How To Grow Your Government Sales

So how are we doing it? Glad you asked. Here are my thoughts on the areas you will need to master. They are the secrets to Govplace's success.

Distributor partnerships: Distributors have programs and personnel for VARs' use. We leverage all programs available, including financing, GSA Agent programs and contract assistance. You should use them as an extension of your own staff. Choose a primary distributor that has a team who understands government business and treats it as a partnership. When it comes to financing, the wonderful part about government is that it always pays; the challenge is that it rarely pays on time. Distribution knows this and offers 60-day financing, sometimes even 90-day financing, depending on the opportunity. It's essential to manage cash flow carefully, so make sure to leverage that financing.

And don't be afraid to pass up on the 3 percent margin opportunity you have with the Air Force because more business is right around the corner. Most distributors will help you manage contracts. Ingram Micro, for example, has a GSA Access program that allows resellers to be set up as a participating agent, use GSA contracts awarded to, say, Govplace, then sell directly to the government and purchase through Ingram Micro. They also have a book called the Quick Start Guide To Government Business, which gives valuable information about government agencies, statistics and contacts that's free for the asking.

Manufacturer partnerships: As a VAR pursuing government business, manufacturers will look to partner with you. Choose your partners carefully, and make sure they have well-developed programs and high margins. Also, make sure your team understands the technology and solutions represented.

After you have selected the right partnerships, share your information with the manufacturer and keep them updated about your activity. Be honest if you are in an account with a competitor--they'll appreciate it in the long run. And remember that a one-way street doesn't last long; you should present opportunities to manufacturers as well. Because if you aren't, your competition is.

Most manufacturers have robust marketing budgets and will share in trade shows and direct marketing. Major product distributors such as CDW-G focus on receiving 2 percent of total revenue as manufacturer-gifted marketing funds; that represents a large number.

VAR partnerships: Mastering all technologies is impossible in this space. The government specifically recommends teaming--and for good reason. So build a portfolio of trusted specialty VARs to compete effectively with the large contractors, such as CSC, Northrop Grumman and SAIC.

Contractors can be your competitors and, sometimes, your partners. In many cases, they are the prime contractor you will encounter in any given account. Find out their strategies and goals, then try to help them. By understanding their needs and helping them look good in front of your mutual end user, credibility grows quickly. In addition, try to find out the politics and rules to abide by in the account. In many cases, the prime contractor can only recommend a solution, but doesn't have the people to offer the solution themselves. CSC would much rather see your company get this business than one of its prime competitors.

Teaming also gives you the chance to surround yourself with other VARs you know and trust. It's better to know the company you are working with than have the government pair you with a firm that might try to steal your business the first chance it gets.

Contracts: Learn what agency contracts are out there. Most of the large contractors conveniently list them on their Web sites. If they are publicly traded, get on their SEC filing list--they usually like to boast about an award.

Every government agency uses contracts in one way or another, and they will always expire. Some contracts remain open--like GSA contracts, allowing for applicants at any time. Stay on top of these. Other contracts, such as the Department of Health and Human Services' National Institutes of Health's Information Technology Acquisition and Assessment Center Electronic Commodity Store III contract, are bid only once every 10 years. So if you miss it, you'll have to wait or partner with a current prime contractor.

In many cases, the primes are in a rush at the time a solicitation comes out and are too busy, or don't have the resources, to find the best partners. They always, however, seem to be open to hear about a new company to assess whether it might be a good fit for their organization.

Once a contract is awarded to your company, provide internal resources or outsource the management of the contract, if necessary. It is critical that you don't default on a government contract, because it can prevent your organization from receiving future contracts from most government agencies for five years.

Focus and sell: Don't try to be everything to everyone. Promote the technologies in which your company excels, then partner for the rest. It is better to establish a reputation as a company that is the best in a vertical than to become known as a run-of-the-mill reseller that does everything.

In addition, focus your efforts to specific government entities. Learn details about them--where their funding comes from, who their decision-makers are, and what their purchasing limitations and procedures are. There is no secret or easy way to get all that information. The small-business office won't do much more than offer a few words of encouragement and provide a few contacts that might no longer work at the location.

In order to find out the information you need to qualify with and work for an agency, just start with the Internet and pick up the phone. Once you have some contacts, build deep relationships. Personally visit them. Most federal agencies hold an open house or a small technology trade show once or twice a year. Participate in those forums, and use them as a good opportunity to meet your contacts.

Sean Burke ([email protected]) is president of Govplace in Goleta, Calif.