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As a startup business in the SaaS industry, it can be challenging to get your foot in the door when exploring new markets. One of these types of markets that can be highly profitable if you know how to navigate it properly is the B2G (Business-to-Government) space.
Government organizations are regularly sourcing new solutions to support their scaling infrastructures and add new essential services to the public. SaaS products are typically the first place these entities look to help them achieve this level of growth.
However, as a new startup business, it can be challenging to know where and how to approach these organizations while maximizing your long-term sales potential. Below are some effective strategies you can use to not only increase your government leads but also help you close more sales opportunities.
Get to Know Key Buying Processes
Before you put together a sales pitch and start planning your outreach program, it’s important to recognize that B2G organizations are not the same as typical B2B (Business-to-Business) or B2C (Business-to-Customer) sales scenarios. In fact, the same rules for engaging with and soliciting government organizations are completely different from other sales approaches you may have made in the past.
Government procurement processes are more organized and complex than those in other industries. They use Request for Proposals (RFPs) as their primary method of acquiring new goods and services, and there are formal policies in place on how vendors can submit bids for consideration.
It’s important to do your homework on the agencies you’re looking to work with well in advance, before a sales pitch goes out. This includes understanding all the requirements the entity has for its vendors and the types of products or services they are actually searching for.
Establish Relationships With the Right Individuals
Creating solid relationships ahead of a sales pitch can help you to identify new B2G sales opportunities and give you some additional inside perspective into the type of services an organization is looking for.
For example, by having government contacts in your network, you can reach out to them and gain a better understanding of the type of Records Management Systems (RMS), accounting software, or other SaaS products they currently use. This can provide a clearer understanding of the organization’s overall goals and whether your products would align well with their infrastructure needs.
Even though government organizations work off of strict procurement practices and personal relationships typically don’t have a bearing on their purchasing decisions, this doesn’t mean you can subscribe to their contact feeds and get regularly updated as new bid opportunities open up. The more connected you are with key stakeholders, the higher the likelihood that you’ll be able to gather relevant information that can assist you with your sales efforts going forward.
Focus on Industry Compliance
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Dealing with government entities is very different from dealing with private businesses. Buyers face significant pressure to make sound, ethical decisions when procuring services and often have a strict outline of requirements that must be met before they consider a new vendor.
One of these requirements, especially when procuring SaaS solutions, is digital security measures. If you think about the type of information that government organizations house in their public service applications or Computer-Aided Dispatch (CAD) systems, this only makes sense. There are also numerous laws and regulations in place that mandate government organizations to utilize specific levels of data encryption and advanced security protocols in all their underlying technology. This means your solution needs to meet a certain level of security hardening before it can be considered.
Before taking part in a new RFP, take the time to first evaluate your technology against various security standards or established frameworks to make sure it meets at least the minimum requirements for vendor consideration. Going above and beyond their requirements, however, can demonstrate your dedication to providing safer solutions for both the organization and the local citizens they serve.
Utilize Available Contracting Programs
While waiting for a specific RFP to get released is one way to monitor for new sales opportunities, there are also a variety of specific government contracts or funding programs that you may be eligible to enter.
For example, certain small businesses may apply to the 8(a) Business Development program of the HUBZone (Historically Underutilized Business Zones) program. These are designed to help provide valuable support and guidance to businesses that are focused on supplying the government sector.
Outside of these programs, another great strategy for finding additional sales B2G sales opportunities is to get your business included on a Government-Wide Acquisition Contract (GWAC). These programs prequalify a range of suppliers across all different industries and give them access to ongoing purchasing requests. These programs typically have pre-negotated terms, making the procurement process much easier for everyone while also expediting the implementation timeline.
Build a Good Value Prop
Taxpayer dollars fund government budgets. This is why government organizations typically go through longer purchasing cycles and take their time to justify their vendor selection process. If you want to be a successful SaaS company selling into this market, its critical that you develop a strong value proposition for your products to show buyers they’re worth the investment.
The key to this process is finding out exactly what types of features or services the organizations are looking for. The good thing is that government teams are usually very forthcoming with the specific goals they have for their projects and what they’re looking for in a good partnership.
To make sure you’re addressing all these needs, configure your bids so that they quickly identify the value add for the organization instead of simply listing off a wide range of features. Make sure the information you provide directly addresses their key challenges and shows them how your solution is both cost-effective and performance-driven.
Meeting the Necessary Requirements
Government organizations usually have a long list of requirements you’ll need to meet before being considered. Rather than trying to position your products as something for everyone, a more effective approach is to specialize in specific areas and only reach out to the organizations that have a need for the unique features you offer.
Consider specializing in niches where there is less competition, which lowers the number of RFPs the organization is likely to receive. This gives you more opportunities to help your products stand out and can increase your closing percentages.
Create an Effective Outreach Program
To ensure your business is in front of the right government stakeholders, it is essential to create an effective outreach program. While this may include connecting with new contacts at trade shows or conferences, it can also include more passive methods of outreach, such as when creating and sharing valuable content on your website and social media channels.
Creating insightful industry reports and whitepapers or regularly publishing thought-leadership content on your site is a great way to show potential buyers you have established expertise in your industry.
In addition to content marketing initiatives, you also want to ensure your message is clear and consistent in your pitches. Bring up the key advantages of your solution front and center, and try not to drown your pitch in confusing industry jargon. Keep pitches simple, yet transparent enough to answer key questions.
Create More B2G Opportunities for Your Startup
Selling your SaaS products to government entities can be a great way to kickstart your startup growth, but you’ll need the right approach. By following the strategies discussed, you’ll be able to discover more profitable B2G opportunities and improve your sales success.
Kevin Ruef co-founded 10-8 Systems after exceeding multiple companies’ sales records (both domestically and internationally). With more than a decade in sales, his experience ranges from B2B, B2G, and B2C. Since the company’s start in 2019, Kevin has been responsible for business development, strategic partnerships, and business operations.