Starting a Business After College: How U.S. Government Contracts Can Guide You

The U.S. government is known as the world’s largest buyer of goods and services, and as the population grows, federal spending continues to increase year after year. According to data from the U.S. Census Bureau, the U.S. government spent $6.8 trillion in 2024, which averages to about $19,900 per person in the country. The funds are allocated across various programs and services, with the majority of it going to Social Security, defense, Medicare, and payments to states. A sizable chunk of the budget goes to discretionary spending, which includes programs and special projects that range from transportation, education, social service, and housing, among others.

For agencies to complete their programs, contracts are awarded to businesses, making them the sole or one of many providers of certain goods and services. Since this process takes place on a regular basis, it creates lots of opportunities for small businesses and the job market. As a college student, knowing how the government works with the private sector can help you plan a resilient career path and get into an industry that has the potential to win a contract. It’s one of the best ways to achieve financial security and a steady flow of income down the line. Here’s what you need to know about the U.S. government and its procurement power, and how it can help you decide which business to start.

Create a Startup and Bid for a Contract

Most people think that the U.S. government only approves contracts from global companies like SpaceX, Boeing, Pfizer, and General Dynamics, to name a few. But the truth is, government contracts are awarded to both large and small businesses. What’s more, the federal government allocates a percentage of its procurement budget to small businesses every year, including those owned by veterans, women, disadvantaged groups, and minorities. The government needs a lot of things to function properly, so this means that many types of businesses can be awarded a contract.

So what does this mean for your future career? Since the government is the world’s biggest customer, going the entrepreneurial route after college can be a smart move. If you create a startup that supplies a product or a service that benefits the federal government, you can submit a bid for a contract which could run for about five years, with the possibility of a renewal.

Which Contracts are Easy to Win?

At this point, you’re probably wondering what type of business you should start after college to increase your chances of winning a contract. Though it’s fun to think that an innovative startup may help you get a contract, keep in mind that some government contracts are easier to win than others. Industries that cater to the government’s recurring or everyday needs are awarded more frequently. Businesses that provide solutions to new technologies also have the most potential to win contracts as these ventures tend to have less competition than others, making it easier to get approved.

If you have a small capital, consider creating an office supplies business since government agencies need ordinary supplies like paper, pens, tape, folders, staplers, and paper fasteners everyday. Selling office equipment and furniture is also a smart move since they’re very much in-demand. If you’re worried about having too much competition, don’t fret. The Office of General Supplies and Services (GSA) typically breaks down the contracts so multiple small businesses can be awarded.

Another business that you may want to consider is janitorial and custodial services. It’s a low cost and low risk startup to create after college since you don’t need a lot of expertise, a large business space, or lots of special equipment to run it. Also, since government facilities like military bases, public schools, hospitals, and federal buildings need to be constantly and thoroughly cleaned, there’s a definite need for this type of service. Instead of vying for a contract from your state, submit a bid to your city or town’s government office to increase your odds of winning.

Starting a business that caters to the federal government’s needs is one of the best ways to secure your future after college. Stay up to date on the U.S. government’s procurement activities, and anticipate what government offices and agencies may need to create a venture that will benefit you for many years.