Considerations For CA- and TX-based Bids
By Kristine Fisher
Over the past couple of years, Californians are moving to Texas in record numbers. How does that affect doing business with the government in either state? Read on for our industry-insider insights.
Since 2018, it is estimated that hundreds of thousands of people have migrated from California to Texas. At first glance, these two states seem diametrically opposed. Although that may be true on many fundamental levels, they share three key similarities at the governmental level:
Their population levels are somewhat similar. California has 40 million residents, compared to Texas’ 30 million.
They have the same number of electoral votes.
They are two of the biggest US states, which means they have two of the largest state budgets to manage.
When it comes to doing business with State and Local governments, your strategy needs to be thoughtful. The solution you propose needs to be structurally unique and intentionally designed to fit the needs of the governmental body you’re working with.
California and Texas may share a few key similarities, but public sector practices who want to win government contracts need to consider their state’s specific needs. Here’s five key differences to consider when submitting your government proposal in California or Texas:
Texas has been named one of the fastest-growing states, while California’s growth has slowed. The California-to-Texas migration is affecting budget funding, needs, and focus in both states.
Texas recently earned two more seats in the House of Representatives, while California lost an unprecedented seat. These population changes mean that budget spend in each state has a different influence on the greater population.
California has the country’s highest top marginal income tax rate, while Texas has no individual income tax rate. Thus, funding models are different for State & Local government projects in Texas than they would be in California.
California’s State and Local government spending is 60% higher than Texas on a per-resident basis.
California’s government may be more likely to initiate healthcare, education and social programs for its residents in comparison with Texas.
Does your proposal consider the needs of your government from every angle?
Though it is tempting to run full-speed toward contract opportunities available in government, this error actually sets your team back. A strategic approach with a proven methodology based on specific goals – where you spend time viewing the opportunity from each angle – sets you and your business up for routine success.
If you’re preparing to sell to the state of California or Texas, or even to the counties of San Diego or Harris, you need to assess the unique requirements, partnership opportunities, and intricate systems in your target area.
Time and again, I have witnessed countless situations where a bidder missed simple steps that disqualified them from a bid, and I have helped businesses recover when taking corrective action before their proposals are rejected.
Consider the proposal from a 360 degree view and you’ll be so much closer to winning your bids.
Kristine Fisher, Business and Government Relationship Expert
Founder of Kaleidoscope Works, Kristine designs and implements strategic solutions for small, small, mid-market and enterprise business partners. With experience as a Procurement Officer for government, as well as the many national roles in the Private Sector, Kristine is an expert at enhancing your success when selling to State & Local Governments.
Follow Kristine on LinkedIn for more industry-insider insights.
