1. Do your homework. The process of bidding on government contracts may be completely foreign to many small business owners. Even more confusing is the fact that working with the federal government, versus more local entities, can be drastically different. (We'll stick to issues pertaining to the feds in this column.) So, step one is getting to know the nuts and bolts. Check out the Small Business Administration's Web site for a solid overview of policies and procedures. By the same token, organizations such as the Florida-based National Center for Small Business Information (NCSBI) offer classes that provide comprehensive information and guidance on how to bid on government contracts.

2. Know that competitive bidding is likely. Recognize the importance of the bidding process when trying to work with the federal government. Although some work may be allocated without bidding, federal guidelines often require a competitive bidding environment. "Although you can get a department head or procurement officer excited about what you do, the odds are nil that they can make a quick decision," says Greg Brooks of West Third Group, a Plattsburg, Mo., consulting concern. "The odds are pretty good that you'll be subject to a competitive bid situation."

3. Make sure you have a top-flight CCR profile. All small businesses interested in bidding on government work should register with the Central Contractor Registry. (This is a central registration source for businesses that wish to work with the federal government.) This allows for automatic payment transfer should the business win a government contract. Just as important, registration also requires that the business submit a brief profile outlining its capabilities as well as special equipment and skills. This enables a business to offer a brief pitch on why they're worthy of government consideration, says Gary Beckert, a certified business analyst with the NCSBI. "For instance, make sure you have a Web site," says Beckert. "If you don't have a Web site, you're not going to get any work."

4. Understand the bidding process. When the government wants to award work, it releases an "Invitation to Bid." A full description of the product or service up for bids is provided, along with conditions for purchase, deadline for bids and other details. Know this: You may have to act fast — some bidding deadlines are as short as month or even tighter. Have your business' information ready so you can add whatever specifics may apply to a particular bid. Boilerplate bid forms can help here. "Reinventing this stuff from scratch every time you chase a public-sector bid is a huge time sink and a path to losing more money than you make," says Brooks. "Since it's a given that getting government work requires paperwork, learn how to streamline your paperwork."

5. Know what goes into a good bid. Newcomers to the government bidding process may assume that a low price is the most attractive element of any winning bid. Not so. In fact price is relatively low on the consideration scale. Rather, emphasize whatever experience you may have that demonstrates that you've done this sort of work before and done it well. "Past performance is always rated higher than price," says Beckert. "You're really selling your capability and stability. The government wants to know a business is still going to be around in six months." Adds Brooks: "Good means you've got your ducks in a row."

6. Network and partner, if need be. One obstacle for small businesses in winning government bids is that since you're relatively small, you're often limited as to what you can do. Additionally, many government contracts are earmarked for specific sorts of businesses, such as those owned by veterans, women and minorities. So it's important to get out there, hustle and hook up with other small businesses looking to do work with the feds. "Most small businesses get their start in government contracting by teaming with someone else," says Beckert. "A small business isn't going to succeed without a network of peers, economic development organizations and other contacts."

7. Don't expect a windfall. One final misconception is that government work is a golden egg, a jewel of bottomless profit. Not so, says Beckert. Many contracts with the government stipulate a maximum profit of 15 % (sometimes even as low as 10 %). This is by no means nothing to dismiss, but it's not the $1,000 per hammer for the Pentagon cash cow that some may assume for government work.