Why Most New GovCons Fail (And How to Avoid It)
I’ve seen it too many times…
New government contractors excited to land their first federal contract. They get their CAGE code, register on SAM.gov, and maybe even identify a few opportunities.
But after a few months?
No awards.
No traction.
Just frustration.
Why does this happen?
It’s not because they lack potential, and it’s usually not because of time or money.
It’s because they’re focusing on the wrong things.
The 3 Most Common GovCon Mistakes
I’ve helped thousands of small business owners navigate GovCon, and these are the biggest mistakes I see:
1. Chasing Set-Asides Too Soon
Many new GovCons think if they get their 8(a), WOSB, or HUBZone certification, the contracts will come rolling in. They assume set-asides are a shortcut to success.
Reality Check:
Certifications can help… but only AFTER you’ve proven you can perform.
The government wants vendors they can trust to deliver. Set-asides won’t save you if you don’t have a solid track record of performance.
2. Over-Prioritizing Capability Statements
I get it. Capability statements feel like a must-have. You spend hours perfecting it and highlighting your services, NAICS codes, and differentiators.
But here’s the truth:
A capability statement won’t win you a contract.
Bidding, and bidding often, does.
Focus on finding opportunities and submitting competitive proposals. Capability statements matter, but action beats perfection every time.
3. Waiting for the “Perfect” Contract
Some new contractors spend months (even years) waiting for the perfect solicitation. They pass on smaller opportunities because they want the “big one.”
But GovCon is a numbers game.
Small wins build momentum, give you a track record, and lead to bigger awards. Waiting around for the perfect contract? That’s a recipe for going broke.
What Successful GovCons Do Instead
The GovCons who break through these mistakes understand one thing:
Winning isn’t about marketing harder. It’s about marketing smarter.
They identify what the government is already buying and position themselves as the solution.
They bid consistently even on smaller opportunities to build a record of performance.
They learn by doing, tweaking and improving with each submission.
GovCon success is rarely about having the perfect plan. It’s about taking imperfect action and adjusting as you go.
Why I’m Sharing This
I don’t want you to fall into these same traps. I know firsthand how frustrating it can be to spin your wheels. But I also know what it feels like to land that first contract, and I want you to experience that, too.
You’ve got this. And when you stay focused on what truly matters in GovCon, the results will follow.
-Derek James