If you are like many small, minority and women owned businesses you may be reluctant to defining a niche market for business or limiting yourself to going after contracts of a certain size and scope. Many business owners feel that by carving out a target client profile that they may miss out on other opportunities. The truth of matter is that by carving an ideal client profile for your business you’ll eliminate the endless hours of wasted time and effort of connecting with buyers that are never going to purchase from you. Here are some things you may want to consider:
- Use Procurement Forecasts, Bidder’s Lists, Bid Notification Sites, Contract Vehicles and Corporate Websites: to identify upcoming projects, expiring contracts, budget information and prerequisites to doing business. Make certain that your firm meets the criteria for doing business such as completing vendor responsiblity questionnaires and registrations. Use websites to thoroughly research your targets. We suggest started with five agencies or corporations and expanding as time and resources permit.
- Experience & Past Performance: we know that government buyers and corporations want to do business with experienced contractors. To that end, it’s really important for you to effectively target opportunities that are in alignment with your successful past performance and experience.
- Access to Capital & Cash flow: consider all of the factors involved with brining on a new client. What are the startup expenses? How much money do you need for payroll, travel, equipment and where is that money coming from? Do you have enough cash to float your existing business and a new contract for at least ninety days? Working capital is a key factor in determining capacity.
- Become a Problem Solver: in this competitive market, buyers are moving away from low bid projects in favor of best value solutions. No matter what the industry, we are still seeing government agencies and corporations besieged with a number of issues. Current headlines reflect that many government agencies and corporations are struggling with diversity and inclusion, customer service, sustainability, profitability and cybersecurity just to name a few. What challenge can you help solve? What solutions do you bring to the table? What makes your firm a good business partner?
- Focus on Your Strengths: I recently worked with a Service Disabled Veteran Owned Business (SDVOSB) and created a program that focused exclusively on marketing to local army bases in his geographic area. We already knew that military installations favored (SDVOSB); however by further defining a niche within a particular area of expertise our client was able to bring on a number of smaller projects that increased revenue and provided the required past performance needed to gain access to larger opportunities.
- Ask for More Work: meet with your clients frequently to maintain and strengthen the relationship. Do not be afraid to explore other areas within a particular agency or corporation where your firm could add value. If you are doing a good job, don’t be shy about asking for referrals and references that can help you expand right in your own backyard.
