Small Business Insight: Why Pilot Projects & Phased Contracts Are Your Ticket to Growth in 2025-2026

Right now, many corporate and government buyers are tightening their risk management practices. Economic uncertainty, shifting supply chains, and stricter compliance requirements have made organizations cautious about awarding large, long-term deals upfront.

How can you navigate around this challenge? Pilot projects and phased contracts are becoming a preferred way for buyers to test and build relationships with small businesses. If you know how to position yourself for these opportunities, they can be your stepping stone to bigger wins.

What Are Pilot Projects & Phased Contracts?

A pilot project is essentially a short-term, small-scale contract that allows a buyer to test your services or product in a real-world setting before making a larger commitment. In contrast, a phased contract involves a larger project that is divided into stages, with each phase serving as a proving ground. Your performance in the earlier stages determines whether you move on to the later ones. Both approaches share the same goal: they minimize risk for the buyer while giving your business an invaluable opportunity to demonstrate capability, reliability, and value.

Why This Matters for Small Businesses

1. Lower Barrier to Entry – Buyers who may hesitate to award you a $1M contract might be open to a $50K pilot.

2. Relationship Builder – A successful pilot often leads to renewals, expansions, or multi-year contracts.

3. Proof of Performance – Each completed phase becomes a track record you can showcase in future bids.

4. Cash Flow Management – Smaller, phased payments can help stabilize revenue while scaling capacity.

5. Learning Opportunity – A pilot gives you inside knowledge of how the buyer operates, what matters most, and how to sharpen your proposals.

   
   

How to Position Your Business for Pilot Projects

When positioning your business for pilot projects, it’s important to offer a scalable approach by outlining a clear “start small, scale up” option in your proposals. For example, you might suggest a three-month pilot valued at $25,000, followed by an expanded second phase covering additional regions at $100,000.

Be sure to highlight the low-risk value of this model, showing buyers that a pilot allows them to experience real results before committing larger resources. Once underway, treat the pilot like a showcase and share results through reports, testimonials, and measurable outcomes that prove your impact. At the same time, be intentional about negotiating fair terms; even a small pilot should cover your costs and demonstrate value, so avoid underselling yourself just to secure the initial contract.

Also, always stay ready for scale by ensuring you have the systems, team, and capacity to grow quickly if the pilot transitions into a larger award. This approach not only builds buyer confidence but also positions your business for long-term success.

Case Study:

A small IT services firm in the Midwest recently secured a phased contract with a regional healthcare provider. Instead of bidding on a multi-year, six-figure support deal, the company offered a 90-day pilot to upgrade and manage a small portion of the provider’s system.

By delivering strong results, the firm built trust and expanded into a full system-wide support contract worth nearly $750K over two years. What started as a short-term test became a long-term growth driver.

Final Thought

Right now, buyers are cautious but they’re also looking for innovative, reliable small business partners. Pilot projects and phased contracts lower the barriers for both sides. For small businesses, this is a chance to prove value, build credibility, and secure larger contracts over time. Don’t be afraid to pitch a pilot. It might just be the smartest way to grow your contracts this year.

For help creating your pilot or phased project offer to secure a contract, contact Aventi Enterprises at www.aventienterprises.com or call (614) 528-4138.