Federal Compass - Waypoints

If you own or run a government contracting business and are looking at the possibility of selling in the
coming months or years, then you may already be worried about all the things you need to do to prepare. There are countless articles about ways to maximize valuation by cutting costs, focusing on key customers, and presenting your financial reports in the most positive light. But as much as presenting
an ideal financial picture may increase the potential purchase price of your businesses, having disorganized and incomplete records for buyers (and their lawyers) to review can undermine even the best financial projections. Most of these articles will suggest that you perform “due diligence” on your own business, but they don’t really tell you what that means. It remains some sort of time-consuming mysterious ritual performed with the help of overworked executives and expensive lawyers. While that may be mostly true, here are some practical tips on what you can do to get started.

When talking with nearly any federal government contractor, there seems to be a love/hate relationship with the 8(a) program. Some will say it helped propel them and gave them the guidance and boost they needed in order to achieve the level of success they have today. Others will say that it was the best nine years of their business's life but have since struggled to repeat that success.

 

The government says they love doing business with small, disadvantaged businesses. To an extent, this is true. However, outside of doing business with them, those smalls often fall to the wayside and are unsure of what comes next. Winning 8(a) contracts is great, but there is little support outside of those set-aside contracts. Once that nine-year limit is up, it is as if you are thrown to the wolves to fend for yourselves. Some succeed while others falter. Before going through with your 8(a) certification thinking you are about to open a goldmine of opportunities, these high-priority items should be taken into consideration. Because once you become certified, the race against the clock is on. 

With each new year comes new opportunities and new goals. Some goals are more short-term and can be achieved throughout the year. Others require smaller milestones to be hit throughout the year in order to reach your much larger ones. If you are still in the process of laying out your goals for 2023, the important thing to keep in mind is to be realistic. If your current federal revenue is $90M but you want to hit $210M, is that a realistic number or not?

 

 When companies plan out their year, one element that they often overlook is their internal processes. It is so easy to continue on with normal operations because they worked well enough to grow the business, so why not keep them going, right? The old, "if it ain't broke why fix it" method can only work for so long. "We grew revenue by 4% last year, we should see another year of 4% next year." But why? Why not make some minor adjustments to increase that 4% to 6%? Why not increase growth AND revenue?

 

Maybe this is the year to enhance some existing processes to hit all of your goals and check off smaller milestones to help get you to where you want to be in five, 10, or 15 years.

You have taken the plunge and are ready to get into federal contracting. Excellent. Have you identified who buys what you sell? Have you identified what you are going to sell to the government? Have you registered on SAM.Gov? Lots of questions out of the gate, but for how fruitful government contracting can be, it can be just as convoluted and confusing.

You recently won a federal government contract. Excellent! Time to write it on a sticky note, add it to Microsoft Excel, and email everyone internally and let them know they need to start tracking it...right? If this is how you manage your contracts, there is room for improvement.

Networking and teaming are essential in government contracting. You know this. But still, most contractors view these elements as a way to satisfy short-term needs, not as part of their long-term strategy. It is not that they burn bridges or treat their partners poorly. It is that they often get what they need and then move on to the next, and the next, and so on and so forth. Only to come back when that company's services are needed again. If teaming and networking in GovCon were viewed through a wider aperture, it would allow you to consider each potential partner across your entire pipeline to determine where they provide the best value. This can help create a highly productive and valuable relationship for all parties that can be used well into the future.

Approaching the holidays always brings two trains of thought. The first is, how relieved we are to have a break, spend time with family, and eat delicious food. The other train of thought is thinking about the things that were not completed, what needs to be done in the new year, and how although time off is nice, there is always work to be done. The never-ending tale of two sides. However, this year it might be time to try something new. Step back and step away to reset, reflect, and refresh.

At Federal Compass, we strive to provide you with knowledgeable, actionable, and insightful information to help your federal contracting business succeed. This means providing you with content that is informational, not riddled with sales pitches and promotions. We have monthly webinars with GovCon experts to provide insights into different elements of contracting. Some experts focus on growth, some focus on capture, and some focus on helping get started. Each speaker has their own niche.

Navigating the complex world of federal contracting is difficult. I cannot think of a time when anyone ever said it would be easy. As someone who has nowhere near the level of experience of most federal contracting experts or consultants, I have found one element that remains constant. Everyone is always learning. The industry is ever-evolving and the amount of content and available resources is endless.

 

So, when navigating and trying to learn, where do you turn? How do you not only find information, but make sure it is accurate and up-to-date? Is there a subject matter expert (SME) in-house? Is there a heavy reliance on teaming partners? Is an outside consultant brought in to provide guidance? Those answers can make you feel like Alice in Wonderland going down the rabbit hole.

 

With so many different sources and knowledge repositories, how do you grow your business within the federal market? Naturally, that answer is never-ending and evolves with time.

Before adding a new piece to your tech stack, where do your current needs lie? There are free tools, paid tools, and other expensive alternatives available. So where do you turn and how do you identify which problem you need to solve? You can get feedback from friends or other businesses, but more likely than not, your needs are slightly different than theirs. Meaning, they chose a solution that fills their gaps and it may not necessarily do the same for you.

 

For federal contractors, there is often one core element that is sought after. What helps us win more federal revenue?  Sound familiar?

 

In what seems like a neverending list of options, how do you know what will work best for YOU to increase your federal revenue?