Newsletter 1: The Best Offense is a Good Defense
By Richard White

Outsider Perception: The market is impenetrable.

Reality: Entering the federal market is no different than entering a new segment of the commercial market; it just appears mysterious from the outside.

Lesson: Don’t shy away from the federal market. Entering the market can transform your company and it is an effective way to counter a slowing economy.

Background:
The federal market is growing so fast that it’s virtually impossible to determine its size. Experts theorize that between $450 million and $500 million is spent annually.

Do you find yourself asking, “Why did my competition win that big federal contract and not me?” You deserve some of the $500 billion being spent annually so go after it. It isn’t as mysterious as you think.  Succeeding in the federal arena requires a focused effort up front to unravel the red tape and figure out how the game is played.  Consider entering the federal market as a defensive move against a slowing economy. So what if the economy doesn’t slow down? You will have increased sales and strengthened your company. 

Although deciding to tap into the federal market is generally a smart business strategy, companies often shy away from the prospect. The most prevalent reasons for this are:

1. The apprehension concerning the red tape associated with federal work
2. The perception that the market is a closed one dominated by the big players
3. The misconception that if your business is not located in the nation’s capitol, it won’t be successful in the federal game
4. The fear that the federal market is completely different from the commercial market

Most of the reasons outlined above boil down to a lack of understanding of the market or a fear of the unknown. With just a little bit of research and the knowledge gleaned from such research, you may find federal business right in your backyard. From a political standpoint, both Congress and the White House favor small businesses because of their voting power and importance to the economy. Recent legislation enacted by Congress encourages federal installations to purchase from small business owners. Why shouldn’t these customers do business with you?