Dunn and Bradstreet pulled some industry data for me a couple of years ago to help me prove a point I have been claiming to clients for a while. That is
Few government contracting firms grow revenues consistently.
I knew that intuitively from being in the business for so long, but D&B data shows that only 10% of firms in the industry have 
grown annual revenues past $10 million a year. Obviously many firms are much bigger and are consistent leaders in revenue growth, but the fact remains that the majority of contractors are small businesses and destined to remain that way.
What are the primary growth limiting factors? There are two, based on my experience.
Factor 1 - Its cold outside the Small Business Program: One factor is that once a small business graduates from the set aside world, they have to compete with the big guys, which have tons more resources to maintain their dominant position. Unfortunately, there is no middle ground for government contractors. Either you compete for set asides or for full and open awards. That is a significant limiting factor to growth.
Factor 2 - Firms are good at their business but good at the business: The other reason is that firms are generally very good at what they do, but not very good at the business of consulting. What I mean is that an entrpreneur starts a new firm because of a relationship or a technical credential that gets the initial work to launch the company. Over time the firm solidifies its position with that client and hones an expertise in the business area. As long as that client’s budget is growing or the set of services can be solid to sister offices, the firm grows. However, if that changes many firms lack the marketing and business acquisition expertise to develop new markets. They are good what at they do, but not good at the business of consulting.
So, many or most small firms, as the D&B stats show, have two strikes against them limiting their growth – competition from established large firms once they graduate from the small business program and a lack of experience on how to compete effectively on a larger playing field or diverisy their client base, often requiring a different business acquisiton approach.
You can’t change the first factor limiting your growth but you can successfully address the second factor. If you do you will go a long way to overcoming the first.
One step in that direction is to watch my free 25 minute training video explaining 11 Essential Elements for beating the competition and breaking into new markets and why bid pipeline management is critical to successfully competing on a larger playing field.
If you are interested in more about this topic, let me know and I will blog about it.