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3 Reasons to Become a Federal Contractor

Updated: Nov 17, 2021

There are many reasons a business owner might decide to do business with the federal government.

1. Grow Businesses

Imagine a customer who purchases just about every product and service, never runs out of money, spends even more in times of economic downturn, and is seeking to build a long-lasting relationship with your business. Too good to be true? Well, that's exactly the type of customer you will get when you register in the System for Award Management (SAM) and start contracting with the federal government.

Plus, the federal marketplace is in a constant trend of growth. Around the time of this blog post, the annual contracting budget is approaching $600 billion. On top of this, the U.S. government, by law, seeks to award at least 23% of this budget on small businesses. By serving as a reliable and growing stream of revenue, it's easy to see how federal contracting can grow your business.

2. Diversify Businesses

Diversification of revenue is key for the survival and growth of any businesses. After all, you never want to put "all your eggs in one basket," especially when it comes to your livelihood. Federal contracting is a great resource for diversifying your revenue because it brings on two main benefits: access to an independent market and the opportunity to provide a wider array of products/services.

The federal marketplace is one that functions independent from the commercial and private sector. Since it's funded through the U.S. government, a business owner does not have to worry about the effects of a recession. In fact, government spending during times of economic downturn increases. Many businesses have found success venturing outside of their industry in the federal marketplace because vendors are only required to display the capability for performance. This in turn can help a business expand their offerings in the private/commercial sector.

3. Protect Businesses

Federal contracting provides a foundation of longevity for plenty of businesses. That's because it helps them avoid the common pitfalls that cause many to close up shop earlier than expected. One major pitfall is a sudden slow down of the economy. Federal contracting can protect small businesses from recessions and other downturns because it is a market independent of economic conditions. In fact, the government spends even more on contracts during these times to stimulate the economy.

Another major killer of businesses is stagnation. By necessity, a company needs to grow. As inflation sets in, the cost of running a business has to go up. If you're working in a matured market, it may be difficult to find avenues for growth. Thankfully, federal contracting offers a reliable stream of revenue to grow your business that may not have been tapped by your competitor.



American Notary Service Center Inc. provides fair, fast, confidential, and professional document notarization and certification services for our clients. We also provide various assistance services to small businesses led by socially and economically disadvantaged groups. Our service helps small businesses obtain federal government contracts, gain a foothold in the market, and boost their sales. For more information, please visit our website at, and contact us by calling 202-599-0777 or by email at


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