It may be easier to do the state government contracts first to get used to doing them, get certified and arrange your accounting and other business practices to

It may be easier to do the state government contracts first to get used to doing them, get certified and arrange your accounting and other business practices to conform to government regulations. If you just contract in your current state you can grow very quickly, especially if it is for information technology, business management, cyber or physical security related services. If you have a strong state presence it will be easier for the federal government to validate you for consideration for federal contracts. The best thing about doing the state contracts is if you see another contractor did a shoddy job you can bid for the work that is required to fix it (roads, buildings, computer systems, etc.) next time you are at your local courthouse or any government building ask them how things are running. If you hear complaints, there is a good chance that there is a contract out to get things fixed that you can bid on. The smaller the agency/government unit the faster the contract will normally be awarded (city->county->state->federal), though the bigger the agency normally the bigger the requirements. If you have a nice bit of successful state contracts it should help you build up enough liquid money that is required to bid on the more lucrative government contracts (some require 1,000,000 in liquid cash to qualify) so you can pay employees even if you get a stop work order from the COTR. Best way to get big is to start small and build a solid foundation and become a company that all levels of government can trust.