What Are NAICS Codes? Beginner’s Guide for Small Businesses

If you’re new to government contracting, you’ve probably heard the term NAICS code tossed around and thought, “What in the world is that?” You’re not alone — most small business owners are confused by it at first.

Here’s the good news: once you understand NAICS codes, you’ll unlock the key to finding the right contracts for your business. This beginner-friendly guide breaks it down so you can stop guessing and start bidding.

NAICS code beginner’s guide for small businesses in government contracting

What is a NAICS Code?

NAICS stands for North American Industry Classification System.

Think of it as the government’s way of labeling industries. Every business activity — from landscaping to IT support — has a specific NAICS code attached to it. When agencies post contracts, they tag them with a NAICS code so vendors know if it’s a fit.

👉 Example: Landscaping services = 561730

👉 Example: Janitorial services = 561720

Why NAICS Codes Matter in GovCon

Your NAICS code isn’t just for show. It impacts:

  • What contracts you can bid on

  • Your small business size standard (decides if you qualify as “small”)

  • How agencies find you in the SAM.gov database

Fun fact: Some contracts are reserved only for small businesses within certain NAICS codes. If you choose the wrong one, you might miss out.

How to Find Your NAICS Code

  • Go to the official NAICS lookup site: https://www.census.gov/naics

  • Search for your business type.

  • Match your services to the closest description.

  • Confirm your primary code when you register in SAM.gov.

💡 Tip: Many businesses qualify for multiple NAICS codes. Don’t limit yourself — add every code that accurately describes your work.

Common Mistakes Small Businesses Make

  • Picking a NAICS code that’s too broad or too narrow.

  • Sticking with only one code when they actually qualify for several.

  • Ignoring the size standard (measured in revenue or employees).

How to Use NAICS Codes to Find Contracts

Once you know your NAICS code, plug it into SAM.gov. That’s how you’ll filter opportunities that match your services.

👉 Example: Searching “561730” in SAM.gov pulls up all the landscaping contracts currently available.

Next Steps

NAICS codes are just step one. Once you have them nailed down, you need to learn how to actually price, bid, and win contracts.

If you’re ready to take the mystery out of GovCon, start with the Navigator Essentials Course — the step-by-step training that shows you how to get set up, find your codes, and start preparing your first bid.

➡️ Click here to join the Essentials Course

Once you know your NAICS code, plug it into SAM.gov to filter opportunities that match your business.

The right code also impacts your proposals — as I explain in 5 Proven Strategies to Write Winning GovCon Proposals.

How to price government contracts without losing profit – GovCon training guide

GovCon LaShawn | Visionary Boss & GovCon Trainer

Founder of GC Plug and Play, helping entrepreneurs and small businesses win government contracts with simple, plug-and-play systems.

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At GC Plug and Play, we help entrepreneurs and small businesses win government contracts with proven, plug-and-play systems.

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