It’s one thing to get the win. It’s entirely different to have a plan that includes financial readiness for execution. We’ve seen many growing government contractors focus heavily on winning contracts while neglecting their financial readiness, often realizing too late that they lack the financial stability to perform optimally on their awarded projects.
This happens because, at their core, small business owners are typically very talented functional operators with a dream and a vision to build a business of their own. With a lot of courage, a ton of ingenuity and hard work, and a varying understanding of how businesses operate, they jump head first into an evergreen market unlike any other: the United States federal marketplace. Through no fault of their own, they can become very good, very fast, at winning awards, and find out very quickly that this does not easily equate to profitability.
This is an epidemic of sorts among less-tenured GovCons, which in theory, can account for the thousands of businesses that don’t make it beyond 3 years. It’s unsustainable to just be good or even great at what you do. You must have a robust foundation that encompasses growth, access to capital at each stage of growth, internal and external compliance, and quality staffing.
No guidebook comes along with registering your new business. The government contracting industry is a constantly evolving landscape, making it challenging to establish a solid business foundation. However, recognizing this volatility shouldn’t discourage you. Instead, acknowledging the dynamic nature of the industry is the first crucial step towards adapting and thriving.
So how do you bridge the gap between what you think you know and what you don’t know without driving your business the wrong way down the street? Here is our advice:
- Ask questions: Of everyone. Other business owners, resource providers, contracting officers, small business liaisons, Association of Procurement Technical Assistance Centers counselors, and local Small Business Administration representatives.
- Ask for help: Join organizations that connect you with seasoned business leaders who understand your challenges and can show you how to be successful. Meet as many people in the industry as you can. Find those who you admire and ask them to mentor you. The sooner you accept you don’t know everything, the more you will learn.
- If you are the smartest person in the room, find another room: Ego is a limiting factor that will keep you from learning from someone who knows something you don’t. If you never learn more than you know today then your growth is capped, and so is the profitability of your business.
- Have a financial plan for every stage of growth: What you have access to today will change. Make sure you are constantly asking yourself where you will go to access the funds necessary to grow your business.
Parabilis proudly shares our ecosystem of resources and service providers with our network. Whatever your need, we can connect you with trusted partners who will help you navigate wherever you are in your journey. Our founders walked the path you’re on and understand the challenges you face today and what lies ahead. We pride ourselves in being a conduit for good so that your business can grow to the level of success you envisioned.