{"id":1588,"date":"2022-10-17T13:47:57","date_gmt":"2022-10-17T17:47:57","guid":{"rendered":"https:\/\/www.peaksalesrecruiting.comblog\/selling-to-government-101\/"},"modified":"2022-10-13T19:37:43","modified_gmt":"2022-10-13T19:37:43","slug":"selling-to-government-101","status":"publish","type":"post","link":"https:\/\/www.peaksalesrecruiting.com\/blog\/selling-to-government-101\/","title":{"rendered":"Selling to Government 101"},"content":{"rendered":"<div class=\"et-l et-l--post\">\n<div class=\"et_builder_inner_content et_pb_gutters3\">\n<div class=\"et_pb_section et_pb_section_2 et_section_regular\">\n<div class=\"et_pb_row et_pb_row_0\">\n<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_0 et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_text et_pb_text_0 et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><span style=\"font-weight: 400;\">Government departments and entities represent one of the most significant sales opportunities. In fiscal 2021, the US federal government spent about $637 billion on contracts. It\u2019s not all going to defense either \u2013 $250 billion in contract spending came from civilian agencies. When you add in state and local government procurement spending, it\u2019s no surprise that some businesses have dedicated government or public sector sales teams.<\/span><\/p>\n<h3><strong>Step 1: Assess whether government sales fit with your sales strategy first.<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">If your company\u2019s sales force is accustomed to working with small businesses, enterprises, or consumers, adjusting to government customers is a significant change. Before you invest the time and effort required to succeed in government sales, assess if this opportunity is relevant to your department with the following self-assessment questions.<\/span><\/p>\n<ul>\n<li aria-level=\"1\" style=\"font-weight: 400;\"><strong>Is your company based in the United States?<\/strong><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">While not a formal requirement in every case, US-based companies often have an advantage in selling to the US government. There is a similar \u201chome team\u201d advantage for other levels of government (e.g., it\u2019s probably easier to sell to the California government if your company has a presence in the Golden State).<\/span><\/p>\n<ul>\n<li aria-level=\"1\" style=\"font-weight: 400;\"><strong>Are you comfortable with increasing your sales cycle time in the short term?<\/strong><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The government procurement process is known for its relatively slow speed. It\u2019s not uncommon for purchases to take months. In addition, there is often significant upfront work effort required to search, analyze and respond to RFPs (i.e., requests for proposals).<\/span><\/p>\n<ul>\n<li aria-level=\"1\" style=\"font-weight: 400;\"><strong>Does your company have the administrative capacity for government customers?<\/strong><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The number of forms, reports and other administrators involved in serving public sector buyers is considerable. Think carefully about how you will handle this burden. If this workload falls on the sales team, their productivity will fall.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At this point, it should be clear that selling to government buyers is no good quick fit for a revenue shortfall. However, a patient sales force has the potential to earn significant returns. If you\u2019re committed to further exploring the government sales opportunity, let\u2019s continue.<\/span><\/p>\n<h3><strong>Step 2: Understand the different types of government buyers<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">While government buyers have some similarities in mindset and process, there are significant nuances. Let\u2019s consider a few ways to look at potential government buyers.\u00a0<\/span><\/p>\n<p><strong>Level of government<\/strong><\/p>\n<ul>\n<li aria-level=\"1\" style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The national government represents the largest sales opportunity. The federal government may be the most complex opportunity. A significant portion of federal spending on contractors goes to defense spending.\u00a0<\/span><\/li>\n<li aria-level=\"1\" style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">State. The following US state governments have an annual budget over $100 billion: California, New York, Ohio, Virginia, Texas, Washington, Oregon, and Florida. Whether you\u2019re concerned with infrastructure projects, education, or healthcare, the states represent a significant opportunity.<\/span><\/li>\n<li aria-level=\"1\" style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Local. There are tens of thousands of local government entities in the US including large cities and counties. These governments need technology, employees, training, and many other services.\u00a0<\/span><\/li>\n<\/ul>\n<p><strong>Specialized government agencies<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s also helpful to consider if a particular government entity has specialized rules, regulations, or goals that may impact its buying process.<\/span><\/p>\n<ul>\n<li aria-level=\"1\" style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Defense.<\/strong> The Defense department is the largest buyer of goods and services. Despite the challenges associated with defense sales, Amazon and Google have faced struggles from their employees related to their defense work.\u00a0<\/span><\/li>\n<li aria-level=\"1\" style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Regulatory Agencies.<\/strong> The US has over 80 active nuclear power plants, and the Nuclear Regulatory Commission regulates these. Such organizations may have technical concerns regarding risk management and safety.\u00a0<\/span><\/li>\n<li aria-level=\"1\" style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Travel and Logistics.<\/strong> Whether you look at airports or ports, these heavily used facilities all need support from vendors.<\/span><\/li>\n<\/ul>\n<h3><strong>Step 3: Research the sales process.<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">There are formal and informal strategies to prepare your sales team for the sales process. Use both of these methods to give your sales team the best advantage.\u00a0<\/span><\/p>\n<p><strong>Formal research.<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Government websites offer a wealth of information to educate vendors on business opportunities and the selling process. As a starting point, visit SAM.gov. This federal website is an excellent resource \u2013 you can also sign up to receive updates.<\/span><\/p>\n<p><strong>Informal research.<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Simply meeting the formal requirements is not enough to succeed. Informal research is your opportunity to use your networking skills to find out more. Set a goal to speak with 5-10 companies that are currently successfully selling to government agencies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your sales team\u2019s effort in researching how government buyers work will pay off in the next step.<\/span><\/p>\n<h3><strong>Step 4: Complete the proposal\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">In this step, your sales team will prepare a detailed response to the government\u2019s requirements. Attention to detail is critically important because government procurement documents are highly detailed. When you first start government sales, it may take multiple proposals and presentations to make progress.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The insights you discover through networking will also help you to identify which opportunities are worth your time.<\/span><\/p>\n<h3><strong>Step 5: Manage and grow the account<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">In government sales, there is considerable upfront investment in time and effort to win a contract. Once you have the account, it\u2019s vital to look for ways to grow the account over time. Fortunately, you can use the same growth strategies that you would use for most more prominent organizations.<\/span><\/p>\n<p><strong>Here are some ways to grow a government account over time.<\/strong><\/p>\n<ul>\n<li aria-level=\"1\" style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Software companies commonly use this sales strategy. You start by selling licenses to a single department. Once that department succeeds, look for ways to expand.<\/span><\/li>\n<li aria-level=\"1\" style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Monitor Political Priorities. Long-term success in government sales requires paying attention to politics. For example, recent legislation like the Inflation Reduction Act of 2022 focuses on climate change, among other points. Acting quickly to take advantage of new programs like this is essential.<\/span><\/li>\n<li aria-level=\"1\" style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Become a thought leader in government. Over the long term, seek out ways to get in front of more government buyers at events. For example, look at the <\/span><a href=\"https:\/\/events.govtech.com\/Illinois-Digital-Government-Summit.html\" rel=\"noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">Illinois Digital Government Summit<\/span><\/a><span style=\"font-weight: 400;\"> speakers (i.e., leaders from Amazon, Google, and government agencies). Developing speaker presentation ideas and pitching your company to event organizers is one of the best ways to leverage your current government accounts and win more business.<\/span><\/li>\n<\/ul>\n<h3><strong>How To Put Your Government Sales Program On The Fast Track<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Developing competence in government sales takes time. One way to achieve results faster is to bring in sales talent with a successful track record in government sales. Contact Peak Sales Recruiting today to discuss your sales growth goals. Peak\u2019s success in helping businesses focused on the government sector includes helping <\/span><a href=\"https:\/\/www.peaksalesrecruiting.com\/blog\/4-successful-account-executivesplaced-at-mach-speed-for-govspend-1-saas-government-data-aggregator\/\"><span style=\"font-weight: 400;\">GovSpend recruit four successful Account Executives<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Please visit our <a href=\"https:\/\/www.peaksalesrecruiting.com\/blog\/\">Blog<\/a> section for further information.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><!-- relpost-thumb-wrapper --><\/p>\n<div class=\"relpost-thumb-wrapper\"><!-- filter-class --><\/p>\n<div class=\"relpost-thumb-container\">\n<h3>Related posts<\/h3>\n<div style=\"clear: both\"><\/div>\n<div style=\"clear: both\"><\/div>\n<p><!-- relpost-block-container --><\/p>\n<div class=\"relpost-block-container\"><a class=\"relpost-block-single\" href=\"https:\/\/www.peaksalesrecruiting.com\/blog\/boosting-sales-team-morale\/\"><\/p>\n<div class=\"relpost-custom-block-single\" style=\"width: 150px; height: 215px;\">\n<div aria-label=\"sales morale\" class=\"relpost-block-single-image\" role=\"img\" style=\"background: transparent url(https:\/\/g9d6c5a5.rocketcdn.me\/wp-content\/uploads\/2020\/04\/How-to-Motivate-Your-Team-when-No-one-is-Buying-150x150.jpg) no-repeat scroll 0% 0%; width: 150px; height: 150px;\"><\/div>\n<div class=\"relpost-block-single-text\" style=\"font-family: ProximaNova, sans-serif;;  font-size: 15px;  color: #6eba57;\">Boosting Sales Team Morale When No One is Buying<\/div>\n<\/div>\n<p><\/a><a class=\"relpost-block-single\" href=\"https:\/\/www.peaksalesrecruiting.com\/blog\/3-prospecting-issues-that-should-keep-you-up-at-night\/\"><\/p>\n<div class=\"relpost-custom-block-single\" style=\"width: 150px; height: 215px;\">\n<div aria-label=\"Sleepless Salesperson\" class=\"relpost-block-single-image\" role=\"img\" style=\"background: transparent url(https:\/\/g9d6c5a5.rocketcdn.me\/wp-content\/uploads\/2019\/05\/Sleepless-Salesperson-150x150.jpg) no-repeat scroll 0% 0%; 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December 27, 2023<\/span> <\/li>\n<li> <a href=\"https:\/\/www.peaksalesrecruiting.com\/blog\/7-offer-stage-mistakes\/\">Don\u2019t Make These 7 Offer Stage Mistakes<\/a><span> &#8211; December 19, 2023<\/span> <\/li>\n<li> <a href=\"https:\/\/www.peaksalesrecruiting.com\/blog\/sales-leadership-qualities\/\">Mastering Sales Management: 8 Sales Leadership Qualities Required for Success<\/a><span> &#8211; December 15, 2023<\/span> <\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<\/div>\n<p><span class=\"et_social_bottom_trigger\"><\/span> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Government departments and entities represent one of the most significant sales opportunities. In fiscal 2021, the US federal government spent about $637 billion on contracts. It\u2019s not all going to defense either \u2013 $250 billion in contract spending came from civilian agencies. When you add in state and local government procurement spending, it\u2019s no surprise<\/p>\n<div><a class=\"text-primary mt-2\" href=\"https:\/\/www.peaksalesrecruiting.com\/blog\/selling-to-government-101\/\">&#8230;continue reading <span class=\"sr-only\">&#8220;Selling to Government 101&#8221;<\/span><\/a><\/div>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"limit_modified_date":"","last_modified_date":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[15],"tags":[],"class_list":["post-1588","post","type-post","status-publish","format-standard","hentry","category-sales-management"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/posts\/1588"}],"collection":[{"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/comments?post=1588"}],"version-history":[{"count":0,"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/posts\/1588\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/media?parent=1588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/categories?post=1588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/tags?post=1588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}