by Judy Bradt – CEO of Summit Insight
Thinking of going after government contracts to grow your business? But worried about how long people say it takes to win? With good reason — on both counts. Many savvy business owners with a great track record in the commercial market get really wary when it comes to government work. Any time you try to get started, it seems like nothing but a big runaround with nothing to show for it. Some of your friends seem to get it…but what do they know that you don’t know?
A 2010 survey of 1508 small businesses who were actively pursuing government contracts revealed that they took an average of almost 20 months to win their first federal contract. Even more sobering: they estimated they spent an average of $86,124 in cash and sweat equity a year on the way to that win. Upside: the average contract win among those surveyed was
$375,000. Downside: there’s no guarantee that if you spend the time and the money, you get the business.
How can you beat those odds? Just by being at MED Week and other networking events, you’re already working on lowering your cost and time to succeed. Here’s five ways that experienced contractors cut the runaround and make a beeline for the business.
Strategic Fit
Is selling to government aligned with your plans to grow your company? Be in the market for the right reason, and get the working capital to invest in 18-24 months of effort before you
see a return. If you aren’t willing to dedicate the time and money to researching your prospects and creating a good plan that’s focused on your best opportunities, you’re setting yourself up to get distracted by every other conference or trade show or event, running everywhere, including running out of money with no results to show for it.
Focus on your Sweet Spot
Don’t get distracted by the idea of some huge government contract you’d like to win. How big a project or order could you deliver today? What’s your perfect customer like today? The job
or the order is profitable, you did it well, the customer thinks so too…and shows it by paying you on time, coming back for more, and sending her friends. How big is that contract — dollar value? Number of people? Where is it located? Within 100 miles of your office? East of the Mississippi? Mid-Atlantic? Worldwide? How long does the contract run?
Pinpoint the Need
What problem do you solve for today’s perfect customer? Lower employee turnover? Go “Green”? Comply with a mandatory requirement? Lower operating costs? Improve performance or service? Now, which government departments need to solve problems most like that, and at the scale of your sweet spot project or order? Pick no more than three. You’ll see why in a minute. For now remember that government buyers, just like your commercial customers, buy goods and services because they help to serve citizens and deliver their missions.
Get Ahead of FedBiz Opps
You’ve heard of FedBizOpps — www.fbo.gov — the official web site where all federal contract opportunities worth more than $25,000 must be publicized. You might also have heard people say that by time it’s on FedBizOpps, it’s too late. While that’s not always true… it’s a pretty good bet. Instead, once you’ve chosen your three largest agencies, check out www.usaspending.gov, and see which vendors your prospects are buying from, and, most importantly, when those contracts expire. Look for contracts expiring 12-18 months from now. Get to know those buyers long before the next solicitation comes out , find out what they don’t like about the incumbent, and start getting them excited about how you can do a better job!
Start Small
Did you know? A government buyer can purchase from you right now, sole source, no questions asked, if the invoice is under $3,000 — the Micro-Purchase threshold. Not only do you get paid right away by credit card, but you also rack up that priceless thing: Past Performance. Suddenly you have a track record with that agency that opens doors to more. Find out more about Micro-Purchases, and the other fast track to sales between $3,000 and $150,000 — Simplified Acquisition — in the Federal Acquisition Regulations.
About the Author
Judy Bradt , CEO of Summit Insight in Washington DC, makes government contracts easier — with expertise and service for established companies seeking more success as well as business owners new to government. Expert speaker, author and consultant, Judy was just named SBA 2011 Women in Business Champion. Find out more at www.summitinsight.com, and check out her new book and companion strategy workbook, Government Contracts Made Easier. Save 15% when you order from www.governmentcontractsmadeeasier.com — just use the code RZ9XS67D
