Your 1st Government Contract & How To Get It

Government Contracting: The Opportunity Most Small Businesses Still Overlook

One of the most surprising things about government contracting is how few small businesses actually participate in it.

The U.S. government is the largest buyer of goods and services in the world—yet less than a quarter of one percent of American small businesses ever sell to it. That gap isn’t because the opportunity isn’t real. It’s because most business owners assume government contracting is too complex, too slow, or only meant for large defense contractors.

That assumption costs small businesses a massive opportunity.

Government contracting can become a powerful revenue stream—one that smooths cash flow, stabilizes growth, and opens doors that don’t exist in purely commercial markets. But like anything worthwhile, it requires understanding how the system actually works.

When I introduce people to government contracting, I focus on three practical entry points: prime contracts, subcontracts, and consulting. Each offers a different path depending on where your business is today.

Step One: Confirm the Government Actually Buys What You Sell

Before you worry about registrations, certifications, or proposals, there’s one step that matters more than all the rest: market research.

Too many businesses skip this step and jump straight into chasing contracts that were never a good fit to begin with.

The fastest way to ground yourself in reality is by using public data sources like USAspending.gov. This platform shows you exactly what federal agencies are buying, who they’re buying it from, and how much they’re spending.

When you look at the data, patterns emerge quickly.

For example, when you search for government spending on niche consumer products—like saunas—you’ll see almost no activity. That’s not an opinion; it’s a data-backed signal that the government simply doesn’t buy much of it.

On the other hand, when you look at services like courier or messenger support, the difference is dramatic. Thousands of contracts. Billions in spending. Clear, ongoing demand.

That’s the kind of insight that saves you years of frustration. If the government isn’t already buying what you offer, government contracting is not the place to “create demand.” You want to follow the money, not fight the data.

Prime Contracting: Direct, Lucrative—and Often Misunderstood

Prime contracting is what most people think of when they hear “government contracts.” This is when your business holds a contract directly with a federal agency.

But here’s the reality most newcomers don’t realize: winning prime contracts has very little to do with simply responding to solicitations.

By the time an RFP or RFQ is posted, the agency already has a pretty clear picture of what it wants. The companies that influence that outcome are the ones who showed up earlier—during the market research phase.

That’s where sources sought notices come into play.

Sources sought allow agencies to gather information from industry before issuing a formal solicitation. When you respond thoughtfully, you’re not selling—you’re educating. You’re helping the government define requirements, understand the market, and reduce acquisition risk.

This early engagement is where relationships begin and credibility is built. If you only show up at proposal time, you’re already late.

Prime contracting rewards companies that think long-term, engage early, and understand that relationship-building is just as important as proposal writing.

Subcontracting: The Smartest First Step for Most Businesses

For many small businesses, subcontracting is the most practical way to enter government contracting.

Instead of contracting directly with the government, you work under a prime contractor who already holds the award. This allows you to gain federal experience, generate revenue, and build past performance without carrying the full burden of compliance and contract management.

But subcontracting works best when it’s strategic.

The biggest mistake I see is small businesses cold-emailing prime contractors with generic capability statements and no context. That almost never works.

A better approach looks like this:

1. Identify upcoming opportunities early—often through sources sought notices.

2. Use spending data to find which primes already work with that agency.

3. Bring the opportunity to the prime contractor with a clear value proposition.

When you do this, you’re not asking for work—you’re offering insight. You position yourself as a partner who understands the mission, the agency, and the opportunity. That changes the entire dynamic.

Subcontracting isn’t a lesser path. It’s a proving ground—and for many companies, it’s the bridge to becoming a prime later on.

Consulting: A Powerful Path for Experience-Based Professionals

Not everyone starts with a product or service ready to sell to the government. And that’s okay.

Consulting offers a third, often overlooked pathway into government contracting—especially for professionals with experience in areas like proposals, compliance, market research, capture strategy, or business development.

Consultants support government contractors rather than agencies directly. That distinction matters.

This model allows you to:

• Generate income without waiting on contract awards

• Work remotely

• Avoid the capital intensity of bidding as a prime

• Build deep expertise quickly

Veterans, former federal employees, and professionals from non-government backgrounds can all succeed here—provided they operate ethically.

One critical rule: contingent fee arrangements are illegal in federal contracting. You cannot be paid based on whether a contract is won. Understanding and respecting these boundaries isn’t optional—it’s foundational.

Done right, consulting can become both a sustainable business and a gateway into deeper government work.

Relationships Are the Real Currency

Across all three paths—prime contracting, subcontracting, and consulting—the same principle keeps showing up: relationships matter.

Government contracting is not a transactional marketplace. It’s relational.

Contracting officers, program managers, and prime contractors want to work with people they trust—people who understand their mission, communicate clearly, and show up consistently.

That trust doesn’t come from one proposal or one meeting. It’s built over time through:

• Thoughtful engagement

• Early participation

• Reliability

• Professionalism

If you’re looking for quick wins or shortcuts, this market will frustrate you. But if you’re willing to play the long game, the rewards can be significant and durable.

Government Contracting Is a Long Game—But It’s Worth Playing

Government contracting isn’t hard because it’s impossible. It’s hard because it requires patience, discipline, and strategy.

Whether you pursue prime contracts, subcontracts, or consulting, success comes from understanding how the system works—and committing to learning the craft.

For small businesses willing to do that work, government contracting isn’t just another sales channel. It’s a stabilizing force that can support long-term growth, credibility, and opportunity.

And for those willing to stick with it, it’s one of the most underutilized advantages in the entire small business ecosystem.

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