Simply put, the structure that works best for you is the best business structure for government bidding. But you already knew that. Didn’t you? Did you also know that the United States government spends billions each year purchasing goods and services from private businesses? In fact, the United States government is the world’s biggest buyer of goods and services, with contracts totaling more than $5 trillion in the last decade.

In establishing an equitable purchasing policy, federal agencies negotiate with the U.S. Small Business Administration to set government-wide small business goals. One of those goals includes establishing a percentage of annual spending on small businesses. The current goal for contracting small businesses is 23 percent.

Considering its spending power, diverse needs and consistent demand, selling goods and services to the U.S. government can help your small business grow significantly. To win those prized government contracts, though, you need to write a solid bid.

Qualifying Your Business as “Small” for Government Bidding

If your business qualifies as “small,” it can lead to desirable contracting opportunities the government reserves especially for small businesses. To ensure your small business is eligible for government contracts, it must:

• Satisfy the SBA’s size standard for your specific industry
• Be based in the United States
• Operate for profit
• Be owned and operated independently

It’s also worth noting that as part of the government’s small business contracting goal of 23 percent, it aims to award 5 percent to small businesses owned by women; 5 percent to small disadvantaged businesses; 3 percent to small businesses owned by service-disabled veterans; and 3 percent to small businesses in HUBZone.

Writing a Winning Bid for a Government Contract

Once you’ve verified your small business’s eligibility, the next step is to write a proposal or bid that’s sure to secure that sought-after government contract. To increase your chances, it’s important to understand how the federal government evaluates your business’s bid, what considerations it makes and how it awards.

If the government doesn’t buy the goods or services you offer, or if your business isn’t competitive, you’ll lose your bid before it receives any further attention. But aside from satisfying eligibility requirements, winning a government contract comes down to writing a bid that resonates with the selection team reading it.

When writing your government bid, consider these key points to refine it.

• Avoid generic templates and write with the goal of beating your competitors
• Research the government’s mission and how your approach aligns with it
• Identify the government’s needs and determine how you’ll satisfy them
• Highlight your technical abilities and how your business minimizes risk
• Spotlight the strengths of every team member and how important they are
• Communicate with the contracting officer often with questions and answers
• Make your process clear to the government and never assume it knows it
• Ensure the bid writers understand all the procurement regulations involved

For more information about how to write a bid that will increase your chances of winning a government contract, refer to the SBA’s detailed proposal workbook. Read it, study it and follow it, because it could propel your business to profits.