Government contracts may be something your business is interested in pursuing, and there are many factors that make these unique. For instance, you may have more bureaucracy that you have to deal with as you work with the government, and things can take time. The government is massive and has less focus on quick production than a traditional company. So, while you can think of the government as little more than a corporation with tremendous buying power, you have to be ready to do what it takes to land those contracts.
Minority business owners may get preferential treatment
For minority business owners, one of the unique benefits of government contracts is that they may get preferential treatment. Private companies should not discriminate, but they also do not have a mandate to work with female business owners or those of a minority race or ethnicity. The government, on the other hand, has certain benchmarks that it tries to reach. This could give you an advantage if you fit into these categories.
The government is a stable business partner
Another interesting advantage is that the government tends to be a very stable business partner, not impacted as much by the whims of the market as a private company. The government isn’t going to fold. Tax revenue may change, but it’s not going to disappear. The government knows that it has buying power in a way many other companies do not, and it also knows that there’s guaranteed longevity. This is why many contracts with the government are long-term offers that can provide consistent payments.
Is this the right move for your company?
If you’re trying to decide if your company should seek government contracts, there are plenty of things to consider. You need to weigh the benefits of stability and lucrative offers against the complexity of the system and the potentially long wait times. As you work through this, you also need to know what legal steps to take. It is very important to do everything precisely by the book to land these contracts.