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The Best Way To Become a Government Contractor in Nigeria

Ossi Samuel

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become a government contractor in Nigeria

The Best Way To Become a Government Contractor in Nigeria

To become a government contractor is good for business. During economic downturns, the private sector is always affected when consumer and business revenues and spending contract with the shrinking of the credit system.

However, the public/Government sector remains in control and most times even recovers more revenue. This is because the government raises its revenue more from abroad through exports and other receipts.

In this period of economic crises, the private sector experiences lots of budget cuts and downsizing, but the public sector always spends more to resuscitate the economy.

In this case, the private businesses or firms that sell its goods and services to the Government are on a better footing because the Government remains consistent and never downsizes its expenditure. Suffice it to say that its always safer being a Government supplier or contractor as it will save lots of shocks.

Related: How to become an event planner in Nigeria

Aside from the financial benefit of selling goods and services to the government, the business profile of the businessman is also raised. So you are advised to avail yourself of the following business opportunities and more with the federal, state, and local governments: construction, purchasing, and supply, service rendering, training services, project supervision, management consultancy, information, and communication technology amongst others.

Also read: How to become a makeup artist in Nigeria

As a small business, you can still to become a government contractor as some governments have rules that favor small businesses in terms of Government contracts. This is a deliberate Government effort to stabilize small businesses in times of economic instability. For instance, the United States law requires that government purchases between $3,000 and $100,000 worth of its supplies from small businesses on an annual basis.

Also, the United States government has set a goal that 23 percent of all contracts go to small businesses. This is to ensure that small businesses, which form the majority of businesses in the country, are used as instruments for reviving the economy whenever it’s going comatose. This also is the same in many other countries.

Government total expenditure is almost totally spent on purchases of goods and services. However, contrary to the norm where businesses attract customers, the Government is rather a “special” customer that attracts businesses. The reasons for this strange trend are as follows:

  • The government makes its needs publicly known through various media, such as radio, television, newspapers, and the Internet.
  • The government conducts its sales in an open environment, playing by and laying down many rules to ensure a fair process.
  • The government usually buys in large volumes and over a period of time. This kind of customers can provide a solid foundation for any small business.

From the revelations so far, you can see why you can become a government contractor. However, the good news is that the Government hardly works with permanent suppliers, they always work with people per project, so there is still an opportunity for you to become one of its suppliers someday. It’s extremely difficult to become one government’s suppliers because of the stern competition involved. Interestingly, it’s the onus of this piece to give you cracking tips that will make you succeed when next you bid for that government project. Just endeavor to go through them with akin attention.

How to Become a Government Contractor

  1. Choose a Good or service to sell

To become a government contractor, the first thing to do is to identify whether you are best positioned to sell a service or good to the Government and what good or service that is. Then you need to identify the tier of Government you are selling to, whether it’s the federal, state, or local government.

If you identify the tier of government you wish to sell to, the next thing is to identify the agency or agencies of Government that purchases such good or service, how they purchase it, and make it or them your target customer(s). All you have to do now is to monitor the activities of these agencies to know when they will call for supplies, then you cash in on the opportunity.

It will also help you to plan better if you take into consideration the following: approved list of products and services to purchase by target Government agencies; the yearly budget of these agencies to look out for revenue allocations and recurrent expenditures.

  1. Re-evaluate your business

You must understand that the Government is the formal sector and doing business with the government requires lots of formality and protocol. Before going ahead to place bids for Government projects, ensure that you have the various certifications, documents, skills, and of course time and patience required by such projects. This will save you the anguish of being rejected at the end.

  1. Check your finances

This is very vital if you will become a government contractor. In almost all cases of Government projects, you are expected to commence and sometimes even complete the project before you are paid. So you need to have enough finances before venturing into that. One more time, check your finance!

  1. Register as a government contractor

Some countries’ regulations require businesses to register with the Government and obtain an identifying number to be qualified to bid for government contracts in cases of their availability. Most times, you are also be required to register under the specific government agency you want to work with, aside from the general registration.

  1. Consider collaborating with others

If you come across the opportunity to take a government contract that involves more skill or machinery than your business can provide, rather than ignore such opportunities, go ahead to apply for them. You can partner with another business that has the capacity to complement your skill or machinery. This can help you become a government contractor

  1. Network with government officials

To become a government contractor, the act of networking is paramount. The scrabble for Government projects is too high that you need some other factors other than being qualified to come out successful. To be able to stand out and get jobs with the Government, you have to know the right people who can help you push the right buttons.

You would need to make friends with decision-makers and people in high places and your social skill must be very high. For effective networking, you need to; attend conferences and other events where you can get to meet potential contractors; network with politicians, government officials, and everyone involved in government that you come across.

Furthermore, reading government publications, newspapers, and attending forums and events organized by government agencies is a good way to network and meet people who can assist you in building a successful business as a government contractor.

  1. Build your experience

As I mentioned earlier, the Government is a very formal institution and all its dealings are formal. This is because the Government is accountable to the taxpayers. In this light, the Government wouldn’t hesitate to select bidders with a proven portfolio. So it’s very vital for you to build your portfolio as a businessman before applying for Government projects. You can start building your portfolio by handling private projects first.

  1. Send out samples or demo

Also, you can consider offering some free services or goods for a start. This can help you create goodwill with the Government that can result in subsequent demand for your goods and services. This enables you to become a government contractor

  1. Improve your financial strength

Government projects are usually capital intensive. To undertake such projects you need some good amount of money to start in case you are required to commence or complete such a project before payment. If you cannot privately fund these projects, it would do you some good to liaise with a financial institution that can provide you with some credit facility to undertake heavy capital intensive projects.

  1. Send out project proposals

When sending out your project proposal to your target Government agency, ensure that the document is well and competitively written to carefully explain what you are offering and how it would be of benefit to the agency. This can fetch you some job.

  1. Employ the right people

In being a government contractor, your records speak for you. So you have to ensure that your services and goods are of the best quality. This can be made possible if you work with the right people. So employ experienced and qualified professionals who understand the importance of providing quality services, to work for you. The right set of people around you helps you become a government contractor

  1. Start as a sub-contractor

As stated earlier, you need to build your portfolio by garner enough experience. To garner experiences, you can become a sub-contractor performing smaller jobs for established government contractors.

For instance, if it is a building project, you can take up the electrical installation aspect. Gradually, you would be able to build your portfolio and gain some experience to help you stand on your own and become successful.

  1. Take advantage of the norm in Government

The government tends to favor businesses owned by some category of people in the society who are seen as not too favored. Examples of such people are veterans, women, and people from certain communities. If you belong to any of these categories, then you should take advantage of this governmental norm and land some juicy contracts for yourself.

  1. Keep your cool-:

To be a successful seller to the Government, you need to be moderate when bidding for projects. Being too aggressive with your proposal, can portray you negatively and might kill rather than help your chances of landing a contract. The government is different from the private sector and requires a different approach.

  1. Start bidding for jobs

When you are ready to become a government contractor, make sure you get the above steps right before bidding for any project as that will give you a better footing to land such a job. This is the most competitive aspect of being a government contractor and is the major determinant of whether you would get a job or not.

When a job is advertised, different registered companies would submit their bids and a winning bid would be chosen. The endeavor you are not in a hurry when making bids.

This is to enable you to understand the nature of the project and write a proposal that fully addresses such a project in its entirety while convincing the government that you are the best for the job.

In order to place a winning bid, there are two things you have to put into consideration. First, you have to be able to show that you understand the project and you have the necessary skills, knowledge, experience, and equipment that would be required to complete the project.

Then, you would have to come up with a price that is neither too high so that it becomes unreasonable nor too low such that it looks like you don’t know what you are talking about.

You also need to price the project within realistic and advantageous limits backed by both you and the government’s budget put side by side. You need to ensure that you neither overprice nor underprice the project. You can also go the extent of researching the pricing of other contractors on the same project so as to help you stay competitive with your pricing.

 

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Ossi Samuel is a mafian thinker, an avid reader and writer, and political analyst. Am a humanitarian and fun loving person. I love Tech by the way and will always have your time if you have any ideas. I can be reached on Facebook

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How To Grow Your Side Hustle Into A Big Business In Nigeria

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Did you know that a lot of big businesses in Nigeria today began as side-hustles? With the advent of the internet, it is now possible to have both a side hustle that could bring you a lot of money and a full-time job at the same time.

So, what is a side hustle? A side hustle is basically a business you do part-time while retaining your full-time job. Sometimes, a side hustles has the potential of becoming a full-time business.

Having a side hustle, apart from giving you an opportunity to make extra money for yourself, can also be a good way to spend your leisure. However, turning a side hustle into a big business in Nigeria is not devoid of several challenges. So, I decided to dedicate a section of this discussion to address some of these challenges and the way forward.

Converting A Side Hustle To A Full, Big Business In Nigeria: Challenges and The Way Out

In Nigeria, our educational system teaches mostly theory and almost nothing about money or entrepreneurship. So, you’d have to educate yourself on what the education system failed to cover. Besides the faulty education system in the country, there is this misconception in the society that one always needs to have huge capital before starting a business. Well, that is not true most of the time.

Another fad that is widely circulated is that Nigerian banks do not grant loans to businesses that are just starting out. Well, you have to understand that money is attracted to fresh, new ideas and most Nigerian banks are open to helping such ideas to grow. However, in the absence of external aid, you can generate capital for your business from your savings; get a loan from family, friends, your religious circles and well-wishers. Interestingly, today you can easily save money with Sumobank and use it to finance your business startup.

As regards saving, a good book which can assist you is, “The Millionaire Next Door”. It is a classical book which teaches savings and how to survive below the income level.

Finally, there is this challenge of over-dependence on salaries or regular income without due consideration of how to grow that income. It is the mistake of one working for money instead of making it work for him or her.

These are all unique challenges any Nigerian must overcome when trying to diversify income by turning a side hustle into a big business in Nigeria.

5 ways you can overcome these challenges are:

  1. Educate yourself on finance and how to multiply money.
  2. Make your money to work for you
  3. Create an emergency fund.
  4. Start and grow a business.
  5. Collaborate with business partners.
turn side hustle into full business

A lady working to turn her side hustle into a big business

Want to turn your side hustle into a full-time business? Read the 5 important tips below.

  • Design a Solid Plan

You cannot simply abandon your full-time job for your side hustle when you have no solid plan in place. You need a plan that outlines how your business will operate once it is fully functional.

Your plan should incorporate your business’ vision and mission statements, your business values, and the goals which you have in mind to achieve in your proposed business. Outline what your business would accomplish within the first 90 days of setting it up.

  • Make Everything You Can Automatic (i.e., Automate the Operations)

Today, you can find an app on the internet for handling any aspect of your business. Automating as many things as possible would give you free time to handle other tasks that could bring you much money since you have a limited time at your disposal daily.

So, from the set-go, acquire the necessary tools which would help you to automate your side hustle into a full-time business. You can use Buffer or Hootsuite, for example, to automate your social media posting and Canned Responses from Gmail to send out recurring mails.

  • Create More Leads 

Creating more leads for your business is the quickest way to grow your business and generate a favorable cash flow system for yourself and your business. So, invest a good amount of your time and energy in publicizing your business to get more leads (i.e., contacts – phone numbers and emails) who would sooner or later become paying customers. One way to do this is to create and distribute a lot of quality contents which will attract potential customers to your business.

One way you can do this (i.e., create content) is to start a blog and use it to reach your potential customers. This would give you the opportunity to build a customized email list for your business which you can use to push out (i.e. publicize) your new products, offers, and services.

  • Take Advantage of Freelancers.

Freelancers can help you to have an incredible amount of free time by helping you perform some heavy lifting in the business. Delegate some tasks and outsource them to freelancers and have a budget ready for their payment every month.

You can give them tasks like developing your blog content and managing your social media platforms while you handle the critical aspects of your business.

  • Create and Follow Your Schedule Religiously.

You must have a schedule with which you run the day-to-day activities of your business. This would really help your business to grow rapidly. You do not want to put too little or too much time into your business. So, create a schedule that would point out your working hours, what you do each time and the expected results.

It is not enough to have a schedule. You must endeavor to follow it to the letter to achieve success at the end of the day.

Conclusion

Everything is possible in life with hard work and determination. Anybody can begin from anywhere, even the lowest bottom and climb to the top.

In life, one essential asset you always spend but can never recover is time. So, time management is very important if you want to grow your business and you can do this with automation software. Besides doing things faster and precisely, automation helps to cut down on the time which could be wasted handling recurring tasks.

Are you involved in any side hustle or thinking of starting one soon? Let me know in the comments’ section of this blog. Thank you for the audience.

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7 Stupid Mistakes Young Nigerians Make That Is Destroying Our Generation

Gudtalent Chrisent

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mistakes of young people

There has never been a more woke generation like this current one and the behavioral trend is only getting worse that if nothing is done about it, i wonder what the next generation will look like.

This is African and what works in this part of the world is different from what works in the western world.

Today, I’m sharing with you the 7 mistakes young people in Nigeria are making that won’t result to anything good by Mildred Kingsley Okonkwo.

Related: Money mistakes you should avoid

In her video, she mentioned 7 dilapidating mistakes a lot of young Nigerians are making and it will shock you to see that you’re guilty of one or two if now all of them.

Kindly watch the Video below and do share.

Let me know your thoughts in the comment section.

Also read: My 2050 predictions

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Business Growth In Nigeria: 10 People Who Will Destroy Your Business

Gudtalent Chrisent

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Business Growth

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