For many small businesses, earning a multimillion-dollar government contract can be a game-changer. But how do you know if your business meets the government’s criteria to apply for the numerous contracts designated for small businesses?
Government contracting determines small business size either by annual revenue (the three-year average) or by how many employees it has, says SelltoGovernment.com CEO Paul Karch, who secured more than $8 billion in government contracts for his clients last year. In many cases, the federal government considers companies with 500 or more employees “small.”
It may be difficult to understand the government’s rationale for how it determines what is a small business, SelltoGovernment’s Karch says, but it is very clear and the information is readily available and easily referenced by both industry and government if you want to know if you qualify. By using the U.S. Census’ North American Industry Classification System and cross referencing this list to the Small Business Administration’s definitions, an organization can determine if it qualifies as small for federal government contracting.
Typically professional services, including technology organizations, with less than $25.5 million in revenue are considered small, and manufacturers with less than 500 employees are small.
“Small business contracting with the government is an advantage, but organizations should and must plan for growth so that infrastructure and sales will continue to grow long after they outgrow their ‘small’ status,” Karch says.
SelltoGovernment.com (www.selltogovernment.com), with offices in South Florida and Washington, gives businesses the tools they need to simplify the otherwise overwhelming bidding process for federal contracts, which are available in a variety of industries including technology, education, administrative, engineering, automotive, medical and many more. SelltoGovernment gives business owners education on how to win government contracts, awareness of government opportunities and help creating and submitting their bids.