How to Become a Federal Government Contractor for $0

Introduction

• Speaker: Kizy Parks
• Claim: You can become a federal government contractor starting at zero cost
• Personal Experience: Awarded over $50 million in contracts

Steps to Set Up a Federal Government Contracting Company for $0

1. Obtain a Tax ID Number

• How: Register as a sole proprietor using your legal name
• Cost: Free
• Optional: Create a Doing Business As (DBA) connected to your name

2. Have an Address

• Example (Florida): Use your residence legally as business address
• Cost: Free

3. Register on SAM.gov

• Actions: Enter information primarily about yourself
  • Show copy of your driver’s license for identity verification
  • Verify U.S. citizenship
• Cost: Free

4. Bank Account

• Option: Use personal bank account for registration
• Flexibility: Can change account information later

5. Informing Contractors About Payment Terms

• Strategy: Inform contractors payment will be made after receiving payment from the government
• Benefit: Federal government always pays, ensuring reliability

Handling Initial Costs

Loans and Credit

• Personal Story: Took a loan on 401k to pay personal bills
• Advice: Avoid this if possible
• Alternative (Example): Utilize internal lines of credit for necessary purchases (e.g., Office Depot’s internal credit)

Credit Options

• Example: Office supplies credit from Office Depot

Important Reminders and Additional Tips

1. Email Address

• Option: Use free Gmail accounts
• Example: Use DBA for email address

2. Online Presence

• Option: Create a company page on LinkedIn
• Benefit: Free and government-friendly

3. Focus on Sales vs. Expenses

• Advice: Focus on getting sales, not on extravagant expenses (e.g., fancy websites, business cards)

4. Logo and Branding

• Strategy: Use free tools for logos and branding
• Example: Websites like BrandCrowd for free logo designs
• Important Note: Value and service are more critical than a fancy logo for winning contracts

Conclusion

• Encouragement: Everything is possible; start with minimal or no cost
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