Identifying your NAICS Codes || Gov Market Accelerator

Hi and welcome back to our channel. Today we will discuss NAICS codes, their importance, and how to identify them for your business. We will also touch upon the significance of size standards. We know that this can feel very overwhelming, but we're here to make it as simple as possible. Let's get started. You may be wondering why NAICS codes are important. NAICS codes play a crucial role in identifying your business type and industry. They are used by government agencies to collect, analyze and publish statistical information about the U.S. economy. Additionally, these codes are essential for businesses seeking government contracts or grants. Proper classification ensures that your business is eligible for the opportunities that it seeks. Imagine you have a huge box of assorted blocks. Each type of block represents a different type of business. Now, you want to organize these blocks to make it easier to find your favorite ones. So you decide to sort them into smaller boxes based on their colors, like yellow, red and blue. This is similar to what the NAICS or the North American Industry Classification System does. It's like a big organizer for all the different types of businesses in the United States, Canada and Mexico. So let's say you have a business that makes bicycles. The NAICS system will give your business a special code that says, hey, this is a business that makes bicycles. This code is used by the government to easily find and categorize businesses. It helps them know what kind of products each business makes or what services they offer.

To find your NAICS codes, you can head on over to the census.gov website, click on NAICS codes and then type.

In a keyword that goes along with your company.

For this example, I'll use Wiring Harness Search and here you can see that it gave me two NAICS codes in their description that match my company. Review these and see if they're accurate and if so, you can add them to your SAM.gov account.

Let's talk about size standards. Size standards are rules that define the maximum size that a business can be in order to qualify as a small business. They are based on things like the number of employees or the annual receipts. These standards are important because small businesses can qualify for certain government benefits, contracts and assistance programs that help them grow. Meeting the NAICS size standards means a business is considered small and you can access special benefits this way. It's a way for smaller companies to have more opportunities and support to compete and succeed in the marketplace. Now let's look at an example. Consider ecobulb, a company that manufactures a special kind of solar powered light bulb. They are making a lot of money, but they only have a few employees. Even with high revenue, they are considered a small business because they meet the NAICS size standards. With their small number of employees, this classification as a small business can help ecobulb get certain benefits from the government.

Before bidding on an opportunity in SAM.gov, it's essential to add the relevant NAICS code to your SAM.gov profile. This is a crucial step because the government uses these codes to identify eligible businesses for different contracts. To do this, log into sam.gov and navigate to your workspace. You will then click on the green symbol above Active Registration and then click on your company name and answer the questions that they give you. Once you get to the Entity Registration information page, you are going to click on I would like to update and renew my entire entity registration. From there you will be able to click Next and then you will be able to make changes to your SAM.gov profile. Please note that it could take a couple of days for them to approve the added NAICS code, so keep that in mind and plan accordingly.

Now let's go over some frequently asked questions about naics. Our first question Can a business have more than one NAICS code? The answer is yes. A business can have multiple NAICS codes if it operates in different industries. For instance, a company that manufactures both automotive parts and electronics may be classified under two different NAICS codes, one for each type of production. The next question is what are NAICS size standards? Remember that NAICS size standards define the maximum size that a business can be to qualify as a small business for government contracts and other federal assistance programs. These standards help small businesses compete for government contracts, ensuring that they are not overshadowed by larger enterprises. You may be wondering how these size standards are determined. Size standards are typically based on average annual receipts or the number of employees that a business has. These criteria help determine the size classification of the business within its NAICS code. For detailed and up to date information about size standards that are matched to NAICS codes, you can visit the U.S. small Business Administration website. This resource provides a comprehensive table of size standards, helping businesses identify their classification and eligibility for government contracts and programs. Another important question is how do I add additional NAICS codes to my SAM.gov profile? This is a common question for businesses registered on SAM.gov, especially those that operate in multiple industries. To add additional NAICS codes to your SAM.gov profile, follow these steps. Log into your SAM.gov account, then you will navigate to your workspace, click on Active Registrations, and then complete the questions that they give you. Click Update and Renew Entire entity from there you will be able to edit your NAICS codes and search on them. Then you will save your changes. Please note that sometimes it takes a couple ofdays for SAM.gov to approve your changes. And that's it for today's guide on identifying your NAICS codes and understanding size standards. Remember the right NAICS code and understanding size standards are crucial for your business. Thank you for watching and don't forget to like, share and subscribe for more helpful videos.