subject: 5 Things You Need To Know About Doing Business With The Government [print this page] Billions of contract dollars are offered up every year by the government to provide goods or services that benefit our society. How much of this money will your company receive this year? Will your company win a lucrative government contract or will you be a bystander while your competitors enjoy all the profits? This article will provide you with five things you need to know about doing business with the government. It will help you understand from an insiders perspective, how to tap into this lucrative market and get your share of the winnings.
No.1: Signing up for bid opportunities is not enough
Many companies believe that by getting bid alerts or bid opportunities they can find a government bid that they qualify for. Nothing could be further from the truth. First of all if you are a small business, in most instances you will not immediately qualify for doing business with the government. Companies who take your money to sign up for bid alerts will not tell you this valuable piece of information. There are a few things you need to do as a small business to win a government contract. Many companies sign up for bid alerts year after year and have nothing to show for the money they spend. This money, no matter how little, could have been better spent. If you want to do business with the government, sign up for bid opportunities but use the information to identify the government departments that are looking for services similar to the ones you provide. Download a few of the bids. Get in touch with the purchasing manager. They will not discuss with you the current bid but you can certainly discuss with them the general profile of companies they have worked with in the past to see your weaknesses. Use your valuable time to understand the areas that you need to work on. Especially if you are new to government contracts, you will most likely need a partner company, someone who is a little bit more established than you to help build your credibility.
No. 2: Dont Go It Alone
Many of us entrepreneurs have a country and western view of business. We feel we have to go it alone. When anyone else tries to get too close to our business, we take out our big guns and chase them away. Well, this is greatif you are starring in a Clint Eastwood western; but in the world of doing business with the government, nothing could be more opposite. If you are new to government procurement, you are NOT likely to win a government contract if you go it alone. No matter what politicians say about small business procurement, like it or not, the government is a big bureaucracy that requires services on a massive scale. It is much easier for them to deal with big businesses then small and medium enterprises. This is why there are so many provisions to encourage small business procurement. That said, the larger your outfit appears to be, the greater your capacity and the more likely you are to win the contract. However, only a handful of small and medium business get government contracts. How do they do it? They partner with bigger firms, sometimes as sub-contractors. Sometimes they use large firm branding and they own unique expertise to get through the door. Once they are in, it is much easier for them to stand on their own. My passion in life is to get your business through the door so that the government can see your unique products and services. This is how you are going to grow as a small business and be able to compete effectively.
No. 3: Winning is a Science not an Art
The large companies are in it to win it, while many small and medium enterprises take a shot in the dark at winning a government contract. I am here to tell you that the shot in the dark approach is not the way to go. You need to know that you are among the top 3 companies bidding for a contract before you spend your valuable time and effort. How can you know if you have a chance at winning the contract? Do your research. Talk to the purchasing manager in the government department. Take a look at all the companies that could possibly compete with you. Understand the evaluation criteria and where you may stand out above the others. If you have not done your home work, you are not prepared and will fail. Winning a contract is not about luck but about how much you understand the clients requirement and how you stack up against the others. Why do you think the same people win the same contracts year after year.? Because there is no competition. By carefully taking stock of your competition, the clients requirements and the evaluation criteria, you can have a fairly good idea if your company is in the top 3. This is not guess work, it is science.
No. 4: Leading Edge not Bleeding Edge
Like it or not, the government is not an innovator. This is also true for many large companies who get new ideas from small and medium sized firms who they acquire to keep them agile and growing. So, even if you have the most brilliant ideas that can solve governments biggest problems, stick to tried and true. You are better off making a pitch to a group of venture capitalist then putting these brilliant ideas in your government proposal. Sticking to the tired and true is very difficult for small and medium businesses because the whole nucleolus of your business is innovation. You strive on out of the box thinking and bleeding edge technology. However, the paradox is that you are the complete opposite of the government client you are marketing to. To get their business, you have to appreciate the governments conservative approaches and provide solutions that they know work which will make them comfortable to choose your company. This is all about understanding your customers preferences.
No. 5: Billions of contract dollars are waiting for you.
You are probably aware of the fact that the government is the most stable and lucrative buyer. By winning a government contract, your company will move from small-unknown to medium-well-known in a short space of time. Winning a government contract is the most secure way to grow your business and ensure repeat purchases. That is why the government has what is called a standing offer, to guarantee you a certain level of business. Winning a government contract is also powerful sign to outsiders that your company is competitive on the worldwide scale.
You shy away from doing business with the government because you do not understand all the requirements and think it is a big waste of your time. Is it truly worth the effort? It depends. If you have never done business with the government, you need people to help you through the maze and to assess the requirements to see if you qualify. This will greatly reduce the risk of wasting your valuable time and resources.
I recommend that you take this simple free quiz at At http://www.myproposalmanager.com/client/freereport . It will tell you what you need to get into this lucrative government market. Based on the answers you provide, you will see for yourself how you stack up, so you can make a more informed decision about doing business with the government.
At My Proposal Manager, we understand the challenges small and medium business like yourself face and are here to help you every step of the way. We provide a one-stop shop a full suite of services to get you on the way to winning your government contracts today! Take the free quiz now at http://www.myproposalmanager.com/client/freereport
