4 Ways You Can Profit Off the Government, Just Like Elon Musk Might
Written by
Lydia Kibet
Edited by
Angela Corry
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Elon Musk isn’t just a tech genius. He’s also a master of leveraging government money to grow his companies. SpaceX has received lucrative contracts from NASA and the U.S. military, while Tesla has benefited from tax incentives, green energy subsidies and millions in government-backed loans.
However, you don’t need to be a billionaire to profit off the government. Whether you’re a small business owner or a freelancer, there are plenty of ways to make money off the government.
Start a Small Business
The government isn’t just writing checks to billion-dollar companies. It’s actively looking to work with small businesses. In fact, a huge portion of federal contracts are reserved for them. If you’ve been thinking of starting a small business, now may be the time.
“The federal government spends over $700 billion on contracts with private companies every year. And it’s not all just for big corporations,’ said Kari Brummond, an accountant at TaxCure. “In fiscal year 2024, small businesses received $183 billion in contracts from the federal government, and $78 billion of that went to small disadvantaged businesses.”
To get started, create a free profile on SAM.gov, where you can find contract opportunities. Once registered, your business also appears in the Dynamic Small Business Search (DSBS), which government agencies use to actively seek out vendors like you.
Sell Products or Services to the Government
You don’t need a massive company or a government connection to sell to federal agencies. If you have a product or service they need, they’ll buy it, and you can profit off the government.
According to Kizzy Parks, founder of Govcon Winners, the barrier to entry is surprisingly low. “Everyday people can register on SAM.gov and be willing to sell a product or service that the federal government wants to buy. It’s really that simple.”
Simply register, and you can begin browsing and bidding on available contracts. Whether you offer janitorial services, waste removal or consulting, there are contracts available. All you need to do is identify the needs of a specific agency, match them to what you offer, and start bidding.
Buy an Existing Government Contracting Business
If you don’t want to start from scratch, you can buy a business that’s already winning government contracts. This option gives you a head start with infrastructure, relationships and, sometimes, existing contracts already in place.
“Just like somebody can buy a food truck or a franchise, you can buy a government contracting business. The SBA loves to lend money to people who are looking to invest in a known entity,” Parks said.
“Instead of creating something from the ground up, why not get an SBA loan and buy an existing government contracting business? There are plenty of government contracting businesses selling for hundreds of thousands to a couple of millions.”
This route is perfect for those who want to step into a contracting business that’s already proven and let the government help finance your purchase.
Support Government Contractors as a Freelancer or VA
You don’t have to win government contracts to make money from them. Thousands of small business owners who do win those contracts need help with everyday tasks, and they’re willing to pay freelancers or virtual assistants.
“People can get paid helping people who are in government contracting,” Parks noted. They can help in areas like recruiting, staffing, and making sure that the person gets paid.”
From virtual assistant work to accounting, project management or proposal writing, government contractors often outsource parts of their operations. If you’re organized and reliable, this can be a smart way to profit off the government indirectly.
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