Want to land a government contract? Use these 4 commercial tactics

For small business owners eyeing opportunities with the Department of Defense, the journey might seem daunting. But the truth is the process has a lot in common with selling into a major corporation like Netflix or Nike, which many businesses already have in their business plan.

How do I know? I’ve been there — having sold to small, mid-sized and large enterprises in the private sector, and having watched many companies sell into the Navy while at NavalX. Successfully navigating the landscape of government contracts simply requires small businesses to draw parallels to the same strategies they use when selling into large organizations.

Here are four tips on how to use your commercial sales know-how to land a government contract:

1. As with any business deal, relationships are your lifeline.

Building relationships is a universal business principle, and it holds true in government contracts as well. Before taking the leap into the formal deal cycle, involving legal and procurement, it’s essential to establish connections within the organization. Finding an insider advocate who understands your offering and how it connects with an end user can significantly boost your chances of success.

It’s important to note that all government service members, employees and contractors follow strict ethical guidelines, but that doesn’t mean that you can’t build a relationship by showing you are the type of partner the government can feel confident working with.

This isn’t complicated: Professional correspondence, thoughtful engagement and prompt responses all are even more important in government, which — just like large corporations — can be more formal than the usual environment where small companies operate.

2. When targeting government contracts, know your customer.

Adopting an operational approach is key. Large organizations, including government agencies, have intricate processes and structures. Understanding these dynamics is crucial for a successful engagement and recognizing the various stages involved in the government procurement process is critical.

One upside of working with the government when compared to a large company is that there’s a commitment to fairness and transparency — in fact, it’s written in law — that sometimes isn’t present in large companies where budget and process information is seen as confidential or proprietary.

NavalX, for instance, has 18 Tech Bridges in cities such as Philadelphia, Bethesda and Norfolk, Virginia. They serve as technology scouts, local networking hubs, and connection points for small businesses. Use those as a way to learn about working with the government and to help point you in the right direction.

NavalX’s Gray Chynoweth visits Gecko Robotics in Pittsburgh. At his sides are Troy Demmer and Kyler Chrestay. (Courtesy Pittsburgh Technology Council)

3. Companies can reduce risk by starting with a small bite.

Yes, it can sometimes take years to land a large government contract, but there are programs that allow small businesses that have never worked with the government to get a foot in the door and gain experience with both federal grants and contracts. This is similar to winning a smaller project from a commercial entity before later landing the enterprise-wide contract.

The Small Business Innovation Research (SBIR) program awards $4 billion in non-dilutive funding each year for projects needed across 11 federal agencies, including the Department of Defense. In addition to funding, SBIR programs often provide access to resources such as mentorship, networking opportunities, and technical assistance, which can help small businesses grow and succeed.

Winning a SBIR grant or contract does not automatically lead to procurement contracts with government agencies — just as a small project with a commercial entity does not guarantee future follow-on work.

4. Consider multiple strategies and diversification.

Just like selling in any other context, smart businesses will approach the government seeking to build a variety of opportunities, focusing on multiple irons in the fire at once. Diversifying your options increases your chances of finding the right entry point and getting your first deal done.

Taking a “land and expand” approach allows small businesses to start with smaller commitments and gradually grow their footprint within the government sector. As I’ve said in many a sales meeting, for every rich whale hunter, there’s a hundred well-fed fisherman.

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Selling products or services to the DoD may seem like a complex endeavor, but by applying a strategic approach you are familiar with, small businesses can navigate the landscape successfully.

By drawing parallels to selling to large corporations, focusing on relationship-building, and embracing a broad approach and diverse strategies, small businesses can unlock the opportunities they seek in the government contracting space.

Understanding the nuances of the process and leveraging available programs, such as SBIR, can pave the way for innovation and growth in this “double bottom line” market.