Top 10 Motivational Songs to Start 2016

Wake Me Up - Avicii 

So wake me up when it's all over 
When I'm wiser and I'm older 
All this time I was finding myself 
And I didn't know I was lost 

Shake It Off – Taylor Swift 

'Cause the players gonna play, play, play, play, play 
And the haters gonna hate, hate, hate, hate, hate 
Baby, I'm just gonna shake, shake, shake, shake, shake 
I shake it off, I shake it off 

Happy – Pharrell Williams 

Because I'm happy 
Clap along if you feel like a room without a roof 
Because I'm happy 
Clap along if you feel like happiness is the truth 
Because I'm happy 
Clap along if you know what happiness is to you 
Because I'm happy 
Clap along if you feel like that's what you wanna do

All About That Bass – Meghan Trainor 

I see the magazine workin' that Photoshop 
We know that shit ain't real, come on now, make it stop 
If you got beauty, beauty, just raise 'em up 
'Cause every inch of you is perfect from the bottom to the top 

Unwritten - Natasha Bedingfield 

Live your life with arms wide open. 
Today is where your book begins. 
The rest is still unwritten.

It’s Time – Imagine Dragons 

It's time to begin, isn't it? 
I get a little bit bigger but then I'll admit 
I'm just the same as I was 
Now don't you understand 
That I'm never changing who I am 

Titanium – David Guetta 

I'm bulletproof, nothing to lose 
Fire away, fire away 
Ricochet, you take your aim 
Fire away, fire away 
You shoot me down but I won't fall 
I am titanium 

Brave - Sara Bareilles 

Say what you wanna say 
And let the words fall out 
Honestly I wanna see you be brave 
With what you want to say 
And let the words fall out 
Honestly I wanna see you be brave 

Bulletproof - La Roux 

This time baby, I'll be bulletproof 

Push It - Salt-N-Pepa 

Ah, push it - p-push it real good 

31 Daily Affirmations for Professionals

Do you believe that you are what you think?  Do you talk to yourself or write things to improve yourself and think more positively?  We cannot rely entirely on thoughts or words but to constantly review these in the form of affirmations can create possibilities.  You begin to believe the words and put them into action.  We manifest our dreams and ambitions to make our words become reality.  

Affirmations are like exercise for our brains.

According to the article Self-Affirmation Improves Problem-Solving under Stress, a study revealed that self-affirmation improved problem-solving performance in chronically stressed participants.  Affirmations raise the level of feel-good hormones to relieve stress and improve problem-solving abilities.

I am determined to break the pattern of negative thought.  The constant self-criticism associated with an overachiever where nothing is good enough.  I have come up with 31 self-affirmations for the professional to repeat as often as necessary until the negative speech becomes a positive speech and in turn, positive actions.  I want to turn the words “I can’t” into “I can” and use the positive energy to my benefit.

The following are daily affirmations for 31 days of a month.  You can read them all at once or read one every day.  The important thing is repetitiveness.  You want them embedded to change your thoughts.  I use Post-it notes on my mirror.

1. I have energy and am highly motivated.
2. My body is healthy, and my mind is brilliant.
3. I am superior to negative thoughts and low actions.
4. I have been given endless talents and will utilize today.
5. I forgive those who have harmed me in my past.
6. I have compassion and love for my fellow human being.
7. I am guided in my every step toward what I must do.
8. I possess the qualities needed to be extremely successful.
9. My business is growing, expanding, and thriving.
10. Creative energy surges through me and leads me to new and brilliant ideas.
11. Happiness is a choice. I am happy.
12. My ability to conquer my challenges is finite; my potential to succeed is infinite.
13. I deserve to be paid well for my time, efforts, and ideas. 
14. I am courageous, confident, and I stand up for myself.
15. I set standards for myself and utilize firm boundaries.
16. My thoughts are filled with positivity and my life is prosperous.
17. Today, I abandon my old habits and take up new, more positive ones.
18. Many people look up to me and recognize my worth; I am admired.
19. I am blessed with an incredible family and wonderful friends.
20. I acknowledge my own self-worth; my confidence is soaring.
21. Everything that is happening now is happening for my ultimate good.
22. I am a powerhouse; I am indestructible.
23. Though these times are difficult, they are only a short phase of life.
24. My future is an ideal projection of what I dream of.
25. My dreams manifest into reality before my eyes.
26. I radiate beauty, charm, and grace.
27. Obstacles will be moved out of my path to experience greatness.
28. I wake up today with strength in my heart and clarity in my mind.
29. My fears of tomorrow are simply melting away.
30. I am at peace with all that has happened, is happening, and will happen.
31. My life is just beginning.

Repeating affirmations can turn thoughts into action.  Changing your thought process is the easiest and most efficient way to self-improvement.

Six things for Letting Go and Realizing Your Potential

We have all heard the popular song Let it Go from the Disney movie Frozen performed by Idina Menzel.  The words are profound:

Let it go, let it go
Can't hold it back anymore
Let it go, let it go
Turn away and slam the door!

I certainly have invisible shackles that hold me back from achieving the most I can be but I realize them, and I work on them.  I believe there are six steps in letting go and realizing your full potential:

1. Let go of the past
2. Walk away from Life Energy Suckers
3. Let go of Fears
4. Embrace Change
5. Be Grateful
6. Live in the Moment

Let Go of the Past

You can’t start a new chapter in your life if you keep re-reading the last one.  

~ Author Unknown

Our memories exist, and good or bad memories can be triggered by many causes.  I journal and have for over 20 years.  I can read about my past and put it into perspective.  I am only human, and I have made mistakes.  I keep learning and growing from my mistakes and also my successes.  This year marked a death of a past boyfriend that was truly a turning point in my life.  His sudden death made me realize again how short life is but how I had taken his friendship for granted.  I truly miss being able to call him whenever at any time of day and be able to have that support system.

But I am not going to let my past control my present.  I can constantly relive the moments with him, or I can tuck them safely away and try to create new moments.  He was partly responsible for me starting my business and for getting me out of my comfort zone.  He taught me about wanting more.  Working hard to play harder and the joy of traveling.  He taught me great life lessons, but as much as I want him to be in my present and future, he is my past.   I have to let go of his memory and take the lessons into the present and future.  By dwelling and reliving moments I am letting the past control my present.

Walk Away from Life Energy Suckers

We all know that person who hangs around just to suck the living “life energy” out of you.  You feel exhausted, bored, anxious, irritated, stressed, threatened, overwhelmed or depressed about 30 seconds after they speak.  These unhealthy attachments bring about delays in our progression of our goals. 

Another energy sucker is a person who constantly asks for your advice, yet always does the opposite of what you told them, an askhole.  I love to help people.  I love entrepreneurs and have either donated to their projects or even housed them temporarily until they got their project off the ground.  But if a person in my life does not respect or take my advice then I am ready to help someone who will utilize my help.  My mother used to say, and I am unsure who the original author is but “you can't help someone who won't help themselves.”

Free up the time that the “life energy” suckers are taking by establishing strong personal boundaries and enforce them by saying “No.”  I strive to spend time with people who are happy, motivated, curious, wanting to learn, positive, and full of integrity.  A “life energy” sucker does not fit in with my goals and aspirations.  I will decide whom I spend my time with.

Let Go of Fears

Do you have one of those fears that plague you?  I have several that debilitate me somewhat.   The fear of falling, Acrophobia (fear of heights), and Atychiphobia (the fear of failure).  So what do I do about it?  I force myself out of my comfort zone.  I went skydiving this year for the second time.  Now mind you my eyes were closed this time, but I still got myself out of the airplane at 14,000 feet.  It was tough, the airplane was really small, my foot got stuck, and the instructor was mean and ornery. 

Then on one of my hiking adventures I got stuck on a slick rock about 15 or 20 feet up and my fear of falling kicked in and a friend had to come up and hold my hand to get down.  That one was the worst as I had a small panic attack.  I hug a wall every time there is a drop-off, but I continue to push myself.  Huyana Picchu and the Inca Trail in Peru were both challenging, but I made it.  Your fears are a roadblock so get out of your own way by facing your fears and working through them.

Embrace Change

The hardest change in life is the changes we need but don’t want.  I realize I am the only one that can initiate, incorporate and execute change in my life.  I am in control.  This month has had me housing several members of the Jamaican Bobsled Team.  I provide housing and in return, I get to experience true joy and happiness from the Islanders who completely apply the mantra “don’t worry, be happy.”  The team members are truly optimistic and happy go lucky and embrace change. 

We go through a lot in life.  We go through change, difficult times, loss and sorrow, extreme happiness and joy and that forces change again. It is a never-ending stream of changes in our lives as well as accepting those changes.

I find the easiest way to embrace change is to be open and listen to new ideas.  Seasoned entrepreneurs have a lot of advice that if you simply ask questions and really listen to their answers, you will get profound ideas for your own business.

I am constantly finding ways to motivate myself and increase my personal productivity.  I have to change my daily activities and add structure.  I have to make time for personal physical and emotional growth to ensure my highest capabilities.  I want to defeat my fear of failure and succeed by facing it head on with positive change.

Be Grateful

I try to simplify my life, love people, be compassionate and caring, communicate honestly and truthfully with integrity, and remember there is always another person or many other people who have it so much worse.

Life is not perfect, but my life doesn’t suck.  I put my life in perspective and see the good as well as the bad.  I really have nothing to complain about.  I am very talented and have a great family and many close friends as well as business acquaintances.  I have a home, car and a career that I love.  I realize what I have, and I am so grateful.

Live in the moment

When you truly live in the moment, you increase your awareness of the little things.  I am mindful of other people’s talents, their small acts of kindness, their willingness to share their life experiences and how I can incorporate unique and meaningful experiences into my own life.  Each day is a blank page that can be filled with new unique and meaningful experiences.  Doing something new or meeting someone new adds to my already full life and I love those moments.  They bring a breath of fresh air.

In conclusion, it is a great reminder to let go of everything holding you back and live in the present while progressing toward a bigger and brighter future with hope, anticipation, and excitement for the positive things that are going to come.  Maintaining a positive attitude and letting go of the things that bind you will bring positive results when the timing is right.

SBA Final Rule concerning Woman-Owned Small Business (WOSB) and EDWOSB

My company is DynaGrace Enterprises (DGE).  We are a certified 8(a) (Small Disadvantaged Business (SDB)) as well as 8(m) (Woman-Owned Small Business (WOSB) / Economically Disadvantaged Woman-Owned Small Business (EDWOSB)).  We have been in business since 2006 and the 8(a) is a great program but DGE will eventually graduate. 

The U.S. Small Business Administration (SBA) issued a final rule authorizing federal agencies to award sole-source contracts to women-owned small businesses eligible for the WOSB Federal Contract Program. It was published in the Federal Register September 14, 2015, and was effective October 14, 2015.  The rule levels the playing field for WOSB across the federal contracting marketplace.

Here is a link to the rule as it appears in the Federal Register on September 14, 2015. https://www.federalregister.gov/articles/2015/09/14/2015-22927/women-owned-small-business-federal-contract-program

It appears that for now, the current list of applicable North American Industry Classification System (NAICS) codes published by SBA for WOSB and EDWOSB contracting set-asides will remain in force, and will be used to facilitate sole source awards until superseded by new data.  This NAICS code list can be found here:

2012 WOSB-EDWOSB NAICS Codes

DGE has past performance in the following NAICS codes:

237130	EDWOSB	Power and Communication Line and Related Structures Construction
238210	EDWOSB	Electrical Contractors and Other Wiring Installation Contractors
238990	EDWOSB	All Other Specialty Trade Contractors
541330	EDWOSB	Engineering Services
541511	EDWOSB	Custom Computer Programming Services
541512	EDWOSB	Computer Systems Design Services
541519	EDWOSB	Other Computer Related Services
541990	EDWOSB	All Other Professional, Scientific, and Technical Services
561621	EDWOSB	Security Systems Services (except Locksmiths)
561990	WOSB	All Other Support Services
811310	EDWOSB	Commercial, Industrial Machinery/Equipment (except Automotive & Electronic) Repair & Maintenance

This new regulation is great news and represents an opportunity for woman-owned firms.  If you are interested in working with DGE, please contact us.

What is the System for Award Management (SAM)?

The System for Award Management (SAM) located at www.sam.gov is the data repository necessary for doing business with the federal government.  The website is free to the public and users of SAM include contracting officials, contractors, and the public. 

To be awarded a contract by the federal government, contractors are required to register in SAM.  The one-time registration provides basic information for both procurement and financial transactions.  The information must be validated annually by updating and renewing the entity registration. 

SAM allows government agencies, contracting officials, and other contractors to search for your company based on your ability, size, location, experience, ownership, and more. SAM allows users to search for firms certified by the Small Business Administration (SBA) under the 8(a) Development and HUBZone Programs. SAM also incorporates the Online Representations and Certifications Application (ORCA) system.  ORCA is a web-based system where the contractor provides required information about the company (e.g., accounting procedures; travel policies).  ORCA verifies that the firm meets certain Federal requirements (e.g., complies with equal opportunity legislation).

SAM validates the contractor’s information and electronically shares the secure and encrypted data with the Federal agencies' finance offices to facilitate paperless payments through Electronic Funds Transfer (EFT). Additionally, SAM shares the data with Government procurement and electronic business systems. A contractor only needs to input business information in one database), which will then automatically populate the SBA Dynamic Small Business Search (DSBS) database.

As a contractor to register in SAM you need to have the following:

• Dun & Bradstreet Data Universal Numbering System (D-U-N-S®).  See my previous blog Dun & Bradstreet (A Necessary Evil)
• Taxpayer Identification Number (TPIN) is an identification number used by the Internal Revenue Service (IRS).  The TPIN will be verified by the IRS so it must be entered EXACTLY like the paperwork from the IRS.  The TPIN will be either the Employer Identification Number (EIN) for the contractor company or in the case of a Sole Proprietor the number will be the Social Security Number (SSN).  Keep in mind activating a new EIN with the IRS takes 2-5 weeks.
• Bank Account information for EFT
• North American Industry Classification System (NAICS).  The NAICS codes will inform the public what kind of industry work you can perform.

Once your registration is submitted for processing, information from SAM is routed to Defense Logistics Information Service (DLIS) in Battle Creek, Michigan for Commercial and Government Entity (CAGE) Code assignment.  Once the CAGE code is approved it will be sent to SAM to update the registration.  Government contracting requires a CAGE code.   The code may be used for a Facility Clearance, a Pre-Award survey, automated Bidders Lists, pay processes, source of supply, etc. In some cases, prime contractors may require their sub-contractors to have a CAGE Code also.

For further information please visit the DGE web site.

As a Woman-Owned Small Business (WOSB) who should I market?

Government contract awards need to meet socioeconomic goals.  The fact that DynaGrace Enterprises (DGE) is both a Woman-Owned Small Business (WOSB) as well as an 8(a) makes DGE count in multiple socioeconomic categories for these objectives. Formal goals are in place by the Small Business Administration (SBA) to ensure small businesses, like DGE, especially those with socially and economically disadvantaged individuals, get work from the Government. Marketing the socioeconomic advantage to customers as a way for them to meet their SBA goals is an important marketing strategy. DGE utilizes several places to determine socioeconomic marketing targets:

1. The SBA produces a scorecard for 24 agencies required to report the socioeconomic goals of their procurement activities. For Fiscal Year 2014 the document is titled FY 2014 Scorecard Summary by Prime Spend with Sub K and Plan Progress Document and is represented in the following graphic. 



FY 2014 SBA Scorecard Summary

According to the data, DGE should market the following agencies:

Agencies that did not meet their WOSB goals

• Department of Defense
• Department of Energy
• Department of Veterans Affairs
• National Aeronautics and Space Administration
• National Science Foundation
Agencies that did not meet their SDB goals

• Department of Energy
• Department of Education
2. DGE utilizes the Small Business Dashboard to analyze potential marketing targets. The data can be up to 90 days delayed in posting, but it still gives a visual picture of socioeconomic percentage trends. The following represents a partial listing of this data. According to the Small Business Dashboard, DGE will target the following agencies:
Agencies that did not meet their WOSB goals

• Department of Defense
• Department of Energy
• Department of Veterans Affairs
• National Aeronautics and Space Administration
• Agency for International Development
• Executive Office of the President
• Federal Energy Regulatory Commission
• Railroad Retirement Board
• Equal Employment Opportunity Commission
• Federal Trade Commission
• National Gallery of Art
• Agency for International Development
• National Transportation Safety Board
• Recovery Accountability and Transparency Board
Agencies that did not meet their SDB goals

• Department of Energy
• Department of Education
• Consumer Financial Protection Bureau
• Peace Corps
• Millennium Challenge Corporation
• Federal Energy Regulatory Commission
• Railroad Retirement Board
• Equal Employment Opportunity
• National Gallery of Art
• National Transportation Safety Board





Small Business Dashboard

Once marketing targets are identified DGE queries the Federal Business Opportunities, FedBizOpps (FBO) and discovers procurement opportunities by Agency and then further defined by North American Classification System (NAICS) code. DGE can approach the procurement official about utilizing WOSB or 8(a) set asides for their procurement effort to meet their socioeconomic goals. Also, physical visits or digital email by DGE business development personnel and attendance at agency conferences is a must for the socioeconomic marketing plan to succeed.

For further information please visit the DGE web site.

Dun & Bradstreet (A Necessary Evil)

A necessary evil is defined in the Cambridge Dictionary as “something unpleasant that must be accepted to achieve a particular result.”  Yes, a Data Universal Numbering System (D-U-N-S®) number is just that, unpleasant.  You must have one to do business with the federal government.

From the D&B website:

“Created in 1962, the Data Universal Numbering System or D-U-N-S® Number is D&B's copyrighted, proprietary means of identifying business entities on a location-specific basis.  Assigned and maintained solely by D&B, this unique nine-digit identification number has been assigned to over 100 million businesses worldwide.”

“The D-U-N-S® Number is widely used by both commercial and federal entities and was adopted as the standard business identifier for federal electronic commerce in October 1994.  The D-U-N-S Number® was also incorporated into the Federal Acquisition Regulation (FAR) in April 1998 as the Federal Government's contractor identification code for all procurement-related activities.”

A real mix of commercial and federal government usage is what this appears to be.  To do business with the federal government, you have to register with a commercial company first to obtain an identification number.  This process has never made sense to me and every time I have had to register either a joint venture or new company it is painful. 

It used to be worse.  Back in the day it could take three weeks to get a D-U-N-S®.  If you had any trouble, it amounted to talking to about ten different people before you got to the department.  Then you were placed on their sales list for them to try and sell their products and services to you. 

According to this article, “Is GSA stuck with proprietary numbering system?” the current contract for D-U-N-S® numbers is an eight-year, sole-source contract awarded to Dun & Bradstreet in 2010. The contract now totals up to $154 million, according to GAO.

Noted in this 2012 letter sent to Senator Ben Nelson (D–NE) the Government Accountability Office (GAO) identified challenges.  I believe D&B has a monopoly on the numbering system for the federal government.  Regardless you will need a D-U-N-S before you can register your business in sam.gov to obtain your Commercial and Government Entity (CAGE) code.  The link to establish a D-U-N-S® number for the federal government is http://fedgov.dnb.com/webform, and you will need the following:

• Personal Point of Contact Information (Name, Email, Address, Phone)
• Business Information (Legal Name, Address, Structure, Date Started, Ownership Demographic

The last time I got a D-U-N-S® I was in a hurry.  They do not notify you that you have received a number.  You will need to call them.  It took four days.  Once you have the number, you can proceed to register your business in sam.gov.  It is part of the process to start doing government contracting.  Yes, a necessary evil but in government contracting you must get used to doing exactly what is needed to obtain work.

Choosing a Business Bank Account

So you have incorporated, and that is a significant step in the right direction.  All is well in the world, but now you need a place to do financial transactions.  Part of registering your business to do work for the federal government involves having a bank account to transfer money back and forth.  Choosing a business bank account is harder than choosing a personal bank account because of all the options.

The choice of business bank accounts boils down to whether you are going to carry a large balance and how many transactions you have each month.  That will determine your monthly fees. 

To establish a bank account you need the following:

• Articles of Incorporation for Corporation or LLC
• If a Sole Proprietor or Partnership you will need one of the following:
• Fictitious Name Certificate or Statement
• Certificate of Assumed Name
• Business License
• Registration of Trade Name
• Employer Identification Number (EIN)

You have choices between banks.  You can choose a big nationwide Bank, a community bank, a credit union or an internet bank.  I wanted a nationwide bank because of my business with the federal government.  Currently, I have contracts in several states, and I needed the ability to have a bank that was not local.  To compare all options, including local credit unions, NerdWallet provides an extremely handy tool called “Compare Business Checking Accounts.”  I provided my experience in the table below of three nationwide banks.

Bank	Monthly Fee	Minimum Opening Deposit	No Charge Transactions and Deposits	Interest Bearing	Online and Mobile Access
Wells Fargo (Simple Business Checking)	$10	$50	Includes 50 transactions and $3,000 in cash deposited monthly	No	The have both.  However, their online system is not as friendly as other banks.  It is somewhat difficult to use. They have online statements and access to check images.
Chase (Total Business Checking)	$10 when you are enrolled in Paperless Statements (or $12 for paper statements); waived when you maintain a $1,500 minimum daily balance	$25	Includes 200 transactions per month without a fee and $7,500 in cash deposits each month without a fee	No	Chase has the best online banking and mobile access system.  If this is important to you, then choose them.
Bank of America	No monthly fee first two months, then $17/month	$100	500 transactions per month at no cost. Additionally you can deposit up to $25,000 cash to the account without a fee.	No	I have not used their online or mobile access, but they do provide it.

If you know me, Linda Rawson, I am commonly called she-geek.  So the relatively small difference in cost made me want the high-quality online banking.  We use Quickbooks Online, and it synchronizes with Chase.  Don't make the decision for a business bank account quickly but analyze your true needs as a business owner.

Choosing a Corporate Structure (One size does not fit all)

DISCLAIMER:  I, Linda Rawson, am not an attorney or accountant.  I am merely giving you my opinion and lessons learned from my experiences.

 

Okay.  Pay attention to that disclaimer as I will be referencing it again.  The proper way to choose a corporate structure is to consult an expert such as an attorney or accountant.

One of the first and most important choices when starting a business is the selection of the type of legal entity your company will be.  This decision will affect how much you pay in taxes, how much paperwork you will need to do, determine personal liability and impact the ability to raise money through the sale of equity.

I reviewed C Corporation, S Corporation and Limited Liability Company (LLC) when I started my business. 

C Corporation and S Corporations require a corporate return, corporate minutes and give you the option to establish shares to sell for equity.  It sounded like a lot of high-cost record keeping work that I wanted to avoid.  Nobody likes to do paperwork. 

When I started, it was just me.  I didn’t imagine I would be anything else other than a consultant.  I thought I would be claiming all my income on my individual tax return Schedule C.   I wanted simpler taxes, so I incorporated as an LLC without consulting an attorney or accountant.  The State of Utah makes it so easy to incorporate.  It even generates the articles of incorporation for you.  Why would I want to do all that extra bookkeeping?

Then the next thing is filing with the IRS.  Here is where I made a critical error that almost prevented me from obtaining my 8(a) status when I first applied.  They classified me with my Employment Identification Number (EIN) as a Single-Member LLC.  Single-Member LLC was great until the SBA said an LLC is defined as one or more people and we cannot approve your application unless you get this changed.  I had ten days, I added my daughter as the other member, expedited the articles of incorporation, and our 100 percent Woman-Owned Small Business (WOSB) expanded to two people.  That was in 2009 when our 8(a) application was approved by the SBA.

Later, after participating in the Mentor-Protégé Program, we used a lawyer to convert DynaGrace Enterprises to an S Corporation to have the option to sell shares if we needed to raise capital.  Payment for government work can be delayed up to 90 days and as a company you have to carry that money and wait for the government to catch up.  You will get paid, but it may take some time. 

The main advantage to switching to an S Corporation was to minimize Social Security and Medicare taxes for myself and to limit my personal liability.  The profit and losses are still passed to me utilizing a K-1 form and reported on my individual return.   I didn’t choose to experience the double taxation that is the downside of the C Corporation.

When I started my business, Sole Proprietorship wasn’t talked about much but it is my understanding if you own 100 percent of your business this may be the option for you.  Again please consult an attorney or accountant to figure out the best choice.  

Remember in business, as in life, one size does not fit all.  

It can be expensive to convert to a different corporate structure later, but it is not a critical mistake, and change can mean growth but know the facts and make the best decision at the time.

Why start a government contracting business?

I have owned DynaGrace Enterprises, a Woman-owned Small Business (WOSB) and 8(a) firm for almost a decade.  So why did I start a government contracting business?  The answer is quite simple.  I was younger and dumber and wanted to see if I could.  I did not know what I should have known when I started.  Maybe this article can give you some insight and help you determine if it was the good idea you thought it was. 

There are several types of government contractors, and the one I am most familiar with provides services to the federal government.  The manufacturing part and being able to offer a product to the government might be better for you, but I am not as familiar with that type.

Federal government contracting can be a way to start a small business.  The market is worth over $100 billion in sales to small businesses each year.  Providing services or products to the government is quite different than selling to the commercial sector.

Government contracts can guarantee ongoing revenue to your business. A stable cash flow enables a business to develop marketing budgets, hire staff and grow their business intelligently. Reoccurring monthly business generated from government contracts can also hedge against months that are slow. In fact, many contracts have 3-5 continuous year contract terms.  Keep in mind though it can take 30 to 90 days to get paid.  But once the payments start you are usually fine.

The procurement process for a government contract is extensive.  You can speed up this process by marketing to government customers that have a budget.  That can be like finding a needle in the haystack.  The government goes through cycles for services.  Sometimes they ramp up contractors and some years they ramp up on civilian employees. 

You should be prepared for long hours when responding to solicitations.  The last couple I have lost to very low bidders.  I am not sure how they expect to give any benefits to their employees, but the government will get what they bid for, hence the term, “low bidder”.  It is like buying the cheapest vehicle and realizing the plastic cracks in the sun after a month of owning it.  I refuse to win a bid on the backs of my employees so the contract goes to a company that will.

The good part is I have some fantastic employees, and I have met some wonderful business people who are involved in government contracting.  I started out as a civilian employee way back when and then worked for about four contractors before starting my own small contracting business.  Having a small budget or lack of budget is a huge problem.  The government employees in charge of budgets are usually friendly and appreciate the services we have to offer. 

I would never even have thought about having my own business, and this opportunity has given me the experience and the pleasure of being an entrepreneur.  It is an excellent way to get started and the SBA offers some training but expect to learn a lot on your own and with the help of mentors.