Teams of business development and salespeople can work for years to bring federal government sales to fruition. On any particular day, determining the actual health of the opportunity may be challenging.
Dis-aggregated teams working on numerous prospects at the same time may be isolated within their company and unable to see the big picture.
It can be beneficial to have a simple tool to assist the business development and sales teams in communicating the entirety of their position as the process progresses.
The "sales wheel," which is described below, is one such tool.
There are eight basic elements to federal government sales. A single large object, such as a submarine, or a roll of wire or service could be sold. It doesn't matter; there are eight basic components to every federal sale.
"Need" comes first.
There must be a clear need for the remedy. Typically, a need is identified in the field by agency personnel attempting to carry out a mission in the face of a changing or new reality. The process of communicating a need from the field to the headquarters varies by agency. Sometimes agency decision-makers are unaware of a need, and businesses are the first to notice it. New approaches to employing new technologies may assist those in the field to spot requirements when they occur.
The "solution" comes next.
Businesses may have a solution that meets the requirement of a provider: a product or a service. A solution should, in theory, satisfy all components of the demand: it mitigates or fixes a problem, is readily available, and is reasonably priced.
The word "requirement" comes next on the wheel.
A procedure ensures that the best solution is selected to meet the requirements. Requirements in the federal sale support programs for which funding has been allocated and appropriated. The government recognizes a valid requirement when it comes to resourcing and procurement. There is no responsibility to spend money unless it is absolutely necessary. Business developers devote a significant amount of time to identifying, documenting, and validating requirements with government customers.
"Funding" is crucial.
Only requirements that have been validated are funded. Every agency lives by the old D.C. adage that "if it's not financed, it's not real." Too many salespeople and business developers don't know how to track money through the budgeting process. The budget process is largely transparent, with much of it available on the internet. Whatever one's contact in a program office may have intimated is coming, the budget documents and appropriations legislation spell out reality in black and white. Appropriations that support the expenditure of funds are required for the execution of a transaction.
"Relationships" is another crucial component.
It's not only a matter of who you know. Relationships can be formed and grown by any business development or sales team. Most federal employees confine their commercial contacts too much or rely on social media for their initial outreach. The federal consumer is not a single individual. Instead, it's a slew of individuals with varying degrees of clout throughout the industry, government agencies, and Congress. Knowing and informing those crucial relationships can help business development and federal government sales teams grow a deal by orders of magnitude.
Another important component of the wheel is "support."
Throughout the sales process, relationships can either convey or obstruct support for the item. Relationships with persons who are knowledgeable about the need and the range of solutions with which the proposed solution competes might be beneficial. Relationships that support what the company considers to be its finest solution are the most valuable. The transaction may continue alone on its own merits if there is no support. Recognizing the human dynamics involved in federal government sales, on the other hand, can help a team realize the benefit of investing in relationships, which can lead to specific support that speeds up the sale.
"Capacity" is another spoke on the wheel.
When a company presents the federal government sales with a solution that promises to meet demand, the product or service must perform as advertised at the agreed-upon time and location. Promising a solution for which there is no proven capacity will end a federal partnership very immediately. Teams must be open and honest when discussing new technology or any offer. If something isn't quite ready, it's not a big deal, but the seller must state it clearly. Failure to deliver will have a significant impact on future sales.
Finally, there's the "agreement."
The finest answer for a problem may be right under one's nose and ready to go, but the government will not pay for it without a contract vehicle.
Furthermore, unlike commercial sales, federal government sales are not driven by market forces. The federal sales processes place a premium on fiscal management and include extensive budget and funding processes, which translates into a long sales cycle. The duration of the sales cycle — two to three years in many circumstances — can make it difficult for business development and sales teams to gauge their progress.
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