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Small Business Success Requires Networking

Large and small companies may differ in many ways, but when it comes to business development they have a lot in common. Whether a firm has 10 employees or 10,000, it must make sure that the program managers and contracting officers know, like, respect and trust them. One of the few ways to achieve this is by researching the agencies well and building relationships with the people who work in them.

William Hamilton, vice president of business development, strategic planning, proposal management and support, Advantage Consulting Incorporated, offers this advice to small companies that want to do business with government organizations. One challenge that technology firms face is that their employees have not developed the skills they need to connect in the human network as well as they have developed their knowledge of bits, bytes, software and hardware. But when small firms plan to improve their business development—not sales—savvy, it’s time to let go of the mouse and shake hands instead. “The line from Field of Dreams, ‘If you build it, they will come,’ doesn’t work,” Hamilton states.

“Government agencies know the companies can do the job, but in business development, they want to know, ‘How well do I know these people?’” Hamilton says. “They want to know, ‘Do I know them? Do I like them? Do I respect them? Do I trust them?’”

Capture management—the art and science of securing a connection with potential clients—presumes that agencies have some basic needs, but they won’t buy from someone they don’t like. “Two things that are very important if you want to win business: making friends and networking,” Hamilton says. Because people naturally seek out commonalities with others, developing business takes a lot of homework and expression of interest, Hamilton explains. Companies must get to know the agencies inside and out, learning as much about the agencies as possible—as much as the people who work there, he asserts.

While much of the research can be done on the Web, Hamilton recommends taking it a step—or even a few steps—further. Many business professionals can gain access to facilities when they demonstrate that they are likeable, deserve respect and can be trusted, he says, and small business personnel should walk the halls of an agency. They should visit offices and observe employees’ interests and tastes. When visiting an agency is not possible, small business personnel need to patronize the places that government workers frequent, including restaurants. In addition, not only joining but more importantly participating in industry associations is a good way to get to know government people and their needs, he suggests.

Although the names have changed over the years, acquisition processes have remained steady, Hamilton says. Program personnel have the requirements and want solutions; contracting specialists are concerned with the process. While the former is in a position to say “yes” to a purchase, the latter may be inclined to say “no.” As a result, it is important that small businesses pursue relationships with both because each has a totally different viewpoint, he notes.

While each government agency has specific requirements, Hamilton has observed several common hot buttons. Government organizations are all interested in best-value contracts. They also seek out professional integrity—companies that can and will do what they say they’ll do. Finally, companies must recognize that no single firm can provide solutions for every government agency’s challenges. Consequently, companies should choose a specific area and become an expert in it, Hamilton recommends.

Hamilton will be one of several experts participating in an AFCEA small business conference in Philadelphia, October 15-16, 2008. The event, titled “Doing Business with the Federal Government: Find the Opportunity, Capture and Close the Sale, Grow the Business,” begins on Wednesday at 5 p.m. with a networking reception. Presentations and a panel discussion will take place on Thursday. Registration is available online.