Tech startups, even those with the most disruptive and virtuous capabilities, often find sales to be their greatest challenge. The reality is stark: buyers today are inundated with options. Every startup claims to have the next transformative solution, and while many of these claims are valid, decision-makers are constrained by limited budgets, limited time, and an overwhelming array of choices. In this environment, nothing sells itself. The sales function becomes not just important—it becomes existential. The sales lead in a startup is like the hunter for a village. If the hunter doesn’t succeed, no one eats. No one survives.

This challenge is amplified in the government sector, where the stakes are higher, the processes more complex, and the buyers even more risk-averse. Selling to government agencies requires navigating a labyrinth of regulations, compliance requirements, and acquisition processes, all while aligning your solution with both shifting political priorities and mission objectives. It’s not enough to have a great product, you must also have the patience, adaptability, and strategic insight to communicate its value in terms that resonate with public-sector buyers.

The key to overcoming these challenges lies in understanding that sales is not just about pitching a product—it’s about building trust, demonstrating value, and aligning your solution with the buyer’s mission. For startups, this means investing in the right talent, processes, and strategies to ensure that your sales team can effectively translate your technology’s capabilities into clear, actionable outcomes for your customers. It also means recognizing that sales is a team effort, requiring close collaboration between engineers, product managers, and sales professionals to ensure that your offering is not only technically sound but also tailored to meet the specific needs of your target market.

In the government space, this requires an even deeper level of preparation and commitment. You must understand the unique challenges and priorities of the agencies you’re targeting, build relationships with key decision-makers, and navigate the complexities of the procurement process. It’s a long and often arduous journey, but for those who succeed, the rewards are immense—not just in terms of revenue, but also in the impact your technology can have on critical government missions and, ultimately, the lives of citizens.

Over the last decade I’ve helped 100’s of startups successfully navigate the unique challenges of success in federal sales. One big thing I’ve learned is that success only comes when the CEO is 100% dedicated and involved in the federal sales function. This goes for startups of every size.

I’ve compiled a list of lessons learned and best practices for startup success. The good news is this can help accelerate your startup to success. The bad news is this is only the beginning! Success will take far more research, work, meetings, demos and actions to really close deals. But the below will absolutely help accelerate your growth in service to federal missions.

1. Develop a Strategy for Long-Term Success

• Your strategy is your deliberate plan of action to achieve your goals. It is about making choices and prioritizing. In this space you may start with an initial strategy but be ready to iterate, your work in understanding the market will inform your strategy.
• Your initial strategy should involve understanding how to express your capabilities in the language of your target market, finding channel partners and the right government champions who see value in what you do.
• Every company is different, so your strategy will be unique to you. But reviewing all the steps in this document will help you tailor your approach.  
• Quick wins are rare in government sales. Your strategy needs to account for the need to stay engaged for a long sales cycle (my rule of thumb is at least two Octobers). Persistence and patience are essential.
• Prepare for growth. When you get the right demand signals you can invest in a federal sales leader and other functions. Do this too early and you waste resources. Do it too late and you leave money on the table. Network with others in your situation and stay attuned to the market to time this just right. 
• Plan for Scalability: Once you secure a contract, be prepared to scale your operations to meet the demands of larger projects or additional agencies. 
• Expand Government Operations Beyond Federal: Consider opportunities at the state and local government levels, which often have shorter sales cycles and fewer regulatory hurdles. 

2. Learn and Understand the Market

• Segment the Market: The federal market is not a single customer. It is a vast array of departments, agencies and organizations that follow laws and guidance from Congress and the executive branch but differ in their missions and need for solutions. At a high level it can be helpful to think of the federal market in three big segments: DoD, The Intelligence Community, and FedCiv (the non-DoD and non-IC parts of government.  Buying patterns, budgets and decision-making are different for each of those big segments.  But understand each of these are very large segments, depending on your solution you will need to refine your market segment further to enable you to target specific customer segments. 
• Identify Target Agencies: Start by researching which federal agencies align with your technology. Your market segmentation efforts will enable you to focus on who has a need and a budget for your solution. 
• Study Mission Priorities: Each agency has unique mission objectives. Understanding their priorities—whether it’s national security, healthcare, or energy efficiency—will help you tailor your pitch. I find congressional testimony by agency heads to be a great life-hack here. When an organization’s head testifies to Congress on their intent their statements are a rich source of what they believe their biggest challenges are, making this fantastic for situational awareness. Agencies also produce strategic plans and IT modernization plans that can help you understand their needs. 
• Track Budgets and Initiatives: Federal budgets and initiatives are public information. Look for programs that align with your technology. For example, the DoD’s focus on AI and autonomy or NASA’s Artemis program for space exploration could present opportunities. Department of Energy seeks solutions in high powered compute and companies that align with their abundant energy initiatives.

3. Demonstrate Value in Context of Government Mission Needs

• Ensure You Solve Specific Problems: Government buyers are mission-focused. Your technology must address a specific problem or need. Be prepared to highlight how your solution improves efficiency, enhances security, or reduces costs. If you can’t do that with the current configuration or capabilities of your solution, learn what you need to change to do so.
• Demonstrate Value: Be prepared to show a clear return on investment (ROI). Government agencies are risk-averse, so you’ll need to provide evidence—such as case studies, pilot results, or testimonials—that your technology works as promised.

4. Learn the Procurement Process

• There are experts who can help you with this. Get a guide who has succeeded in federal before to help you comprehend this.
• Federal Acquisition Regulation (FAR): You should have at least a high level understanding of the FAR. As you get closer to contract you will have many specific sections you will need to know thoroughly, but at the start of your journey you should know that these regulations flow from the law. Compliance is mandatory. The FAR governs how the government purchases goods and services, with the objective of ensuring transparency, fairness and value for taxpayers. All agencies must follow the FAR and specific terms will flow down to contracts for your technology. 
• Compliance and Certifications: Ensure your product meets government standards and certifications. For example, cloud-based solutions often require FedRAMP certification, while DoD solutions may need to comply with CMMC (Cybersecurity Maturity Model Certification). Do this wrong and you will waste money. There are efficient ways to comply. Don’t try to do this on your own. 
• Consider your licensing models: You have many options and by putting yourself in the shoes of your potential customer you can find one that will work for them and you both, which is critical to building a long term relationship (we have a special report on that here: An Enterprise Software Licensing Strategy DOGE Would Love )
• Contract Vehicles: The FAR outlines the types of contracts the government can leverage. They include Fixed-Price Contracts (the price is set at the start, and the contractor assumes most of the risk), Cost-Reimbursement Contracts (the government reimburses allowable costs, plus a fee. These are often used for R&D projects), Indefinite Delivery/Indefinite Quantity (IDIQ) contracts (these are flexible for ongoing needs). GSA Schedules are long-term governmentwide contracts that streamline procurement by offering federal agencies pre-negotiated prices and terms for commercial products and services. Indefinite Delivery/Indefinite Quantity (IDIQ) contracts enable agencies to efficiently procure an undefined quantity of supplies or services over a fixed period through individual delivery or task orders. Blanket Purchase Agreements (BPAs) simplify recurring procurements by establishing pre-negotiated terms, conditions, and pricing for anticipated repetitive needs, reducing administrative effort for federal buyers. Other Transaction Authority (OTA) is a flexible procurement method used by federal agencies, particularly the Department of Defense, to engage innovative non-traditional contractors outside traditional contracting regulations. 
• Small Business Set-Asides: Many government contracts are set aside for small businesses. Programs like the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) are excellent entry points for startups to secure funding and build relationships with federal agencies. These are so important I dive deeper into how to leverage these at: Understanding the SBIR STTR Process.

5. Build Relationships

• Network with Decision-Makers: Attend industry days, conferences, and events where federal buyers and program managers are present. Organizations like OODA, Carahsoft, AFCEA, INSA, and the Cloud Security Alliance host events that connect industry with government. Join us at OODAcon.
• Leverage Small Business Offices: Most agencies have an Office of Small and Disadvantaged Business Utilization (OSDBU) that helps small businesses navigate the procurement process. These offices can provide guidance and connect you with the right people .
• Partner with Integrators, Resellers, Distributors: Consider teaming up with established government contractors or systems integrators. These companies often have existing relationships and contract vehicles that can help you get your foot in the door. I refer most tech firms I work with to Carahsoft. They have a fantastic reputation for removing friction for tech firms and the government for getting technology into the hands of those that can use it. 

6. Leverage Resources

• SBIR/STTR Programs: You will see these terms popping up again and again. Learn the basics in this special report. These programs provide non-dilutive funding for R&D and are an excellent way to build credibility and relationships with government agencies.
• OODA Network: Joining a network like OODA can provide access to thought leadership, market intelligence, and connections with experienced professionals who have successfully navigated the federal market .
• Educational Resources: Stay informed about government needs and priorities through resources like the OODA Daily Pulse, which tracks issues of high interest to the federal technology ecosystem. 
• Most all of the above applies to both software and hardware. There are other special resources and programs available to you if you are focused on hardware and will need to expand a manufacturing plant (for example, the DoD OSC). 

7. Avoid Common Pitfalls

• Underestimating Compliance: Failing to meet regulatory requirements can disqualify you from contracts. Invest in understanding and achieving necessary certifications early.
• Overpromising: Be realistic about what your technology can deliver. Government buyers value reliability and proven performance over hype.
• Ignoring the Competition: The government market is competitive. Understand who your competitors are and what differentiates your solution. Then beat them like a drum through your differentiated capability.

Have questions about any of this? If you are an OODA network member hit me up in Slack or by email. You can also use my digital clone which has been trained on not only everything I know about federal government missions and requirements but every reference I can find on federal budgets and procurement processes and approaches to sales. Would appreciate you starting a chat there at https://bobgourley.ai

About the Author

Bob Gourley

Bob Gourley is an experienced Chief Technology Officer (CTO), Board Qualified Technical Executive (QTE), author and entrepreneur with extensive past performance in enterprise IT, corporate cybersecurity and data analytics. CTO of OODA LLC, a unique team of international experts which provide board advisory and cybersecurity consulting services. OODA publishes OODALoop.com. Bob has been an advisor to dozens of successful high tech startups and has conducted enterprise cybersecurity assessments for businesses in multiple sectors of the economy. He was a career Naval Intelligence Officer and is the former CTO of the Defense Intelligence Agency.