Obtaining government contracts is not the end of the road for your business troubles. There are still things to consider, such as business development and marketing. That’s because you still have to develop your business and you still have to have proper marketing that will help you continue the growth of your company.

Both propel business growth, which is why development and marketing go hand-in-hand. However, there are still several differences, none negating the importance of both in government contracting.

This article will help you realize the importance of both if you want to grow your business in the realm of government contracting.

 

The Importance of Business Development in Government Contracting

In general, business development includes finding and using business opportunities and determining which ones will enable you to keep on improving and growing your company.

That’s also true for government contracting. However, here, it’s a bit harder, but even more beneficial in the end.

Furthermore, what you need to realize here is that you need a fundamental and detailed understanding of your practices, capabilities, and the goals of your company. You also have to understand the process of acquiring new contracts in government contracting, if you want to continue your company’s growth.

Today, the main idea behind business development is networking, and this is equally true in the realm of government contracting. In all actuality, this area is crucial with government contracting, as it will enable you to improve the reputation of your company which will, in turn, gain you new contracts.

 

The Importance of Marketing for Your Company in the Realm of Government Contracting

Marketing can always be achieved in many ways, but rarely do some of those ways guarantee success, especially in government contracting, where the entire game is somewhat unique.

However, there are still several specific marketing strategies that can help you win more government contracts.

  • Innovation

The first thing that you should know here is that you need to focus on innovation. The sphere of government contractors is mostly stale and lacks innovation, and you can get ahead of the others if you evolve.

  • Personalization

As is usually the case in government contracting, winning each contract is a lengthy endeavor. That’s why you need to focus on the specific contract, and with a personalized marketing campaign that targets that particular agency, you can make sure to win the contract.

  • Online Presence

Online presence in the modern era is a must. However, it’s not at all about having a simple website. You need to differentiate your brand from the rest. Make your website different from the ones in your industry, research new ways of marketing, pay more attention to customer relations – there are many things that you can do in order to stick out from the rest.

 

The Conclusion

It’s clear that development and marketing matter in government contracting as much as they do in regular business, which is why you need to focus on them as much as you focus on other parts of your business.

If you want the help and advice that will bolster your company to grow in the realm of government contracting, contact Chestnut Street Consulting LLC. We specialize in providing small business owners and other entrepreneurs the support they need in government contracting business development.

Choosing one type of business entity for your company is a complicated task. It requires several careful deliberations because every business entity type has its set of legal and tax benefits and problems in government contracting.

Naturally, you’ll need to consult with your accountant and your lawyer. Before you do all of that, there are things that you should consider on your own, and mistakes that you should avoid.

  • Having a formal business entity is a necessity due to many legal and tax reasons
  • Understand the tax consequences of each business entity
  • The business entity does not protect you personally against all risks, only some
  • A business agreement between you and your partners must exist

 

The Benefits of Each Type of Business Entity for Government Contracting

The types of business entities that you have at your disposal are; partnership, sole proprietorship, limited liability company (LLC), C corporation, and S corporation.

We will discuss each one separately for you to know its importance and which one is the right fit for you.

  • Partnership

A partnership implies having several owners, so if you have business partners, this one is probably the best choice. Taxes are paid separately by each owner, not on the entity level. Naturally, this also allows for flexibility in income allocation.

There is also the advantage of flexibility in the ownership structure and more ability to raise capital. However, any disagreements between partners can jeopardize the entire company, which is why agreements are necessary as well as the trust between partners.

  • Sole Proprietorship

Sole proprietorships can mostly be avoided due to the many potential and extended personal liabilities, making them unsuitable for you or your needs, especially in government contracting.

  • Limited Liability Company (LLC)

LLCs are useful for their flexibility with taxation. They can essentially take the form of most other entities. They can be taxed as either an S Corporation or a C Corporation. Owners can also get many other positive features that partnerships and other entity types have.

  • C or S Corporation

These two are quite similar which is why we are grouping them. Corporate formalities, the existence of shareholders, and limited liability protection for owners are the main similarities between the two.

However, the differences are the ones that will help you choose the right one. S corporations have only one type of stock, and all the capital gains and losses go to the shareholders; while with C corporations, there are multiple stock classes and they suffer from double taxation or profits.

 

Which One Is the Right Fit for Your Business?

It all depends on what you need and what you hope to get from your government contracts. If you require assistance in finding that out and choosing the right business entity, you can contact Chestnut Street Consulting LLC.

We deal with many different companies, small businesses like yours, entrepreneurs and more. We also specialize in government contracting, and we can help you grow your business to its fullest potential in this beneficial sphere.

A Disadvantaged Business Enterprise (DBE) certification is given to any small company owned by a person (or persons) who are considered to be in a disadvantage in social and economic terms when compared to the majority.

DBE was previously used to make sure federal funds are given to specific highway construction projects to create healthy competition but are now used in a wide variety of industries, still keeping the same goals of creating fair competition in mind.

The Small Business Administration decides the standards according to which a business is considered disadvantaged. It’s usually based on the size of the company, i.e., it’s average annual revenues. Also, the owner cannot have a personal net worth higher than $1.32 million.

Naturally, additional requirements are that the owner or owners belong to a minority group and that they are citizens of the United States or lawful permanent residents.

If you meet these standards, it’s highly advisable to consider applying for the certification as the benefits are many, and the DBE program is considered by most to be quite helpful for business growth in the realm of government contracting.

 

The Benefits That Propel Growth

Since the DBE enables smaller businesses, which can rarely compete with other bigger companies, to be on par with more extensive operations and gain government contracts. It’s evident that the certification is more than merely beneficial.

By gaining big contracts on important government-funded projects, a small business can achieve the recognition it craves. Smaller companies usually have a hard time getting noticed, and a DBE can prove to be the marketing your small business needs.

The contracts also imply the procurement of additional funds which are needed for the project and can help the business develop further.

The financial aid is indeed the main advantage of DBE that enables your business to grow, but there are also other benefits. Being included in the program gives your business a chance to gain many business contacts within your industry. These contacts can always provide your business with additional work that will further the company’s growth.

Additionally, many of the high-profile projects in the entire country often require that a specific percentage of contractors are DBE-certified businesses. Like we previously mentioned, the projects themselves provide work and good marketing for your business, but most are smaller local projects which cannot be measured with high-profile cases. Being a DBE on one of these high-profile projects provides these same benefits but on a much higher scale that can be utterly transformative for a small company.

 

The Bottom Line

The conclusion is clear; the benefits are many, and most of them propel the growth of your company. Naturally, there are plenty of legal requirements to examine, so if you are considering gaining the DBE status, you should contact Chestnut Street Consulting LLC. We take pride in enabling smaller businesses to meet their potential, and we specialize in programs like the disadvantaged business enterprise.

The Minority Women Business Enterprise (MWBE) certification is awarded solely to minority women with the goal of growing their small business and get proper access to numerous government contracts.

The MWBE can help make a business more visible to private firms, but also the government agencies awarding contracts.

The requirements of the MWBE program are simple – the business needs to be owned or mostly controlled (at least 51% of stocks) by a woman or a group of women from one of the many minorities in the United States. Furthermore, most of the daily business operations and the management of the company must be handled by a woman.

These are not at all different from Minority Business Enterprise (MBE) programs which have been helping minority small business owners succeed for a long time. Many of those business owners are women, hence the different certification which we will further elaborate on. We will help you gain a clearer picture of how it can help you grow your small business in the realm of government contracting.

 

The Benefits That Propel Growth

First of all, one of the main reasons for the existence of these certifications is to help you gain access to many government contracts. There are plenty of government agencies that offer the certifications on the local, state, as well as federal level.

Depending on where and how you want to grow your business, several of these agencies are bound to help you by enabling you to get certified.

  • Access to Supply Chains

One of the main reasons that MWBE certifications can help grow your company is the fact that many government entities are required by law to purchase a specific percentage of their supplies from a minority or women-owned businesses.

It ensures that your company will be selling and thus growing from these contracts. Additionally, if your product or service is of higher quality, you’ll have a chance of supplying some of these entities in much higher amounts as they will undoubtedly want to purchase more from you than what the law requires them.

  • Financial Benefits

Minority-owned businesses and especially the ones owned by minority women have traditionally gained far less financial backing than their counterparts (non-minority and male-owned enterprises.)

With the goal of improving these outcomes, many programs fund only minority and women-owned companies. Certifications play a vital role here as they help legitimize and document the status of your company which will grant you better funding in the end.

  • Networking

The certifications provide another significant benefit that propels the growth of your company – access to valuable networking programs where you get the chance of finding potential customers, mentors, development opportunities, and more.

 

Conclusion

The benefits of MWBE certifications are many, and most of them will help you grow your company in the realm of government contracting, which is what is needed for your small business.

If you want to know more about these programs and certifications, don’t hesitate to contact us at Chestnut Street Consulting LLC where we specialize in assisting minority and women-owned businesses and get them started in the realm of government contracting.