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Saturday, May 27, 2006

IT Consulting for Medium-Sized Businesses and Government Contracts

When growing your IT consulting business think carefully about going after government, city, state and municipality contracts. Because they are modeled on an entirely different business design, you need to reassess your own tech skills before bringing them to medium-sized businesses.

GOING DEEP INTO A SKILL

Think about the IT consulting skills you can offer to clients, and also how close you are to getting deeper into a few skills. Medium-sized businesses need deep skill entrenchment with IT consulting and not just an outside version of their own IT manager.

THE RED TAPE OF GOVERNMENT AND SCHOOLS

Government, city, state, municipality, public school districts and other contracts involve bids, bid packets, bid surety bonds, very long sale cycles and a great deal else. Selling IT consulting to this type of entity is very different than selling it to the small business sweet spot or regular small businesses.

THE END OF THE SWEET SPOT BUSINESS?

You should only go after government contracts after you are sure you have completely sold out your sweet spot marketing role. Don’t go after these difficult contracts until the sweet spot small businesses within a 50-mile radius of you know about your IT consulting business or are on your list of prospects. Make sure to grow these relationships to the greatest extent and that you still don’t have enough business before you go after government. You are unlikely to have this happen unless you are truly in the middle of nowhere.

HIGH END MICROS AND MEDIUM-SIZED BUSINESSES

You can supplement your IT consulting business base with high-end micros and medium-sized businesses instead of going after difficult government work. The aggravation of bids and politics is not a very good place for a start-up IT consulting firm.

Blogged By: Joshua Feinberg