Kensington Sales Group
Guide for founders

Selling to government as a startup: your first ten customers.

Government can be a startup's best customer. Agencies pay reliably, renew for years and tell their peers what works. Getting the first few is the hard part. Here's how founders do it without a public-sector sales team or a two-year runway.

Updated November 13, 2026 · By Mike Dombo, Kensington Sales Group

Key takeaways

  • Pick one buyer. One department, one agency size and one region to start.
  • Make the first purchase small. A pilot under the local purchasing threshold avoids a formal bid.
  • Turn each win into a reference and, where possible, a contract that other agencies can use.
  • Start outreach now. Budget cycles mean today's conversation is next year's revenue.

Why it's worth it, and why it's hard

Startups can and do sell to government. Agencies buy from young companies through small purchases, pilots, cooperative contracts and resellers, not only through formal bids. The work is getting the first few customers when you have no references and a short runway.

The appeal is durable revenue: budgets are public, contracts often run for several years and satisfied agencies recommend vendors to their peers. The difficulty is the calendar and the rules. Money is budgeted a year ahead, purchasing follows procedures, and public managers are rewarded for avoiding risk.

Choose a beachhead

  • One buyer role. For example the public works director, the police chief or the district CIO.
  • One size band. Mid-sized agencies often decide faster than the largest and have more budget than the smallest.
  • One region. Agencies in the same state share purchasing rules and trust each other's references.
  • A problem with a deadline: a mandate, a grant, an expiring contract or a public failure.

Size the segment with the B2G market size calculator and narrow it with TAM to target.

Buying routes that don't need a full RFP

RouteHow it worksGood for
Small purchaseUnder a dollar threshold, a department can buy directly or with a few quotesPilots and first-year contracts
Pilot or proof of conceptLimited scope, time and price, with success measures agreed up frontLowering the agency's risk
Cooperative contractThe agency buys through a contract another entity already competedScaling after the first wins
PiggybackOne agency adopts another agency's competitively awarded contractSpreading within a state
Reseller or marketplaceA partner that already holds a contract sells your productAccess without your own contract
Sole sourceThe agency documents that only one product meets the needTruly unique products

See procurement thresholds by state, cooperative purchasing contracts, sole source justification and resellers and channel partners.

Run a pilot that converts

  1. Agree what success means before you start, in numbers.
  2. Decide whether it's paid. Paid pilots show commitment. If you offer a free trial, ask purchasing how it should be documented.
  3. Keep it short: one budget cycle or less.
  4. Name the path to a full purchase before starting: which buying route, and which budget.
  5. Get two sponsors: a day-to-day champion and an executive.
  6. Write up the results for the board or council, and for your next prospect.

Build proof as you go

  • References. A named person at a similar agency who will take a call is worth more than a logo.
  • Security and compliance documents. Have them ready before IT asks. See selling SaaS to government and selling AI to government.
  • Vendor registration. Register where you plan to sell so paperwork doesn't delay a first order. See the vendor registration checklist.
  • Simple pricing. A one-page quote that fits under common thresholds makes a first purchase easy.

Build a pipeline before you can afford a sales team

Founders usually close the first few deals themselves. The limit is conversations: there are only so many calls a founder can make between product work and fundraising. You have three options.

Investors look for evidence that demand repeats: meetings by segment, conversion to pilots and the fiscal year each opportunity is expected to close. The GovTech funding tracker shows who is raising.

How KSG works with GovTech companies

  • Dedicated SDRs who learn your product and prospect under your brand.
  • Qualified meetings with government buyers, booked onto your calendar with notes.
  • Market intelligence that tells you which segments respond and why.
  • Coverage across Federal, SLED, K-12 & Higher Ed, Healthcare, Tribal, Special Districts and Utilities, in English and Spanish.
  • A fast start: programs can be up and running in as little as one week.
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FAQ

Frequently asked questions

Can a startup sell to the government?
Yes. Agencies buy from startups through small purchases, pilots, cooperative contracts and resellers, as well as formal bids. The keys are a narrow first target, a low-risk first purchase and references from similar agencies.
How do startups get their first government customer?
Most start with one type of agency and one buyer role, offer a small pilot that fits under the agency's purchasing threshold, and use the results as a reference for neighboring agencies.
Do I need a GSA Schedule to sell to government?
No. A GSA Schedule is one route for federal sales, and some state and local agencies can use it for certain purchases. Many companies sell for years through small purchases, cooperative contracts and resellers.
How long does a first government sale take?
A pilot under the purchasing threshold can close in weeks. A budgeted purchase commonly takes most of a year, because money has to be approved in the annual budget.
Should a startup hire a government sales rep or outsource?
Founders usually close the first deals themselves. Outsourcing sales development adds conversations quickly without a hire. A full-time account executive makes sense once meetings and pilots show which segment is working.
Does KSG work with GovTech companies?
Yes. KSG provides outsourced SDRs for GovTech and public-sector software companies that need meetings with government buyers.
Work with KSG

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