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Picking the right NAICS codes

NAICS stands for North American Industry Classification System. It is a six-digit code that says what kind of work your business does. The federal government uses it to decide which businesses can compete for which contracts. Pick the wrong codes and you will see the wrong opportunities.

Steps

  1. From Settings, open My Business Profile.

  2. In the "What does your business do?" field, write three to five sentences in plain English. Example: "We do custom software development for state and local governments. We focus on civic apps for transit and parks. We have done six contracts in the last three years."

  3. Click Suggest NAICS codes. The system will read your description and suggest three to five codes.

[screenshot of NAICS suggestion panel]

  1. For each suggested code, read the title and the typical work it covers. Keep the ones that fit. Remove the ones that do not.

  2. If a code you know you need is not suggested, search the NAICS catalog by typing the code or a keyword in the search box.

  3. Click Save my codes.

How to pick the right ones

Pick three to five codes that match: - One primary that matches your most recent win - One or two adjacent that match work you have done in the last three years - One or two stretch codes that match where you are growing, but only if you have a credible story for them

Do not pick more than five. A small business with twenty NAICS codes looks unfocused and federal evaluators notice.

What to do if it does not work

If the suggester does not return anything, your description may be too vague or too short. Add more detail and try again. "Software" is too vague. "Custom Python web applications for state government transit agencies" is specific enough.

If you are unsure whether a code fits, ask your PTAC or APEX Accelerator counselor. They will know the codes other businesses in your specialty have picked.

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