My answer to It seems all small business owners hate regulations? Is there any merit to their concerns? Are regulat…
Answer by Ken Larson:
Many small businesses decide not to enter federal government contracting because of the requirements of the Federal Acquisition Regulation (FAR) and the Associated Cost Accounting Standards (CAS).
Those who do enter the field assess the impact of FAR and CAS on their company educate themselves on what directly affects the firm and then make the transition to federal government contracting and growing into the field.
They maximize existing business processes and systems first before making changes and do not jump to instant fixes with exotic software tools a supplier or consultant has told them will make them compliant or competitive overnight in government contracting.
FAR and CAS are generally logical bodies of regulation that have come about due to the need to control and make consistent the government and industry approaches to meeting prudent and sound contracting objectives with the necessary transparency to govern.
FAR and CAS do not impose business systems. They do require that you disclose the way you meet regulatory requirements in the way you operate with your processes and tools. Companies must plan the approach and learn to convey it to auditors, contracting officers and industry partners.
Successful small businesses grow into the business by exploring the venue and having it grow into them.