Where is the money? Psst! The government has it!

• Author: Bain, Jim

Success in business is all about finding the money. In today's economy, the private sector is reeling, but governments, both federal and state, seem to have money to spend and the desire to do so. The problem is that being a contractor or vendor to the government is a tough club to join. It you qualify and jump through the right hoops, opportunities are plentiful, but dealing with the bureaucracy can be a discouraging experience.

In fiscal year 2008, the federal government spent $550 billion for contracted goods and services. That's a lot of money! Small businesses received 23 percent of that total. In fact, the federal government is the largest single buyer of goods and services in the United States. The bottom line is that governments have money to spend. In addition to the more traditional "annual contracting process," special programs, such as the American Recovery and Reinvestment Act (often referred to as the stimulus program), are pumping huge sums of money into the American economy. And, because not every business is qualified, the field can be a little less crowded. It sounds like a great place to do business, and it can be. But, beware--it isn't for everyone.

To start working with a government entity, follow the following six basic steps.

1. Get qualified.

   If your business qualifies for one of the many socioeconomic disadvantaged business programs, such as the Minority Business Enterprise, the Women's Business Enterprise, or the Disabled Veteran Owned Enterprise, you should certainly seek those designations. The numerous set-aside programs, especially for those groups, can give you a huge leg up when competing for contracts. If your business isn't eligible to join one of these special groups, it still must get qualified. Start by registering with the Central Contracting Registry. Then, enter your business into the Dynamic Small Business Search database. Finally, go to the Fed Biz Opps website (www.FBO.gov) to search for the contracting opportunities that best match your business' goods and services. All of these contacts can be made through either the Small Business Administration (www.sba.gov) or the General Services Administration (www.gsa.gov).

2. Be patient.

   As compared to the private sector, government agencies have to follow many more rules and levels of approval before any decision can be made. Remember that the government has the extraordinary challenge of dealing with a change of leadership every four or eight years. Think...