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The U.S. Government is the biggest consumer in the world, spending an estimated $2.5 trillion in 2006 according to research and data company Global Insight. As such, the government provides huge opportunities for big and small businesses alike.
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However, the sheer size of the government and its levels – federal, state
and local -- highlight the importance of developing a focused strategy of
selling to the government. You need to first determine what you want to
sell, and to whom. Whether you are bidding for the street cleaning contract
from a local government in mid-West, offering translation services to the
Department of State or selling new technology to the Department of Defense,
the key challenge will learning how to negotiate with the bureaucrats in the
government agencies and branches in order to advance your business
interests.
The book “Seven Secrets for Negotiating with Government: How to Deal with
Local, State, National or Foreign Governments” by Jeswald W. Salacuse
(January 12, 2008, AMACOM Books) offers some important tips when negotiating
with the government:
- Small businesses need to learn and understand the numerous political
and legal powers and constraints the government faces when negotiating
with suppliers. For example, the government derives its power from their
monopoly position as well as their role as defenders or the public
interest or welfare. The government, however, is constrained by
pressures from their constituents as well as the rules they must follow
in negotiations.
- Conduct extensive pre-negotiation preparation. This step includes
information gathering, preparation of strategies and planning tactics.
You need to think of the actions you need to take before actual
negotiations with those you need to deal with in the government start.
- Develop productive relationships with your counterparts in the
government and supportive alliances with their constituents and others
that may influence your counterparts.
- Find the right branch, the right department and the right person
that you need to deal with. If the function is decentralized, there is
no point to negotiate with government officials at the central agency.
Research and analyze how the government agency is organized.
The book offers a step-by-step guide to helping you navigate through the
government bureaucracy and succeed in negotiating with the government. It is
an informative and easy read, and can give you the right knowledge towards
winning that government contract.
About the Author:
Lyve Alexis Pleshette is a writer for PowerHomeBiz.com. For more ideas on how to start and run your home business, read the blog
"PowerHomeBiz Small and Home Business Blog"
January 20088
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