As you grow, should you go after government, city, state, municipality contracts like school district contracts? Maybe.
They are an entirely different business model. When you are talking about selling to medium sized businesses, again go back and assess your tech skills.
Assess what kind of skills you are bringing to the table and see how close you are to being able to being that deep into a few skills, because that is what these medium sized businesses are looking for. They are not looking for an outsourced version of a central IT manager.
Going after government, city, state, municipality, public school districts, etc. involves bids, bid packets, bid surety bonds, long sales cycles, and a lot of politics. This stage of the game is a very different business model, very different than selling to the sweet spot of small businesses or even small businesses in general.
Only go after these kinds of things after you have completely exhausted and completely saturated your sweet spot marketing roll out. In other words, don’t persue them until most of the sweet spot small businesses within a 50 mile radius know who you are, they are in your prospect funnel, and you have grown them to the point that you have absolutely maximized them out and you still don’t have enough business. This is pretty unlikely unless you are in the absolute middle of nowhere.
You should consider supplementing your business base with some high-end micros- and some medium sized businesses before going after government work. This is because of the level of aggravation with the bids, then the politics and the waiting to get paid. It’s not a very good place for people to be – especially in their start up stage.