Selling to the Government

Let's take a look at the numbers: $2.5 trillion per year. $8.49 billion a day. $28.5 million per hour. $475,000 per minute. Almost $8,000 per second. These figures represent the total annual spending of the federal government. If you're not currently doing business with Uncle Sam, some other company -- one that sells the same product or service that you provide -- is getting a nice slice of the government pie.

So why aren't you in business with Uncle Sam? One of the myths that scares companies -- both large and small -- away from doing business with the government is the old "You have to be in DC, and you have to know people." This myth has only been exacerbated by the news surrounding the Jack Abramoff affair and its never-ending aftermath. And while it never hurts to "know people" -- especially those who might buy your product or service -- you certainly don't have to have a lobbyist on your payroll to sell to the government.

Before I tell you just how to sell to the government, however, you need to determine if you really have what it takes to play in the largest market in the world. Here's a short "quiz" that'll help you figure that out.

1. Are you comfortable with long-term sales cycles? Although the federal government would be ranked No. 1 if it qualified for the Fortune 500, and all governments in the United States -- federal, state and local combined -- account for 25% of all domestic spending, the government sales cycle can be slow. For one thing, you'll be competing against some very entrenched companies.

If you sell products (vs. services), the process may be a little quicker, but not by much. This doesn't mean you can't succeed, but it does mean it'll take some time and effort. The government buys every legitimate business product and service available, and there is competition for that business. Successful market entry takes dedication.