The United States Small Business Administration establishes the size standards used to identify a company considered small. The standards define the maximum size that an enterprise, together with all of its affiliates, may be if it is to be eligible for federal small business programs. As a general rule, a small business is one that:

So, are you ready to begin doing business with the government? Do you have the "right" resources, finances, equipment, computer skills and whatever else it may take? Here's a chance to find out. We'll tell you what you need and then give you the opportunity to rate yourself so that you can better see where you stand and in which direction you need to be moving.

On the other hand, if your company has fallen on hard times and is in financial trouble, a government contract will not be able to save you. In fact, a contract might push you over the edge and put you completely out of business if you cannot fulfill its requirements.

So, just maybe, the government might want to buy what you have to offer. But will a government contract really be worth the trouble? What can it really do for your business?

If you think that your company doesn't provide anything that the government needs, think again. Here are just a few examples about real-life companies much like yours. Notice that they didn't focus on what they made or the services they were currently providing. Instead they focused on entering the government market: They simply found out what the government needed that they were capable of supplying, and then supported those needs.

In addition to government contracting, there is a whole new area of opportunity that isn't included in the figures above: credit card buying, often referred to as "micro-purchasing."

Although you may be starting to get an idea of the magnitude of government contracting opportunities for small businesses, you may be wondering, and possibly even doubting, whether the government has any need for your particular product or service. Of course, we can't tell you with certainty that it does, but what we can tell you is that the government needs, and stands ready to buy, more types of products and services than you can imagine.

Now let's get a better picture of where the government spends its money.

You and your business are about to embark on a brand new venture. You are getting ready to enter a new $400+ billion market and to pursue a new, rather daunting customer: the federal government of the United States. Seem a bit overwhelming? Not if you understand the rules, the process, what to do and when to do it, and where to go for help. And that's exactly what this chapter is about.

So, let's get started. We'll first give you a feel for the magnitude of the opportunity available to small businesses in doing business with the government. Then we will show you how to assess whether you have "what it takes" to take on the government as a customer. Lastly, we will help you understand the government's game plan, the basis of the contracting process, and the rules and the rulebook that you have to know about and abide by.

How much opportunity is there in doing business with the government? Some statistics from fiscal year 2005 will give you an idea of how much opportunity there is. (While Fiscal Year 2006 figures were not yet available, recent reports indicate that procurement spending continues to grow about 10 percent per year.)