By Judy Bradt

The US federal government will spend over $400 billion this year on goods and services. State and local government contract spending will hit $5 trillion. Those contracts will include commercial and consumer items and professional services as well as highly specialized niche technologies, and everything in between.

If your business is already performing well with your commercial customers, government contracts can drive your business growth…or they can drive you crazy. Knowing what to expect makes all the difference. These five tips suggest whether you’re ready to take on the world’s biggest buyer.

1. Strong Performance Today & Determination For Tomorrow.

Government customers want reliable suppliers with established track records. And successful suppliers are prepared to finance the up-front investment to pursue, win, and then perform government business. Remember, you don’t get paid til after the work is done – so working capital is essential.

2. A Unique Value Proposition – for Government.

Successful vendors know just how to research exactly which government buyers benefit most from what they offer, and craft their marketing campaign precisely to reach those buyers. (Free data, consulting services, and personal networks all help.) Then they create online content and literature to focus on issues and challenges that government buyers face. They can articulate in the buyers’ language how their offering stands apart from the alternative options the buyers have.

3.  Relationship Mastery.

Successful vendors know that when you sell to government, you’re not selling to a process or an order machine. Government buyers do business with people they know and like and trust, people who understand their needs exquisitely well – even when they have to follow complicated rules to do that.  Winners build  formal networks (like creating a connected corporate board of advisers), contribute to specialized industry networks in which their buyers participate, and are alert to the casual perfect connection that a friend or neighbour can bring. 

4.  Focus on the Details.
While relationships are essential to attract the business, governments operate under complex rules that vendors must know. Companies who hold government contracts – whether as a prime contractor or a subcontractor – must be aware of and comply with dozens of precise requirements. Government contracts carry legal obligations that can include workplace regulations and contract administration as well as product specifications or service performance standards.

5.  Value Specialized Help.
Winners are prepared to invest considerable time and money to develop cost-effective and successful government marketing strategies. They pinpoint their prospects, and know how they’re superior to their competitors in every way. That effort includes getting the best insider expertise they can – about opportunities, competition process, and connections. They make the most of free resources, but they understand that the right specialists can dramatically shorten their time to market.

What’s next? Get reading!

• www.sell2usgov.ca
• www.business.gov/topic/Government_Contracting

Judy Bradt, Principal & CEO of Summit Insight LLC of Alexandria VA brings 20 years’ experience helping over 5000 clients land over $200 million in government contracts. She has been covered by Entrepreneur Magazine, Fortune Small Business and ABC Radio, and has just launched “Answers in an Hour”, a new turnkey service for clients who want government contract ideas they can use right away. email: Judy.Bradt@SummitInsight.com Web: www.summitinsight.com Blog: www.sell2usgov.com