08 July 2009 | Miller Heiman

Never in the history of sales has the expression “the early bird gets the worm” been more true than when selling to the government. Undoubtedly, many organizations are hovering above these opportunities, waiting for that first glimpse of project funds.

But one of the big unknowns many sales organizations struggle with is the “when” part of the equation. When do you know when the process will begin? It’s not as though there is a flashing, neon sign to tip an organization off: “Get in NOW! Get in NOW.” And there most certainly isn’t an iPhone app that alerts you when agencies begin discussing the possibilities of putting out a bid (or is there?).

But because the potential to secure new business is so alluring in a tightened economy, many organizations are wondering how to get involved in this sector. Old fashioned homework will be the biggest friend to the prospecting sales organization in this case. Researching the rules and regulations of the agency you would like to do business with to find more about their past actions can help highlight critical information. The more robust your understanding of the political and funding situations, the better sense you will have of when a government Request for Proposal (RFP) may be coming down the pipeline.

After this discovery phase, the second step is determining whether your company’s needs relate to and are a good fit for the agency. RFPs can be costly, especially if there is no true chance for winning it. Many organizations will have spent resources like time and money pursuing an RFP without having assessed whether there is a true fit between the company and the possible solutions. With today’s high stakes, failing to determine whether the potential for return on investment exists can be costly.

As Miller Heiman consultant Chuck Moeller notes in the article “Cracking the Code to Winning Government Contracts,” organizations need to learn how to lose fast. “ [It] conserves valuable resources and improves the probability of winning business by focusing on the contracts.”

Just like any opportunity, sales organizations must pursue government business with a strategic plan and a healthy respect for the realities of the situation. Yes, the sale is likely to be more complex (more people in the process, more decision makers to access, more stipulations to follow, and a longer sales cycle), but it isn’t unattainable. It is still a process comprised of tangible people, not an abstract concept of an entity.

As former Miller Heiman sales consultant Rick Beauregard notes in “Pursuing Government Business: Separating Fact from Fiction,” decisions eventually are made by individual human beings. “You can’t limit yourself to addressing the ‘task issues’ or technical issues alone,” he says. “You have to deal with the ‘non task’ issues as well – politics, relationships, internal buying roles and process. Part of getting in early is understanding who has the high degree of influence.”

As in any sale, success will be determined by how well you differentiate your sales organization’s solution from the competitors’. Remember that because of the added complexities, a sales strategy for government selling must start well in advance. With a wealth of knowledge about the agency, you will be better positioned to differentiate your solution within the RFP, illustrating how you are the best partner for the project.

Read more insights on selling to the government in Miller Heiman’s most recent Sales Performance Journal.

Photo credits: accent on eclectic, mark i. geo