The ubiquitous aspiration of many a small government contractor is the $100MN revenue mark followed by the sale of their business (no doubt at a lofty multiple) coupled with the purchase of a private tropical island complete with oceanside beverage service. Much like an old wives’ tale, the reality in such assumptions is lacking but always makes for good fodder at a Tyson’s Corner M&A networking event.
But as you grow your government contracting business, being an island unto your own is exactly the opposite of what your strategy should be. We all covet the position of being the Prime Contractor; subcontractors are always at a disadvantage when it comes to workshare, profitability and customer relationships. However, isn’t having a piece of something better than always going it alone, with zero to show for it?
The government contracting industry is awash with stories of mistreatment by partners, workshare-greedy primes and small businesses who think they simply can do it all. Most have been subjected to an unfortunate teaming experience that has negatively influenced their thinking, or have bought into the idea that their company is the federal contracting equivalent of Superman and can do anything. Let me be the first to tell you, it’s not. It’s hard to do everything in GovCon, even more so as a small business. Teaming with others will allow you to CREDIBLY expand your capabilities, utilize other’s strengths and provide a more robust solution to the government.
How you choose to find and vet a partner is critical. Are you relying on your business development lead’s Rolodex (and why do we still say Rolodex)? Going to the same group of folks for the same boilerplate response is not innovative, nor compelling. Try relying upon a formulaic and methodical approach for teaming by expanding beyond your network to find other likeminded companies with the past performance or capabilities that you need for a winning bid. govmates, an online teaming platform for growing GovCons, can help with this. Once a potential teammate is identified, really vet the company. Having a similar bidding style, rate structure and overall corporate culture is critical and will help in execution.
No one likes to go it alone. There is safety (and revenue) in numbers, especially in the small business federal contracting community.
Need help finding a teammate? Send me a note at [email protected]