What is B2G(Business to Government)?
If you are in business, then your sales team is focusing on B2B or B2C or maybe both. B2B is selling products or services to other businesses, while B2C is selling directly to the consumer.
Ford Motor Company manufacturers cars, trucks, and SUVs. Ford sells their vehicles to car dealerships, other businesses. This is B2B(business to business).
The car dealership keeps an inventory of vehicles for people to test drive and purchase. This is B2C(business to consumer).
So what the heck is B2G? B2G is when a business chooses to sell to a government agency. A government agency is broken down into 4 agency types.
Federal Government: Department of Defense, Veterans Affairs, United States Post Office
State Government: Department of Transportation, Department of Health, Department of Corrections
Local Government: Cities, Counties, Townships
Education: Schools(K-12 and Higher Ed)
Companies that decide to focus on B2G will typically divide the agency types into 2 areas of focus for their sales team called SLED and FED. SLED is an acronym for State, Local and Educational institutions. And yes, you guessed it, FED is short for Federal Government.
It will take some time to understand the buying process of government agencies and the reason we created GovSales University. Our program combines 25 years of experience into an easy to understand 8 hour course. There are many similarities between private sector and public sector sales if you have an existing sales team looking to grow your business.
There are also companies who specialize in selling to the government and will resell your products or services if you are not interested in learning B2G yourself. A great example is W.W. Grainger which holds multiple state contracts and cooperative agreements that make it easier for government agencies to purchase industrial equipment. If you manufacture a product and currently sell to B2B or B2C, you could gain market share by partnering with a company who is a B2G vendor.
And remember, the government spends over $7 trillion dollars a year. They buy everything!!!