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Elon Musk has mastered the art of utilizing government resources to elevate his enterprises. With considerable contracts from NASA and the U.S. military, SpaceX has flourished, and Tesla has reaped benefits from substantial tax incentives and government loans.
However, achieving governmental financial benefits isn’t restricted to billionaires. Whether you’re an entrepreneur or a freelancer, anyone can profit from the government in several lucrative ways, similar to how Elon Musk might.
Launch a Small Business for Government Contracts
Government assistance isn’t exclusive to large corporations; small businesses also have ample opportunities. A significant portion of federal contracts is allocated specifically for small enterprises. For those contemplating the launch of a small business, this could be an opportune moment.
“The federal government spends over $700 billion annually on contracts with private companies. Not all contracts are intended for large corporations,” explained Kari Brummond, an accountant at TaxCure. “In fiscal year 2024, small businesses were awarded $183 billion in federal contracts, $78 billion of which was allocated for small disadvantaged businesses.”
To embark on this path, establish a free profile on SAM.gov where contract opportunities are unveiled. By registering, your business becomes visible in the Dynamic Small Business Search (DSBS), a platform government agencies utilize to discover potential vendors.
Offer Your Products or Services to Government Agencies
You don’t need an enormous company or government connections to sell to federal agencies. With a relevant product or service, the government is prepared to purchase it, allowing you to profit off the government.
Kizzy Parks, founder of Govcon Winners, points out that the entry barrier is surprisingly low. “Everyday people can register on SAM.gov and be willing to sell a product or service that the federal government desires. It really is that straightforward.”
Just register, and you can start exploring and bidding on available contracts. Whether you offer janitorial services, waste removal, or consulting, various contracts suit different offerings. Identify the needs of an agency, match them with your services, and commence bidding.
Acquire an Existing Government Contracting Business
If establishing a business from the ground up doesn’t appeal, consider purchasing a business that already secures government contracts. This choice provides a head start with existing infrastructure, relationships, and occasionally, standing contracts.
“Similar to buying a food truck or a franchise, purchasing a government contracting business is entirely feasible. The SBA is keen on lending to investors interested in established entities,” Parks mentions.
“Why not secure an SBA loan to buy an existing government contracting business? Many are available for purchase, ranging from hundreds of thousands to millions.”
This approach is perfect for those eager to join an already thriving contracting business, with the added benefit of government assistance in financing the acquisition.
Assist Contractors Through Freelancing or VA Work
Instead of securing contracts, consider aiding those who do. Many contractors rely on freelancers or virtual assistants for support in day-to-day tasks, providing another way to profit off the government.
“Providing services to those in government contracting can be lucrative,” Parks points out. From recruitment and staffing to ensuring timely payments, opportunities are abundant.
Whether through administrative tasks, accounting, project management, or proposal writing, contractors often seek external help. By ensuring reliability and efficiency, this indirect route to earning from government contracts can be highly rewarding.