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Best Practices for Small Business Owners to Secure Government Contracts

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Over the past few years, spending cuts along with budget uncertainties forced government agencies to yield on contracts. In January, Congress approved a $1.1 trillion spending bill. With a new budget in place, agencies are starting to spend money again and are looking towards small businesses to help fulfill their contracting goals.

Government contracting can be a lucrative growth opportunity for small business owners as the government buys everything from products to services. However, the process isn’t always easy for first time contractors and business owners often have questions about how to get their foot in the door. A good first step is for small business owners to visit www.USASpending.gov to find out what the federal government is purchasing and which agency is purchasing your product or service.

There are many free resources for small business owners looking to grow their business through government contracting. For example, the American Express OPEN for Government Contracts program offers events and content for small business owners to learn more about procurement opportunities. The program also provides small business owners with direct access to government agencies through one-on-one meetings and targeted agency events.

This year, the government plans to spend approximately $83 billion with small businesses contractors so the time is ripe to get started. Here are a few insider tips and competitive strategies to help small business owners get a leg up on the competition.

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About the Author

Lourdes Martin-RosaLourdes Martin-Rosa is the American Express OPEN Advisor on Government Contracting and has 20 years of experience in the federal procurement arena. She helps small businesses get contract ready and achieve contract success. For more information, visit the American Express OPEN for Government Contracts website.

The customer is stalling. What do I say now?

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A common question…

Jeffrey, When a client says he or she is “still reviewing their options,” I know you say that’s the result of their ability to see the value in my product or service. But how should I respond to this objection without pushing the customer away? Thanks, Gladys

You are correct that the customer has not seen enough value to select you. And, in fact, I don’t believe you are in first position. Otherwise they would have given you more words of encouragement.

When this or any other stall occurs, you have to be prepared to communicate on a more direct level the customer with something that might evoke more truth and more respect.

Before I get down to the specifics, I want to make sure you understand the big picture – the strategy of what to do from 30,000 feet – so you can eventually get down on the ground and get to battle. Battle for the order, battle against your competition, and battle to gain the customer.

Start your thinking here:

  • Ask as much as you dare. Asking questions allows you to gain information that might lead to a sale much quicker than you giving a sales pitch about why you’re the greatest.
  • Blame yourself for their indecision. To the prospective customer you have fallen short of communicating value, even though you’re certain that you’re the best choice. Be prepared with a list of your best value offerings, and ask to meet in person to go over it.
  • Get clarity and clarification of the customer’s present status. When the customer says they’re still considering other options, obviously you need more information in order to determine exactly where you are, and exactly what to do next. The only way to get this information is to ask them directly.
  • Be certain you’re in the top three choices. If you are not number one, number two, or number three on the present list of potential vendors, there is no way to even win this business.
  • What are the options beyond price that are part of the consideration. If price is the only option, you need to know that. If there are other elements that are being factored in the sale (terms, split order, speed of delivery, quality of product, reliable service), you need to know that too.

Now for the nitty-gritty. And keep in mind that the nitty-gritty questions can only be helpful to you if you understand the big picture.

ASK: How will the decision be made?
ASK: Who else are you considering?
ASK: What are the deciding factors?
ASK: What are you hoping for as an outcome?
ASK: What happened the last time you purchased?
ASK: What has the discussion included thus far?

And to further clarify the situation, and give you some real reasons behind this stall, it may be that:

  • They don’t have the money.
  • They believe they can get it cheaper someplace else.
  • They are looking for convenience and you may be too far away.
  • They do not perceive enough value in your product or service.
  • They have a bad past history with you or an existing vendor.
  • They are unsettled as they weigh the risk factors.
  • They do not have the comfort to move forward.
  • They do not like you, have confidence in you, believe in you, or trust you enough to buy from you.
  • They have some other unspoken objection.
  • They have some other unspoken risk.
  • They are unwilling to decide based on their lack of certainty.

“Still shopping around” or “still reviewing options” is not an objection, it’s a stall that means the prospect has not found someone who gives them enough peace of mind, enough value perception, and enough confidence to move forward.

And you thought it was all about price. Shame on you!

Reprinted with permission from Jeffrey H. Gitomer and Buy Gitomer.

About the Author

Jeffrey GitomerJeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at [email protected].

It’s not failure. It’s failure to do your best.

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I’m often asked, “Why do salespeople fail?”

The answer is: They don’t fail.

They fail to be their best. They fail to do their best. They fail to think their best. And they fail to take the best actions to help them succeed.

There are symptoms that allow either a sales leader or the salesperson to recognize that failure is on its way. Most salespeople blame circumstances rather than take responsibility. Blame is its own form of failure. But that’s a story for another day.

I want to talk about the salesperson who’s out there every day, who’s trying to make his or her quota, who’s trying to achieve their sales plan or hit the numbers that were arbitrarily given to him or her by the boss.

Add to that, that most salespeople are both inadequately trained and inadequately supported. Add to that, that the salesperson is generally half-prepared. They prepare in terms of themselves, but very little in terms of the customer.

If you’re reading this and thinking, “Jeffrey this does not apply to me. I prepare, and I hit my quota, and I’m doing pretty well for myself, if I must say so.” My response to that thought is a challenge to you. After reading this list, self-evaluate your present circumstance related to each symptom – it might give you some insight that can lead to additional income.

Even if you’re hitting your numbers, even if you believe you’re well prepared, here are 11.5 symptoms of why most salespeople hit a wall, and can’t climb above it:

Symptom 1. Your inability to set an initial appointment with the real decision maker.
Symptom 2. Beyond price, your inability to uncover the real buying motive of the customer.
Symptom 3. Believing that competition forces price reduction.
Symptom 4. Shallow relationships that force both proposals and bidding.
Symptom 5. Poor social media participation that results in low or no personal branding and low or no personal reputation.
Symptom 6. Poor follow-up after the initial meeting or initial sales meeting.
Symptom 7. Long sales cycle based on presentations to low-level decision makers.
Symptom 8. Prospects going dark or disappearing after the first sales presentation.
Symptom 9. Prospects not returning your phone calls.
Symptom 10. Blaming inside circumstances for the loss of a customer.
Symptom 11. Blaming customers and prospects for the loss of a sale.
Symptom 11.5 Failure to take responsibility for the circumstances you create.

I find it most interesting that when salespeople face one of these 11.5 situations, they rarely (if ever) take responsibility for creating them. If customers are not returning your calls, there has to be a pretty good reason. Rather than blame the customer, why not find out ‘why’ the customer isn’t returning your call. The answer to that ‘why’ will get all your calls returned.

If you are continually fighting price, it’s obvious you haven’t proven value. It’s obvious that the customer perceives little or no difference between you and a competitive product.

Salespeople in general, probably including you, need to take more control of the selling situation, by creating definitive next steps. If you give a proposal, and you don’t have a firm appointment at a given time to reconnect, then you will chase that prospect and almost seem desperate to get a next meeting.

Here are a few things you can do that will help your prospective customers decide to buy:

1. Prepare in terms of them, not just you. The customer must perceive that there is a value in doing business with you, rather than your competition. Customers only want to know how they win. Focus on ownership, and focus on outcome after purchase as you’re making your presentation. Too many salespeople focus on what it “is” rather than what it “does” after the customer takes possession.

2. Prove it, don’t just say it. It amazes me how many salespeople do not use testimonials. Video proof of everything you claim so that a prospective customer can feel comfort can eliminate the feeling of risk and justify value over price – all based on the words of other customers.

2.5 Be there after the sale to prove your worth and earn a referral. The biggest lost opportunity in any relationship is the absence of the salesperson after the sale has taken place. Help the customer install. Help the customer get started. Help the customer understand and take advantage of “best use.” Transfer your wisdom, transfer your experience, transfer all your help, and the result will be an earned referral (not an “asked for” one).

Stop worrying about failing, and start offering value…

  • At your highest and best level
  • With your highest and best effort
  • With your highest and best preparation
  • With the emotional passion that becomes transferable to a point where the customer will buy from you.

This represents harder work than you’re used to, but it sure beats losing the sale.

Reprinted with permission from Jeffrey H. Gitomer and Buy Gitomer.

About the Author

Jeffrey GitomerJeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at [email protected].

Three Ways to Overcome Your Fear of Making Prospecting Calls

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Feeling happy and fulfilled at work is essential to our overall success. Many sales people are required to make proactive prospecting calls, and it can be one of the most intimidating aspects of their job. However, having the fear of making the call is nothing to be embarrassed about. In fact, Shannon Goodson and George Dudley reported in their book Psychology of Sales Call Reluctance that 80 percent of new salespeople fail because of call reluctance, while 40 percent of veteran sales people stop prospecting because of it.

If you experience Sales Call Reluctance, you know that it can ruin how you feel about your job and it fills you with an instant sense of dread every time you go to pick up the phone. If you feel like this, you are experiencing one of the 12 types of Sales Call Reluctance. Not only can this affect your ability to succeed at your job, but it can also affect your overall sense of career satisfaction and fulfillment.

Unfortunately, our culture tends to stereotype salespeople in a negative way. Some people think of the sleazy over the top salesperson and this could not be further from the truth. The truth is that sales is a very noble profession and requires a specific set of skills. A good sales force is often the most important factor behind a company’s growth and success.

A surprising fact is that the number one carriers of Sales Call Reluctance are sales managers, sales trainers, and motivational speakers. This is not to say that everyone in this group carries sale call reluctance but you would surprised how easily this group can negatively influence those they are meant to inspire. For example, in a training a sales manager says, “We all know people hate talking to sales people” or “Get out and sell, but don’t be a salesperson!” They are instilling Role Rejection Sales Call Reluctance from the very beginning and fostering a sense of shame about selling. Role Rejection is highly contagious and the managers can be contaminating the very people they intend to inspire. We see this consistently within companies.

Here are three basic tips to overcoming your fear of making prospecting calls:

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About the Author

Connie KadanskyConnie Kadansky is a professional certified Sales Call Reluctance coach and President of Exceptional Sales Performance. She offers speaking, training, coaching and performance improvement services specifically addressing Sales Call Reluctance. She has a proven track record with diverse businesses, from entrepreneurs to Fortune 50 companies, both nationally and internationally. She credits her current status as a speaker to her longtime involvement with Toastmasters International and the National Speakers Association. Connie is a graduate of one of the most respected and accredited coaching schools, Adler School of Professional Coaching. She served as Vice President of Programs for the Phoenix Chapter of International Coaching Federation in 2011. For more information, please visit www.exceptionalsales.com.

The questions that matter most in a sales presentation.

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When you’re giving your sales presentation, do you really know what the customer is thinking or what they’re asking themselves as you’re presenting?

I doubt it. You’re too busy trying to sell.

Shake the hand. Smile the smile. Show the slides. Talk the talk. Do the demo. Ask the superficial questions. Try the close. Try to overcome, “the price is too high.” Propose the proposal. Do the sales dance.

Meanwhile the customer is thinking. He or she is asking themself questions about the validity of your product and your offer. They’re thinking about how your stuff might fit into their company. And while you’re talking they may be Googling.

While you are trying to prove a point, they are trying to verify your information. And in these times, they can do it in a nanosecond. And you can’t stop them.

While you’re talking, they may be wondering if you have a Twitter account. So they do a quick search and find out that you do not. What’s that about? How validating is that? If they ask you about it, you’ll just brush it off. Suppose the customer is exceptionally Twitter active? How does that make you look?

That’s a small ‘tip of the iceberg’ example of the thoughts that differentiate your sales presentation from the customer’s decision to buy. But let me take it deeper.

All customers, not just the decision maker, have a buying process. It’s a strategy and a process by which they make a purchase. And that purchase is based around the trust, safety, and comfort your customer feels when buying something from you.

In order to gain that trust, and that feeling of safety, they asked themselves a bunch of questions without ever saying a word. You answer those questions by the words you speak. Your job as a master salesperson is to answer those silent questions in a manner that drives the customer to say, “I’ll take it!”

The following list of questions is exactly what goes through the mind of a prospective customer during your presentation. The list is long, and every customer may not ask themselves every one of these questions, but since you don’t know specifically which ones they are going to ask themselves, you better be prepared with answers to all of them.

Here are the questions the prospective customer is asking:

  • What do you offer?
  • What do you offer that no one else has?
  • What do you offer of value?
  • How does your product compare to others I have seen?
  • Does it really fill my need?
  • Can you deliver?
  • Is it real-world?
  • Will it work?
  • Will it work in our environment?
  • How will it impact our people?
  • How could it impact our success?
  • Will senior or executive management buy in?
  • Will my people use it?
  • How will we produce as a result of the purchase?
  • How will we profit as a result of the purchase?
  • How will it come together?
  • How do we buy it?
  • What’s the risk factor in buying?
  • Will you and your company keep its promises?
  • Do I trust you and the people I’m buying from, both as humans and their ability to deliver service after purchase?
  • Will you be my main contact after purchase or are you going to relegate me to ‘the service department?’
  • Do I believe you?
  • Do I have confidence in you?
  • Are you telling me the truth?
  • Do I have the trust and comfort to buy now?

HOLY COW! All that?
YES! All that and more!

This list of questions is by far the most comprehensive I have put together. They address both confidence in product and confidence in the salesperson.

The customer is seeking validation and wants to believe you. They need what you have and they’re going to buy what you offer. The only question is: From who? Depending on the answers to the above questions, they may not buy from you. OUCH!

Here are a few more thought-provoking challenges to help you understand the buying process:

1. The first sale that’s made is the salesperson. If the prospect doesn’t buy you, he’s not going to buy your product or service.
2. How’s your online reputation? What’s your Google ranking and reputation? NOT YOUR COMPANY. YOU!
3. What’s your social media reputation? Not Tweeting is a choice, but a poor one. How about LinkedIn? Do you have a business Facebook page?
4. Did you offer proof? Did you use ‘voice-of-customer’ as testimonial proof to your claims?
4.5 Does the buyer have enough peace of mind to purchase?

I have just given you a mind full of sales information, from the mind of the only person that matters in your sales conversations: the customer.

Reprinted with permission from Jeffrey H. Gitomer and Buy Gitomer.

About the Author

Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at [email protected].