Governments across the world award contracts worth billions each year. Although these contracts harbour a lot of opportunities, launching and growing a B2G startup is not everyone.
This is because the tendering process can take several months to complete. This is not a happy position to be in for bootstrapped startups.
Also, government agencies tend to favour businesses that have prior experience working on government projects. Because of this trait of the government agencies, startups have a tough time negotiating with them.
Listed below are some tips that can come handy for a business-to-government (B2G) startup.
Getting registered on all the relevant registries
It is important that the startups intending to collaborate with the government need to be on the sites where the latest job tenders are floated. Being included here provides one with a much-needed advantage over competitors who are not listed. This is especially useful if the startup is a minority or woman-owned enterprise. Such businesses are favored by government agencies for certain projects, and being listed in the registry helps one stand out from the competition.
Subcontracts
Like any client, government agencies prefer hiring a contractor with whom they have the highest chance of success. Prior experience on government projects can thus be a tremendous advantage while bidding on agency projects.
To overcome this glitch, a startup can partner with other contractors on their government projects. Subcontracting is extremely common in B2G projects. It’s easier to secure a subcontracting project than winning one directly from the government agency.
It is, however, worth pointing out that subcontracting is not nearly as profitable as winning a project from the government agency. Subcontracting on government projects is thus a good strategy to build a portfolio that you may use to bid on future projects.
One can also gain experience on government projects as an employee of an organization that does this.
Establishing credibility outside
To establish credibility with the government agencies, one does not always need to work with them. Working on projects of public interest can help, too. An organization looking to work on public school projects may pursue private schools for similar projects. This gives them experience and credibility to bid on similar projects. While this strategy may not solely be adequate to help win government projects, they establish the legitimacy through the vetting process.
Making cold calls
Cold outreach is often frowned upon. Yet, it can be an extremely effective strategy in pursuing government projects. The trick here is to target the right agency at the right time.
These few simple tips can help a budding B2G startup make the right decisions and tread the path to success.
Also Read: These Are A Few Simple Tips That Can Help Increase One’s Productivity
