A close examination of your business affairs—your cash flow, expertise, resources, and goals will help you determine if pursuing federal contracts is in your company’s best interest.

Sure. The procurement processes may be cumbersome at times, but they are also consistent. Once you understand them, you can establish internal processes to streamline your efforts.

Moreover, your experience in federal contracting will be different from other people’s experience. What others loathe, you may find exciting, especially if you love a good challenge.

Plus, there are usually ways to circumvent or overcome the burdens placed on your business…if you are willing to tackle problems head on.

Many of the issues small businesses face in federal contracting can be addressed and resolved before they escalate if brought to the Contracting Officer’s attention in time.

Can’t afford to have your invoices paid 30 days out?

Ask the Contracting Officer about Fast Payment Procedures. Getting paid within 15 days sounds a lot better, wouldn’t you agree?

Maybe your focus is on winning contract opportunities, but there is too much competition.

Well, responding to requests for information (RFIs) and sources sought notices can influence the agency’s acquisition strategy.

If at least two responsible small businesses can meet the agency’s contract requirements at a fair market price, the Contracting Officer can set aside any acquisition for small business competition.

Do you know a similarly situated small business that would be interested in competing for contract opportunities?

Ask the Contracting Officer to consider a small business set aside. Identify any mutual small business certifications or socioeconomic categories.

Reducing the competition puts your company in a more favorable position to win contracts.

Therefore, don’t hesitate to voice your concerns, challenge a contract action, or point out facts that can influence the agency’s buying decision. Understanding how and when to influence contract opportunities can help you decide if federal contracting is right for your small business.

Research is the most effective way to understand whether working with the federal government is a good fit for your business model and objectives. But let’s take a look at circumstances to consider before you get into federal contracting.

Instability and uncertainty is the nature of business with the government.

Periods of performance end. Options may or may not get exercised. Contracts are terminated for various reasons.

Looming government shutdown can lead to work stoppage for non-essential contractors. No work means no pay.

During a government shutdown, you have three options:

1. Continue to pay yourself and your personnel from company reserves.
2. Furlough personnel until the shutdown ends.
3. Layoffs.

Like most small businesses, you may only have two options if you can’t afford to pay employees without adequate cash flow.

Nevertheless, these are factors to consider when deciding if federal contracting is viable for your business.

There are no guarantees for federal contractors — not even if you’re the incumbent on a recompete.

With so much uncertainty, federal contracting may not be the right fit for your business. Here are 14 questions to ask when making an informed decision:

1. Are there contract opportunities that match your expertise and experience?

2. Are agencies allowed to buy your product or service from the market you’re in?

3. If you are not in the right markets, can you gain access to those markets?

4. Do agencies buy what you sell on a consistent basis and at volumes that make it worthwhile?

5. Did you research past contract awards to understand the competitive landscape?

6. Do you have the capabilities and capacity to meet contract and compliance requirements?

7. Can you obtain the human capital, equipment, and financial resources required to deliver your product or service?

8. Have you identified your business objectives, ideal buyers, and capture strategies?

9. Will you team with other small businesses to enhance your competitiveness?

10. Can you cultivate existing relationships within your target agency?

11. Do you attend industry, networking, and business matchmaking events?

12. Do you have any small business certifications for set-aside opportunities?

13. Are you seeking opportunities to improve your understanding of procurement processes?

14. Have you considered the costs of doing business with the federal government?

Let’s face it—federal contracting is not for everyone. Not every small business will have success in the federal marketplace.

Still, federal contracting is one of the best opportunities to grow a sustainable business.

Despite the downside, the rewards can be substantial if you are well-prepared and strategically positioned to succeed. Yet, you must consider the pros and cons to make informed decisions about your chances at winning contract opportunities.