Are you ready to play in the world’s largest marketplace? 

The federal government is the world’s largest buyer of goods and services, spending billions each year across every industry imaginable. For small businesses, federal contracting can unlock growth, stability, and long-term opportunities. But the question every business owner should ask is simple: Are you ready for federal contracting?

Step 1: Understand the landscape

Federal contracting isn’t like working with commercial clients. It comes with its own set of rules, systems, and timelines. Opportunities are posted on SAM.gov, while platforms like USAspending.gov reveal how federal dollars are awarded and to whom.

Understanding the market is the first step to competing in it. Don’t just chase opportunities. Study the spending patterns to see where your business truly fits.

Step 2: Start small with state and local contracts

Here’s a little insider tip: you don’t have to jump straight into the federal arena. In fact, many of the most successful federal contractors got their start at the state and local level.

Why? Because state and local contracts often:

• Pay faster than federal contracts.
• Come in smaller, more manageable sizes, perfect for first-time government vendors.
• Build a track record of past performance you’ll later need to win federal bids.
• Help you create relationships with agencies and primes in your community.

Step 3: Ensure your business is properly registered

Before pursuing opportunities, every contractor must meet federal registration requirements. 

This includes:

• Completing your SAM.gov registration (a non-negotiable first step).
• Obtaining a Unique Entity Identifier (UEI), which replaced the old DUNS number.
• Pursuing SBA certifications such as HUBZone, 8(a), Women-Owned, or Veteran-Owned. If you qualify, these can provide access to set-aside contracts reserved specifically for small businesses.

Registration and certification aren’t just boxes to check. They’re strategic tools that position your business for federal buyers.

Step 4: Develop a capability statement that works

In the federal space, a capability statement is more than marketing; it’s your résumé. It communicates credibility at a glance, outlining:

• Core capabilities
• Differentiators
• Past performance
• Key codes and identifiers (CAGE, NAICS, UEI)

A strong capability statement isn’t about what you sell, it’s about how you solve agency problems.

Step 5: Build relationships, not just bids

Winning federal contracts isn’t only about submitting proposals. Federal agencies and prime contractors want to work with businesses they know and trust. Relationship-building is critical:

• Attend industry days, conferences, and matchmaking events.
• Meet with small business specialists to understand their needs.
• Connect with prime contractors for subcontracting opportunities.

Federal contracting is still people-driven. Relationships often open doors before RFPs even hit SAM.gov.

Step 6: Be financially ready for growth

Federal contracts can be lucrative, but they also require upfront resources. Payroll, materials, and compliance costs must be covered before invoices are paid.

Sustainable growth in contracting requires financial readiness. Explore credit lines or SBA loan programs before you win (not after).

Step 7: Embrace compliance as a core function

Compliance isn’t optional; it’s part of doing business with the government. From labor reporting to cybersecurity standards, businesses must prove they can meet contractual obligations.

Businesses that treat compliance as a burden will struggle. Those who build compliance into daily operations will thrive.

Final thoughts

Federal contracting is not a quick win. It’s a strategic play. It requires preparation, patience, and persistence. But for businesses willing to invest the time and resources, the rewards can be transformational.

So, take a step back and ask yourself honestly:

• Are your registrations complete?
• Do you have a strong capability statement?
• Is your business financially prepared?
• Have you started building the right relationships?

If you can answer yes, you’re ready to compete. If not, now is the time to prepare. The federal marketplace isn’t slowing down, and opportunities are waiting for ready businesses.

As always, the Florida APEX Accelerator is here to help you achieve your government contracting goals. To find the Florida APEX nearest you, please click here.

Crystal Ferrari is a government contracting consultant with the Florida APEX Accelerator at Florida Atlantic University. She assists local businesses in the Fort Lauderdale region seeking government procurement opportunities.