See How You Can Do it Without Becoming a Marketing Whiz or Sales Guru

Doing business with the government is not as tough as it may seem. Surprised? Given the government’s enormous size and complexity, it’s understandable that you would be. But here’s something critical for you to be aware of: The government buys virtually everything imaginable, from thumbtacks to construction for new buildings. In fact, the Small Business Administration (SBA) will tell you that the U.S. government is the world’s largest customer and purchases nearly 200 billion goods and services each year.

“There are over 86,000 governments in the US — counting the Feds as one, each state as one, 3,042 counties, 19,296 municipalities, 16,666 townships, 14,566 school districts, 33,131 special districts, and 512 Native American nations”, says Mark Amtower, author/consultant/radio host, whose 25-year veteran experience of doing business with the government exemplifies the range of opportunities available for you, me, and any other home business enterprise seeking to expand its customer base exponentially.

With all this amazing opportunity, why is it that home businesses are not carving out their own piece of government pie?

Dispelling the Myths

Well, it’s not because you have to be a marketing whiz or sales guru. And it’s not because you don’t have products or services that the government doesn’t need. “So many have heard horror stories about the massive amounts of paperwork required to complete a bid and the long wait to receive payment, that I think too few ever even try to win contracts”, says Marcia Layton Turner, author of The Unofficial Guide to Marketing Your Small Business. “And they’re missing out!” she says. “Often they’re incorrect about the work required to win a bid and the accounts payable cycle, but they don’t bother to investigate on their own”. Does this sound like you? If so, you are among thousands of small business owners whose apprehension comes between them and untapped high-paying government markets. But did you know that many branches of government actively seek small businesses to work with it and that the Federal Government has a law in place which stipulates 25% (as of June 2007) of its purchases must come from small businesses?

Long-standing complaints of complicated paperwork and monotonous red tape are outdated myths. Some people still think that in order to do business with the government, it’s necessary to live in or be close to Washington, D.C. Others believe they must have an inside government connection. Or that having the government as a customer means that it could be years before they get paid. None of these are so.

The Prompt Payment Act (http://www.fms.treas.gov) ensures government invoices are paid timely, usually within thirty days and in some cases even earlier. As far as having personal inside connections, it might help, but with all the checks and balances in place due to previous government scandals, don’t count on it. Instead what you should count on are small business liaisons which are within each government agency. Don’t make the mistake in thinking the government is a single market. It consists of federal agencies, states, cities, counties, towns, boards, and commissions, all geographically dispersed with a wide range of needs for products and services. You only have to go to Washington D.C. if you want to. Finally, paperwork is streamlined because all of the forms and registrations you need to complete are available on the Internet.

So given that common myths are dispelled what are you waiting for? If you find an excuse, know that some other company with similar products or services is gobbling up your slice of the government pie.

Getting Ready For the Big Sell

Before you start pursuing government business, spend time assessing the strengths in your product offering. Follow what I call the basic marketing commandments, and you’ll know what actions you need to take before you attempt to make a sell.

The first marketing commandment is: Know thy product. This is where you identify pain-killing solutions and benefits that your product or service will provide. Be sure to examine your product offerings from the customer’s view point and be able to articulate why what you’re selling is a must have.

Once you’ve assessed your major product strengths initiate commandment two: Know thy customer. Start identifying agencies that need what you’re selling and get to know all that you can about them. Amtower recommends that you start locally and that you limit yourself to two agencies. To get an idea of what agencies you want to target within your geographic reach, get out your phone book and start surfing. “Set up a meeting with the procurement people to understand how they buy what you sell,” suggests Amtower. “Find out who the users and influencers are. Once you do this, your selling process has begun.”

Remember the government buys nearly every product or service you can think of. For example, if you own a vending machine business and there is a veteran hospital nearby, then you could contact the procurement office (P.O.) and find out what company currently provides vending items for that facility and when the current contract will be up for renewal.

 Next, implement marketing commandment three: Know thy competitor. Conduct thorough research so that you not only know what your competitor offers, but what they don’t offer as well. Once you identify these gaps, use them to create in-roads with your procurement contact, keeping in mind that on the other side of that P.O. is a potential customer who is essentially like any other customer prospect. Use common business sense. Don’t shy away from conducting face-to-face meetings, making follow up telephone calls, or sending your best promotional materials. Strive to build a strong relationship that is based on you supplying the best product possible, and manage that relationship well. When the economy shifts and your commercial markets start to dive, the government will still be in business and might very well become your bread and butter.

Working the Registration Process

You’d be amazed by how many free and low-cost resources are available to help you ease through the government purchasing process. Amtower says that among the best are the Procurement Technical Assistance Centers (PTACs). These centers offer training classes such as how to write proposals, provide one-on-one procurement counseling, and give marketing assistance that helps small businesses win contracts in all areas of government. Go here to find out what PTAC services are available in your state http://www.dla.mil/db/procurem.htm.

 The SBA is also a must to explore. If there is an SBA office near you, make a point to visit it frequently and get to know the people who work there. At the SBA web site, you’ll find out what you need to do to ensure your company meets the basic requirements of being a small business (http://sba.gov/services/contractingopportunities/index.html). Follow the links to “services,” “contract opportunities,” “size standards,” and “identifying your business.” Within the site content, you’ll also find information on various contracting methods and numerous links to other critical information, such as the Federal Acquisition Regulation (FAR). Hint: Become very familiar with part 12, because if you provide products instead of services, it’s possible you can alleviate many of the federal contract requirements (http://www.arnet.gov/far/).

You will need to register with other government agencies depending on your business status and the government entity you are trying to sell to. It’s also possible that for very low-cost services or with local governments, registration won’t be required at all. However, it doesn’t hurt to plan ahead. At the very least, register with the Central Contractor Registration (CCR) system, and apply for your Data Universal Numbering System (DUNS) number. Both registrations are necessary should you wish to conduct business with the Federal government. To sign up for your DUNS number, go to http://www.smallbusiness.dnb.com. To register with CCR, go to http://www.ccr.gov. However, before you apply for your DUNS number and register with CCR, you will need to identify how your business is classified within the North American Industry Classification System (NAICS), which can be found on the SBA web site where you determine if you meet the small business requirements.

If your small business is woman-owned or minority-owned, service-disabled or veteran-owned, disadvantaged, or located in a HUBZone (http://www.sba.gov/hubzone/section05b.htm), then you qualify for additional procurement opportunities. A separate Pro-Net registration is no longer required, because registration has been integrated in the CCR system, which makes it easier to register for special status.

How to Find Opportunities

All procurement opportunities exceeding $25,000 are listed on http://www.fedbizopps.gov. Government purchases that fall under $2,500 may not be highly advertised, and agencies may choose to skip advertising altogether and purchase from vendors direct using government-issued credit cards. You can access these opportunities and strengthen your chance of winning repeat business just by being in the right place at the right time with the right product. This proves why networking and establishing strong personal relationships with local key decision makers are critical.

If you have products and services that fall under the $2,500 threshold, be sure you check your city’s commerce journal and other local newspapers, peruse your city government’s web site, or sign up with a subscription bid service such as http://www.governmentbids.com/ to help you aggregate opportunities from multiple sources.

“Most states and especially the federal buying agencies want a good quality product or service at a good priced delivered on time”, says Richard A. Mihalic, Certified Contracting Assistance Specialist. For this reason, the government usually relies on references or previous government experience to narrow their contracting options. This is where PTACs are an excellent resource. However, other options such as subcontracting from a prime government contractor can help small businesses get the experience they need to get their foot in the door and earn sizable income in the process.

You can find subcontracting opportunities by making inquiries to your small business liaison within the government agency you’re targeting. The SBA publishes a subcontracting directory and has commercial market representatives who can match you with prime contractors. Other resources include industry conferences, trade associations, and Internet communities.

If you can convince the government that you have a product they need and you follow the steps in their application process, and then by all means don’t let a first-time experience deter you. When Marcia Layton Turner received her first contract award, she didn’t have any previous experience selling to the government. Her story demonstrates how initiative and following government procedures are key to landing a sale. “A number of years ago, I spotted an opportunity to do some marketing work for an area university within the state government’s jurisdiction. I saw the contract information in the New York Contract Reporter, so I called the purchasing agent and asked for the bid information. I received it and decided it was something I could definitely do. I spent a few hours putting together what I thought was a comprehensive response to their RFP, and I turned it in before the deadline. Imagine my surprise at being told a few weeks later that I was the winner. Since this was one of the first government proposals I’d ever completed, I was curious about what I had done right. So I emailed the purchasing agent to ask if they could give me some feedback to help me be successful on future bids. ‘What did I do better than other bidders, where could I have been stronger,’ etc. —those were the kind of questions I asked. ‘You were the only bidder,’ was the response I got.” HBM

Sonya Carmichael Jones is an independent copywriter, marketing strategist, and success coach for small and home-based businesses. She’s also the author of “The Art of Smart Marketing, what small business owners must know to get customers and sell products. Get your FREE comprehensive list of “Cash Crunch Marketing” tactics by going to www.marketingbuddha.com and clicking on the link to “Cash Crunch Marketing”. Got a marketing question? Send it to sonya@marketingbuddha.com.

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