To be a successful government contractor, you need to treat the government like a customer. As a business owner, you should think through the same issues that you would if you were planning to sell to a private company or an individual client:

• Do you have a unique product or service that few other companies sell?
• Do you know what agency needs your product or service?
• Do you have core knowledge from years of experience?
• Can you effectively compete with other businesses?
• Can your business financially support the execution of a government contract with delayed payment?

Sources of information when starting a business

The following Web sites, among others, are valuable sources of information when you are in the initial planning stages of your business:

• Small Business Administration Starting a business (http://www.sba.gov/starting_business/)
• Business.gov, business link to the U.S. government (http://www.business.gov/)
• Govworks (http://www.govworks.gov)
• Government Contracting and Business Development (http://www.sba.gov/gcbd/)
• Womensbiz (http://www.womenbiz.gov/)
• Offices of Small and Disadvantaged Business Utilization (http://www.osdbu.gov)
• Individual agency Web sites for specific procurement and contracting information

After you have a solid understanding of your own product or service and what the right market is, the next step is to decide whether the government is the right customer for you.

What does the government buy?

The government spends over $200 billion every year for goods and services. In 1999, contracts for services was the largest acquisition category at $78 billion. The government also spends money on supplies and equipment (35%); agriculture, transportation, communications, utilities, and finance (19%); construction (7%); and wholesale/retail (3%).

What are the historical federal contracting trends for women-owned small businesses?

In 1994, the Federal Acquisition Streamlining Act (FASA) was established, setting a goal for Federal agencies to award at least 5% of all prime and subcontract dollars to women-owned small businesses (WOSBs). Despite continued growth in the number and economic impact of women-owned firms, the 5% goal has never been achieved on a government-wide basis. Nonetheless, 2.9% of Federal contract dollars were spent with women-owned businesses in FY2002 – the highest share achieved since this information has been recorded. To learn more about women-owned businesses and Federal contracting,  read
Federal Contracting with Women-Owned Businesses, FY1997 to FY2002, and the tables that accompany this Issue in Brief from the National Women's Business Council.

The following website outlines the statutory goals for contracting with women-owned businesses and provides data on them:

• Small Business Administration
  

For a brief summary of resources that are discussed in greater detail elsewhere on this site, read Resources for Doing Businesses with Federal Agencies and Prime Contractors. This is a handy summary of the offices and resources available to you. If yours is a small business, we also encourage you to review Information for Women-Owned Small Businesses marketing to the Federal Government and its prime contractors

Now that you have determined the government is the right customer for your business, you are ready to get started.

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