When is the best time to start pursuing Government contracts?
When is the best time to start pursuing Government contracts? As soon as possible is the simple answer.
The US Federal Government spends more money on IT than any Fortune 500 company, as proof the FY 21 IT budget exceeded $91B and the FY 22 IT budget is set at $97B. (Welcome to IT Dashboard | IT Dashboard) Unlike most commercial businesses, Governmental agencies are NOT incented to save and return budget dollars, this has in turn created a "use it or lose it" mentality among Government agencies when it comes to spending on IT solutions. Another key stat to keep in mind as you plan your Government strategy, 40% of the Governments IT spend ($38B in FY2022) typically occurs in the months of August and September.
Any organization that hopes to close contracts in the August and September timeframe needs to be developing their sales strategy and targets now!! Having a detailed sales plan with focused, target opportunities and agencies will improve sales efficiency and effectiveness which is critical in winning Government work. Winning Government contracts can be a positive, organizational altering event. However, if Government business is pursued in a haphazard manner it can grind a company down very quickly.
To effectively pursue Government contracts in FY 22 Marion Square advises our clients to:
Start now- don't wait!! Develop your sales plan
Do your research, understand the market, know which agencies are buying technologies similar to mine, are there open and funded solicitations, what is the total addressable market for my technology across Government? Being able to answer these questions will ensure you are not wasting time and resources pursing agencies where no opportunity exists.
Have a contracting strategy- don't wait until an agency wants to buy to develop one, at that time it is usually to late
The opportunity in FY 22 for innovative IT companies within the Federal market is enormous, the key themes to remember are: Start Now and Build a plan that will focus your efforts to ensure you are as efficient and effective as possible.