b2g - how to scale your startup by selling to government
TRANSCRIPT
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B2GHow to Scale Your Startup
By Selling To The GovernmentStonly Baptiste
@StonlyBPartner & Co-Founder at Urban.Us
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FEAROFGOVERNMENTit shouldn’t stop you
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Why Cities Matter>50% - Population
70% - Carbon
80% - GDP
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Buildings Resources
Transport Gov
Cities are people and...
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GOVERNMENTIS BEAUTIFUL
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5 out of 23 portfolio startups sell to Gov
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DINOSAURS
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DISRUPTION
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MARKET
$8.5B
$7.5B
$25.9B
$10B $7.3B $7.5BSource: e.Republic (2016)
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DISTRIBUTION
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State
Federal
Military
Int’l
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USERS
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GOVERNMENT
OFFICIALS
Are People
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As a startup, selling to government is complex but not impossible.
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Enterprise SaaS
“You typically need 6 to 18 months to close an enterprise deal.” - Steli Efti, Chief Hustler @
Close.io
B2G SaaS (Discretionary)
“Government sales cycles are an average
of 90 days.” - Marc Ende, Dir. of Sales @
SeamlessDocs.com
B2G (Procurement)
12-24 Months
“Selling to government is hard and takes too long” - most people
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AlliesCity CouncilMayorsDepartment Heads
BuyersCity AdminsChief Procurement
Users
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Request ForProposals
Who’s Buying
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FreedomOfInformationAct
Who’s Selling
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DiscretionarySpending
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Pilot ProjectsCo-development with a city / Early AdoptersPros: + case studies+ valuable marketing/press, and, most of
all, + word of mouth among city operators
Cons: + high CAC
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Sole Source ProcurementYou have unique IPPros: + larger value contracts+ removes competition
Cons: + not as easy to get and keep
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PartnershipsSoftware Licensing Program (SLP)
Master Service Agreements
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Marketing & Sales+ Events+ Competitions+ Grants+ Freemium / Easy
Onboarding+ Cold Calling
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“Your Existing Systems Suck”
and similar messages don’t work for B2G
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Messages that work+ Save time and money+ Save lives+ Get more budget+ Attract more businesses+ Domain expertise+ Gov / Social background
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To B2Gor not...
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You can B2G without selling to Gov
+ Sell to citizens+ Sell data+ Sell ads
REMEMBER
REMEMBER
RE
ME
MB
ER
RE
ME
MB
ER
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Stonly Baptiste@StonlyBPartner & Co-Founder at Urban.Us
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BONUSThe best B2G Startups have key
qualities
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Patience
Getting your first reference cities may take time. Scaling may take longer.
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Empathy
They reach out to understand the problems not to sell a solution.
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Great Teams
Founders, Investors, Advisors that understand (or want to understand) Government
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Great Products
A.I., Mobile, UI/UX - and other unique innovation that they bring to Government