ANN ARBOR – Every year, the federal government authorizes spending of almost $1 trillion for goods and services that range from purchasing pencils to Apache helicopters. Yet with all this opportunity, many businesses shy away from creating a government affairs strategy to obtain government grants and contracts because they believe that the process is cumbersome and often a barrier to entry into the government marketplace.
However, the implementation of a comprehensive government affairs strategy can play an instrumental role in the vitality of businesses both large and small. Whether you?re looking to sell a product, provide a service, or obtain valuable research dollars, the opportunities to achieve success in the government marketplace are very tangible and should be a key component in any company?s business strategy.
?Small businesses – technology companies in particular – are always looking to gain an edge over their competitors ? whether it?s through site expansion, hiring and training employees or improving their technology,? writes Joe Kuklis, co-founder of GSP Consulting, a leading government affairs firm that recently opened an office in Ann Arbor.
?However, many times, these early stage companies lack sufficient funds to carry out these plans. That?s where state and local governments can become viable sources of funding through grants, low-interest loans and tax incentive programs. Taking advantage of these opportunities when they present themselves can mean the difference between red or black ink for any given fiscal year.?
What?s more, the federal, state and local governments are often times great clients, Kuklis said, providing grant and contract opportunities for technology businesses. Whether it?s through research and development dollars for new technologies or grant funding for a pilot program or demonstration project, start-ups should turn to government for sales and ?non-dilutive? investment. Keep in mind that government R&D dollars frequently allow technology companies to continue their own R&D efforts on the public dime, not diluting the equity positions of their investors.
Finally, technology-based businesses will find support for their business development efforts at the governmental level through their elected officials. By the nature of their elected offices, legislators and government executives look to enhance economic development activity in their home municipalities, districts or states by supporting grant applications, making calls to department and agencies on behalf of constituent companies and providing an equitable business climate through legislation and regulation. Acting as an advocate, an elected official can represent the interests of their business constituency by amending legislation or the modifying state and federal regulations to better serve their core constituencies. Making sure that your business remains active on issues that affect your industry such as tax reform, environmental laws and business incentive programs are important.
While it might seem overwhelming at first, recognizing that a government affairs strategy is both attainable and beneficial for your business is the first step in realizing the limitless opportunities that can result from working with your local, state and federal governments. GSP Consulting can help your firm navigate the government marketplace to find these opportunities and pursue a comprehensive strategy.
For more information about GSP and the services it offers, contact Marc Jordan in the Ann Arbor office at (734) 761-3885 or by email at [email protected]
