Importance of diversifying in business
When it comes to business you must grow and diversify. We had the unfortunate opportunity to learn this lesson first hand during COVID19. When the US Government decided to shutdown flights our business suffered over 3 million dollars of projects halted immediately. All of the contracts we had planned for the 1st quarter were gone and we were an Aviation contractor with no other source of revenue.
So what did we do?
Immediately at the start of COVID we went into crisis mode. Our owner started to dig into Federal contracting and started Class with Veteran Institute for Procurement (VIP). With the knowledge gained from these classes we began bidding Federal projects and working with large prime contractors to gain access to more Federal opportunities. Additionally, our Vice President had a history in Residential Construction. We immediately opened a residential division and started providing our services to homeowners in Maryland and Pennsylvania.
The Federal marketplace is a difficult landscape. It takes time to get your first contracts and takes even more time to land any long term vehicles. If you are looking to get involved with the Federal Marketplace here are some terms you will need to know:
PTAC - Procurement Technical Assistance Center
OSDBU - Office of Small And Disadvantaged Business Utilization
OSBP - Office of Small Business Procurement
Each one of these listed above can and will assist you with becoming a Federal Contractor. Every single government entity has a small business program in place to assist Small Businesses with their procurement needs.
Residential is a tough market to get involved with for Commercial Contractors. Marketing campaigns are a must. Homeowners will look for local engagement from contractors on their local online Facebook groups. Clients will want to see what you have done on a website. You will need reviews. All of this can be accomplished with the right partners. For us we chose WIX Media Group.