Hey Contractors - There Is More Than Just Federal Contracting (the "secret" State & Local Market)
Jennifer Schaus, March 2012
Selling to the US Federal Government is tough business. It is long, hard and competitive. There are price wars, insider relationships and MANY other factors that go into the battle. Recent estimates show that it takes about 18 or more months to strike your first deal in the federal sector. It is a cumbersome puzzle that takes some "getting used to".
In my opinion, selling to the government is a great way to mitigate risk and diversify your client portfolio. There are plenty of advantages once you are in, but also other opportunities outside of the federal sector.
I am suprised at how many US Federal government contractors miss the great opportunities to leverage their current success and sell in the state / local government world (and even to the private sector). It doesn't take an ecomonist to figure out the economy is in bad shape, but by planting some seeds now, when things turn around after the election (hopefully) some of your B2B work may pay off.
Additionally, the state and local government market should not be ignored. It is another avenue to consider, thus helping to diversify your clients; a group of buyers in your backyard who have different budgets and fiscal years -- and many who have a budget surplus.
Registering in your state's government Vendor database, plugging in your NAICS code, email address and other required info will get you on the RFP distribution list. This process takes 5 minutes of your time and is worth the minimal investment. This is a great way to get contact information of the state buyers for your sector. *For those in the DC metro area, how can you miss opportunities to contract with the State of Virginia; Fairfax County; Arlington County; State of Maryland; Montgomery County, etc. ?!?!?!? You already know and understand most of the "government" culture and buying process - use your expertise locally!
Two main points on State & Local Government:
1. If you are already a federal vendor it is a great advantage to showcase and leverage your federal success to potential state/local governments. (ie. We completed a similiar project for the FBI or Secret Service, etc.)
2. If you are a prospective federal vendor and have some state and local government contracts, it is an advantage to showcase and leverage this success to the federal buyers. (ie. We completed a similiar project for the State of Colorado, etc.)
3. NOTE: *If you hold any US Federal government contracts (ie. GSA Schedule) many of these can be used by state and local governments as well. Schedule 70 (IT) and Schedule 84 (Security / Law Enforcement) can be used by all States.
Don't miss these opportunities!
So, as you weather the budget cut-backs of the US Federal Government, consider your very own state and local government markets. It is a similiar process, sometimes with shorter sales cycles thus allowing you to capitalize on some quick wins and nice contracts.
I recenty provided "7 REASONS TO CONSIDER STATE & LOCAL GOVERNMENT MARKETS"
http://www.jenniferschaus.com/uploads/7_Reasons_SL.pdf
As far as my own diversification, my business has primarily been focused on working with government contractors. I've expanded my client list through working with small and large firms (Fortune 500's), product and service companies, domestic and international. I've recently diversified into B2B providing marketing content & distribution (via social media) to companies in Europe. Additionally, I'm now working on the side in the B2C market, turning my interest of photography and painting into a business.
Jennifer Schaus
Jennifer Schaus & Associates
Washington, DC - Rome, Italy
http://www.JenniferSchaus.com
Jennifer Schaus, March 2012
Selling to the US Federal Government is tough business. It is long, hard and competitive. There are price wars, insider relationships and MANY other factors that go into the battle. Recent estimates show that it takes about 18 or more months to strike your first deal in the federal sector. It is a cumbersome puzzle that takes some "getting used to".
In my opinion, selling to the government is a great way to mitigate risk and diversify your client portfolio. There are plenty of advantages once you are in, but also other opportunities outside of the federal sector.
I am suprised at how many US Federal government contractors miss the great opportunities to leverage their current success and sell in the state / local government world (and even to the private sector). It doesn't take an ecomonist to figure out the economy is in bad shape, but by planting some seeds now, when things turn around after the election (hopefully) some of your B2B work may pay off.
Additionally, the state and local government market should not be ignored. It is another avenue to consider, thus helping to diversify your clients; a group of buyers in your backyard who have different budgets and fiscal years -- and many who have a budget surplus.
Registering in your state's government Vendor database, plugging in your NAICS code, email address and other required info will get you on the RFP distribution list. This process takes 5 minutes of your time and is worth the minimal investment. This is a great way to get contact information of the state buyers for your sector. *For those in the DC metro area, how can you miss opportunities to contract with the State of Virginia; Fairfax County; Arlington County; State of Maryland; Montgomery County, etc. ?!?!?!? You already know and understand most of the "government" culture and buying process - use your expertise locally!
Two main points on State & Local Government:
1. If you are already a federal vendor it is a great advantage to showcase and leverage your federal success to potential state/local governments. (ie. We completed a similiar project for the FBI or Secret Service, etc.)
2. If you are a prospective federal vendor and have some state and local government contracts, it is an advantage to showcase and leverage this success to the federal buyers. (ie. We completed a similiar project for the State of Colorado, etc.)
3. NOTE: *If you hold any US Federal government contracts (ie. GSA Schedule) many of these can be used by state and local governments as well. Schedule 70 (IT) and Schedule 84 (Security / Law Enforcement) can be used by all States.
Don't miss these opportunities!
So, as you weather the budget cut-backs of the US Federal Government, consider your very own state and local government markets. It is a similiar process, sometimes with shorter sales cycles thus allowing you to capitalize on some quick wins and nice contracts.
I recenty provided "7 REASONS TO CONSIDER STATE & LOCAL GOVERNMENT MARKETS"
http://www.jenniferschaus.com/uploads/7_Reasons_SL.pdf
As far as my own diversification, my business has primarily been focused on working with government contractors. I've expanded my client list through working with small and large firms (Fortune 500's), product and service companies, domestic and international. I've recently diversified into B2B providing marketing content & distribution (via social media) to companies in Europe. Additionally, I'm now working on the side in the B2C market, turning my interest of photography and painting into a business.
Jennifer Schaus
Jennifer Schaus & Associates
Washington, DC - Rome, Italy
http://www.JenniferSchaus.com
Great post Jennifer. There is certainly business to be had in the state and local arena and it certainly helps to have someone who knows a little bit about the culture of local government before diving in. Independent consultant and francophile creative writer.
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