Selling to the Government
By Tim Linker

Selling to the government, whether local, state or federal, can be a great way to grow and expand your company. Government entities buy all types of goods and services. From frozen peas to satellites, if a company sells a product, the government likely buys it. In Fiscal Year 2002, the federal government appropriated over $250 billion dollars for goods and services. So, how do you get started? 

Before a company begins to sell to the government, it is imperative that it have its own business in order. Elements that are critical for success in the private sector are no less important in selling to the government. In fact, due to the standards of public accountability and trust, they could be considered more crucial.  By having your company correctly positioned, you can be assured that you will be recognized as a responsible bidder. What are these essential elements? 

First and foremost, a solid business plan is a must. The government wants to see that you have a plan for your company and that you have thoroughly thought out how to achieve your goals. There are numerous parts to a business plan; however, there are two areas of particular importance to government purchasers. You should be able to demonstrate that you have a well-organized record-keeping and accounting system, as well as the financial solvency to handle any contract awarded to your company. As in any endeavor, you must show accountability. The worst position for a company to be in is not being able to perform acceptably after winning a contract. A second key area is performance history. It is generally accepted that government, at any level, will want to see at least a two-year performance history. This allows the contracting officer to make sure that your company can provide goods and services on time, within budget and meet the necessary specifications.

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