benefits of improving one's bidding skills to increase the win rate are discussed.
The potential for teaming up with other businesses to leverage capacity and secure more contracts is mentioned.
The strategy of pursuing larger contracts through joint ventures and partnerships is highlighted.
The use of the Govcon Calculator to plan and predict monthly and yearly financial outcomes is demonstrated.
The importance of strategic planning and effort in achieving financial goals through government contracts is underscored.
The potential exponential growth of business through government contracts is illustrated with examples.
The speaker encourages investment in education for government contracting as a no-brainer due to the potential returns.
The transcript concludes with a motivational message about breaking free from limiting beliefs and pursuing high-level opportunities.
Transcripts
so how do you have predictable income
with government contracts y'all want to
know and see a tool that it's going to
be accessible to you for free and we're
going to leave the link to it right in
the chat you get the opportunity to play
with this tool and actually have
predictable income but even with this
tool where you're predicting a sixf
figure business multiple sixf figure
business multiple Million Dollar
business uh multi-billion dollar whether
you're predicting whatever it is that
you want to achieve you still have to do
the work there's still work to do before
you can even get to succeed so if you
haven't created your marketing strategy
if you're not networking and having an
Outreach plan if you haven't carved out
what your capabilities are and what
you're going to be offering to the
government what is your value you
haven't researched pricing structures
and strategies to just have a better
idea of how not to leave money on the
table if you haven't done any of that
stuff yet of course you have to do those
things right and some of the things
things that you have to do even prior to
getting started is knowing what it is
that you're getting yourself into and
how to best position yourself to get in
those situations to extract the most
value out of it there's a strategy to to
getting starting with that but there's
also a strategy to backing into the
numbers and reaching your financial
goals and one of these this is one of
the tools that I personally designed to
help you get there faster to reach your
goals once you've gotten the stuff out
of way first you have to get qualified
then you have to get activated and
optimized and then you have to
strategically plan to actually get paid
on purpose right so this is a govcon
calculator so I'm going to drop the link
in the description notes of my YouTube
page so basically let's just say if
you're not bidding you're not winning if
you're not looking for opportunities
you're not looking for nothing to bid on
you never gonna get no contracts if
you're not doing the work right because
a lot of times we get caught up in our
head and we think all the busy work
right all the busy things that we're
doing in our head and not executing in
reality is going to get us to the
contract and we're trying to wonder why
we're not getting results it's because
you're not doing the work that's why
you're not getting the result because
you're not doing the work right or
you're giving up before your
breakthrough all that stuff right so
anyways let's just say rule of thumb I
go by the 10% rule if you're just
getting started if you're brand new to
this particular space 10% rule for every
10 bids that you submit you can expect
to win one now it's just a baseline rule
of thumb this is not always necessarily
100% true sometimes and we have had
clients the first bid they submit they
won so that's 100% win rate but those
numbers and averages will begin to
tailor off as you continue to move
forward so anyway if you want to win one
you got to submit 10 okay let's just say
your goal is to make a quarter of a
million this just I'm just doing some
simple math math here your goal is to
make a quarter of a million and you have
a 10% win rate let's say one and 10
submit 10 you get one let's see what
this calculator is going to say this is
a monthly calculator tool that you won
right this tool basically it's saying if
you submit 10 bids a month and you win
one and those bids are average of a
quarter of a million then that month you
will have secured a quarter of a million
now if you submit 15 a month and your
average U Win is a 10% win rate um and
your average bid amount is going to be
quart of a million then that month you
will have secured at least
$375,000 for that month that means if
you never do anything else for the rest
of the 11 months in the year then you
will have grown your business by a
little over $300,000 for that particular
year if your goal is actually to make a
million dollars it does not take that
long let's just say your goal is to make
a million dollars um in a year to add a
million dollars in a year let's just say
you
submit1 $1,000 a bid for $100,000 This
falls under the simplified acquisition
rule so those contracts that are under
$100,000 and for this particular month
you submit 10 for the around the range
of about $100,000 right you win one out
of 10 that's $100,000 that you've
secured in government contracts for that
one month right now I'm not saying that
you're going to get paid 100,000 for one
month of service I'm saying it's a
contract that you've secured that
contract could be a 12 month contract so
let's just use that as a scenario over
the next 12 months you're dividing
$100,000 by 12 now your monthly revenue
is going to be based off for the
invoicing right so if your goal is to
actually make a million dollars in a
year you need to be doing this at least
once a month 10 contracts at
$100,000 with a 10% bid rate now if you
do the things that I always recommend in
our trainings recommend that you get a
debrief and you know why why you lost or
and you understand why you won the
things this number desired number uh
percentage of bids won this number is
going to increase it's going to increase
from 10 to 20 10 to 15 so those numbers
are going to continue to go up it'll
never be 100% everything you did you'll
win it'll never be that right so let's
just say you've doubled down on getting
better at your weak points right maybe
you've gotten some debriefs maybe you've
gotten some feedback maybe you've gotten
better at um responding responsibly to
these opportunities and you've increased
your win rate to to um 20% right you've
double your win rate so out of the 10
instead of winning one now you're going
to win two and now you're $100,000 um a
month in secured contracts is now
$200,000 right if you do that every
single month by the end of the year if
you secure that by the end of the year
you will have grown your business by
over 2 million million dollar like 2.2
million right or 2.4 million which is
amazing right let's just say you as
you're Landing these contracts now
you're able to team up with other
individuals other businesses that do
exactly what you do you're able to
leverage their time Bild capacity all
that stuff and now you can go after even
more contracts so let's just say you
doubled your efforts not even doubled
the number of bids but maybe you've um
added a 50% increase in the number of
bids that you submit same amount of rate
same um number percentage one and now
you've increased your bid from 200 um
thousand a mon a month in secured
contracts to $300,000 just by making
that small tweak so you can either
increase the amount of work that you
want to do right 20 is a lot right
that's substantially a lot but I'm just
using this as an example you're either
working harder right submitting more
bids with the same amount of bid rate
wins um at the same amount of average
bidding that you're doing and you're
making uh more money working harder or
you can do the same amount of work that
you start off doing 10 bids a month and
you can just get better at bidding boom
look at that same amount of work you
just got better at bidding and you're
making that money right or you go after
larger contracts because now you're able
to do teamwork to make the Dream Work
You're Building capacity now
collectively joint ventures and
Partnerships you're able to go after
larger projects and same amount of work
same amount of bid bid percentage one
and now you're making a million dollars
securing a million dollars in a month in
a government contract that's a 12-month
contract so that if you just get one for
the year you're good to go but if you
did this specific strategy once a month
then that's like a million times 12
that's $12 million a year now as you can
see how significantly your business can
grow when you're doing business on
purpose with a purpose right and you're
doing it strategically and you're
planning planning out here's what I'm
going to do to actually reach my
financial goal let's just say maybe
there's a Contracting opportunity that
is
$250,000 I'm going to submit 10 bids of
this quarter of a million every single
month at 20% bid win rate um that's a
half a million dollars in one contract
right for that month that I've secured
and even if it's a 12month contract then
I know that I take the half a million
divide that by 12 it's going to tell me
what my monthly invoicing volume is
going to be but also let's just say it's
a 24mth contract because that could
happen too then I just take the the half
a million and divide that into 24 months
so now I know over the next 24 months
here's what I'm going to be invoicing so
it's all about strategy it's all about
planning forward and and and just
putting out putting it out there but
it's going to take you effort it's going
to take you work and before you can get
better with the number of bids that you
win maybe you gotten so good and now you
have an internal team that are writers
and Technical writers and they're good
with um finding partners and strategic
Partners maybe internally now once you
grow your business you can get like a
50% bid win rate right record going so
let's look at how the numbers change
same amount of work same amount of um
bid um levels that you're going after or
whatever the contractual value now
you're at
$1.2 uh million right $1.25 million in a
contract that you can win on and secure
on a monthly basis you don't have to go
after the bids that are like 100 or
let's see
1.5 million dollars you can we have
people that have secured those right you
don't have to necessarily have to go
after large million dollar contracts in
order to to win a million dollars at the
Baseline of 10 bids a month at a 10%
using our 10% U rule of winning one in
10 right that's $1.5 million if you go
after that but even as you get better
that automatically doubles right if you
double the the the value or double your
success in winning and responding to
those biding opportunities and and
pricing your stuff competitively you
will have doubled the amount of revenues
that you've secured for that particular
year so when you look at it from this
perspective let's just say you only
submitted five right now it's going to
bring you back to 1.5 million but hey
five is less work those are larger
contracts so this is a tool that you
actually get access to just play around
with um and find a sweet spot there is
no right or wrong way there's not too
less of bids there's not too many bids
there's not too less of percentage one
there's not too large of a contract
unless you don't have the capacity and
you're going to look crazy if you go
after something that is completely
outside of your capacity to fulfill on
right you're not going to win that um
but this is a tool that you can't break
you can actually have predictable income
if you understand if you've been
watching me and following me for a while
you've heard me talk about micro
purchases you've heard me talk about
simplified acquisition and just regular
contracts right even if you decided that
hey I'm going to submit 10 bids a month
under the simplified acquisition Rule
and I'm going to bid on things that are
at least that I can at least extract
$150,000 from in this contractual value
and then I'm going to use Dr K's 10%
rule of thumb right and it's going to
let me know what my end result is going
to be for that particular month so you
take the $150,000 that you won and you
do that every single month you multiply
that by 12 then that becomes $
1.8 million in annual revenues that you
just grew and scaled exponentially now
imagine what that can do for you if
you're currently or when you're
currently or while you're currently
making less than six figures so imagine
what government contracts can do for you
and when you look at it from this
perspective of the opportunities that
are on the table the strategies that you
can predictably go after and actually
blow your bank account and then when it
comes to do I invest in a
$97
class to know how to do this stuff right
this snowb brainer do I even invest in a
$997,000 class to know how to do this
stuff it's a no-brainer right so it
doesn't become a question or hurdle of
is it worth it because it definitely is
especially when you see how the numbers
could work and if you're willing to do
the work to make the numbers work for
you right it's not a it's not a a
question about is it worth it because it
definitely is do you know your value do
you know that you are worth it and what
can it do for your life those are the
questions that you should be answering
for yourself because I see especially so
many of my people that look like me all
the stuff come from the same background
we have been stuck programmed
backwards like we've been programmed to
do all the things hard and difficult and
say no to all the things that can serve
us on a high level and say yes to all
the things that don't serve us and keep
us where we are which is stuck broke and
making less than six figures in business
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