Selling your solution to the Federal Government is akin to climbing Mt. Everest. Here’s why:
- It’s a long, arduous effort with unexpected obstacles that must be overcome before reaching the summit.
- There are many regulations and permits that you need to comply with before succeeding.
- Timing is crucial, especially regarding weather windows.
- A great support system at base camp is essential, advising on weather and provisioning.
- Climbing requires significant financial investment and resources.
- While reaching the summit might seem like the goal, the descent is often dangerous, requiring continued support and focus.
These analogies are directly applicable to doing business with the Federal Government.
- The Federal sell cycle is at least a year, making it an arduous process.
- There are many regulations including FISMA, FedRAMP, and many others that you need to address
- Federal clients spend money at particular times of the year, so timing is a critical factor driving your entry.
- You’ll need a great support system, delivering your product including support from compliance, contracts, and legal, to name a few.
- Recognizing that you need a sales team and the support mentioned above, and a year before the first sale, the ROI is longer than commercial making the investment significant.
- Federal clients generally need continued support after the sale, ensuring that the product is productionalized, otherwise, it could be a potential churn.
Why Federal?
So with all of these challenges why should a startup consider entering the Federal market and how can Sinewave help? It turns out that there are a lot of great reasons for startups to engage the Federal Government including those listed here and there are many ways that Sinewave can help.
- Large and stable customer base: The federal government offers a large and stable customer base, providing software companies with a predictable revenue source. Overcoming the regulatory hurdles creates a competitive moat, making it difficult for competitors to follow.
- Reliable payment terms: The federal government typically pays its bills on time, aiding software companies in managing their cash flow.
- During economic downturns, while commercial companies cut capital expenses, the Federal Government often increases its investments, providing a stable market making the market “Recession Proof”
- High security standards: Federal security requirements are the gold standard. Meeting these standards not only establishes credibility with commercial customers but also ensures compliance with other international standards
- Sense of mission: The Federal Government’s work often involves critical missions, such as rolling out the COVID vaccine, helping veterans receive healthcare, eliminating fraud, and protecting against terror attacks. Contributing to these missions builds pride and motivates your team.
- Reputational benefits: Successfully navigating the Federal market can significantly enhance your company’s reputation. For example, the CIA’s cloud contract greatly boosted AWS’s success and credibility.
- Transparency: The Federal Government often makes strategies, requirements, organizational charts, and contact information public, unlike commercial clients who only disclose legally required information.
How can Sinewave help?
Sinewave has unique expertise in helping startups navigate and succeed in the Federal market. We have assisted companies like Databricks and SentinelOne in establishing their Federal presence. Our team includes former government executives, practitioners, Federal System Integrators, and experts in Federal Go-To-Market strategies.
