How Profitable 8A Contracts Can Be: Take Your Business to the Next Level


Small businesses often struggle to compete against larger, well-established companies in the same industry. Fortunately, one of the most effective ways for small businesses to gain a competitive edge is through 8A contracts.

As an SDB, if you are able to secure a few contracts, your business will reach unprecedented heights. In the year 2018 alone, small businesses were awarded $120 billion in federal government contracts, with more than $46 billion allocated specifically for SDBs. Imagine the potential of what this could do for your company!

In this article, we’ll discuss how 8A contracts can help take your business to the next level. We’ll explore the key benefits of entering into a contract, as well as some tips and tricks for getting started.

What Is an 8A Contract?

8A contracts are agreements between the US Small Business Administration (SBA) and qualifying US-based small business entities that enable them to gain access to government contracts and resources.

By virtue of being awarded 8A certification, small businesses can then bid on government contracts that are typically inaccessible to them due to their size or lack of experience. Furthermore, these contracts come with certain advantages that make them exceptionally lucrative for the recipient company.

For instance, they often include higher margins than other contracts and long-term contracts that can provide stable income and revenue streams. Small businesses can gain a significant competitive edge over their larger rivals by taking advantage of these opportunities.

How Profitable Can 8A Contracts Be?

8A contracts are a valuable tool for small businesses to get the resources they need to succeed and grow while at the same time gaining access to lucrative government contracts that can be extremely profitable. Some of the main profits that an 8a contractor achieves are;

1. Access to Government Contracts

8a contractors can apply for the same government contracts as large companies, with minimal paperwork and bureaucracy. These may include construction, IT services, finance, or any other major project! Government contracts are a great chance for small businesses to minimize fraud risk while ensuring payment. Attaining such a contract is sure to be extremely profitable for any business.

2. Low Start-Up Costs

In comparison to large business entities, 8A contractors have significantly lower start-up costs. As a result, 8A contractors can begin their business quickly and with minimal financial strain.

3. Long-Term Contract

8A contractors are also eligible for long-term contracts, which can be extremely beneficial to the growth of a business. Long-term contracts give businesses a chance to expand their resources and gain more capital, allowing them to take on bigger projects and increase their profits.

4. Tax Benefits

The Small Business Administration (SBA) offers tax incentives to 8a applicants, such as tax breaks on payroll taxes and income taxes. Additionally, an 8A contractor may be eligible for the 8(a) Business Development Program, which provides additional tax benefits.

5. Special Awards

The 8(a) Program provides invaluable training and technical support that can open numerous contracting chances for small businesses. These could arrive in the form of set-aside awards, which are particularly beneficial as only chosen companies may apply, or sole-source awards that let contractors gather all their work without having to battle with another business. This program is an extraordinary opportunity for any entrepreneur seeking to make a mark on the market!

In FY2020 alone, 8(a) companies received $34 billion in awards; this includes set-asides and sole-source awards worth $9.3 and 11.1 billion, respectively! Other small business programs also help women-owned, HUBZone, or service-disabled veteran-owned organizations to maximize their potential too!

6. Increased Visibility and Exposure

Being a part of an 8a contract can help small businesses gain recognition in the marketplace as they compete for government contracts. This helps give your business more visibility and exposure to potential customers, who are more likely to recognize your brand and trust you.

7. Increased Customer Base

As 8a contractors are more likely to be awarded government contracts, it opens up new customer bases that were previously unavailable to small businesses. This increases the potential for increased revenue as more customers become aware of your company’s services.

8. Ability To Enter New Markets

Having access to 8a contracts gives small businesses the opportunity to expand into new markets, as they can now compete for contracts that were previously unavailable. This helps them increase their customer base and profit margins by offering services in new areas.

9. Access to Funding

8A contractors have access to a variety of funding sources, including grants and loans from the SBA and other government agencies. This allows small businesses to secure the resources they need to grow their business and thrive in the competitive market.

10. Relationship With Government Agencies

8A contracts can help small businesses establish relationships with government agencies that can lead to long-term contracts and further opportunities for growth. This can be especially beneficial for small businesses that are just starting out and need to establish a track record with the government in order to secure more lucrative contracts in the future.

By taking advantage of these benefits, 8a contractors can take their business to the next level and become a highly profitable enterprise. With access to government contracts, 8A contractors have the potential to be extremely successful in their chosen industry.

So if you are looking for ways to reach your full business potential, consider becoming an 8A contractor and reap the benefits of this program.

Valet Works: An 8-a Certifed Government and Commercial Builder

Valet Works is an 8(a) certified government and commercial builder that can help you complete your construction project with ease. Our team of experts is dedicated to providing the highest quality service and results while staying within budget and adhering to all applicable regulations.

Plus, our 8(a) status makes us eligible for special awards that can help you get the best value for your project. Contact us today to learn more about our services and how we can help you turn your construction dreams into reality. Let Valet Works be your trusted partner in construction!

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