Find a Customer in Uncle Sam
Ever since the Obama Administration passed the American Recovery and Reinvestment Act of 2009, which allocated $787 billion to stimulate the economy, the floodgates have opened, and companies have been scrambling to win government contracts in areas ranging from health care services to construction to cyber-security and IT infrastructure. The lure: a chance to win long-term deals with a steady stream of revenue from a customer with deep pockets.
You don't have to be an 800-lb. corporate gorilla to be a supplier. In fact, the government's goal is to award 23% of all federal agency contracts, worth more than $520 billion, to small firms each year. Just ask Shiv Krishnan. Over the past 16 years, he's built Indus Corp. — an IT company in Tysons Corner, Va., that develops software for data mining, warehousing and geospatial and network security — by selling solely to government agencies such as the EPA and NASA. Last year the company, which employs 500, earned $5 million on $87 million in revenue. "The key is not getting intimidated by the process," Krishnan stresses, noting that you often need six to 18 months to complete the documentation and do in-depth market research.