Government agencies elicit the services of providers nationwide for ongoing contractual work. Securing one of these contracts can help your company grow tremendously.
Now, it doesn’t make sense for every company to bid on contract opportunities. You have to possess a realistic view of your current operations and what you can feasibly offer.
But, if you are looking to expand into new territories, these contracts can be your solution. While it does take time and money to make thorough bids, they’re often well-worth the resources. Here are 4 benefits of obtaining government contracts.
1. Consistent Payment
Government contracts allow companies to bank on receiving steady monthly revenue. This makes it much easier to grow a business, as it allows your staff to hire and budget more appropriately.
Also, it’s advantageous to have this ongoing workflow during slower months of business. Often, it takes up to 30 days to receive payment for your completed projects. However, you know you can rely on this revenue each month, as it’s coming from a trusted source.
2. Strengthen Company Value
The benefits of maintaining a government contract can last even when you’re ready to sell. By procuring this steady workflow, you’re increasing your company’s value. This will be highly beneficial well into your future.
If you decide to sell, you’re able to pass a contract on to new buyers. Not only does this make selling more advantageous, it also assists with obtaining loans and lines of credit. Lenders will see you as a much more reliable candidate with this on your application.
3. Find More Opportunities
Having a government agency in your client portfolio will open up many doors for you. Future clients will find you much more attractive and they will gain higher levels of trust in your company.
Government contracts can also increase your networking potential. You’re more likely to develop relationships with people who can lead you to lucrative opportunities. You can even ask your client to give out referrals to other government agencies!
4. Advantages for Female- and Minority-Owned Companies
Is the owner of your company either a female or a minority? If so, they can be at a serious advantage for receiving a contract. The government strives to award a certain amount of federal dollars to both of these groups each year.
Female-owned companies must receive at least 5% of federal contract dollars each year. Minority owners, on the other hand, should receive at least 25% of the money. Also, a certain amount of federal dollars are allotted to small businesses each year.
For More on Government Contracts
If you’re looking to increase your company’s value, government contracts may be the route to go. However, you must be able to produce a set amount of output each month and constantly meet deadlines.
Finding public procurement doesn’t have to be as challenging as it may seem. TendersPage helps companies like you find better opportunities for contractual work.
Join the 50,000+ other tenders a day who are finding procurement opportunities! Contact us today!