For startups looking to land government contracts, navigating the complexities of the public sector can feel like an uphill battle.
Dual-use entrepreneurs, those developing technologies with applications in both commercial and government/defense sectors, face several key obstacles including:
- Understanding and aligning with the specific needs and problems of government agencies
- Staying informed about evolving government priorities and requirements
- Navigating the government’s complex processes
- Demonstrating how their product or technology aligns with the mission and objectives of government agencies
In a fireside chat at BMNT Ventures’ Navy Private Capital Bootcamp in Palo Alto, CA, recently, BMNT CEO Pete Newell and Steve Weinstein, general partner of America’s Frontier Fund, spoke about how dual-use startups and scaleups can successfully land government contracts. They recommended defense-focused companies concentrate on being problem-centric, prioritize customer discovery, take pains to understand the government’s processes for working with industry, and be willing to embrace change and be adaptable. Below find takeaways from their talk (which you can watch here).
1. Be Problem Centric
Successful dual-use companies must have deep knowledge of both the big-picture and minute details of the challenge they seek to solve. Newell came to this realization through his Army service saying, “I didn't understand yet that good product development and product discovery was missing problem curation: the process of deeply understanding not just the problem, but the problem’s context. On the battlefield, this means knowing how long the problem will remain the same in a fast-changing environment, and knowing the time required to gather technology to solve it.”
To thrive, he suggests companies:
- Go beyond obvious questions to deeply understand not just the problem, but the context surrounding it.
- Know supply and process details, and learn the time it will take to gather the technology required to generate a solution;
- Know how long the problem will remain the same in fast-changing situations. Crafting a brilliant solution to a problem that no longer exists won’t help anyone.
These details are crucial in a rapidly evolving environment like the battlefield, where Newell cut his teeth, but also hold true in the dynamic world of government problem-solving and dual-use technology.
2. Prioritize Customer Discovery and Validation
Don't fall into the trap of building a product in isolation. Weinstein stressed the importance of ongoing customer discovery: “If you're not talking to your customers and doing ongoing discovery, you're making a mistake.”
Newell and Wienstein suggest:
- Engaging in continuous dialogue: Talking to your customers shouldn't be a one-time event. Regularly check in with them, weekly in the early stages, to ensure you remain aligned with their evolving needs. Speak with the people most knowledgeable about the problem, not just the most visible people, or senior leadership. This is easier said than done, so it’s important to find people in the ecosystem that have internal DOD experience to be able to help.
- Going beyond surveys to gather insights: While surveys can provide some insights, they lack the context and personal nuances of in-depth conversations. Invest the time to fully understand your customer's perspective and how they view the problem you're trying to solve.
- Getting your product in the hands of potential customers and users: The most honest feedback emerges when customers interact with a tangible product. It doesn't have to be perfect; even a basic prototype can spark invaluable conversations and illuminate areas for improvement.
3. Navigate the Complexities of Government Customers
Working with the government involves unique dynamics that don’t exist in traditional marketplaces. The faster you can understand these differences, the faster you can start solving challenges. Among the things to understand:
- The buyer is not the user: Unlike in commercial markets, the government buyer may not be the end-user of your product. Understand the needs and perspectives of both parties to ensure your solution resonates. “One of the hardest things to get past,” explained Newell, “is the distance between the entrepreneurs creating solutions and the end users of those solutions. The goal is to engage that user along with the buyer.”
- Product-mission fit is paramount: Before focusing on product-market fit, ascertain product-mission fit. This means deeply understanding the problem, breaking it down into manageable parts, and pinpointing the right starting point for addressing it. This process helps determine if your product aligns with the overarching mission of the government agency and what it’s hoping to solve. Teams in our Hacking 4 Defense ® courses experience the highs and lows associated with breaking down problems to achieve product-mission fit. Like many before and after them, one team from Rochester Institute of Technology entered the course with a strong sense of the solution they would bring forward. After hearing the real-life struggles of end-users in over 80 interviews, the team created an original concept solution that was a far cry from what they thought they would make. While more time consuming, a tactile understanding of the problem will make the difference between an overlooked knickknack and a revolutionary solution.
Once product-mission fit is established, a key to developing product-market fit is to secure internal champions. Identify individuals within the government who understand your technology and can advocate for your solution. Building relationships with key personnel who see the value in your product can be crucial for navigating bureaucratic hurdles.
4. Be Adaptable and Embrace Change
Most successes in startups happen after a major “pivot” occurs, derailing the original idea and forcing you to embrace a new direction or path. This pivot, though uncomfortable in the moment, yields better, more impactful solutions. Having the right mindset and a willingness to be flexible can ensure pivots become power plays. If you’re a founder of a defense-focused startup, they suggest you
- Value change from the top down: Leaders need to champion a culture that embraces change. Regularly solicit feedback from employees at all levels and encourage customer discovery as an ongoing process.
- View your company as a product line: Instead of focusing on a single product, cultivate a product line strategy to cater to the evolving needs of the government market. This ensures long-term relevance and adaptability.
- Maintain a culture of innovation: Don't rest on your laurels once you've found success with a product. Encourage continuous agility in innovation and avoid becoming mired in process to stay ahead of the curve and avoid being disrupted by more agile competitors.
5. Refine Your Communication and Networking Strategies
Successfully navigating the government market requires adept communication and networking, and often demands breaking into long-established networks with fresh perspective.
- Target the right people: Invest time in identifying the individuals who can impact your success as collaborators and partners, and as champions within the government space. Going through the wrong channels or targeting individuals who lack decision-making power can be counterproductive. Identify potential partners and champions who complement your goals rather than duplicate them, and who are collaborative, transparent, dependable and organized. Have a firm understanding of your own objectives and boundaries going into any discussions, and maintain a countenance of optimism and enthusiasm. As you encounter larger networks within your area of work, nurture those relationships for future opportunities.
- Think beyond individual contacts: Cultivate a network of connections within and around your target government agencies. Leverage warm introductions and build relationships with individuals who can champion your solution or provide valuable insights.
- Craft compelling cold outreach: When reaching out to government officials for the first time, clearly articulate why they should invest their time in you. Research their interests and tailor your message to resonate with their specific needs and priorities.
By embracing these principles, entrepreneurial startups and scaleups can increase the possibility of successfully embarking on a dual-use growth strategy that contributes to real mission success.
