LANSING – Every year, the federal government authorizes spending of almost $1 trillion for goods and services that range from purchasing pencils to Apache helicopters, including research and development projects. Yet with all this opportunity, small businesses tend to shy away from implementing a government affairs strategy that would help them get government appropriations, grants, and contracts because they believe the process is cumbersome.
But a comprehensive government affairs strategy can play an instrumental role in raising the vitality of businesses, both large and small. Whether you?re looking to sell a product, provide a service, or gain valuable research dollars, the opportunities to tap government funding should be a key component in any company?s business strategy.
There are several reasons why small businesses should track government funding, starting with the direct business incentives available to help their companies grow. Small businesses are always looking to gain an edge over their competitors. Whether it is by renovating and expanding their web site, hiring and training more employees to keep up with demand, or improving production with a technological advancement, small business owners constantly try to improve and innovate.
Often times, small businesses lack sufficient funds to carry out these plans. That?s where state and local governments in particular provide viable funding sources through a variety of grants, low-interest loan and tax incentive programs. Taking advantage of these opportunities when they present themselves can mean the difference between red or black ink flowing to the bottom line.
Secondly, the federal, state and local governments are often great clients, providing grant and contract opportunities for small businesses. Whether through small or disadvantaged business set-asides, research and development dollars for new technologies, or grant funding for a pilot program or demonstration project, small businesses should turn to government for sales and ?non-dilutive? investment.
The federal government alone runs more than 1,600 grant programs each year and awards countless dollars in contracts to sole sourced vendors as well as those that participate through procurement avenues like the GSA schedule. Keep in mind that government R&D dollars frequently allow technology companies to continue their own R&D efforts on the public dime, not diluting the equity positions of their investors.
Finally, small businesses will find support for their business development efforts at the governmental level through their elected officials. By the nature of their elected offices, legislators and government executives look to enhance economic development activity in their home municipalities, their districts or their states by supporting grant applications, making calls to department and agencies on behalf of constituent companies and providing an equitable business climate through legislation and regulation.
Acting as an advocate, an elected official can represent the interests of their small business constituents by amending pertinent legislation or modifying state and federal regulations. Making sure that your business remains active on issues that affect your industry, such as tax reform, environmental laws and business incentive programs, are very important.
Small businesses can start this process simply and with little cost. The Catalogue of Federal Domestic Assistance, the Federal Register and the web site for the Small Business Administration all contain helpful FREE information on grants and contract search engines, plus inks to your elected officials.
It is also important to maintain some level of contact with your industry associations that will be monitoring governmental reform regularly. These associations can often put your business in touch with the right decision makers that can help your small business begin navigating the government marketplace. And, of course for those companies ready to pursue a more aggressive and comprehensive strategy, there are lobbying and government affairs firms that help companies achieve success in the government arena.
While it might seem overwhelming at first, recognizing that a government affairs strategy is both attainable and beneficial for your business is the first step in realizing the limitless opportunities that can result from working with your local, state and federal governments.
Marc Jordan is the Midwest Director at GSP Consulting and is responsible for the Ann Arbor and Lansing Offices. Prior to joining GSP Consulting, Marc after served the State of Michigan for over a decade in various policy positions, including working with former Michigan Gov. John Engler. Email to [email protected]
