The Importance of B2G Market Research
At Marion Square our mission and focus is helping venture backed, innovative, technology companies win business with the Federal Government. Each of our employees has spent time working for small, venture backed companies and understands that Government contracts can be a great foundation for a business if done correctly. However, pursuing Government work can also be damaging for a business if not done correctly.
In discussions with many of our client and prospect we are are constantly asked "What is the best practice for launching a Government sales program (B2G)?" Is it hiring the right sales rep? Is it getting a GSA schedule or other contract vehicle? Is it signing up the right reseller? While all of these activities play a vital role in the ultimate success of B2G program in our opinion the most important activity to invest in from the start is your market research!! A thorough and detailed market research plan will provide you with the critical information to establish an effective go to market.
The key items your market research should include:
Understanding of the total addressable market for your technology. How many open opportunities are there for your technology? Are agencies buying similar technologies? Are their specific funded programs relying on similar technologies? Are there SBIR's BAA's or other funded opportunities related to your technology?
What specific agencies are buying or have bought similar technologies?
Are there system integrators who are focused in areas where my technology fits? Can we partner with them?
What specific certifications does my product require to be sold into the Government? What is the time and resource investment required for this certification?
Once you have answered these questions, sit back and dispassionately use this market data to answer these key questions:
Is the market for your technology large enough to pursue? Or are we simply pursuing a one off, non-repeatable opportunity?
Is the return for winning these opportunities going to offset the cost of any required investment for certifications?
What agencies and opportunities should we be targeting to get the quickest and greatest return?
Can we find the right resources to effectively help us pursue these opportunities?
Spending the time to truly understand the overall market opportunity and what investments will need to be made to effectively compete for these opportunities is an invaluable process. It ensures you are targeting your resources (which for startups are often times limited) for the quickest and greatest return. Keep in mind that a perfectly acceptable answer coming from your market research could be.....”now is not the time for us to pursue this work, the returns are not worth the resources required”, in which case you’ll be able to avoid the costly mistakes that many companies encounter when jumping into the federal space.