Five Ways to Get a Government Buyer's Attention
By Gary M. Beckert, Government Contracting Consultant
GM Beckert & Associates, Inc.
Introduction
This article was initially written by Mr. Beckert for the Government Contracting Assistance Team (GCAT) a leading resource network for government vendors.
No one can afford to waste time and money on marketing and sales. Believe me, I have helped hundreds of businesses sell to the federal government, and it can be very successful - for the people that understand the game and follow the basic rules. Most of the rules are common sense, but in this article you might find a few useful tidbits that will help you. Helping business is what the Government Contracting Assistance Team (GCAT) is all about.
Although government contracting people have different roles in procurement, the buyer is the key player for most small businesses. So, let's look at five ways to help improve your government sales.
Are you ready? OK, then, here are Gary's Five Basic Rules for working with government buyers.
1. Be Prepared
What do you do? Perhaps the worst thing you can say to a government buyer is "I can do anything". It shows that you are unfocused and a little desperate. Try to find a focus and start with that. Yes, it is good to be versatile, but you need to understand what the buyer is looking for. A buyer needs to classify you in some way. Only meet with buyers who buy your offerings. You can usually find out from the Small Business Specialist at the federal agency or the prime contractor.
Are you a start-up or established business? Buyers like to hire companies with a track record. And yes, I know what you are thinking - how in the heck do I get a track record with no experience? Start with the "low hanging fruit" - small jobs and subcontracts. Get a feel for the nature of the work and build up your personal business network. Keep track of accomplishments and build your business portfolio. Don't go for contracts that are over your head, start with something you know will be successful if you get it. Take small bites and let them nourish your business.
Plan, and know that it will cost time and money. In my opinion, you don't need a formal business plan to get started. There are many businesses out there that are running without a plan. But if you want to grow, to play with the big dogs, you will have to have a plan for growth, contingencies, and success. The SBA provides a lot of web support for business planning, and the groups in Central Florida such as the Service Core of Retired Executives (SCORE) are excellent places to learn how to plan. The Small Business Development Center (SBDC) provides classes for business planning taught by real-world professionals. The GCAT team also helps businesses by serving as a referral center for all aspects of government contracting.
2. Know Your Buyers and How to find them
Once you know who you are, find out who the buyers are! In this article we'll talk about the types of buyers that buy "off the shelf" products, services, and labor. They could buy any quantity at any time, and from a lot of different sources - hopefully you.
There are thousands of government buyers who are "Indefinite Delivery, Indefinite Quantity" (IDIQ) buyers. An IDIQ buyer is basically, "Someone with a credit card who is not afraid to use it". GSA buyers fall into that class.
There are thousands of GSA and government IDIQ buyers and your job is to find the buyer that buys your stuff. It sounds obvious, but many companies waste time and money talking to the wrong people, so let's take a look at a typical organization.
You need to understand the roles of the players in this game. The buyer has the credit card and is your marketing goal. To find the buyer, typically you will locate the agency or organization you want to talk to, and then go through the Small Business Utilization Office. Talk to the Small Business Specialist (or Small Business Liaison Officer) and let them know who you are. If they buy your stuff, they will normally get you in contact with the buyer(s).
Once you get in contact with a buyer, maintain polite professional contact. All sales are based upon trust and establishing good relationships. Be nice to the buyers.
3. Use Resources
You definitely need to use the Internet to find information about buyers, the market, competitors, and other information.
You can find the names of Small Business Specialists by contacting the Small Business Utilization office at the organization. For example, to contact the Air Force, you can go to http://www.selltoairforce.org. There are far too many links to list here, so to locate Small Business Utilization resources, simply Google "Small Business Utilization". Look for sites ending in ".gov".
To understand the federal contracting market, use www.fedbizopps.gov to look for larger solicitations. You can search for open solicitations, pre-solicitation notices, "sources sought" notices and much more. Spend some time looking around. And note that at the end of every solicitation document is the name and contact information for a government contracting office or buyer. If they buy your stuff, contact them even if you don't want to bid on the current opportunity.
To get a handle on the IDIQ market, the GSA Advantage web site is a treasure trove. Go to www.gsaadvantage.gov. Search on your products or services, search your competitors. Do you need help figuring out pricing? Look at the prices listed on GSA - these are from direct competitors who have a GSA Schedule. You can see where you stand, and it will help you with pricing.
4. Market Effectively
There is much more to this subject that can be covered in an article, but I'll try to point out the absolute essentials. Remember that marketing is enticing a customer to be interested in your offerings. Once the customer has an interest, the selling process closes the deal.
A key tool in government contracting is the Capabilities Statement. For IDIQ type buyers, this is a one to two page document. Yes, many small business counselors recommend a 1-page document. This Capabilities Statement is essentially "bait" to get the buyer to contact you. It must be clean, easy to use, and have your contact information clearly visible. PowerPoint works well to create a Capabilities Statement. You should include this information on your statement:
· Company Name, Telephone, Address - at top, big and bold
· Company Information Numbers: DUN & Bradstreet Number, Central Contractor Registry (CCR) Cage Code; certifications, quality standards, and so on.
· Core Competencies
· Past Performance
· Differentiators
Make sure your Central Contractor Registry (CCR) Profile is as good as it can be. CCR is a free and easy government registration service, which is required for almost all government contractors. You can go to http://www.ccr.gov to check it out and register. If you have questions or get stuck with CCR, contact someone from GCAT and we will be happy to help! You can also locate potential teammates and/or competitors on CCR for some market research.
The CCR Profile can make the difference between a sale and no contact at all. That is, if your CCR Profile is weak or poor, your phone will never ring and you won't know what the problem is. Make sure that the "Capabilities Statement" is as good as it can be, since it the first thing potential buyers see. Also, make sure that your "NAICS" codes are accurate and represent your business. (NAICS codes are six-digit numbers that pertain to your business. For example, the NAICS code for software programming services is 541511.)
Make your web site easy to use. Once again, we are talking about "bait" to get the buyer to contact you. You don't need many pages, sound or animation, just a clean easy to understand web site that encourages a buyer to contact you. A professional design is worth the expense.
How do you keep in contact with potential buyers without bugging them? Be systematic, persistent, and polite in your marketing. Be systematic: Know when you have contacted them last and what went on. Make notes, and arrange a time to call them back. Contacting them more often than every two weeks may be too much, but it depends on the buyer. Be persistent: Without bugging them, you need to be persistent enough to be thought of when an opportunity comes. Be Polite: Phone calls can be intrusive, but are necessary at times. Email is a good way to stay in touch, and you can also use the new Facebook or Constant Contact types of software to maintain a social network of business contacts.
Count on marketing expenses. Without time and money you won't sell much to the government. Ideally, you need to meet in person with the buyers. Yes, email is wonderful, but remember that sales are built on trusting relationships. I believe a real handshake is just the way to start a good business relationship, so try and meet your buyers at least once. Trade shows are a very good way to meet with buyers. In Central Florida there are several government contracting trade shows each year. You can buy a booth or simply show up to the trade show to network.
5. Maintain Trusting Relationships
As I mentioned before, Sales are built upon trust and relationships. Not only does a customer keep coming back, but they recommend you to others. In government contracting reputation means almost everything, and word gets around on who is trustworthy and can be relied upon.
Ask your buyer or potential buyer how (and how often) they want to be contacted. Some buyers like the telephone and others prefer email. Still others use social networking software such as Constant Contact and Facebook.
Never show up unannounced to see buyer. You would be surprised at how many people simply wander into a buyer's office and expect to get an hour of time. Buyers are very busy and of course, part of a trusting relationship is simple courtesy. Make an appointment and keep it. Don't ask for a lot of time, and above all, never complain about the government or bad-mouth competitors.
In summary
Government sales itself is not magic, but it does revolve around people and the magic of trusting relationships. You have been reading about government IDIQ buyers and how to locate, impress, and make sales to them.
Know what it is you do, and be able to articulate it clearly when asked. Contact just the buyers who buy your stuff; to get in the door, talk to the Small Business Specialists at your local military base, government agency, or prime contractor. Use the Internet effectively to find information, register with government entities, and market to buyers. Internet business is here to stay, so get on board.
Make a time and money commitment to market effectively. The whole objective of marketing is to generate an interest in you. Make sure your CCR Profile, web site, and Capabilities Statement are as good as they can be. Finally, maintain good relationships with buyers and peers by keeping polite, professional contact.
I hope that I have helped you a little, and of course you can contact any GCAT member if you have further questions. Thank you for your valuable time, very best regards, and good luck!
Gary Beckert, President
GM Beckert & Associates, Inc.
(321) 724-9875
www.GMBeckert.com
