The Private Defense Contractor Business Model
The military-industrial complex in the United States includes our armed forces, federal government agencies, and the companies that provide products and services for the armed services. Our government spends billions of dollars each year. Millions of dollars in contracts awarded to independent contractors are announced each day.
A defense contractor is a business organization or individual that provides products or services to a government’s military or intelligence department. Our government outsources labor and services instead of hiring employees to do the work.
Using this business model as an example, particularly for a small business, can be an efficient and productive way to operate a company. You can outsource support, logistics, training, and virtually anything related to any aspect of your business instead of carrying the overhead on a constant basis.
Why Should a Company Use the Private Military Contractor Business Model?
Operating your business like the military-industrial complex provides several benefits. Mimicking the government, you outsource many of your needs instead of hiring employees to perform those services.
For example, you hire a company that provides Human Resource services and payroll services instead of hiring employees to staff an HR Department. Instead of hiring full-time employees to clean your company, you outsource cleaning and maintenance to another company. If you have a large project that requires additional workers, you can use a temporary staffing service instead of spending time and money searching for employees.
Outsourcing reduces overhead while giving the company access to skilled resources it might need without adding permanent positions within the company. It increases efficiency because the company does not need to learn new skills. The company simply needs to hire a contractor who has the knowledge and experience necessary to perform the required service.
Outsourcing also allows a company to start new projects quickly. It could take weeks or months to hire and train new employees for a project. Outsourcing also reduces a company’s risk in many areas because the contractor assumes and manages those risks.
A private military contractor focuses on providing a specific service or product to the government. It is mission-oriented. It fulfills the needs specified in the contract with the government.
The private military contractor focuses on the service or products it provides to the government. If the military contractor needs skills or services that are outside its area of expertise, it outsources those needs just like the federal government. By doing so, the private military contractor provides excellent and pointed service to the customer or client because it is focused on its core task. You can do the same thing by outsourcing your need for services that your company does not provide for clients or customers.
Lastly, make sure that the independent contractor that you use is licensed, where appropriate, and is fully insured.
Do You Need a Coral Springs Business Law Attorney?
Attorney Matthew Fornaro focuses on providing responsive and resourceful business legal services to companies. By focusing his legal practice on business law matters, Matthew has developed considerable skills, experience, knowledge, and resources that benefit his clients when they have a business law matter. Matthew is focused on helping you grow and protect your business.
Call 954-324-3651 or contact us online to schedule an appointment to discuss a business law matter with an experienced Florida business law attorney.