Government contracts may not be for everyone, but if you’re looking for consistent work with guaranteed payments, it’s worth considering.

If you’re a small business owner looking to expand your client base, government contracting could be your next big opportunity. The U.S. government is the largest buyer of goods and services in the world, spending over $550 billion annually on contracts. What’s even more exciting? At least 23% of that spending—$126.5 billion—is set aside for small businesses. That means a massive slice of opportunity is waiting for businesses like yours.

Why Consider Government Contracts?

1. Guaranteed Payment, On Time

One of the biggest struggles for small businesses is chasing down payments. With government contracts, that’s one less thing to worry about. Federal contracts are subject to the Prompt Payment Act, which means small businesses are typically paid within 15 days of submitting a proper invoice—faster than many corporate clients. Even if you’re working as a subcontractor under a larger company, these payment protections extend to you.

2. Subcontracting Opens Doors

Not sure if you’re ready to work directly with the government? No problem. Large companies that win government contracts are required to subcontract a portion of their work to small businesses. This means you can gain experience without the hassle of handling contracts directly. Plus, subcontracting gives you a front-row seat to learn how government Requests for Proposals (RFPs) work—so you’ll be better prepared when you’re ready to go after contracts yourself.

3. Networking Can Fast-Track Your Success

Landing a government contract isn’t just about filling out paperwork—it’s about building relationships with decision-makers. Agencies regularly hold small business networking events, giving you direct access to contracting officers and procurement specialists who make purchasing decisions. Attending these events can help you learn about industry trends and upcoming contract opportunities. Check out the SBA’s event listings to find opportunities near you: SBA Events.

4. Mentorship Programs to Guide You

If navigating the world of government contracting seems overwhelming, you don’t have to go it alone. The SBA All Small Mentor-Protégé Program pairs small businesses with experienced mentors who provide guidance on bidding, compliance, business development, and more. Many large companies that work with the government actively participate in this program—so it’s a great way to build connections and receive expert advice. Learn more here: SBA Mentor-Protégé Program.

5. Free Business Coaching from SCORE

Need help navigating contracts, business strategy, or financial planning? The SCORE program, a nonprofit supported by the SBA, offers free mentoring, workshops, and resources for small businesses. With more than 10,000 expert volunteers nationwide, SCORE can help you get started with government contracts or grow your business in other ways. Get connected at SCORE.

Is Government Contracting Right for You?

While government contracts can be incredibly lucrative, they also come with unique challenges, including compliance requirements and specific bidding processes. But with dedicated resources, mentorship programs, and subcontracting opportunities, there are multiple ways to ease into this market and set your business up for long-term success.

If you’re ready to explore how your business can win government contracts, start by researching small business set-asides, attending networking events, and leveraging free resources like SCORE and the SBA Mentor-Protégé Program. The opportunities are there—are you ready to claim your piece of the pie?

Thanks for reading! - Anne

Work with Anne

Anne Ganguzza is California-based Voice Actor, Voiceover Coach, and award-winning Director & Producer specializing in target-marketed Voiceover Demo Production.