Getting Started in Government Contracting

Contracting with local, state, or federal government agencies can be lucrative for small companies. Particularly valuable in uncertain economic times, government contracts can provide you with stable customers, prompt payment (15 days in many cases), and—often—a pipeline of repeat business.

In your case, state and local agencies commonly use outside contractors for projects such as collecting on parking violations or court-mandated spousal support. Getting contracts locally is likely to be quicker and easier for small companies, and the work can help you decide whether you want to pursue bigger contracts. The federal government does contract out collection services on defaulted loans, says Mark Amtower, a government marketing consultant in Highland, Md., and author of Selling to the Government.