What are NAICS Codes?
The North American Industry Classification System (NAICS) codes categorize businesses by industry. Government agencies use these codes to identify potential contractors and set aside contracts for small businesses.
How to Select Your Codes
- Identify Your Primary Business Activity: What is your main revenue-generating service or product?
- Review NAICS Code Descriptions: Visit census.gov/naics to find codes matching your business activities
- Select Your Primary Code: Choose the code that best represents your primary business
- Add Secondary Codes: Include additional codes for other significant business activities
Common Mistakes
- Selecting codes that don't match your actual work
- Choosing codes based on desired work rather than current capabilities
- Not updating codes as your business evolves
- Selecting too many or too few codes
Size Standards
Each NAICS code has an associated size standard (usually based on number of employees or annual receipts). Ensure you meet the small business size standard for your primary code to qualify for set-aside opportunities.
Updating Your Codes
Review and update your NAICS codes annually in SAM.gov, especially if your business has expanded into new areas or changed focus.