Is it really worth pursuing federal business?
You make the call… The federal government spends hundreds of Billions of dollars every year on goods and services with Millions spent within your geographic footprint on the exactly what you provide. Someone is putting the profits from that work into a bank account that isn’t yours. The cool thing is we can tell you whether it does make sense with an initial market analysis.
I have heard the government is slow pay, is that true?
It doesn’t have to be. isiFederal will help you incorporate favorable payment processes into your contracting vehicle. That can include discounts for early payment which, in most instances, the contracting office will take advantage of.
Aren’t margins tight on government work?
In typical GSA contract negotiations, you are required to give the federal government a discount off your offerings to the private sector – and adjust your pricing to always be less for government. Your isiFederal Contracting Specialist will work closely with you to help you maintain your margins–after all, it isn’t in the government’s interest to put you out of business.
What are the costs associated with a federal strategy?
Normally a company that is serious about developing a federal strategy should expect to commit at least $150,000 and probably closer to $250,000 per year. The isiFederal Turn-Key model costs less than half of that and while we work to make your isiFederal strategy turn-key, there are internal resources that will need to be allocated and other expenses. Additional costs include proposal development, travel, marketing materials and special consultants. Whether you use isiFederal or not, if you want this to work, you must be willing to commit the resources.
Are there minimum requirements?
GSA requires that you be in business for one year for product sales and two years for services. You must have at least two completed projects within the last two years and had gross sales of at least $100,000. You must be able to furnish at least 6 references and have organized, verifiable financial records.
How long before I start seeing results?
This is here most entrepreneurs’ expectations get tested… It is best to focus your monetary return to at least 18 months. This is a long term process and one of the most challenging problems for successful entrepreneurs. Entering the federal government is like taking your company to Japan and setting up shop. You need to understand the culture and processes and build relationships. Even with isiFederal, it is going to be a long haul experience. Within 18 months you should see federal revenues begin to materialize. That being said, you will start seeing results from your isiFederal team immediately as we jump into the process of developing your contract vehicle and marketing material. You will be in communication with your team regularly throughout the process and they are responsible for giving you status updates when you want them.
Where can I learn more about the federal market before I decide?
Great question! isiFederal‘s Youtube channel is filled with vital information like news, tips, and market trends analysis; if you’re more of a reader, our blog is worth following too. You can also sign up for our free “Friends of the Firm” monthly newsletter or download your copy of our handbook “Doing Business with the Federal Government”. If you have any other questions, feel free to ask Dave Lowe directly!