The Top 3 Business Development Challenges from Deltek’s 2019 Clarity GovCon Survey
State, local, and federal government spending has remained steady over the last fiscal year, resulting in strong continued sales, healthy win rates, and a positive outlook for the coming year. As a result, many small- and medium-sized businesses are planning to invest more in their business development efforts to stay competitive.
A more competitive state, local, and federal government contracting environment is just one of the challenges that businesses involved in public sector sales are facing. These challenges – and the initiatives these firms are using to meet them – were included in the Business Development Trends section of the recently-released 10th Annual Deltek Clarity Government Contracting Industry Study.
The Top Business Development Trends
From Deltek’s 10th Annual Clarity Government Contracting Industry Study
Here are the three top business development challenges that respondents to Deltek’s Government Contracting Industry Study mentioned:
- Limited Business Development Resources
For the second year in a row, the top business development challenge cited by companies was a limited pool of resources. 59% of those surveyed mentioned this as a top issue, and more than 20% believe this to be the biggest BD challenge facing their firm.
The businesses that were surveyed mentioned different ways that they planned on addressing this challenge. Some mentioned an “improved sales process and/or systems to improve effectiveness,” while others cited “increased staffing to support sales and business development.”
- Increased Competition
The government contracting market continues to get more competitive, and this is borne out in the survey. A total of 56% of respondents marked an increase in competition as a top challenge, up from 41% last year.
As the report states: “Despite the gains in win rate, large businesses were the most likely to cite increased competition (27%) as their top challenge, compared to 16% for small businesses and 22% for medium businesses.”
- Customers Using Unfamiliar Contract Vehicles
A full 46% of businesses in this survey said that their organization faces the challenge of a customer using a contract vehicle they are not familiar with or that their organization is not affiliated with.
Two of the other top challenges that businesses mentioned that they face were a more restrictive spending environment, and their teams not having enough time to put together high-quality responses for RFPs (request for proposals) and RFIs (request for information).
Although there is no question that government contractors face very real challenges like these every day, the overall outlook for the entire marketplace remains healthy. The survey found that nearly every business in the industry expects total government sales to stay constant or to increase. And to counteract a more competitive marketplace, many businesses are planning to diversify their channels into new federal, state, local, and education markets, often aided by market intelligence tools to help them understand new requirements and contracting programs as well as identify relevant opportunities earlier.
Vendors seeking more information on the state of the market, and looking for insights from their government contracting peers, can find it in the Business Development Trends portion of Deltek’s Clarity report, produced by a team of in-house experts. Readers of this report will discover how much revenue firms are receiving from their government business activities, expectations for the next year in government sales, and the changes in win rates for large, medium and small businesses.
Click on the link to download the Business Development Trends section of Deltek’s 10th Annual Clarity Government Contracting Industry Study today.
- Federal Agencies
- Technology Areas
- GovWin Recon
- State, Local and Education