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What Is a NAICS Code, And Why Your Business Needs One

THE COUVENT COLLECTIVE PBC

• 2 min read
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What Is a NAICS Code, And Why Your Business Needs One

(Especially If You Want Contracts, Certifications, or Funding)

If you’re applying for grants, trying to get certified as a minority-owned business, or signing up on SAM.gov to bid on contracts, you’ve probably been asked for your NAICS code.

And if you’re like most small business owners, you probably Googled it real quick and wondered:
What is this number… and why does everyone keep asking for it?

Let’s break it down in plain language.

What Is a NAICS Code?

NAICS (pronounced “nakes”) stands for North American Industry Classification System.

It’s a 6-digit number used by the U.S. federal government, and many state, local, and corporate agencies, to classify what your business does. Think of it like a category code for your industry.

Whether you’re a medical courier, candle maker, consultant, or clothing brand, there’s a NAICS code for your business type.

Why It Matters

NAICS codes aren’t just for paperwork. They’re essential for:

  • Registering on SAM.gov (required to bid on federal contracts)
  • Getting certified as MBE, WBE, VOSB, 8(a), etc.
  • Applying for grants and small business loans
  • Finding contract opportunities specific to your industry
  • Showing up correctly in business databases and procurement systems

In short: if you want to do business with the government or large institutions, you need the right NAICS code attached to your business.

What Does a NAICS Code Look Like?

Each code is 6 digits long. The digits work like this:

  • First 2 digits: sector (e.g., 48 = Transportation, 31 = Manufacturing)
  • Next 2 digits: industry group
  • Final 2 digits: specific industry

Examples:

  • 492110 – Couriers and Express Delivery Services
  • 325620 – Toilet Preparation Manufacturing (for skincare or cosmetics)
  • 339999 – All Other Miscellaneous Manufacturing (often used by candle makers)
  • 541614 – Process, Physical Distribution, and Logistics Consulting Services

How to Find Your NAICS Code

  1. Go to https://www.naics.com/search
  2. Type in a few keywords related to your business
  3. Review the options and select the one that best matches your core service or product
  4. Save the 6-digit code for your SAM.gov, certifications, grant apps, and capability statement

Pro Tip: You Can Have More Than One

Many businesses operate in multiple industries. For example, you might do:

  • Courier work (492110)
  • Dispatch services (561499)
  • Warehousing (493110)
  • Logistics consulting (541614)

You can list more than one NAICS code on your business profile, just make sure the primary code reflects your main revenue-generating activity.

Where You’ll Be Asked for a NAICS Code

  • SAM.gov
  • SBA lender applications
  • Grant portals
  • Minority and women-owned certification applications
  • Local business certifications
  • Corporate supplier diversity portals
  • Capability statements

If you want to show up in the right places, and be eligible for the right opportunities, you need to know your NAICS code. It’s more than a number. It’s how funders, buyers, and certifiers know exactly what you do.

Any questions, leave them below!