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How Much Can My Small Business Make From a Government Contract?

You’re a small business owner or manager, which means you’re always looking for opportunities to bring in revenue. Well, the government may just offer precisely what you’re looking for…

In 2020, the U.S. Government awarded $145.7 billion in federal contracts to 76,000 small businesses. According to the U.S. Small Business Administration, that marks 26.01% of all federal contract dollars, a $13 billion increase from the previous fiscal year.

So, in addition to the Lockheed Martins and the Boeings of the world, the United States government invests significant dollars in a great number of small businesses throughout the country.

This is largely because the government aims to award a percentage of contracts to small businesses each year.

According to the Congressional Research Service, in recent years, the federal government has generally succeeded in meeting the governmentwide goals of awarding 23% of the total value of all small business eligible prime contract awards to small businesses, 5% to small disadvantaged businesses (SDBs), and 3% to service-disabled veteran-owned small businesses (SDVOSBs).

So, you know the government contracts are out there…

The revenue is out there…

But that still leaves us with one big question: 

How much can I expect to make from a government contract?

As you’d expect, the precise amount will vary depending on a great number of factors. No two contracts are exactly the same.

So, there’s no crystal ball to tell you exactly what your next contract will be worth.

However, we can look at recent historical data to give us a great idea of what your next contract might look like in terms of value.

Check out the following table, which tells you the average value of a federal contract by industry in 2020.
 

Average Value of a Government Contract According to Industry

 
In the vast majority of those industries, the average value of a 2020 government contract was more than $200,000.

That means a single contract could make a huge impact on your small business.

And that brings us to our final question…

Why aren’t small businesses clamoring for these contracts?

The answer is a simple one. Most small businesses don’t qualify for them.

What’s holding them back? As you might expect, the federal government mandates strict security requirements for any business or program set to fulfill a contract.

The majority of small businesses simply don’t have the cybersecurity infrastructure or management policies to meet those requirements.

But CyberMyte does…

Built by cybersecurity experts who’ve spent decades providing real-world solutions for the United States military, Department of Defense, and other government agencies, CyberMyte offers cybersecurity infrastructure and cybersecurity consulting services.

When you partner with CyberMyte, you automatically comply with government contract security requirements because that’s exactly what CyberMyte is built for.

Best of all, it costs a fraction of the salary of just one cybersecurity professional.

Ready to partner with CyberMyte and gain your very own cybersecurity department? Ready to start earning government contracts?

Click here to get started.