The Challenges of Competing for Public Contracts as a Small Business (Part IV)
We are not against anyone, but we are for equity. -Joseph Gould, Jr.
If you are lucky enough to get a public contract as a small business? You will likely have to:
· Provide your own start-up capital to get the project off the ground.
· Pay for new, extra insurance policies and/or bonding specific to the contract.
· Provide a certificate from the city as proof that your property taxes are paid (no business from outside the city has to do this, creating an extra burden for local firms. We encourage you to check RFPs carefully for similarly burdensome requirement in your locality.
· It is important to note that you will likely have to wait 30 days or more for payment. Unfortunately, to the client it does not matter if your invoice says payment upon receipt – the public sector makes no concession to the fact you are a small firm and do not have the cash flow of a large business. This can be a shock and wakeup call to anyone used to doing business in the private sector where you will be paid by direct deposit within five to ten days, or even immediately. We have heard stories of some small businesses waiting 180 days for payment from a prime contractor or local government. Lack of prompt payment has often contributed to cash-flow issues.
Do you agree or disagree?
Visit DGAI Blogs page and learn more at www.persistencelane.com. Also, visit the Products Page by Author, Debra W. Gould, MS and newest book release entitled "
Strength Through the Challenge at www.persistencelane.com.
Debra W. Gould, MS
President & CEO Debra Gould & Associates, Inc.
Telephone: (504) 244-6576
Positive Persistence Beats Resistance Every Time!
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