Did you know that the United States government buys goods and services from businesses all over the United States? In fact, it is the largest consumer of goods and services in the world, which means your business has abundant opportunities to sell to the government.
However, the government does not just buy from large businesses. By law, the federal government is required to offer 23% of federal contracts to small businesses. The government also sets aside contracts for veteran-owned businesses, including at least 5% of contracts for service-disabled veteran-owned small businesses.
Below are three steps veteran business owners can take to enter the world of contracting:
1. Learn about the benefits of contracting:
Supplying goods and services to the federal government is a terrific way for veteran-owned small businesses to diversify their revenue streams. This enables the business to generate additional revenue and increase profits by entering a previously untapped market.
Additionally, the federal government wants to help these businesses succeed. By buying from small businesses, the federal government helps them gain a footing in their market and ensures that large businesses don’t outmuscle and overtake them.
Small businesses also create jobs. By securing contracts, these businesses can increase production and hire more local workers, thereby enriching communities and providing opportunities for socio-economically disadvantaged groups to advance.
2. Find local assistance to answer questions:
After learning about the benefits of contracting you may still have questions about the process and how to set your business up for success. Veteran business owners can find these answers through several local assistance resource partners, including Veterans Business Outreach Centers. VBOCs are staffed by veteran business experts who can answer contracting questions and set your veteran-owned small business up with other programs in your area to help you excel in the contracting process. These programs include SBA’s 8(a) Development program or the SBA Mentor Protégé program.
3. Get certified:
During conversations with VBOC staff members, they will recommend that veteran-owned and service-disabled veteran-owned small businesses get certified via SBA’s VetCert program. Certification is needed for veteran-owned businesses to compete for and win sole-source and set-aside contracts from the federal government. To apply, a business should be classified as a small business and have at least 51% ownership by veterans or service-disabled veterans. Learn more about the certification process here.
Certified veteran-owned or service-disabled veteran-owned small businesses can also apply for SBA’s Surplus Property program once certified through VetCert. This means they can obtain land that the government no longer needs to house their business as it grows.
Government contracting provides benefits to small business owners, including veterans and service-disabled veteran business owners who have certified their businesses via VetCert. To learn more about government contracting opportunities, click here.
For more veteran owned small business resources and helpful tips, follow the SBA’s Office of Veterans Business Development (OVBD) on LinkedIn, X (formerly Twitter), and Facebook.
This blog was originally written by the U.S. Small Business Administration’s Office of Veterans Business Development. To learn more about OVBD visit, sba.gov/ovbd.