Why GovCon

Introduction

The government buys more than any other institution in the US and arguably in the world. Do I want the government as a customer? How do I win contracts? Can I really succeed in the world of GovCon? Like most things, the answer is yes, if…

Let’s look at the pros and cons.

PRO

  • $500M market – $100M spending with small businesses
  • You will be paid – so long as you have delivered
  • Based on processes that are uniformly applied – meaning that relationships have less impact on what wins (notice I said less impact – not no impact)
  • More transparency on decision process
  • Prestige – bragging rights
  • Longevity and stability – contracts are often long term
  • Size – contract values are often large and can provide a steady source of revenue 
  • Specific market requiring skills many won’t take time to develop

CONS

  • Rules – lots of them
  • You will be paid – but it may take a while
  • Government is risk adverse – meaning you need to make sure your prospect knows you
  • Rules make It hard to actually get to know your prospect- you need a vast network
  • Savvy competitors and prospects have a variety of legal ways to get around the common buying processes that were designed to be fair to all 
  • LONG sales cycles – plan on at least a year to your first big win
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  • Good service does not guarantee loyalty -competition rules hinder this
  • Fiercely competitive marketplace

Conclusion

Making the decision to do business with the government or not should be made carefully. If after reviewing this list of pros and cons, you still want to provide your services to to the government, consider scheduling a call with me to discuss your situation. 855-357-3330

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