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How Anyone Can Make $10K+/Month From the Government — Transcript

by Chris Koerner on The Koerner Office Podcast · 10,087 words · 1,461 segments · language en · Watch on YouTube

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0:00My subcontractor charged me 41,000 and I
0:03charged the government 52,000. [music]
0:05So, I made 11,000 profit in just a
0:082-week time period. The first contract
0:10that I bid on was the first contract
0:12that I won. That [music] was kind of
0:13when I was like, "Okay, well, this is
0:15really easy." $10,000 net profit to you
0:18every year for 5 years just for making a
0:20deal. You really don't do any work. You
0:22get paid and then you pass on [music]
0:23the money. I get paid first and then I
0:25pay who I owe. An hour a month, the
0:27average person can win one contract and
0:29get them some type [music] of steady
0:30income for the next 3 5 years without
0:33having to essentially do anything. You
0:34don't need any money,
0:36>> [music]
0:36>> but again, it's free. The government is
0:38required to spend money with us. So,
0:40it's not like we're out here begging for
0:41opportunities. They need us. How many
0:44hours a month would you [music] say
0:45you're spending just to maintain the
0:47revenue you have?
0:48>> An hour. For all of your contracts
0:50combined? [music] The reason I say that
0:51is because you just have to put in an
0:53invoice. Me and my company, I'm not
0:55located [music] in Texas, but I can team
0:57up with a painting company in Texas.
0:59Subcontract it out to them?
1:01>> Subcontract it out, [music] put my price
1:02on top, and kind of we both win on the
1:05contract. Yeah. You're genuinely helping
1:06someone and they're not having to pay
1:08you. The government is. So, it's
1:09win-win. One of my largest contracts
1:11[music] was a $962,000
1:14contract. My subcontractor charged me
1:17700,000 and I was [music] able to charge
1:19the government 962,000.
1:21Now, to me, the elephant in the room
1:23with this business [music] is with AI, I
1:25could sound intelligent about any of
1:27this stuff. Are you using AI tools to
1:28take a shortcut here in any way? Yeah,
1:31[music] that's how I won a contract. I
1:32use Claude. We'll walk you through the
1:34whole thing. I mean, you can see these
1:35million-dollar contracts [music] where
1:37you see one person, three people. And
1:39they're probably overbidding, too. It's
1:40such a untapped market. It's crazy.
1:43Yeah. Yeah. Why aren't more people doing
1:44this? Why isn't [music] this more
1:45popular?
1:46>> I think that a lot of people just don't
1:47know about it.
1:48>> Like I've heard about it my whole
1:49career, but I've never thought [music]
1:50to like really dive in, you know, but it
1:52seems like a no-brainer. It's so easy.
1:54People think it's so overwhelming
1:56because some of the verbage
1:57>> Hey, I can do so [music] much of that
1:59now. I mean, yeah, we have AI.
2:04Meet Natalie. Natalie makes six figures
2:07a year working about one to two hours a
2:09week landing government contracts in
2:11things that she has no experience in.
2:13Hazardous waste disposal, landscaping
2:15two time zones away. All she does is bid
2:19on the jobs, find subcontractors to do
2:21the work, and captures the profit
2:23between what the government pays her and
2:25what she pays her subcontractors. You
2:27don't need to be established. You don't
2:28need to have experience. And if you know
2:30how to use ChatGPT, congratulations,
2:32you're an expert on all of the thousands
2:35of jobs up for bid on sam.gov. So, if
2:37you want to start a business or a side
2:39hustle that can scale to six, seven, or
2:41even eight figures a year with basically
2:43no startup costs, low time spent per
2:45week, and you have an internet
2:46connection and a phone plan, this is the
2:48business for you. Please enjoy. Okay, so
2:50my goal is for the average person with
2:53no experience by the end of this episode
2:55to know how to get their first
2:57government contract. Do you think that
2:59will be possible? Yes. Okay. And how did
3:01you first get into that? It was actually
3:03so random. I was on Instagram. I had a
3:06friend that I was following for a really
3:08long time, and they posted it on their
3:10story, close friends. It wasn't even
3:13something that they were advertising,
3:14but they were talking about what they
3:15do, and it kind of sparked my interest,
3:18and I became obsessed with it, and I
3:21learned about it. I attempted to do it,
3:23and I won my first contract. So, that's
3:26why I was just like, okay, this is
3:27something everybody could do. You don't
3:29really need anything. So, that's how I
3:31got into it. Yeah, after you saw that
3:33story, what was the first thing you did?
3:35I messaged him. I'm like, "What is this,
3:38and how do I do it?" Because I always
3:40seen him, you know, living nice, you
3:42know, doing all type of things, but I
3:44never knew what he did until that day he
3:47decided to talk a little bit about it,
3:48and I was intrigued. I was like, "Can I
3:49learn a little bit more about it?" And
3:51he actually sent me something, but it
3:53was so confusing to me because I didn't
3:55know anything at all about what even
3:58government contracting was. So, I became
4:01I just went on YouTube and just educated
4:04myself and became obsessed with it and
4:07that's really how that happened. Okay,
4:08so where does the average person go to
4:10start shopping around for these
4:12opportunities? So, first and foremost,
4:14the first thing that people have to
4:16understand is that the government is
4:18required to spend money every year with
4:20people who have small businesses. So,
4:23the average person, how do they become a
4:25small business? Well, just by having an
4:27LLC. So, once you have an LLC, whether
4:30it's with your state, however you
4:32register your business, you would then
4:34register with SAM, which is a website
4:37that is free, it's public, it's called
4:39sam.gov. You would register your
4:40business as if it was like a business
4:42like a job application almost. They ask
4:44you information about your business. And
4:46at that point, you would then be ready
4:48to bid on contracts.
4:50And so, if you see a contract that
4:53you're interested in, that's in Texas
4:56for painting, you know, me and my
4:58company, I'm not located in Texas, but I
5:00can team up with a painting company in
5:03Texas.
5:03>> Mhm.
5:04Subcontract it out to them? Contract it
5:06out, put my price on top, and kind of we
5:08both win on the contract. Yeah. So, is
5:10the trick to not like name your
5:12business, you know, Natalie's Painting
5:14LLC, but more like Natalie's Services
5:17LLC, so you can keep it broad enough to
5:19not only have to bid on one type of
5:21industry? Yeah, I always tell people to
5:23choose a generic name so that you when
5:25the government sees proposal or the
5:27submission, they don't automatically
5:28judge you on your, you know, business
5:31name. So, if it was Natalie's window
5:33washing and I'm submitting a proposal
5:36for air conditioning, you know, I don't
5:38want the them to sway the government's
5:40decision on them choosing me. I always
5:42tell people to choose a generic name so
5:44you can go for any type of proposal.
5:46Sometimes they really just care about
5:47who's the lowest. They don't even care
5:49about what your name is. Now, what
5:52stands out to you when looking at these
5:54opportunities? Like what screams to you,
5:56this is the one I need to bid on?
5:58Because there's thousands on there,
6:00right? Like how do you even know where
6:01to begin? I look for something I can
6:03understand, right? Like sometimes they
6:06look so incredibly overwhelming. Some of
6:09them are 20 attachments, 15 attachments.
6:13And I'm not really going to try to
6:14pursue something that I don't even know
6:15what they're asking for. My very first
6:17step on what I do is look for something
6:19that I understand what they're looking
6:21for. Now, apart from that, I also look
6:23for services. So, contracts that have to
6:25do with services as opposed to products.
6:28Mhm. Why do I prefer services over
6:31products? Because when you're just
6:33starting out, it's easier to have a
6:35conversation with a service provider and
6:38let them know like, "Hey, you know, the
6:39government pays on a net 30 after the
6:41service is completed."
6:43than to have that conversation with a
6:45manufacturer who produces these items
6:47and needs to deliver these items and you
6:50having to tell them, you know, "Hey, I
6:51have to pay afterwards." It's not always
6:53a smooth conversation, you know? Yeah,
6:55there's more variables. Like, let's say
6:57the government needs like an airplane
6:59seat part. You're going to have to go
7:00find manufacturers and like what country
7:03are they in? Is that an approved
7:04country? Are they FAA certified? Like
7:06what manufacturing standards do they
7:08adhere to? There's more ways to screw
7:10up. Whereas if it's like, like you said,
7:12painting, it's just more it's more easy
7:14to understand, right? Absolutely. Yeah.
7:17So, what was the first job that you bid
7:20on? And then, I don't know if you won
7:22that or not. What was the first job that
7:23you won? Yeah, the first contract that I
7:25bid on was the first contract that I
7:27won. That was kind of when I was like,
7:29"Okay, well, this is really easy." It
7:31was for formalin disposal. So,
7:35I knew when I first seen the contract, I
7:38didn't even know what formalin was. But,
7:40I did know that they had a hazardous
7:43waste disposal. They needed a hazardous
7:45waste disposal over in California for a
7:48couple drums every couple times a year.
7:51And I was contacting different hazardous
7:53waste companies cuz I knew at least
7:55that's what it revolved around, and I
7:57knew that they would know what formalin
7:58was. So, um as soon as I was able to
8:01contact one, they they responded to me
8:03right before the bid was due, gave me a
8:05quote, I put my price on top, and I won.
8:07Okay, so I've never heard that word in
8:09my life, formalin. I'm looking now. Is a
8:12type of formaldehyde? Is that right?
8:14>> It's a hazardous waste. Okay. Yeah. So,
8:16did you have in your background or
8:17history that screamed, "Yeah, I know
8:19what this is"? Nothing. I didn't I
8:21didn't have anything. I was so scared to
8:24submit because it was my first
8:25submission. I didn't really even know if
8:27I was doing it the right way. But all I
8:29did know is that it was a 5-year
8:30contract. I was doing all this research.
8:33And I'm like, "Okay, well, if I have
8:34somebody that can do the work, and I can
8:36build out a relationship with them, then
8:38this should work. This should all work
8:40out." And so, it did. I submitted the
8:42proposal with their quote. I put my
8:44quote on top. They submitted a quote for
8:46like 700, and I submitted a quote for
8:481,500, and I won. And they did a kickoff
8:52meeting. They let me know, like, "Hey,
8:54um the first pickup is in June. Let me
8:57know when you guys pick it up." Did you
8:58start calling these, you know, waste
9:01What are they called? Waste disposal
9:03companies.
9:04>> Yeah. Did you start calling them before
9:05you even submitted your bid or after?
9:08Yeah. I always get a quote first, right?
9:11And get somebody that's willing to do
9:12the work before I submit, right? Because
9:14if I submit and I win and I don't have
9:16anybody to do the work,
9:17>> Yeah. then I kind of messed up. So, that
9:19was in California, and you were in
9:21Miami? Yes. Okay. So, you got the $700
9:24quote, and then you just thought, "I'm
9:26going to double it and see what they
9:27say." Yep. Okay. You said 5-year
9:29contract. Like, is that 700 a month or a
9:32week or what? It's 700 Well, it's 1,500
9:35per pickup.
9:36>> Yeah, right. They gave me an estimated
9:3814 to 16 pickups a year, right?
9:41>> Okay. So, I know in my mind there's
9:43going to be 14 to 16 pickups a year and
9:45there's $700 each pickup, but I'm
9:47charging the government 1,500. So, I
9:50know that that's an $800 profit for me.
9:53And I just have to pay out my
9:54subcontractor. So, that was how it was
9:56and it's a 5-year contract, so it lasts
9:58for the next 5 years till 2029. Okay.
10:01So, $10,000 net profit to you every year
10:04for 5 years guaranteed, right? This is
10:07This is the government. And just for
10:09making a few phone calls, making a deal,
10:12you really don't do any work. You get
10:13paid and then you pass on the money. Is
10:15that right or do you have to front the
10:16money and then wait to get paid by the
10:18company in California? I get paid first
10:20and then I pay who I owe. Okay. So, the
10:23government pays in 30 days? It depends.
10:25Sometimes it can be quicker. It's
10:26usually a net 30 or a net 45. That's the
10:29longest that I've ever seen, but on
10:31small purchases, things that are under
10:3210,000, I believe the new threshold for
10:342026 is 15,000. They haven't updated all
10:37the government purchase cards, but some
10:39agencies have credit cards that they can
10:41actually pay for a service as soon as
10:44it's done. So, it just depends. Okay.
10:46So, you have no background with
10:48hazardous waste disposal, which I love.
10:50Are you only kind of quoting jobs
10:52nowadays that you kind of can wrap your
10:54head around, but you didn't start that
10:55way or like what made you pick that one
10:58out of all the others you could have bid
10:59on originally? Well, I mean, to give you
11:02some kind of insight, when I first I I
11:04bid on that one, right? It was a
11:05hazardous waste company I won. The
11:07second contract I submitted for that I
11:10won for, I didn't submit I didn't win my
11:11second submission, but the second one
11:13that I actually won was a catering
11:14contract. So, completely different
11:17industries.
11:18And this one was in Idaho.
11:20Um obviously, I'm not from Idaho, but I
11:22went and contacted a catering company
11:24over in Idaho.
11:25Turns out they had already worked with
11:27that camp, that facility already
11:30previously. So, the process was simple.
11:34It was easy for me to explain to them
11:35the process of the contract and
11:37everything cuz they already knew about
11:38it and we won the contract. And that was
11:41for 2 weeks. It was for to feed soldiers
11:45breakfast, lunch, and dinner for 2
11:46weeks. So, my the company that I worked
11:48with had to go and deliver it, drop it
11:51off, you know, dispose of everything and
11:53then come back the next day for 2 weeks.
11:55And what were the unit economics on that
11:57deal? My subcontractor charged me 41,000
12:00and I charged the government 52,000. So,
12:03I made 11,000 profit in just a 2-week
12:06time period. Okay. So, that was Did you
12:09price that like per head, per person,
12:11per meal? Something like that? It was
12:13per person per meal. So, my
12:15subcontractor charged me $8 for
12:17breakfast,
12:18$10 for lunch, $11 for dinner. And I
12:22charged the government $10 for
12:25breakfast, $12 for lunch, $15 for
12:28dinner. And it was about 300
12:31[clears throat] I believe it was.
12:32And so, it kind of added up because it
12:34was every single day breakfast, lunch,
12:36and dinner, you know? What made you
12:38think to not mark that one up as much as
12:40the waste disposal? Just thinking like,
12:43"Ah, it's, you know, it's hard to
12:44justify paying $20 for a lunch. I'm
12:47happy to make less profit on this cuz
12:48there's probably less margin to work
12:50with on a catering deal." Well, at this
12:52time I didn't know this information at
12:54this time, but there's actually a way
12:56that you can look up past pricing and
12:58see what the government previously paid
13:00for things similar to what I'm buying
13:03now. You can find the exact same
13:06contract that was issued previously and
13:07see the the number that they charged the
13:09government. So, if I knew that then, I'm
13:11I probably would have definitely gauged
13:12it a little bit different, but at the
13:14end of the day I still won, so it
13:16doesn't really matter. But nowadays,
13:18when I'm pricing things, I'm able to
13:20check past pricing. I'm able to look up
13:22to see,
13:23you know, "Hey, what did the government
13:24pay for something like this before?" And
13:26then I obviously can take into
13:28consideration inflation, right? You know
13:30you have to maybe charge a little bit
13:32more, maybe not too much, but you have
13:34an idea of what the government was
13:35paying for something like this. That can
13:37guide you. All right, I'm going to have
13:38to get that website from you later.
13:39Knowing what you know now, what do you
13:41think you could have closed those first
13:43two deals at if not 1,500 and, you know,
13:47$8 for breakfast. You know what I'm
13:48saying? 10 and $11. To be honest, with
13:51government contracting, it's not more so
13:53like I will charge more because the
13:54government is always going to They're
13:57just like us, right? They're always
13:58going to want to go with the cheapest
13:59price. So even if you are the most
14:00valuable, they still would choose
14:01someone cheaper than you. So it's not
14:04about like, "Hey, you know, now if you
14:06do have that data and you would
14:08understand like, okay, for example, one
14:10of my largest contracts was a $962,000
14:14contract, right? So on that contract,
14:17that's for a landscaping contract, and
14:19that is in Colorado. It's a 5-year
14:22contract. Does that mean I'm going to be
14:23get paid this up front? No, it's spread
14:25out over 5 years. My subcontractor
14:27charged me 700,000, and I was able to
14:31charge the government 962,000.
14:34Now, mind you,
14:36when I knew this information about being
14:38able to check data on past pricing and
14:40able to see what the government paid for
14:42something like this, I actually found
14:44the exact contract and I seen that
14:46previously
14:47they were charging $1.6 million. Wow.
14:51For the 5-year contract. So you know I'm
14:53For the same type of For the same
14:55project work. For the same work. So I
14:57definitely thought after I won that like
14:59okay, I could have definitely charged
15:01the government like 200 more thousand
15:03dollars, you know, because
15:04>> Yeah. I was still so cheap. But it was a
15:07lesson learned, you know what I mean?
15:08You you I won, and it was still so much
15:12profit for myself. So at that point I
15:14just felt like, you know, there's no
15:15reason to be greedy. I won this past
15:17performance. You can just win another
15:19one. So So is the name of the game here
15:22largely just supply and demand? Like
15:24>> Yeah. bidding on jobs that most other
15:27people aren't bidding on? Not just that,
15:29but it's like it's almost a numbers
15:30game, you know, like the the more
15:32contracts you put in, the more you win.
15:34And there's hundreds of thousands of
15:36contracts being put out every day. And
15:39it's not just government, right? Like
15:40it's local, it's state, it's city,
15:43schools, universities. [clears throat]
15:45Everybody has some type of procurement
15:47system. So, the way I looked at it when
15:49I first started it was, okay, if I can
15:51just put in as many as I can, I know
15:53I'll win at least two to three. That's
15:55just kind of how I looked at it and it
15:56and it worked. What is like your hit
15:58rate on average? How many what
16:00percentage of jobs do you close that you
16:01bid on? I would say, so just to give you
16:04an example, around when I first started,
16:06I had one month where I tried to submit,
16:09the most I submitted was 14 in that
16:10month, and I only won one. But last
16:13year, I submitted nine and I won four. I
16:16guess my closing rate now is is
16:18definitely pretty good, but the more you
16:20do it, the better you get, right? The
16:21more chances you are cuz you understand
16:23the process. What's stopping you from,
16:25you know, submitting 50 a month? Is it
16:28that time-consuming or are you not
16:30seeing that many promising things to bid
16:33on based on what your criteria may be?
16:35So, it's it takes time to get to the
16:38final step. So, for example, when you
16:39see a contract that you want to work on,
16:41right? And it's due in two weeks. And
16:44you go on Google and you're looking for
16:46subcontractors, you need information for
16:48the submission, right? Along with your
16:50price, you may need performance, you may
16:52need Mhm. some additional information on
16:54how they plan on doing the work. You are
16:57dependent on the subcontractors that
16:59you're calling. So, if your
17:00subcontractors are not giving you the
17:02time things that you need efficiently,
17:05then they fall through the cracks,
17:06right? Can I give you like a
17:07hypothetical? So, let's say you're you
17:11see a contract in Medford, Oregon. Small
17:14population, not a lot of people, and
17:15it's very unique. It's like let's say
17:18it's like
17:19concrete leveling in Medford, Oregon.
17:22You look it up and there's like three
17:23concrete leveling businesses within one
17:25or two hours and you call all three and
17:27no one's picking up the phone
17:29and you're just like I can't bid on this
17:30cuz there's just nothing going on here.
17:32Is that kind of a good example of one
17:33that you wouldn't bid on? Like you might
17:35put in the legwork to bid on it but you
17:37just don't bid cuz you're not seeing
17:38enough there. Exactly. So that's why I
17:41say like you may plan to work on you
17:43know just like I said one of that month
17:45that I tried to do nine or 14, I planned
17:47to submit way more than that. But that's
17:49just how many I was [clears throat] able
17:50to actually fully submit with all the
17:52information that I needed. So I guess I
17:54would say when I say it's time consuming
17:56when I was trying to win as as much as I
17:58can, I probably put in maybe two to
17:59three hours a day. But once you actually
18:01get the contract, what is it like an
18:03hour a month? You know I'm No.
18:06maintain the contract and you have it
18:07for five years. So I guess my thing is
18:09is once you can actually win you a
18:11couple contracts because all it takes is
18:13one contract. I mean the average person
18:14can win one contract and get them some
18:16type of steady income for the next
18:18three, five years without having to
18:20essentially do anything. You know what I
18:22mean? And you don't you don't need any
18:24money. You just need a business and as
18:26soon as you have a business, you're
18:27automatically qualified to do business
18:29with the government. You know what I
18:30mean? Once you're registered and you you
18:32know there's different systems, you just
18:33have to register and stuff but again,
18:35it's free. The government is required to
18:37spend money with us. So it's not like
18:39we're out here begging for
18:40opportunities. They need us to come and
18:44>> Yeah. submit proposals for these so that
18:46they can hold us every year.
18:48So. Yeah, they legally have to put this
18:50in front of everyone. They can't just go
18:51pick their own company, right?
18:53>> Yeah. Now, answer me this. Let's say for
18:56the Idaho catering job Mhm. you bid
18:5850,000
18:59>> Mhm. and then the government I assume
19:01they see you're incorporated in Florida,
19:03right?
19:03>> Mhm. Let's say that's in Boise, right?
19:05And then there's actually a Boise
19:07catering company that has like a local
19:09presence and they're named Boise
19:11Catering LLC or whatever, and they bid
19:1355,000. Is the government still going to
19:16go with the cheapest bid even though
19:17they're out of state and they have a
19:18generic name and maybe less track
19:20record, or they going to pay 10% more
19:22for the local business with the relevant
19:24name and more of a track record? So, on
19:26every single contract they give you an
19:27evaluation criteria. On every single
19:30contract they tell you this is what
19:31>> What they're looking for. Yeah. Okay.
19:33>> they tell you they're looking for the
19:35lowest price, which was what that
19:36contract was, it doesn't matter where
19:39you are. If you're the lowest and you're
19:41you're deemed [clears throat] and you're
19:42deemed a reasonable, you will win. And
19:45how does someone essentially become
19:47deemed a reasonable? Well, you have a
19:48decent price and you followed all the
19:50submission requirements. Mhm. You're
19:52reasonable. And that's how how they kind
19:54of decipher. So, in other circumstances,
19:57the listing might say, "We want a local
19:59company. We want someone that has at
20:01least four jobs on your profile. No
20:04subcontractors. We want you to do the
20:06like will they get specific on criteria
20:08like that?" Yeah, they will. You just
20:10wouldn't even waste your time on that.
20:11>> Yeah. Yeah, if they I mean, first of
20:14all, it subcontracting is encouraged in
20:16government contracting. So, if it is
20:18explicitly stated that you cannot do
20:20government contract or that you can't
20:22subcontract, they're going to step
20:23they're going to tell you that. But most
20:25of the time they'll say if you're
20:26working with a subcontractor, give us
20:28their company information also. Oh,
20:30interesting. Okay. So, you don't have to
20:31be like sneaky about subcontracting
20:33stuff out.
20:34>> It's expected.
20:35>> Mhm. Okay. It's not like just cuz you
20:37give out the name of your sub, they're
20:38going to go around you. Like they can't.
20:40They won't. They don't. You've already
20:41signed a contract with you.
20:42>> you already won, they can't can't do
20:44anything about it. You may run into
20:46certain situations where you're working
20:48a contract you haven't won it yet and
20:50you reach out to a contractor that does
20:53want to go ahead and go behind your back
20:54and and win it. Bid on it, but it
20:57doesn't ever bother me. It doesn't ever
20:59I mean, there was times where I walked
21:01into a room, everyone is older than me,
21:02everyone has their uniform shirts on,
21:04and I've still won the bid. So, it
21:07doesn't matter, you know, what your
21:08criteria is or what your history is.
21:10There's certain specific things that the
21:12government looks for and they always
21:13state it, you know, but people are in in
21:16are there experts They're experts in
21:18what they do, right? I'm an expert in
21:20government contracting.
21:22So,
21:23when these experts come and try to go
21:24around me and try to submit proposals on
21:28what the job is, they usually miss
21:29something or they try to overcharge
21:31because they think it's the government
21:33and it's like, okay, well, I'm going to
21:34charge this much because it's the
21:35government and, you know, we're like
21:37company, we have 10 years of experience,
21:39why wouldn't they choose us? But that's
21:41not how the government works. And so,
21:43that's why I have the advantage over
21:45people like that. Yeah. Hey, YouTube's
21:47fine, but what about when you're driving
21:48around? What about when you're mowing
21:50the lawn? You need my audio podcast, The
21:52Kerner Office. Just look up TKO Pod in
21:55Apple, Spotify, or wherever you get your
21:57podcast. So, we need to get like this
21:59preconceived notion out of our head
22:01that's like, the government's so bad
22:02with money, they pay stupid amounts for
22:03stupid things. Like, we need to go into
22:05this thinking like, we need an
22:07aggressive price, period. That's what
22:09they're looking for. Yes and no, right?
22:11Because there's some contracts where
22:14when you look up history and it's like,
22:16okay, they paid pennies on a dollar for
22:18this. Like, how can I even find somebody
22:20that can [clears throat] get this low?
22:22Then you have other examples which one I
22:25just told you where the Colorado last
22:26contract was 1.6 and I charged 962. You
22:30know what I mean? There was almost
22:31$600,000 for me to be able to play with
22:33and definitely been [clears throat]
22:36way less aggressive. I could have
22:37definitely charged more. So, it really
22:40depends, right? It really depends and I
22:42think that the siding factor is once you
22:45kind of look up that past pricing and
22:47you kind of see like, okay, if this is
22:49what they charged before, then I know
22:51how much I have to charge now. Yeah. Do
22:53you recommend that people start with
22:55like a scattershot approach, bid on all
22:58kinds of random things, learn what they
22:59like, what they dislike, what they're
23:01good at, what they're bad at, and then
23:03settle into a niche, or do you recommend
23:05that people stay broad and just look for
23:07opportunities no matter what it looks
23:09like? I think initially when I first
23:11started I kind of was going for any
23:12shiny object, and I can't say that it
23:16was rewarding, but I did learn that
23:20really niching down to a specific
23:22industry can take you a lot farther and
23:24can get you a lot larger contracts
23:26because with the government under
23:28350,000
23:30you don't need any past performance. So,
23:32really
23:33can submit contracts because they're
23:35just looking for a quote. For a contract
23:37value of under 350,000 you don't need
23:39any track record. No.
23:40>> what you're saying? Yes. Wow. So, you're
23:42able to bid on the landscaping one after
23:44you have, you know, somewhat of a of a
23:46track record, but that couldn't have
23:47been your first one. Not saying that you
23:50can't bid on it because you can still
23:51bid on it and use your partner's past
23:53performance, right? Even if you don't
23:55have any past performance, I can use my
23:57partner's performance and it counts
23:58under my own.
24:00But as far as my own company and I'm
24:02just doing it myself, anything that's
24:04under 350,000 they don't even ask you
24:06for past performance. They just want a
24:09quote.
24:09It becomes [clears throat] a RFQ as
24:11opposed to an RFP, which is a request
24:14for proposal, request for quote. So, in
24:16order to really hit on those contracts
24:19that are over 350,000, those
24:20million-dollar contracts, you're going
24:22to need to provide some type of past
24:24performance, whether it's your teaming
24:25partners or it's your own, you're going
24:27to need to provide some. And so, in my
24:30experience I think that when you first
24:32starting, you're just trying to
24:34understand and learn the process and
24:35trying to gain some profit, but once you
24:38start building your business in
24:39government contracting, it's definitely
24:41good to niche down to a specific
24:43industry. Like for now, my main
24:45industries are hazardous waste and
24:47landscaping. You know?
24:49Those are the type of contracts that I
24:51try to go for. But there's some that
24:53I've met people that do military tires.
24:56I've met someone that does solely
24:59veteran homes, you know, places for
25:02veterans to sleep at when they don't
25:04have anywhere, you know, so that they're
25:05not homeless. He's won million-dollar
25:08contracts by contacting housing places
25:13and getting a bill of la- a relation of
25:14getting a quote, submitting for a
25:16proposal, and winning those contracts.
25:18Now, to me, the elephant in the room
25:19with this business is with AI, like I
25:22could be an expert in any of these
25:24quotes. Like I could sound intelligent
25:26about any of this stuff, and if
25:27something has 15 attachments or 25
25:29attachments,
25:30I make a Claude project with that and
25:31ask it questions and like come up to
25:34speed. Are you Are you using AI tools to
25:36kind of take a shortcut here in any way?
25:39Yeah, I've actually just created my own
25:40tool to do this, but that's how I won
25:43contracts, right? I use Claude, that's
25:45like my biggest Every time I look at a
25:47solicitation or a contract that I work
25:49on, I go out right on the AI, I make a
25:50project. I think you can do that on
25:52ChatGPT also.
25:53>> Mhm. Go on the project, attach all the
25:56attachments. I have a specific prompt
25:58that I've made and developed so that I
26:00can I quickly identify, like, do I want
26:02to work on this or do I not? I already
26:05have let the bot know that it's an
26:06expert in government contracting and an
26:08expert in whatever the industry is.
26:10And I ask the prompt and I'm able to
26:11decipher, like, okay, do I want to work
26:13on this? Do I Do I not want to work on
26:15this? What are my submission
26:17requirements? Help me make a proposal.
26:19How do I submit? You know, it will walk
26:22you through the whole thing. Yeah,
26:23that's amazing. What other types of
26:26random contracts have you won and how
26:27did those go? A really random one was a
26:30a relocation one. A lot of a lot of
26:31people were confused about that one. Um
26:34but it was a The government was buying a
26:36woman's home that was right on the
26:39corner of the Dismal Swamp in Virginia.
26:43Hm. And they were looking to knock it
26:45down to build a parking lot for the
26:46rangers.
26:47And it was this small little tiny house
26:49that it right on the end of the street.
26:51And if you actually go on Google Maps,
26:53you can you can see it right on the
26:54corner of the swamp.
26:56>> pull it up. Do you have an address?
26:57Yeah, look up the US Dismal Swamp, and
26:59her address was 1322
27:03White Marsh Road. Look that up. There it
27:06is.
27:08Right here? That white little house,
27:10that that
27:11>> Right here? Yes.
27:13Oh, man. Okay. All right, so you saw
27:15this as as a bid on sam.gov.
27:18>> So, so it was a bid. It was
27:20a relocation bid. They were asking for
27:24somebody
27:25to come and assist this woman for her
27:28moving process.
27:30So, the government would pay
27:31>> was like eminent domain, basically?
27:33Yeah. Mhm. Okay. And so, they wanted to
27:36knock down, and she was living there for
27:37about 3 years, and you know, they
27:39already had let her know that the
27:41government was going to, you know, take
27:42over the property and stuff like that.
27:44And so, they issued [clears throat] the
27:45contract, and they needed someone to
27:47assist with that. So, the government
27:48would pay for all the moving cost, but
27:50they needed somebody to assist
27:52>> [clears throat]
27:52>> process, like somebody to kind of look
27:54for apartments with her, um help her
27:56apply, help her get approved. And um
27:59that was what the contract was for, and
28:00I I put it at 14,000.
28:03And because I was essentially doing the
28:05work myself, right? I I'm I can help her
28:08find an apartment. I don't need to hire
28:10somebody else to do that. I made the
28:11money myself. So, that was a a little
28:15bit of a different one. Yeah.
28:17>> But it was an amazing one, right?
28:18Because I didn't have to pay anybody
28:19else. I I flew out there to Virginia,
28:21met with her, seen a couple different
28:23properties, seen what she was looking
28:25for, helped her apply, helped her get
28:27approved. And that was it. Wow. So, they
28:29didn't need you to be like a licensed
28:31realtor or anything. Like, really no
28:33qualifications on this one. Nothing.
28:35So, how many hours would you say you put
28:38into this one? It's as simple as going
28:40on Google and looking for some
28:41apartments. Yeah, and flying out there.
28:43You had to pay for your flight and in
28:45hotel.
28:45>> Yes. I get re- That's what I remember
28:48the government you have to include that
28:49in your pricing. You have to think about
28:51these things in your pricing.
28:53The government paid me after the service
28:55was completed, but I asked for payment
28:58plans. Right, like
29:00progress payments. So, once I went to
29:02see her and had the conversation with
29:04her, I would ask for 5,000. Then after I
29:07went fly out again, after she decided
29:09which one she wanted and did a whole
29:10safe and sanitation review and
29:12walk-through, another 5,000. And then
29:15the 4,000 when the contract was over.
29:17That's amazing. I mean, you probably
29:18made over a thousand bucks an hour on
29:20that. Yep, over definitely. It was
29:23barely any time. I thought
29:25going out to Virginia just I'm sure. And
29:27help you're genuinely helping someone
29:29and they're not having to pay you. The
29:30government is. So, it's win-win. Yeah. I
29:33would think that jobs like that don't
29:34get bid on very much at all cuz it's not
29:36it's unique, it's not super scalable, so
29:39to speak, right? People are always
29:41looking for specific industries, but
29:43it's really those niche That's why I say
29:45those niche down Mhm. off type of
29:49contracts are the ones that there's
29:50people that don't even submit on them.
29:52Any idea what percentage of these jobs
29:54get zero bids? No, but I know it's it's
29:57some. I know it's at least I want to say
30:00maybe 8%, 9%?
30:03That's crazy. There's just too many
30:05There's just too many jobs for everyone
30:07to wrap their arms around. There's too
30:08many random things out there for there
30:10to be something for everyone, right?
30:12>> Yeah. Are you able to see how many other
30:13bidders there are or is that blind to
30:17you? So, that's what
30:19Actually now on sam.gov you're able to
30:21add yourself as a potential vendor. So,
30:24if you add yourself and other people add
30:26themselves, then you're able to see how
30:27many other people are potentially
30:29looking to bid on that contract.
30:31But, previously
30:33on that FDPS website, you were able to
30:36look at the data to see what people or
30:39how many people offered on it. And I
30:41mean, you can see these million-dollar
30:43contracts where you see one person,
30:45three people,
30:47two people. And they're probably
30:49overbidding, too. Mhm. So, it's like
30:51that's why, you know, it's such a
30:53untapped market. It's crazy. How much
30:55does that weigh into your calculus on
30:58should you bid on this job or not? Like
31:00how many other people are interested in
31:01it? It doesn't bid on It doesn't weigh
31:03on me at all. Okay. You're more
31:05concerned about finding someone to
31:07actually do the thing. You want it to be
31:09in your lane, which is like, you know,
31:12hazardous waste removal and landscaping,
31:15and you want it to be profitable enough.
31:17Is that kind of what you're looking at?
31:18Yes. I mean, I still look for all types
31:21of different contracts that make sense
31:22that I have an opportunity to bid on cuz
31:23why not, right? But if as far as those
31:26really large contracts, I know that I
31:28already have past performance in waste
31:29management in hazardous waste and
31:31landscaping. So, I know that those I can
31:33definitely go over 2 million
31:35million-dollar [clears throat]
31:35contracts, right? But if I see something
31:38else that I understand and I can find
31:39somebody to do it, then I'm going to do
31:42it because why? I have the confidence
31:43that I understand the government
31:45contracting process than a lot of other
31:48people. So, even if there was 15 people
31:50submitting, I know that probably eight
31:52out of those people, more than half,
31:54don't know the process as well as I do
31:56because although yes, the government is
31:58looking for somebody who's reliable to
32:00do the work, there's so many other
32:01factors. You know what I mean? If you
32:03mix
32:04>> the format, it has nothing to do with
32:07the work that's actually required in the
32:08contract, but just because the format is
32:10incorrect, you can't follow the
32:12directions. So, the government is not
32:13even going to look at your proposal. For
32:15people that you've seen get excited
32:16about this and get started on this and
32:18then just flame out, why is that? Why
32:20are they losing steam and losing
32:22interest and how can people avoid that?
32:24I think that the reason why people might
32:27lose steam and stamina is because you
32:29have to submit some bids, you know, you
32:31you got to put in that work and submit
32:33some bids and you're not going to win
32:34every single one. You know what I mean?
32:35>> You got to be okay with that.
32:36>> You have to be okay with that. You have
32:38to understand you're not going to win
32:39every single one. But as long as you
32:41understand that one or two can change,
32:45you know, introductory a lot of things
32:46for you in your life, you should
32:48continue to try to win those contracts,
32:49you know what I mean? But you have to go
32:51into it understanding that you're not
32:52going to win every single one.
32:53>> Yeah. Okay, so what was the name of that
32:55website where you can see what the
32:57government paid for past jobs? You can
32:59go to USA Spending. Everything is
33:01public. Everything is public
33:02information. So Yeah. a website called
33:04USA Spending. There used to be a website
33:07called
33:07>> USA Spending.gov. Yep. Mhm. Okay. You
33:10can find every company on there that
33:12does business with the government. You
33:13can find contracts on there. You can see
33:15how much a specific agency is spending
33:18on a specific NAICS code. Cuz you know,
33:21government contracting they go by NAICS
33:22code, which is just another word for
33:24like an industry code. That's a a data
33:26website, right? There used to be another
33:28one called FPDS, which was a real gem,
33:31but they just actually decommissioned
33:33it, which is so sad. Okay. But now you
33:35can use USA Spending and it's all free.
33:37You know, the government doing business
33:38with the government it's it's public
33:40information. They even have advisors in
33:43your area called PTAC offices and Apex,
33:46and they are advisors that you can come
33:48and actually show them a proposal or
33:50actually ask for step-by-step
33:53information in your area. Okay, so how
33:55long have you been doing this now? Since
33:572024. So 2 years ish?
34:00Mhm. And what are your numbers like
34:02today? How much have you made? What is
34:03your monthly revenue and profit like
34:05today from this? So on my contracts I
34:09probably make about 10 to 12,000 on my
34:12contracts every single month. The most
34:13that I've ever made on one contract was
34:16my Colorado contract, and that was about
34:1915K. But with all my other contracts
34:21I've got about 24K that month. But on a
34:24regular month, let's say for example,
34:26when cuz I have three that is
34:28landscaping. So let's say when the
34:30season is down and there's not much
34:32landscaping, then those months can look
34:35like maybe 4 to 5,000. They'll look
34:37lower because it's based on the services
34:38that are required in the contract. So,
34:41that's what a year, or my monthly
34:43revenue looks like. And you know, a lot
34:45of these are 5-year contracts, so that's
34:46recurring every month for 5 years for
34:49doing some legwork up front and then
34:51like an hour a month of work. Yes. And
34:54that you said 10 10 to 12, that's
34:55profit, that's not revenue, right?
34:57>> Yes. Guys, tkowners.com, that's my
34:59community where people are building
35:00businesses. I do AMAs, Q&As every week
35:04live. You can ask me anything you want.
35:05You can have accountability partners.
35:07It's about a thousand people in there
35:08building, starting, growing businesses.
35:10Check out TKO as in The Corner Office,
35:12tkowners.com.
35:14How many hours a month would you say
35:16you're spending just to maintain the
35:18revenue you have, not not to include
35:21growing the business and bidding on more
35:22jobs, just to maintain that 10 to 12K a
35:24month? An hour. For all of your
35:27contracts combined? The reason I say
35:28that is because you just have to put in
35:30an invoice. If you have reliable
35:32subcontractors, right? That's that's a
35:34big key, right? Because if you don't
35:36have reliable subcontractors, it's not
35:38going to run as smooth as how I'm
35:39talking about, right? People that I want
35:41to work with are people that are hungry
35:43for the contract as I am.
35:45So, I don't have to be responsible and
35:47on top of them to know what they have to
35:48do because they already know what they
35:49have to do. Yeah.
35:50>> So, every month all I have to do is just
35:53submit an invoice. So, I love the word
35:55hunger there cuz I look for the same
35:56thing in employees. So, if you're like
35:59interviewing quote unquote interviewing,
36:00calling subcontractors, doing research
36:02before you even put in a bid, and you
36:04hear things like, "Oh, you know, we're
36:06pretty busy right now. I'll get back to
36:07you." You're just like, "Next. You're
36:09not hungry. You don't care about me.
36:11You're not going to pay me on time.
36:12You're going to charge too much." So,
36:13you're looking for hunger, right? You're
36:15looking for someone who really wants the
36:16work cuz you've seen and I've seen
36:18that's correlated to performance, right?
36:20>> Absolutely. This all hinges, not all,
36:22but if this largely hinges on good
36:25subcontractors, what else do you look
36:27for in that? Communication has to be
36:29impeccable. We have to be on the same
36:31page at all times. If there's any
36:33problem, because problems happen, you
36:34know what I mean? Contracts, people are
36:36normal, right? Everybody is normal just
36:37like the government, they are just like
36:39us. Things happen, and sometimes
36:41problems do happen, and you have to come
36:42up front and, you know, kind of come up
36:44with a solution. But the government
36:45would much rather deal with the problem
36:48and figure out a solution than go and
36:49find a whole new contractor and go
36:51through the whole procurement process
36:54to do it. So, you want to make sure you
36:56have an honest subcontractor who's going
36:58to, you know, tell you like, "Hey, you
36:59know, this may be an issue, or this
37:02whatever." Just communication is super
37:04strong. So, if I'm already contacting
37:06you to be my subcontractor or work on a
37:08contract with me, and you respond to me
37:103 days later, or, you know, you're not
37:12really interested, I cannot work with
37:14somebody like that, because your
37:16performance is dependent on how the
37:17contract runs for me. Sir, are you able
37:19to swap subcontractors mid-contract if
37:21they flake out on you? You are. I do
37:24always talk about at least trying to
37:25find a contingency.
37:27Um, once you do win a contract, just to
37:28always protect yourself, because in
37:31essence, it's your contract. And if
37:32anything goes wrong, it's on your
37:34business. It's not on the
37:35subcontractors. So, yes, you can
37:38absolutely switch if things are not
37:39going the way that it is, but you
37:41definitely want to try to prevent that
37:43from having to happen to you, because
37:44you don't want to go through that stress
37:45of having to find another contractor, do
37:47it within the same price that you were
37:49paying before, cuz now that they're
37:51higher, you have to lose out. So. What
37:53other questions do you ask during your
37:55research phase that tell you a lot about
37:57that subcontractor? I definitely go and
38:00do research on their reviews. Do they
38:03have a website? Do they have any work
38:05that they've done any more? Who have
38:06they worked with? How does their email
38:08look? You know, just the same way that I
38:11may think the government may judge me,
38:13is the same way I kind of want to look
38:15at these subcontractors, right? I want
38:16to put myself in their shoes. So, I want
38:18to make sure that they're credible. I
38:20want to make sure that they are serious
38:22about their business, right? I don't
38:24want to work with somebody who's just
38:25[clears throat] trying to figure out
38:26their business, just trying just trying
38:27to get it out. I need someone that is
38:30dependent on this income for their
38:32business. I imagine you're not picking a
38:34lot of subs then that are like big,
38:35well-established businesses then. You're
38:38Are you picking like a lot of solo
38:39operators, smaller businesses? I
38:41wouldn't say solo, but small businesses,
38:43right? Some small businesses that are
38:45like, for example, the one my Colorado,
38:47it's a team of six, you know, it's a
38:49landscaping team of six. Okay. Yeah.
38:52>> other, you know, contracts that are
38:54pretty solid. Um but they're not so
38:56gigantic where they can work on three
38:59work in three different cities, you know
39:00what I mean? So, I definitely want to
39:02look for something that's established,
39:04not super small because if it's only one
39:06person, what happens when you're not
39:07around? You know what I mean? Is the
39:09work still going to be done? And I
39:11imagine you're looking at reviews,
39:12Google reviews, like you're diving deep
39:14on them. It's cuz sometimes they might
39:16answer all the questions perfectly and
39:17you look at the reviews and they suck.
39:19100%. 100%.
39:21>> And vice versa, maybe. Yeah. You just
39:23have to make just be mindful like if you
39:25want your contract to run smoothly, you
39:27got to make sure that you have a good
39:28subcontractor. Yeah. Why aren't more
39:30people doing this? Why isn't this more
39:32popular? I think that a lot of people
39:33just don't know about it. Like I've
39:35heard about it my whole career, but I've
39:37never thought to like really dive in,
39:39you know, but it's it seems like a
39:40no-brainer. It's so easy. People think
39:42it's so overwhelming because I mean, cuz
39:44granted, there's a lot of paperwork
39:46sometimes, right? Some of the verbage
39:48>> Yeah, I can do so much of that now. I
39:49mean, yeah, we have AI that has made
39:53government contract a lot easier the
39:54last couple years. Just and now that
39:57we're talking about it more, you know,
39:58people are starting to use it and kind
39:59of put two and two together, but it's so
40:02easy. You don't have to become a
40:04government contractor, but you can
40:05definitely use it to try to fund some of
40:07your other dreams, right? Try to use it
40:09to invest in other things, other
40:11businesses. I mean, it can definitely
40:13give you some type of freedom, I I I
40:15like. And that's why I'm I wish a lot
40:17more people knew about it, truly. I
40:19mean, startup costs, you need a cell
40:21phone bill, you need an internet
40:22connection, you need to the state filing
40:24fees for your LLC, which can be one to
40:26$300. Are there any other startup costs
40:29that we're missing here? No. That's
40:31crazy.
40:31>> You just need a business, some internet,
40:33and some hustle. You you definitely need
40:36>> You got to hustle. You got to hustle.
40:37You got to you know, I mean, like I
40:39said, am I putting 8 to 10 hours a day?
40:41No, absolutely not, but I I I created a
40:44system for myself, right? Like Monday
40:46I'm looking for opportunities. I'm going
40:48to spend 2 hours just looking for as
40:49many opportunities I can.
40:51Tuesday, I might go ahead and create
40:52some scopes of works, right? Some scopes
40:54of works, so I can send them over to
40:56whatever subcontractors I contact. Then
40:59Wednesday, I call them. Thursday, I
41:00gather. Friday, I look again. You know
41:03what I mean? Like I I set myself up so
41:05it's not such a daunting and
41:06overwhelming thing, but you definitely
41:08got to put some time in
41:10if you want to win.
41:11Now, if someone wanted to really scale
41:13this, like into a big business, is that
41:14possible? Are there enough jobs to go
41:16around? Absolutely. I mean, just the way
41:19that I feel like this can be scaled as
41:21far as within government contracting is
41:23being a consultant, right? It's
41:24consulting and helping other small
41:26businesses win government contracts just
41:29because, like I was saying earlier,
41:30businesses are experts in what they do.
41:32They don't know how to win a government
41:34contract. So, just how they walk into
41:37those rooms and there's 15 other people
41:38and they think, "Hey, this is the
41:40government. I should be able to charge
41:41this." And I come in with my uniform
41:42shirt, they still lose. So, it's like,
41:45you know, there's room for you to grow
41:47and and win in this space because you
41:48can help people and businesses
41:50[clears throat] win these contracts.
41:52Now, other than this random, you know,
41:54deal outside the swamp, do you have to
41:56do anything in person, or are you doing
41:59stuff over Zoom? No, it's over Zoom.
42:01It's all digital. Yeah.
42:02>> I I did have to go to Colorado. I mean,
42:04I didn't even have to. Um it was a the
42:06snow season was coming up, so they
42:08wanted me to go out there just to kind
42:10of walk the site um and make sure we
42:12familiar. And I told her that I would
42:14come out there and she ended up
42:15messaging and saying, "Oh, well, if you
42:17want to FaceTime, you can also do that
42:19also." So, I just say that to say that
42:21you don't have to go in person for
42:23things. They definitely have an option
42:24to do it digital, but I wanted to. Yeah,
42:27you find sign a seven-figure contract,
42:29let's fly to Colorado. Sure, no problem.
42:31>> Let's go meet the people who are working
42:32for me, you know? Is there anything
42:34about this business that, uh, I should
42:36have asked you but didn't? Felons can do
42:38this.
42:39You know? Really? Yeah. That's crazy.
42:42Yeah, it is, right? Felons can do this
42:44because they're not the people that are
42:46on site
42:47doing the work. They're subbing it out.
42:50>> So, your subcontractors cannot be
42:52felons, right? Because they have to be
42:55on site and if they're on site, it's a
42:57government facility.
42:58But if you're felon, you can do this.
43:00You can subcontract the work out, you
43:02know, and that's a big thing, especially
43:04nowadays when it's so difficult. Yeah,
43:06they can't get jobs.
43:07>> can't get jobs. Yeah.
43:08>> It's something you can do. And you don't
43:10need anything but a business. I worked
43:11in a prison and I have a lot of empathy
43:13for those guys trying to come out and
43:16turn their life around. The vast
43:17majority of them just go right back.
43:19Mostly because they can't get a job.
43:20They can't they can't kick their old
43:22habits. So, that's a great idea. Yeah,
43:24and just people don't know that, you
43:26know what I mean? They think it's
43:27because the government you have to do
43:28all this and that and so
43:30>> [clears throat]
43:30>> if the regular people just like if the
43:31government makes mistakes too, they'd be
43:33messing up like
43:34Oh, yeah.
43:35>> Actually, just to put it in perspective,
43:37the contract with with the Colorado one
43:39that I'm telling you about, it was
43:40actually for
43:41700,000 originally. And I'm sorry,
43:44800,000. And my subcontractor was
43:46charging 500,000. But when the contract
43:49was awarded and they asked my company to
43:51go out there and do a walk-through,
43:53my subcontractor said, "Hey, this was
43:55they want us to do all of this, but they
43:57didn't mention that in the scope of
43:59work." Mhm. They didn't write that out.
44:01They didn't put that in the contract.
44:02So, I was actually able to get a
44:04modification and actually get the
44:06government to change it to the price
44:07that I had then
44:09to the 962.
44:11Because they made a mistake and that's a
44:12potentially a almost a what a $162,000
44:16raise because
44:17>> Yeah. made a mistake. And don't be
44:19afraid to come back and say, "Listen,
44:21this wasn't in there." Like they're
44:22going to they're going to make mistakes.
44:23>> 100% 100% cuz if the if your
44:26subcontractor is coming to you and
44:27saying, "Hey, I need more money."
44:29Then I need to go to the government and
44:31say, "Hey, we need more money. You
44:32didn't you didn't say something
44:34correctly because I know I relayed all
44:36the information that you gave to me to
44:38them." Yeah. So. Is there a limit to how
44:41many you can apply for or bid on?
44:43>> No. Just keep going.
44:44>> Just keep going, man. Just try to win as
44:47many as you can and team up and then you
44:49then you can then they it's it's even
44:52better because you can so many
44:54opportunities just from this, right?
44:56Because we talked about government
44:57contracting and building your business,
44:58but you can also be a consultant and
45:01help other businesses win contracts,
45:02right? Win a percentage on the back end
45:04and now you're dealing with much larger
45:06contracts because you're helping these
45:07well-established businesses, right? You
45:10can make a different opportunities for
45:11yourself just by knowing the skill. And
45:14remember government contracting we have
45:15government contracting but that you have
45:17local, you have city, you have state,
45:19you have There's opportunities
45:20everywhere. Yeah. So. Natalie, this is
45:23incredible. You're inspiring to myself
45:26and anyone else listening to this or
45:28watching this.
45:29Where can we find you if we want to
45:30learn more? Um so, you can follow me on
45:33Instagram at Natalie the CEO. You can
45:36get me on TikTok BizMotion with Natalie
45:39and then I just started my YouTube. So,
45:42I'm trying to drop some more information
45:44on there, some free gems. I have a lot
45:46of free information on my I have a free
45:47ebook. It's 38 pages. It's um a lot of
45:51information. And yeah. Okay. Well, we'll
45:54we will link to that. Thank you,
45:56Natalie. You're welcome. Listen, I need
45:58more people like this to interview on my
46:00podcast. So, if you know of someone with
46:02a side hustle or a business that's
46:03unique and cool and super profitable,
46:05email Molly, m o l l y, at
46:07cofounders.com. That's one word,
46:09cofounders.com. Molly at cofounders.com,
46:12tell her your story, and we'll give you
46:13100 bucks if we end up interviewing
46:15them. Okay, so after posting the trailer
46:17for this episode to Twitter and other
46:19social media platforms, I learned a lot
46:20more about this industry. So, I just
46:22wanted to clarify a couple things.
46:23Number one, there is a law that says if
46:26you win a contract from the government,
46:27you have to do at least 50% work
46:30yourself, with one exception. So, for
46:32certain industries, you can only pay the
46:34company doing the actual work up to 50%
46:38of what the government pays you. But,
46:39the exception is that if the company you
46:41hire is also a certified small business
46:43in the same industry as you, that 50%
46:46cap goes away. So, it's very important
46:48which subcontractors you pick. I'm
46:49assuming Natalie picked subcontractors
46:51in the same industry as her, so she
46:53wouldn't be exposed to that 50% cap, but
46:56we didn't get that granular in the
46:57episode, as you just heard. Number two,
46:59there are special programs out there
47:01that Natalie may have taken advantage of
47:03that could give her a small leg up
47:04against competition. Owning a
47:06woman-owned business or a black,
47:08Hispanic, or other minority-owned
47:09business, veteran-owned business, or a
47:11business in a poor neighborhood. If you
47:12get certified as one of those four
47:14things, and there may be more, you can
47:16often bid on some contracts that other
47:18people can't bid on. The government has
47:20a goal of giving at least 5% of all
47:23contracts to female-owned businesses.
47:25So, go look up my SBA certifications to
47:28see what you can qualify for. It's free
47:30to apply. Number three is you have to be
47:32adding some value to the job that you
47:34just won, which is probably why Natalie
47:36said she flew out to Colorado and she
47:38flew out to Virginia. Because if you
47:40don't do anything whatsoever, no
47:41strategy, consulting, coordination,
47:43etc., it's just called a pass-through
47:45scheme, which is very illegal.
47:47Government contracting is an awesome
47:49business and definitely worth pursuing,
47:50but do your research, and we will do
47:52better at doing more research on our end
47:54as well. Your local PTAC or Apex
47:57Accelerator office will give you free
47:59advice, so reach out to them for help.
48:00If you like this content, please share
48:02with a friend, hit a like or a comment
48:03below, and we'll see you next time on
48:05The Corner Office.

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