At the moment, we wish to share some breaking information with you relating to authorities contracts.
In keeping with the SBA, the federal authorities simply handed out over $145 billion {dollars} in authorities contracts for small companies.
For some context, this exceeds what the federal government spent within the prior yr by over $13 billion {dollars}.
The federal authorities is clearly ramping up its spending to guard the spine of the financial system – small companies.
And for hundreds of entrepreneurs, this spending turns into income that they will use to construct wealth and improve earnings.
So if you need a chunk of the pie, learn till the tip for the complete scoop.
As a result of on this submit, we might be speaking about these billions of {dollars} value of presidency contracts for small companies.
However earlier than we do this, let’s speak about authorities contracts first.
To start with, it’s vital to notice that authorities spending represents over ⅓ of all spending in america.
For instance, in 2020 the federal government spent over $6.5 trillion {dollars}.
The U.S. authorities is, fairly actually, the world’s largest buyer.
We’re infamous for spending trillions of {dollars}, printing cash, and making it go BRRRRRR.
And typically, we’re responsible of doing a bit of bit an excessive amount of of that.
However technically, this cash is meant to be spent on packages to make sure the well-being of our residents.
And a type of packages contains authorities contracting to small companies.
The federal government units apart billions of {dollars} every year to contract small companies, women-owned companies, and different deprived companies.
To additional clarify, let’s check out a quote from SBA Administrator, Isabel Guzman:
“We’re dedicated to rising these alternatives and reducing limitations to offer our small companies an opportunity to develop their revenues by contracting.
Our purpose this yr, and yearly, is to guarantee that small companies could be just like the giants they’re in our financial system and to create situations to ensure their success.”
So mainly, the federal authorities desires to do enterprise with small companies. They need to assist them and assist them prosper in our financial system.
And the record-breaking numbers point out that they’re doing simply that.
As you’ll be able to see within the second column of this desk, the federal authorities units a purpose for a way a lot cash they wish to spend on authorities contracts for eligible small companies.
For instance, the purpose for small companies was to spend 23% of their funds on small enterprise contracts.
They usually exceeded this purpose and spent over 26% of their funds on small enterprise contracts.
And in response to the White Home, they wish to improve the share of contracts awarded to small companies by 50 % over the subsequent 5 years.
Actually, President Biden made an govt order to take away limitations and make it simpler for small companies to acquire authorities contracting alternatives.
So, what does this imply for you?
It means that you may earn hundreds, if not tens of millions, of {dollars} by authorities contracts.
For instance, we met the proprietor of a small enterprise that turned one of many fastest-growing firms within the U.S. by authorities contracts.
He supplied engineering providers and made tens of millions of {dollars} per yr by utilizing authorities contracts.
So belief us, you’ll be able to undoubtedly do that for your corporation. However that’s only one profit.
One other main good thing about pursuing authorities contracts is that your competitors is restricted.
In contrast to the non-public sector, you would not have to compete in opposition to giant enterprises and Fortune 500 firms to earn enterprise from the federal government.
As you simply noticed, the federal authorities should contract a selected share of small companies yearly.
So in the event you match the factors, you’ll solely be bidding in opposition to different small companies as properly, which improves your possibilities of being rewarded with authorities contracts.
And opposite to what you would possibly assume, it isn’t very troublesome to develop into a authorities contractor.
All it’s a must to do is register and as soon as you might be authorised, you can begin bidding on open contract alternatives.
We even went by this course of ourselves for certainly one of our small companies and was accepted as a authorities contractor.
In case you are occupied with studying extra about develop into a authorities contractor, then learn our submit on Methods to Get Authorities Contracts.
On this submit, we’ll stroll you thru, step-by-step, procure authorities contracts.
However for now, we simply needed to let you already know that the federal government is spending increasingly more cash on authorities contracting for small companies.
And because the world’s largest buyer, you might be able to develop your corporation by contracting with them, particularly as they’re attempting to make this course of as simple as doable for you.
If you wish to be taught extra methods to improve your earnings or save on taxes…
…then take a look at our CFO providers or discuss to certainly one of our CPA tax specialists right this moment.
We might love to listen to from you!
