Newcomers to government sales may experience culture shock
by Mary Scott Nabers, CEO of Strategic Partnerships, Inc.
Many companies that have never paid any attention to government are now entering the public sector marketplace. Newcomers usually have a significant reality jolt within the first 90 days.
Selling to government bears little resemblance to commercial marketplaces. Everything is different and inexperienced companies usually flounder for many months before realizing just how different the selling process really is.
The state and local government marketplace is where the money is today…but this sector is often the downfall of contractors. It is a slippery slope in the beginning because the rules are all different and the number of jurisdictions is large.
Getting established begins with achieving visibility in public sector marketplaces. This can be accomplished rather quickly but one must know how to do it. It is a crowded environment and other vendors and service providers are not inclined to provide much assistance.
Positioning is accomplished differently. Credibility must be established and networking is truly an art when it comes to meeting public officials. However, in spite of these issues, opportunities for contractors of all types are at an all-time high. The public sector marketplace, in many states, is definitely "the place to be" and wise firms will choose to compete.
The first hurdle to overcome is documentation. To sell to government, a firm must be registered to do business in the state. The paperwork is not difficult if a company understands the process. It will be painfully frustrating though without help…so tenacity is required.
The smartest and quickest route is to hire assistance from others familiar with the environment. Even when a firm has in-house government expertise, local guidance is advised. Locals have relationships already established and can expedite every step of the process.
Consultants, advisors, researchers and political operatives are all eager to provide assistance…but wise firms will carefully evaluate qualifications and decisions about where to find advisors.
The first critical decisions involve selecting a public sector jurisdiction to pursue. In the state and local government sector, there are thousands of jurisdictions and each one has its own regulations, culture and protocol.
The questions to consider go something like this:
- Where is the money?
- Where are the opportunities?
- What governmental jurisdiction has the greatest need for what I have to offer?
- What are the procedures?
- What is the culture?
- Where do I find teaming partners that are well connected?
- How do I get established?
- Who makes the decisions that will impact my offerings?
- How do I get started?
- What obstacles will I encounter?
- Who will I rely on locally to provide some guidance?
A very important step is the careful planning of a go-to-market strategy. From that, a plan will be developed. This, again, is usually best accomplished with local input from well-connected consultants.
Once the strategy is in place, decisions must be made about teaming partners. Billions are set aside for minority firms and it is imperative to understand the allocations and expectations of the public entity about to procure products or services. The objective is to team with well-connected and experienced partners.
Not to be overlooked is the political aspect of the marketplace. While politics should not play a part in procurement decisions, it is still important to understand the political lay of the land in any jurisdiction. Information and data-gathering are key elements of a successful plan to capture new business.
Newcomers to government selling, in spite of the culture shock to be expected in the first 90 days, will find a world of opportunities to pursue. And, many will be highly successful. The best news of all is that selling to government, in any jurisdiction, is 50 percent easier the second time around. Good luck and welcome to my world!
Mary Scott Nabers is president and CEO of Strategic Partnerships, Inc., a 15-year-old procurement consulting and procurement research firm headquartered in Austin, Texas.
