Business to Government (B2G) Challenges

Many companies are treating B2B and B2G same way. 

Assuming that behavior of public sector should be similar to the one in private is the first error. They often hire sales talent for B2B and make no difference between the two. 

Having worked on the both side of aisle, in public sector and private sector there are some common mistakes I have noticed. 

Companies working around the EU Institutions and EU national governments are having challenging ways of obtaining contracts. Even though the rules and procedures are de iure similar, reality couldn’t be different. Relying on the same set of rules in all Members States would be often wrong. 

What type of sales person to hire?

It is easy, if you have enough of resources to hire individuals with perfect set of skills and experience, network and know how of the products for each institution or geography, go for it. However, this is proven to be impossible. 

Most of the people are covering different institutions and countries. Lack of local knowledge, legal knowledge, funding, contracts, stakeholders can turn your sales person’s task impossible. 

When hiring experts in what you are selling, with basic sales skills and talents the best solution is to outsource someone who can assist your sales person in meeting the right people and facilitating sales. Investing in permanent hires can result in large number of experts that will turn into cost very quickly. 

Government Sales Pitch

Selling any services to another business and to public sector requires different pitch. Sales people often use the same approach and expect a follow up from their stakeholder. Officials will not react to it! There has to be a follow up, and a bottom- up approach of building your case. There will be a public procurement procedure and competing is hard. 

How to use sales pitch with governments to differentiate yourself from others? Three tips:

1.    Don’t use the same pitch as for B2B;

2.    Offer a solution and a long term commitment; 

3.    Be patient!

Government contracts are a long term engagement and can lead to many happy years if played smart. Governments don’t like changes from their suppliers, keep your team stable. 

Don’t expect them to work more than they are used to. Rewards system inside of public sector is not existing, very often extra work is not valued, therefore don’t be surprised when you get a slow reply. 

Answer from the playbook : “You have a great product, but we don’t have resources”. 

Very often it is true and it shuts down doors for sales person forever. However, finding a way to bypass this problem is not easy. Depending on the client and institution, we in B2EU are often asking ourselves how to indicate to governments where to find the money. In the EU and neighboring countries we often allocate potential funding through different EU funding mechanisms. Biggest challenge is to continue conversation after this argument. Sales people that mainly work for B2B are used to certain flexibility, however public sector is transparent. Their budgets are planned and every expenditure is precisely registered. It takes time and effort to enter at the right moment, when public institutions are planning their budgets and donors are preparing their funding. 

Never make a break! 

Pre-sales, sales or “pipeline building” how we like to call it in B2EU is crucial. Many companies are losing focus and putting their actions on hold. Building a pipeline is a non-stop activity. If haven’t done before, first year or two can be difficult, but without losing focus and working hard on fostering built opportunities can bring new contracts. Hiring  consultants can help you to close the gaps. Every year or month of gap means that someone else is doing what you should have and those are mostly your competitors. Time without building means few years of no sales for public sector customers.

For more information don't hesitate to contact the B2EU, the only B2G- Funding and Government Affairs consulting company in Brussels ([email protected])