How Anyone Can Make $10K+/Month From the Government - Ep. #298
00:00My subcontractor charged me $41,000 and I charged the government $52,000.So I made $11,000 profit in just a two-week time period.The first contract that I've been on was the first contract that I won.That was kind of when I was like, okay, well, this is really easy.$10,000 net profit to you every year for five years.Just from making a deal, you really don't do any work.You get paid, and then you pass on the money.I get paid first, and then I pay who I owe.
00:26An hour a month, and the average person can win one contract and get them.some type of steady income for the next three, five years without having essentially do anything.You don't need any money, but again, it's free. The government is required to spend money with us.So it's not like we're out here begging for opportunities. They need us.How many hours a month would you say you're spending just to maintain the revenue you have?An hour.For all of your contracts combined?The reason I say that is because you just have put it in an invoice.
00:54Me and my company, I'm not located in Texas, but I can team up with a painting company in Texas.contracted out to them? Subcontracted out, put my price on top, and kind of we both win on the contract.Yeah. You're genuinely helping someone and they're not having to pay you. No. The government is.Yeah. So it's win-win. One of my largest contracts was a $962,000 contract. My subcontractorcharged me $700,000 and I was able to charge the government $962,000. Now, to me, the elephant in theroom with this business is with AI. I could sound intelligent about any of this stuff. Are you using AI tools totake a shortcut here in any way? Yeah, that's how I won contract. I use Claude. We'll walk you throughthe whole thing. I mean, you can see these million-dollar contracts where you see one person, three people.
01:39And they're probably overbidding, too. It's such an untapped market. It's crazy. Yeah. Now, why aren'tmore people doing this? Why isn't this more popular? I think that a lot of people just don't know about it.Like, I've heard about it my whole career, but I've never thought to like really dive in, you know,but it seems like a no-brainer. It's so easy. People think it's so overwhelming because some of theher a biddy. I can do so much of that now. I mean, yeah, we can have AI. Meet Natalie. Natalie makessix figures a year working about one to two hours a week landing government contracts in things thatshe has no experience in. Hazardous waste disposal, landscaping two time zones away. All she doesis bid on the jobs, find subcontractors to do the work, and captures the profit between what the
02:24government pays her and what she pays her subcontractors. You don't need to be established. You don't need tohave experience. And if you know how to use Chad GBT, congratulations, you're an expert on all of thethousands of jobs up for bid on sam.gov. So if you want to start a business or a side hustle that canscale to six, seven, or even eight figures a year with basically no startup costs, low time spentper week and you have an internet connection and a phone plan, this is the business for you.Please enjoy. Okay. So my goal is for the average person with no experience by the end of thisepisode to know how to get their first government contract. Do you think that will be possible?Yes. Okay. And how did you first get into that? It was actually so random. I was on Instagram.
03:06I had a friend that I was following for a really long time. And they posted it on their story,close friends. It wasn't even something that they were advertising, but they were talking about whatthey do. And it kind of sparked my interest and I became obsessed with it. And I learned about it.I attempted to do it, and I won my first contract.So that's why I was just like, okay, this is something everybody could do.You don't really need anything.So that's how I got into it.Yeah.
03:32After you saw that story, what was the first thing you did?I messaged him.I'm like, what is this?And how do I do it?Because I always seen him, you know, living nice, you know, doing all type of things.But I never knew what he did until that day.He decided to talk a little bit about it.And I was intrigued.
03:49I was like, can I learn a little bit more about it?And he actually sent me something, but it was so confusing to me because I didn't know anything at all about what even government contracting was.So I became, I just went on YouTube and just educated myself and became obsessed with it.And that's really how that happened.Okay.So where does the average person go to start shopping around for these opportunities?So first and foremost, the first thing that people have to understand is that the government is required to spend money every year with people who have.small businesses. So the average person, how do they become a small business? Well, just by having an LLC.
04:28So once you have an LLC, whether it's with your state, however you register your business,you would then register with Sam, which is a website that is free. It's public. It's called sam.gov.You would register your business as if it was like a business, like a job application almost. Theyask you information about your business. And at that point, you would then be ready to bid on contracts.And so if you see a contract that you're interested in that's in Texas for painting,you know, me and my company, I'm not located in Texas, but I can team up with a paintingcompany in Texas.Subcontracted out to them?
05:05Contracted out, put my price on top and kind of we both win on the contract.Yeah.So is the trick to not like name your business, you know, Natalie's painting LLC, but more likeNatalie's services LLC so you can keep it broad enough to not only have.have to bid on one type of industry? Yeah, I always tell people to choose a generic name so that you,when the government sees the proposal or the submission, they don't automatically judge you on yourbusiness name. So if it was Natalie's window washing and I'm submitting a proposal for air conditioning,you know, I don't want them to sway the government's decision on them choosing me. I always tell people
05:43to choose a generic name so you can go for any type of proposal. Sometimes they really just care aboutwho's the lowest. They don't even care about what your name is. Now, what stands out to youand looking at these opportunities? Like, what screams to you? This is the one I need to bid on. Becausethere's thousands on there, right? Like, how do you even know where to begin? I look for somethingI can understand, right? Like, sometimes they look so incredibly overwhelming. Some of them are20 attachments, 15 attachments, and I'm not really going to try to pursue something that I don't evenknow what they're asking for. My very first step,on what I do is look for something that I understand what they're looking for.
06:21Now, apart from that, I also look for services.So contracts that have to do with services as opposed to products.Why do I prefer services over products?Because when you're just starting out, it's easier to have a conversation with a service providerand let them know, like, hey, you know, the government pays on a net 30 after the service is completed,then to have that conversation with a manufacturer who produces these itemsand needs to deliver these items and you having to tell them, you know, hey, I have to pay youafterwards. It's not always a smooth conversation, you know. Yeah, there's more variables. Like,
06:57let's say the government needs like an airplane seat part. You're going to have to go findmanufacturers and like what country are they in? Is that an approved country? Are they FAA certified?Like what manufacturing standards do they adhere to? There's more ways to screw up. Whereas if it's like,like you said, painting, it's just more, it's more easy to understand, right? Absolutely. Yeah.So what was the first job that you bid on? And then, I don't know if you won that or not, what was the first job that you won?Yeah, the first contract that I bet on was the first contract that I won. That was kind of when I was like, okay, well, this is really easy. It was for formulin disposal. So I knew when I first seen the contract, I didn't even know what formulin was. But I did know that they had a hazardous waste disposal. They needed a hazardous waste disposal over in California.for a couple drums every couple times a year.And I was contacting different hazardous waste companies
07:54because I knew at least that's what it revolved around.And I knew that they would know what formline was.So as soon as I was able to contact when they responded to meright before the bid was due, gave me a quote.I put my price on top and I won.Okay.So I'd never heard that word in my life.Formalant, I'm looking now, is a type of formaldehyde?
08:13Is that right?It's a hazardous waste.Okay.Yeah.So did you have in your background or history that screamed, yeah, I know what this is?Nothing.I didn't have anything.I was so scared to submit because it was my first submission.
08:25I didn't really even know if I was doing it the right way.But all I did know is that it was a five-year contract.I was doing all this research.And I'm like, okay, well, if I have somebody that can do the work, and I can buildour relationship with them, then this should work.This should all work out.And so it did.I submitted the proposal with their quote.
08:44I put my quote on top.They submitted a quote for like 700.And I submitted a quote for 1,500.And they did a kickoff meeting.They let me know like, hey, the first pickup is in June.Let me know when you guys pick it up.Did you start calling these, you know, waste.What are they called?
09:02Like a waste disposal companies.Yeah.Did you start calling them before you even submitted your bid or after?Yeah.I always get a quote first, right?And get somebody that's willing to work before I submit.Right? Because if I said win and I don't have anybody to do the work, then I kind of messed up.So that was in California and you were in Miami? Yes. Okay. So you got the $700 quote and then you just thought, I'm going to double it and see what they say. Yeah. Okay. You said five year contract. Like is that $700 a month or a week or what?
09:33It's $700. Well, it's $1,500 per pickup. Yeah, right. They gave me an estimated $14 to $16 pickups a year. Okay. So I know in my mind there's going to be $14,000.to 16 pickups a year and there's $700 each pickup but I'm charging the government$1,500.So I know that that's an $800 profit for me and I just have to pay on my subcontractor.So that was how it was.And it's a five year contract.So it lasts for the next five years until 2029.Okay.
10:01So $10,000 net profit to you every year for five years guaranteed, right?This is the government.And just for making a few phone calls making a deal, you really don't do any work.You literally only need one thing other than a phone plan and internet connection to start this business.And that's an LLC.You need to be incorporated with your state.And if you go to your state's filing website and try to do that there, you are going to have so much brain damage you won't be able to sleep ever again.Go to busy.com.
10:30That's B-I-ZE.com.And you can file for free.You just have to pay the state's filing fees.You give those to Bizzy and they pass them on directly to your state.That costs nothing.And the user interface is beautiful.I use BISI for all of my entities.Every time I've used another service or the state directly, I've regretted it.
10:45You need to spend your time on the business, working on and in the business, not on like filingdeadlines and registered agent services, EIN, corporation.Like, don't worry about that stuff.Let busy handle all of it.They support the channel, so I support them and I use them personally.They'll handle your annual report filings.They'll send you compliance alerts so you don't miss a deadline and land in hot water with the government.Every hour you spend on compliance is another hour you're not spending building the business.
11:12and busy will give you all of that time back. There's literally no reason not to use it because youhave to do this anyway. You might as well have busy help. They'll keep you covered year after year,all in one nice clean dashboard. That's b-I-z-ee.com. You get paid and then you pass on the money.Is that right? Or do you have to front the money and then wait to get paid by the company in California?I get paid first and then I pay who I owe. Okay. So the government pays in 30 days?It depends. Sometimes they can be quicker. It's usually a net 30 or net 45. That's the longest that I'veever seen. But on small purchases, things that are under 10,000, I believe the new threshold for2026 is 15,000. They haven't updated all the government purchase cards, but some agencies have
11:51credit cards that they can actually pay for service as soon as it's done. So it just depends.Okay. So you have no background with hazardous waste disposal, which I love. Are you only kind ofquoting jobs nowadays that you kind of can wrap your head around, but you didn't start that way?or like what made you pick that one out of all the others you could have bid on originally?Well, I mean, to give you some kind of insight, when I first, I, I've been on that one, right?It was a hazardous waste company I won.The second contract I submitted for that I won for.I didn't submit, I didn't win my second submission, but the second one that I actually won was a catering contract.
12:26So completely different industries.And this one was in Idaho.Um, obviously I'm not from Idaho, but I went and contacted a catering company over in Idaho,turned out they had already worked with that camp, that facility already previously.So the process was simple.It was easy for me to explain to them the process of the contract and everything becausethey already knew about it.And we won the contract.
12:51And that was for two weeks.It was for to feed soldiers breakfast, lunch, and dinner for two weeks.So the company that I worked with had to go and deliver it, drop it off, you know, dispose ofeverything and then come back the next day for two weeks.And what were the unit economics on that deal?My subcontractor charged me 41,000, and I charged the government 52,000.So I made 11,000 profit in just a two-week time period.Okay. So that was, did you price that like per head, per person per meal, something like that?
13:24It was per person per meal. So my subcontractor charged me $8 for breakfast, $10 for lunch, $11 for dinner.And I charged the government $10 for breakfast, $12 for lunch, $15 for dinner.And it was about 300 soldiers, I believe it was.And so it kind of added up because it was every single day, breakfast, lunch, dinner, you know.What made you think to not mark that one up as much as the waste disposal?Just thinking like, it's, you know, it's hard to justify paying $20 for a lunch.I'm happy to make less profit on this because there's probably less margin to work with on a catering deal.Well, at this time, I didn't know this information at this time, but there's actually a way that you can look up past pricing and see what the government previously paid for things similar to what we're buying now.
14:14You can even find the exact same contract that was issued previously and see the number that they charged the government.So if I knew that then, I probably would have definitely gauged it a little bit different.But at the end of the day, I still won.So it doesn't really matter.But nowadays, when I'm pricing things, I'm able to check past pricing, I'm able to look at.up to see, you know, hey, what did the government pay for something like this before?And then I obviously can take into consideration inflation, right?You know you have to maybe charge a little bit more, maybe not too much, but you have an idea
14:45of what the government was paying for something like this that can guide you.All right.I'm going to have to get that website from you later.Knowing what you know now, what do you think you could have closed those first two deals at,if not $1,500 and, you know, $8 for breakfast?You know what I'm saying?$10 and $11.To be honest with government contracting, it's not more so, like, we'll charge more because the government is always going to, they're just like us, right? They're always going to want to go with the cheapest price. So even if you're the most valuable, they still will choose someone cheaper than you. So it's not about like, hey, you know, now if you do have that data and you understand like, okay, for example, one of my largest contracts was a $962,000 contract, right? So on that contract, that's for a landscaping contract. And that is,
15:31in Colorado. It's a five-year contract. Does that mean I'm going to get paid this up front? No,it's spread out over five years. My subcontractor charged me $700,000 and I was able to charge thegovernment $962,000. Now, mind you, when I knew this information about being able to check dataon past pricing and able to see what the government paid for something like this, I actually foundthe exact contract and I seen that previously they were charging $1.6 million.million dollars. Wow. For the five-year contract. So you know, for the same type of project. For the same work. For the same work. So I definitely thought after I won that, like, okay, I could have definitely charged the government like $200 more $1,000, you know, because I was still so cheap. But it was a lesson learned. You know what I mean? I, I, yeah, sure. And it was still so much profit for myself. So at that point, I just felt like, you know, there's no reason to be greedy. I won. It's past performance. You can just win another one.So is the name of the game here largely just supply and demand?Like bidding on jobs that most other people aren't bidding on?
16:39Not just that, but it's like it's almost a numbers game.You know, like the more contracts you put in, the more you win.And there's hundreds of thousands of contracts being put out every day.And it's not just government, right?Like it's local, it's state, it's city, schools, universities.Everybody has some type of procurement system.So the way I looked at it when I heard,first started was, okay, if I can just put in as many as I can, I know I'll win at least
17:05two to three. That's just kind of how I looked at it and it worked. What is like your hit rateon average? How many, what percentage of jobs do you close that you bid on? I would say, so just to giveyou an example, around when I first started, I had one month where I tried to submit, the most Isubmitted was 14 in that month, and I only won one. But last year, I submitted nine and I went four.I guess my closing rate right now is definitely pretty good, but the most of the most of the most of themore you do it, the better you get, right? The more chances you are because you understand the process.What's stopping you from, you know, submitting 50 a month? Is it that time consuming? Or are you notseeing that many promising things to bid on based on what your criteria may be? So it's, it takes
17:48time to get to the final step. So for example, when you see a contract that you want to work on,right, and it's due in two weeks. And you go on Google and you're looking for subcontractors,you need information for the submission, right? Alongwith your price, you may need past performance, you may need some additional information on howthey plan on doing the work. You are dependent on the subcontractors that you're calling. So if yoursubcontractors are not giving you the tax or things that you need efficiently, then they fallthrough the cracks, right? Can I give you like a hypothetical? So let's say you're, you see a contractin Medford, Oregon, small population, not a lot of people. And it's very unique. It's like,
18:28let's say it's like concrete leveling in Medford, Oregon. You look it up and there's like threeconcrete leveling businesses within one or two hours. And you call all three and no one's pickingup the phone. And you're just like, I can't bid on this because there's just nothing going on here.Is that kind of a good example of one that you wouldn't bid on? Like you might put in the legworkto bid on it, but you just don't bid because you're not seeing enough there. Exactly. So that's whyI say like you may plan to work on, you know, just like I said, that month that I tried to do nine or14, I plan to submit way more than that. But that's just how I was able to actually fully submitwith all the information that I needed. So I guess I would say what I say, it's time consuming.
19:07When I was trying to win as much as I can, I probably put in maybe two to three hours a day.But once you actually have a contract, what is it, like an hour a month? You know,I'm definitely maintained the contract and you have it for five years. So I guess my thing isonce you can actually win you a couple contracts, because all it takes is one contract. I mean,the average person can win one counterpart and get them some type of steady income for the nextthree, five years without having essentially do anything.You know what I mean?And you don't need any money.
19:36We just need a business.And as soon as you have a business, you're automatically qualified to do business with thegovernment.You know what I mean?What's you're registered?And you know, there's different systems.You just have to register and something.But again, it's free.
19:47The government is required to spend money with us.So it's not like we're out here begging for opportunities.They need us to come and.submit proposals for these so that they can move out of all this every year.Yeah, they legally have to put this in front of everyone.They can't just go pick their own company, right?Yeah.Now, answer me this.
20:06Let's say with the Idaho catering job, you bid 50,000, and then the government, I assumethey see you're incorporated in Florida, right?Let's say that's in Boise, right?And then there's actually a Boise catering company that has like a local presenceand they're named Boise Catering LLC or whatever, and they bid 55.Is the government's still going to go with the cheapest bid, even though they're out of state and they have a generic name and maybe less track record?Are they going to pay 10% more for the local business with the relevant name and more of a track record?So on every single contract, they give you an evaluation criteria.
20:40On every single contract, they tell you this is what they're looking for.Yeah.Okay.So if they tell you they're looking for the lowest price, which was what that contract was, it doesn't matter where you are.If you're the lowest and you're deemed and you're deemed a reasonable, you will win.And how does someone essentially become deemed reasonable?Will you have a decent price and you followed all the submission requirements deemed reasonable?And that's how they kind of decipher.
21:06So in other circumstances, the listing might say, we want a local company.We want someone that has at least four jobs on your profile.No subcontractors.We want you to do the, like will they get specific on criteria like that?Yeah, they will.You just wouldn't even waste your time on that.Yeah.Yeah.
21:23If they, I mean, first of all, subcontracting is encouraged in government contracting.So if it is explicitly stated that you cannot do government contract or that you can'tsubcontract, they're going to tell you that.But most of the time, they'll say if you're working with a subcontractor, give us theircompany information also.Oh, interesting.Okay.So you don't have to be like sneaky about subcontracting stuff out.
21:45Not at all.It's expected.Mm-hmm.Okay.It's not like, just because you give out the name of your sub, they're going to go aroundyou like they can't they won't they don't you've already signed a contract with you if you already wonthey can't you can't do anything about it you may run into certain situations where you're working incontract you haven't won it yet and you reach out to a cop helper that does want to go ahead and go behind
22:05your back and win it yep bid on it but it doesn't ever bother me it doesn't ever I mean there wastimes where I walked into a room everyone is older than me everyone has their uniform shirts on andI've still won the bid so it doesn't matter you know what your criteriaor what your history is, there's certain specific things that the government looks for,and they always state it, you know, but people are in, there are experts, they're expertsin what they do, right? I'm an expert in government contracting. So when these experts come andtry to go around me and try to submit proposals on what the job is, they usually miss somethingor they try to overcharge because they think it's the government. And it's like, okay, well,
22:45I'm going to charge this much because it's the government. And, you know, we're like company. We have10 years of experience, why wouldn't they choose us? But that's not how the government works.And so that's why I have the advantage over people like that.Yeah. Listen, I need more people like this to interview on my podcast. So if you know of someonewith a side hustle or a business that's unique and cool and super profitable, email Molly,M-O-L-L-L-Y at co-founders.com. That's one word co-founders.com. Molly at co-founders.com, tell her yourstory and we'll give you 100 bucks if we end up interviewing them. So we need to get this preconceivednotion out of our head that's like the government's so bad with money they pay stupid amounts for
23:21stupid things like we need to go into this thinking like we need an aggressive price period that'swhat they're looking for yes and no right because there's some contracts where when you look uphistory and it's like okay they paid pennies on a dollar for this like how can I even find somebodythat can get this low then you have other examples which when I just told you where the Coloradolast contract was 1.6 and I charged 962You know what I mean? There was almost $100,000 for me to be able to play with. And it would havedefinitely been way less aggressive. I could have definitely charged more. So it really depends, right?It really depends. And I think that the siding factor is once you kind of look up that past
24:04pricing and you kind of see like, okay, if this is what they charged before, then I know how much Ihave to charge now. Yeah. Do you recommend that people start with like a scatter shot approach,bid on all kinds of random things, learn what they like, what they dislike, what they're good at, what they're bad at, and then settle into a niche? Or do you recommend that people stay broad and just look for opportunities no matter what it looks like?I think initially when I first started, I kind of was going for any shiny object. And I can't say that it was rewarding. But I did learn that really niching down to a specific industry can take you a lot farther and can get you a lot larger contracts. Because with,the government under 350,000, you don't need any past performance. So really can submit contractsbecause they're just looking for a quote. For a contract value of under 350,000, you don't need anytrack record. No. That what you're saying? Yes. Wow. So you're able to bid on the landscaping oneafter you have, you know, somewhat of a track record, but that couldn't have been your first one.
25:06Not saying that you can't bid on it because you can still bid on it and use your partner'spast performance, right? Even if you don't have any past performance, I can use my partpartners performance and it counts under my own. But as far as my own company, and I'm just doing itmyself, anything that's under 350,000, they don't even ask you for past performance. They just wantto quote. It becomes a RFQ as opposed to an RFP, which is a request for proposal, request forquote. So in order to really hit on those contracts or over 350,000, those million dollar contracts,you're going to need to provide some type of past performance, whether it's your teaming partners orit's your own, you're going to need to provide some. And so in my experience, I think that when you're
25:49first starting, you're just trying to understand and learn the process and trying to gain someprofit. But once you start building your business and government contracting, it's definitely goodto niche down to a specific industry. Like for now, my main industries are hazardous waste andlandscaping. Those are the type of contracts that I try to go for. But there's some that I've met peoplethat do military tires. I've met someone that does solely veteran homes, you know, places for veteransto sleep at when they don't have anywhere, you know, so that they're not homeless. He's $1 billioncontracts by contacting housing places and getting a relation to getting a quote, submitting for theproposal and winning those contracts. Now, to me, the elephant in the room with this business is
26:38with AI, like, I could be an expert in any of these questions.quotes. Like, I could sound intelligent about any of this stuff. And if something has 15attachments or 25 attachments, I make a Claude project with that and ask it questions and, like,come up to speed. Are you, are you using AI tools to kind of take a shortcut here in any way?Yeah. I've actually just created my own tool to do this. But that's how I won contracts, right?I use clot. That's like my biggest. Every time I look at a solicitation or a contract that I work on,I go right on AI, I make a project. I think you can do that on chat, DBT also.go into the project, attach all the attachments.
27:15I have a specific prompt that I've made and developed so that I can quickly identify,like, do I want to work on this or do I not?I already have let the bot know that it's an expert in government contracting and an expertin whatever the industry is.And I ask the prompt and I'm able to decipher like, okay, do I want to work on this?Do I not want to work on this?What are my submission requirements?Help me make a proposal.
27:37How do I submit?You know, it will walk you through the whole thing.Yeah, that's amazing. What other types of random contracts have you won and how did those go?A really random one was a relocation one. A lot of people were confused about that one.But it was a, the government was buying a woman's home that was right on the corner of the dismal swamp in Virginia.And they were looking to knock it down to build a parking lot for the Rangers.And it was this small little tiny house that was right on the end of the street.And if you actually go on Google Maps, you can see it right on the corner of the swamp.
28:13I'm going to pull it up.Do you have an address?Yeah, look up the U.S. Dismoswamp.And her address was 1322 White Marsh Road.Look that up.There it is.Right here.That white little house.
28:28That right here?Yes.Oh, man.Okay.All right.So you saw this as a bid on Sam.com.So it was a bid.It was a relobal.
28:38location bid. They were asking for somebody to come and assist this woman for her moving process.So the government was paid for moving. This was like eminent domain basically. Yeah. Mm-hmm. Okay. And so they wanted to knockdown. And she was living there for about three years. And, you know, they already had let her know that thegovernment was going to, you know, take over the property and stuff like that. And so they issued the contract. And theyneeded someone to assist with that. So the government would pay for all the moving cost, but they neededsomebody to a process, like somebody to kind of look for apartments with her, help her apply,help her get approved. And that was what the contract was for. And I put it at 14,000. And becauseI was essentially doing the work myself, right, I can help her find an apartment. I don't
29:27need to hire somebody else to do that. I made the money myself. So that was a little bit of adifferent one. Yeah. But it was an amazing one, right? Because I didn't have to pay anybody else.I flew out there to Virginia, met with her, seen a couple different properties, seen what she waslooking for, helped her apply, helped her get approved. And that was it. Wow. So they didn't needyou to be like a licensed realtor or anything. Like really no qualifications on this one.Nothing. So how many hours would you say you put into this one? It's as simple as going on Googleand looking for some apartments. Yeah. And flying out there. You had to pay for your flight in yourhotel. Yes. I get real. That's what I remember the government. You have to include.
30:07that in your pricing. You have to think about these in your pricing. The government paid me after theservice was completed, but I asked for payment plans, right? Like progress payments. So once I went to gosee her and have the conversation with her, I would ask for $5,000. Then after I'd fly out again,after she decided which one she wanted and did a whole safe and sanitation review and walk through,another $5,000. And then the $4,000 when the contract was over. That's amazing. I mean, you probablymade over a thousand bucks an hour on that. Yeah, over definitely. It was barely any time.I thought it was going out to Virginia just. I'm sure. And help, you're genuinely helping someoneand they're not having to pay you. The government is. So it's win-win. Yeah. I would think that jobs like
30:52that don't get bit on very much at all because it's not, it's unique. It's not super scalable,so to speak, right? People are always looking for specific industries, but it's really thoseniche, that's why I say those niche down off type of contracts are the ones that there's peoplethat don't even submit on them. Any idea what percentage of these jobs get zero bids? No, but I know it'ssome. I know it's at least I want to say maybe 8%, 9%. That's crazy. There's just too many,there's just too many jobs for everyone to wrap their arms around. There's too many random things outthere for there to be something for everyone, right? Yeah. Are you able to see how many other bidders thereare or interested parties there are or is that blind to you? So that's what actually now on sam.gov,
31:38you're able to add yourself as a potential vendor. So if you add your turn up and other peopleadd themselves and you're able to see how many other people are potentially looking to bid on thatcontract. But previously, on that FDPS website, you were able to look at the data to see what peopleor how many people offered on it. And I mean, you can see these million dollar contracts where you seeone person, three people, two people.And they're probably overbidding too.So it's like, that's why, you know, it's such an untapped market. It's crazy.How much does that weigh into your calculus on should you bid on this job or not?
32:17Like how many other people are interested in it?It doesn't weigh on me at all.Okay. You're more concerned about finding someone actually do the thing.You want it to be in your lane, which is like, you know, hazardous waste removal andlandscaping and you want it to be profitable enough. Is that kind of what you're looking at?Yes. I mean, I still look for all types of different contracts that make sense that I have anopportunity to bid on because why not, right? But as far as those really large contracts,I know that I already have past performance in waste management and hazardous waste and landscaping.
32:49So I know that those I can definitely go over $2,000, $300,000, right? But if I see something elsethat I understand and I can find somebody to do it, then I'm going to do it because why I have the confidencethat I understand the government contracting process than a lot of other people.So even if there was 15 people submitting, I know that probably eight out of those people,more than half, don't know the process as well as I do.Because although, yes, the government is looking for somebody who's reliable to do the work,there's so many other factors.You know what I mean?
33:20If you meet a format, it has nothing to do with the work that's actually required in the contract,but just because the format isn't correct, you can't follow the direction.So the government is not even going to look at your proposal.For people that you've seen get excited about this and get started on this and then just flame out,why is that?Why are they losing steam and losing interest?And how can people avoid that?I think that the reason why people might lose steam and stamina is because you have to submit some bids.
33:48You know, you got to put in that work and submit some bids and you're not going to win every single one.You know what I mean?You'll be okay with that.You have to be okay with that.You have to understand you're not going to win every single one.But as long as you understand that one or two can change, you know, trajectory, a lot of things for you in your life, you should continue to try to win those contracts.You know what I mean?But you have to go into it, understanding that you're not going to win every single one.
34:11Yeah.Okay.So what was the name of that website where you can see what the government paid for past jobs?You can go to USA Spending.Everything is public.Everything is public information.So there's a website called USASpending.There used to be a website.
34:25USAspending.gov.Yep.Okay.You can find every company on there that does business with the government.You can find contracts on there.You can see how much a specific agency is spending on a specific NACS code.Because, you know, government contracting, they go by NACS code, which is just another word for like an industry code.That's a data website, right?
34:45There used to be another one called FDPS, which was a real gem, but they just actually decommissioned it, which is so sad.Okay.But now you can use USA spending.And it's all free.You know, the government doing business with the government.Yeah. It's public information. They even have advisors in your area called P-TAC offices and Apex,and they are advisors that you can come and actually show them a proposal or actually ask for step-by-stepinformation in your area. Okay. So how long have you been doing this now? Since 2024. So two years,
35:17ish. And what are your numbers like today? How much have you made? What is your monthly revenue andprofit like today from this? So on my contracts, I probably,make about 10 to 12,000 on my contracts every single month. The most that I've ever made on onecontract was my Colorado contract, and that was about 15K. But with all my other contracts, I gotabout 24K that month. But on a regular month, let's say, for example, when, because I have threethat is landscaping. So let's say when the season is down and there's not much landscaping,then those months can look like maybe 4 to 5,000. They look lower because it's based on theservices that I required in the contract. So that's what a year or my monthly revenue looks like.
36:02And you know, a lot of these are five-year contracts. So that's recurring every month for five years fordoing some legwork up front and then like an hour a month of work. Yes. And that you said 10 to 12.That's profit. That's not revenue, right? Yes. Guys, tkowners.com. That's my community where peopleare building businesses. I do AMAs, Q&As every week live. You can ask me anything you want. You can haveaccountability partners. It's about a thousand people in.there building, starting, growing businesses. Check out TKO as in the corner office, tkowners.com.How many hours a month would you say you're spending just to maintain the revenue you have?Not to include growing the business and bidding on more jobs, just to maintain that 10 to 12k a month.
36:43An hour.For all of your contracts combined?The reason I say that is because you just have put in an invoice.If you have reliable subcontractors, right, that's a big key, right?Because if you don't have reliable subcontractors, it's not going to run as smooth as how I'm talking about, right?People that I want to work with are people that are hungry for the contract as I am.So I don't have to be responsible and on top of them to know what they have to do because they already know what they have to do.Yeah.
37:08So every month, all I have to do is just submit an invoice.So I love the word hunger there because I look for the same thing in employees.So if you're like interviewing, quote unquote interviewing, calling subcontractors doing research before you even put in a bid and you hear things like, oh, you know,we're pretty busy right now. I'll get back to you. You're just like next. Next. You're not hungry.You don't care about me. You're not going to pay me on time. You're going to charge too much.So you're looking for hunger, right? You're looking for someone who really wants the work because you've seen and I'veseen that's correlated to performance, right? Absolutely. This all hinges, not all, but if this largely hinges ongood subcontractors, what else do you look for in that? Communication has to be impeccable.
37:48We have to be on the same page at all times. If there's any problem, because problems happen.You know what I mean?Contracts, people are normal, right?Everybody is normal just like the government.They are just like us.Things happen.And sometimes problems do happen and you have to come up front and, you know, kind of come up with a solution.But the government will much rather deal with the problem and figure out a solution than go and find a whole new contractor and go through the whole procurement process to quit.
38:13So you want to make sure you have an honest subcontractor who's going to, you know, tell you like, hey, you know, this may be an issue or this, whatever.Just communication is super.strong. So if I'm already contacting you to be my subcontractor or work on a contract with meand you respond to me three days later or, you know, you're not really interested, I cannotwork with somebody like that because your performance is dependent on how the contract runs for me.Sir, are you able to swap subcontractors mid-contract if they flake out on you?You are. I do always talk about at least trying to find a contingency once you do win a contractjust to always protect yourself because in essence it's your contract. And if anything goes
38:51wrong, it's on your business. It's not on the subcontractors. So yes, you can absolutely switch ifthings are not going the way that it is, but you definitely want to try to prevent that from havingto happen to you because you don't want to go through that stress of having to find another contractor,do it within the same price that you were paying before because now they're higher, you have to lose out.What other questions do you ask during your research phase that tell you a lot about that subcontractor?I definitely go and do research on their reviews. Do they have a lot?a website, do they have any work that they've done anymore? Who have they worked with? How does theiremail look? Just the same way that I may think the government may judge me is the same way I kind of
39:32want to look at these subcontractors, right? I want to put myself in their shoes. So I want to makesure that they're credible. I want to make sure that they are serious about their business, right?I don't want to work with somebody just trying to figure out their business or just trying to get itI need someone that is dependent on this income for their business.I imagine you're not picking a lot of subs then that are like big,well-established businesses then.Are you picking like a lot of solo operators, smaller businesses?I wouldn't say solo but small businesses, right?
40:01Some small businesses that are like, for example, the one,my Colorado, it's a team of six, you know,it's a landscaping team of six.Okay.I have a couple other, you know, contracts that are pretty solid,but they're not so gigantic where they can,work in three different cities. You know what I mean? So I definitely want to look for somethingthat's established, not super small because if it's only one person, what happens when you're not
40:25around? You know what I mean? Is it still going to be done? And I imagine you're looking at reviews,Google reviews, like you're diving deep on them. It's because sometimes they might answer all thequestions perfectly and you look at the reviews and they suck. 100%. And vice versa,maybe. Yeah. You just have to make, just be mindful. Like if you want your contract to run smoothly,you got to make sure that you have a good subcontractor.Yeah.Why aren't more people doing this?Why isn't this more popular?
40:50I think that a lot of people just don't know about it.Like I've heard about it my whole career, but I've never thought to like really dive in, you know, but it seems like a no-brainer.It's so easy.People think it's so overwhelming because, I mean, because granted, there's a lot of paperwork sometimes, right?Some of the verbiage.But AI can do so much of that now.I mean, yeah, we can have AI.That has made government contract a lot easier the last couple years, just a lot.
41:14And now that people are talking about it more, you know, people are starting to use it and kind of put two and two into together.But it's so easy.You don't have to become a government contractor, but you can definitely use it to try to fund some of your other dreams, right?Try to use it to invest in other things, other businesses.I mean, it can definitely give you some type of freedom, I feel like.And that's why I wish a lot more people know about it, truly.I mean, startup costs, you need a cell phone bill.You need an internet connection.
41:40You need the state filing fees for your LLC, which can be one.to $300.Are there any other startup costs that we're missing here?Nope.That's crazy.You just need a business, some internet, and some hustle.You definitely need.You got a hustle.
41:55You got to hustle.You got to, you know, I mean, like I said, am I putting eight to 10 hours a day?No, absolutely not.But I created a system for myself.Like Monday, I'm looking for opportunity.I'm going to spend two hours just looking for as many opportunities I can.Tuesday, I might go ahead and create some scopes of works, right?Some scopes of works.
42:12so I can send them over to whatever subcontractors I contact.Then Wednesday, I call them, Thursday I gather, Friday I look again.You know what I mean?Like I sent myself up so it's not such a daunting and overwhelming thing,but you definitely got to put some time in if you want to win.Now, if someone wanted to really scale this, like into a big business, is that possible?Are there enough jobs to go around?Absolutely.
42:35I mean, just the way that I feel like this can be scaled as far as within governmentcontracting is being a consultant, right?is consulting and helping other small businesses win government contracts just because, like I was sayingearlier, businesses are experts in what they do. They don't know how to win a government contract.So just how they walk into those rooms and there's 15 other people and they think, hey, this is thegovernment. I should be able to charge this and I come in with my uniform shirt. They still lose.So it's like, you know, there's room for you to grow and win in the space because you can help peopleand businesses win these contracts. Now, other than this random, you know, deal,
43:12outside the swamp, do you have to do anything in person or are you doing stuff over Zoom?No, it's over Zoom. It's all digital. I did have to go to Colorado. I didn't even have to.It was the snow season was coming up. So they wanted me to go out there just to kind of walk the siteand make sure we're familiar. And I told that I would come out there and she ended up messagingand saying, oh, well, if you want to FaceTime, you can also do that also. So I just say that to saythat you don't have to go in person for things.They definitely have an option to do it digital, but I wanted to.Yeah, you sign a seven-figure contract.
43:47Let's fly to Colorado.Sure, no problem.Let's go meet the people who are working for me, you know.Is there anything about this business that I should have asked you but didn't?Felons can do this, you know.Really?Yeah.That's crazy.
44:00Yeah, it is, right?Felons can do this because they're not the people that are on site doing the work.They're subbing it out.They're subbing it out.So you're subbing it.Subcontractors cannot be felons, right?Because they might have to be on site.And if they're on site, it's a government facility.
44:16But if you're a felon, you can do this.You can subcontractor the work out, you know.And that's a big thing, especially nowadays when it's so difficult.Yeah, they can't get jobs.They can't get jobs.Yeah.Something you can do.And you don't need anything but a business.
44:29I worked in a prison and I have a lot of empathy for those guys trying to come out and turn their life around the vast majority of them just go right back.mostly because they can't get a job.They can't kick their old habits.So that's a great idea.Yeah.And just people don't know that.You know what I mean?They think it's because the government, you have to do all this and that.
44:47And so the regular people, just like the government makes mistakes too.They'd be messing up.Oh, yeah.Actually, just to put it in perspective, the contract with the Colorado one that I'm tellingyou about, it was actually for 700,000 originally.No, I'm sorry, 800,000.And my subcontractor was charging 500,000.But when the contract was awarded and they asked my company to go out there and do a walkthrough, my subcontractor said, hey, this was, they want us to do all of this, but they didn't mention that in the scope of work.
45:17They didn't write that out.They didn't put that in the contract.So I was actually able to get a modification and actually get the government to change it to the price that I had then to the 962.2.Because they made a mistake.And that's a potentially almost a, what, a $162,000 raise because.Yeah.made a mistake. And don't be afraid to come back and say, listen, this wasn't in there. Like,they're going to make mistakes. A hundred percent. A hundred percent. Because if your subcontractors
45:44coming to you and saying, hey, I need to go to the government and say, hey, we need more money.You didn't say something correctly because I know I relayed all the information that you gave to me to them.Yeah. So. Is there a limit to how many you can apply for or bid on? Oh. Just keep going. Just keep going,just try to win as many as you can team up and then you can then it's it's even better because you canso many opportunities just from this right because we talked about government contracting and buildingyour business but you can also be a consultant and help other businesses win contracts right when apercentage on the back end and now you're dealing with much larger contracts because you'rehelping these well established businesses right you can make different opportunities for yourself
46:29just by knowing the skill and remember government contractwe have government contracting, but that you have local, you have city, of state, you have,there's opportunities everywhere.Yeah.Natalie, this is incredible.You're inspiring to myself and anyone else listening to this or watching this.Where can we find you if we want to learn more?So you can follow me on Instagram and Natalie, the CEO.
46:53You can get me on TikTok, BizMotion with Natalie.And then I just started my YouTube.So I'm trying to drop some more information on there, some free gems.I have a lot of free information on my, I have a free ebook.It's 38 pages.It's a lot of information.And yeah.Okay.
47:11Well, we will link to that.Thank you, Natalie.You're welcome.Hey, guys.If you're still listening to this, it's probably because you haven't had a chance totake your AirPods out.You're still mulling the lawn.You're still driving.
47:22What have you.If you're still here with me, I would really, really love and appreciate a five-starreview on Spotify, Apple, or wherever you get your podcast.It would mean a lot.If you want to go the extra mile, share this episode with a friend that might have an interest in starting a business.It would mean a ton.Hope you have the best day of your life today.
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