How to Secure Multi-Million Dollar Government Contracts

Summary

The 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

00:00

💼 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.

05:01

📈 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.

10:02

🚀 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.

Keywords

💡Predictable Income

Predictable income refers to a stable and consistent flow of earnings that can be anticipated over a period of time. In the context of the video, it is associated with securing government contracts, which if done strategically, can provide a reliable source of revenue. The script mentions using a tool to help achieve this by calculating the number of bids and win rates needed to reach financial goals.

💡Government Contracts

Government contracts are agreements to provide goods or services to the government. They are a central theme in the video, as the speaker discusses how to secure these contracts to generate income. The script emphasizes the importance of bidding on these contracts and the potential for significant financial growth through successful bidding.

💡Marketing Strategy

A marketing strategy is a plan for reaching a specific marketing-related goal in a focused and achievable way. In the video, it is mentioned as a crucial step before bidding on government contracts, highlighting the need to understand what one is offering and how to present it effectively to secure contracts.

💡Outreach Plan

An outreach plan is a structured approach to engage with potential clients or partners. The script suggests that having an outreach plan is essential for networking and making connections that could lead to government contract opportunities.

💡Capabilities

Capabilities refer to the skills, resources, and overall capacity of a business to perform certain tasks or services. The video emphasizes the importance of identifying and articulating one's capabilities when offering services to the government.

💡Pricing Structures

Pricing structures are the methods or systems used to determine the prices of goods or services. The script mentions researching pricing structures as a way to ensure that a business does not leave money on the table when bidding for government contracts.

💡Govcon Calculator

The govcon calculator is a tool mentioned in the video designed to help businesses calculate and predict their income from government contracts. It is used to estimate potential earnings based on the number of bids submitted and the win rate.

💡Bidding

Bidding is the process of submitting a proposal or offer, usually in response to a request for proposals (RFP). In the script, bidding is portrayed as a necessary action to secure government contracts and is part of the strategy to achieve predictable income.

💡10% Rule of Thumb

The 10% rule of thumb mentioned in the video suggests that for every 10 bids submitted, one can expect to win one contract. It serves as a baseline for estimating the potential success rate in securing government contracts.

💡Simplified Acquisition Rule

The simplified acquisition rule is a set of guidelines that govern the procurement process for contracts under a certain value, typically $100,000. The video uses this rule as an example to illustrate how to calculate potential earnings from smaller government contracts.

💡Strategic Planning

Strategic planning is the process of defining goals and developing strategies to achieve them. The video emphasizes the importance of strategic planning in the context of securing government contracts and growing a business.

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