Businesses just beginning their government contracting journey are entering a complex, competitive market that rewards those who invest in strategic, proactive sales methods.
This article explains how to start selling to the government, which types of governments you can target to grow your public sector sales, and strategies to help your business succeed in government contracting.
How to Start Selling to the Government
Contracting with government entities is not like working with just any other customer. While the numerous regulations and layers of bureaucracy can be daunting, the opportunity that comes with selling to the government can be highly profitable.
Follow these five steps to get started in selling to the government as a beginner.
- Identify the market: Are you selling to governments in the U.S. or Canada? Are you targeting larger federal government contracting opportunities or smaller, more localized bids and RFPs? You'll also want to research the competition to understand how their offerings stack up.
- Understand the buyer: Different government entities have different needs. Some governments operate on different fiscal-year buying cycles and may be more likely to purchase your products or services at specific times of year. Make sure you figure this buying cycle into your planning.
- Know your value proposition: It's good to be able to explain to governments how past customers benefited from your product or service. It's even better if you can share this in a way that aligns with the problems the government is trying to solve by seeking public vendors.
- Follow the rules and regulations: Just like selling to the public sector, there are many rules and regulations to follow as a government contractor. Make sure to stay up to date on which certifications you need, which qualifications your business has, and know how to remain in compliance.
- Pursue government contracting opportunities: Once you are registered to do business and understand the market and your offerings, you can now start beginning to find government contracting opportunities. Build up your strategy over time and consider following these best practices in order to win more government contracts.
Free Guide
Grow Your Public Sector Sales
Discover five best practices that can help your business develop a winning public sector sales strategy.
U.S. Government Contracting for Beginners
Selling to the government in the U.S. can look very different depending on the level of government you are targeting. Whether it is the federal government, a state, or a local government, businesses will need to take a tailored approach to give themselves the best chance of winning government contracts that can boost their public-sector sales revenue.
U.S. Federal Government Contracting for Beginners
The U.S. federal government is divided into 15 different executive departments, along with hundreds of federal agencies and commissions, all of which have needs for products and services. These federal government entities support various government initiatives and improvements, such as building critical infrastructure, developing cybersecurity, and providing valuable health and welfare services.
The keys to succeed in this area of public sector sales are finding federal government contracts that fit your business, identifying your target market, and searching for government contracts that map to your industry and core competencies – all of which give you the best chance to increase your federal government public sector sales.
Free Guide
Federal Contracting 101
To build a strong foundation, start with the Federal Contracting 101 Guide—a free, practical resource that walks you through the basics of registration, opportunity search, and proposal preparation in today’s evolving market.
State and Local Government Contracting for Beginners
State and local governments in the U.S (sometimes referred to as SLED in government contracting) are smaller individually than the federal government, but they can offer large amounts of potential revenue. Selling to state and local government entities can be challenging if you don't know how to approach the market or present your product or service effectively. But since state and local governments spend more than a trillion dollars every year, devoting time and energy to building a SLED market business plan – and investing in the tools and resources you need to make this possible – is well worth the effort.
Successful companies in this sector understand the competition, develop relationships with the governments they want to sell to, and effectively leverage data to choose which opportunities to bid on – and develop a winning proposal.
Free Guide
State & Local Contracting 101
The SLED contracting market is full of opportunity. Discover how your business can succeed in selling to SLED government agencies across the country.
Canadian Government Contracting for Beginners
Many businesses that are new to selling to the government might not be aware of the opportunity to win Canadian government contracts. The market in Canada is one that is worthwhile but not without challenges, as U.S.-based businesses have often been challenged to maximize growth when serving Canada's public sector market – largely due to the fragmented nature of public sector spending across federal, provincial, and municipal levels of government.
By understanding the unique landscape that is Canada public sector sales and identifying which agencies are purchasing the products and services that your business offers, you can get a leg up in this increasingly valuable market and give your firm the best chance to win government contracts in Canada.
Free Guide
Canadian Government Contracting 101
Discover how your business can get started and expand its sales to federal, provincial, territorial and municipal agencies across the Canadian public sector.
Next Steps to Government Contracting Success
Succeeding in selling to the government is not easy – especially for beginners – but the rewards can be highly valuable. Businesses that master these steps can diversify their income streams by developing a winning public-sector sales strategy.
If you're ready to begin entering the government contracting market, you might also be ready to consider GovWin IQ, the leading market intelligence platform that provides up-to-the-minute government contracting information and early notice of upcoming opportunities.
