Increasing Your Company’s Revenue with Government Sales

As the US economy begins to slow throughout the later half of 2022 and into 2023, organizations should consider developing a Government go to market strategy as a way to diversify their sales and reduce the risk of revenue shortfall.

There have been multiple indicators and reports issued over the last few weeks where economists have highlighted the risk of an economic downturn and a potential reduction in spending by commercial businesses for the latter half of 2022 and into 2023.  With the likelihood of a slowdown ever increasing we at Marion Square have been advising our clients to consider increasing the amount of time and resources they plan to invest in Government go to market during FY 2023 which begins in October of this year for the US Government.

The Federal IT and Cyber budget for both DoD and Federal Civilian for FY 2023 has been increased to $133B (for those who were not aware, the US Federal Government is the worlds largest purchaser of software and services). Federal Civilian agencies specifically are seeing an increase in their budgets alone of just over 11% ($65B), which is the largest increase in the past 12 years.  Some of the key areas where Government (both Civilian and DoD) will be spending money in FY2023 include:

• Zero Trust Solutions

• AI/ML

• Cyber Security

In addition to their IT and Cyber budgets, the Government also plans to fully fund their SBIR programs across the 12 participating agencies in FY 2023 ($80M). As we have written in the past, the SBIR program is a great way for small, US based, innovative companies to engage and win contracts with the Government.

Lastly the RDT&E (Research Development Test and Evaluation) budgets for 2023 have also increased. These funds are typically used to engage with and fund companies to develop solutions the Government wants to test, develop, or evaluate, similar to SBIR's these programs are also a great way for a company to engage.

The Government’s FY2023 budget is going through approvals at this time and should be completed and ready to begin funding projects during Q4 of this year. If you have an innovative technology solution and are interested in mitigating some of the risks associated with an economic downturn on your product sales, now is the time to begin putting your go to market together and pursuing FY 2023 Government contracts. Keep in mind that much of the budget Government agencies receive must be spent during the fiscal year it is awarded.

For more information on how Marion Square can help you engage with and win Government contracts please contact us.