Going for the Government Bailout money
We’ve all heard about the massive amount of money the government is planning to put in the economy to try and jump start it. Billions. Hundreds of billions. Some say approaching a trillion dollars. 350 billion dollars has already been pumped into the financial sector as of this writing (January 2009).
How do we get a piece of that bailout pie?
We’re not greedy. We don’t need a lot of that money. A small fraction would be great – a million or two dollars would be just fine.
Since you most likely are in or own a small business, chances are that you are realistically not set up to work directly with the government. It is not that easy to be a direct vendor with the government. There are forms to be filled out, and paperwork to be done just to be set up as a federal government vendor. Then most government vendors have a full-time staff just to keep up with the paperwork that the government demands of their vendors. And then, once you get to that point, you still have to submit lengthy proposals and bids just to try and get a project with the government.
Signing up to be a vendor to your state or local municipality is easier, but you still have to submit bids and proposals and go up against dozens of other similar vendors to get a chance to work on a project.
But there is an easier way to get some of that bailout money.
It is well-known that the government dictates that a certain portion of a project, when awarded to big established vendors, has to go to small and minority businesses. And that’s you, right?
Absolutely right.
The best and easiest way to get into those projects, and not have to deal with government paperwork and bureaucracy is to become a government sub-contractor. That means you get a piece of the project, but do not have to deal with all the paperwork. You won’t get the entire project, but a piece of the pie is much better to swallow than the entire project. Basically, the winning bidder who gets the project is more likely to act as a project manager to all of it’s sub-contractors.
How do you get into being a sub-contractor? Here are a few easy steps to check off:
- Sign up for a DUNS number if you don’t already have one: http://www.dnb.com
- Sign up at Central Contractor Registration: http://www.ccr.gov
- Look at the sub-contracting listings for a parent company to approach: http://www.sba.gov/subnet/
Once you get to look at the SBA listings, you will see a list of companies that are registered with the federal government that possibly have sub-contracting opportunities. Call the contact person listed, and explain who you are, and what you do. If they don’t have any immediate projects for you to bid on, don’t worry – the projects are coming. Start networking with these people. Set up meetings with them, and keep in touch with them. Networking with the right people is the key – you want them to think of you first when they do get a big project.
You might also want to look at the Federal Business Opportunities page, which lists open orders for materials and services the government is looking to procure: http://www.fedbizopps.gov
Have you ever done any government work, either direct or as a sub-contractor? Send me a note or comment, and let me know.
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