Can your Small Business Compete as a Local Contractor?

Winning local government contracts can take a lot of work. Before you go to the trouble of pursuing a local contracting project, it is important to constantly review the positioning of your company, relevant to the government market. You will need to know what your small business may need to work on, and what will be expected of you. Local contracting jobs require a number of criteria that you will need to fulfill in order to complete the local government contract:

Local Contracting Job Requirements

1. Commitment to winning the local contracting job, and willingness to do your homework. Keep in mind that when a company is choosing a local contractor for a government project, it doesn’t matter if your business is small or not. The winning local contractor is the one who works hard to fulfill every aspect of the local contracting job, not the ones who say they will “give it a try.” Working hard means you need to get out and research all aspects of the contract, ask plenty of questions, and communicate clearly with the government agency you’ll be working for.
2. Financial resources and stability to back up the local contract job. What is your company’s current financial situation? Is cash flow positive? Do you have any trouble with payroll or other payments? If you have any financial concerns, going after a local contracting job will not generate a cash solution. After you are chosen as the local contractor, keep in mind that you may not get paid upfront. You have to handle the financing and complete the contract before you receive a paycheck. If you really need financial help in order to complete the local contracting job, consider getting a loan from your banker.
3. Quality assurance program. Government contracts at all levels usually require an assurance that the service or product you are providing is up to certain standards of quality. As a local contractor, you will need to document the type of quality control plan you have in place. Your standards could range from industry standards and commercial quality standards to government standards.
   Office efficiency and documentation. If you’re going to work as a local contractor, you need keep all your records up to date and have them organized. Documenting meetings and transactions will be important component to your contracting job.
4. E-commerce and internet proficiency. More and more businesses are using electronic means to do business. This process offers some great benefits to local contractors–not only does it save you time filling out paperwork, but it helps speed up the sales efficiency. Due to the Government Paperwork Elimination Act of 1995, even the government is required to issue and award small business contracts electronically.