Finally......SME's get a chance to grab a business 'lifeline'

[johnthesearcher]

According to a report from the Forum of Private Business which says that ....

'Small businesses have long faced an uphill struggle to win public sector contracts, but the situation is magnified in the current economic climate, where companies are keen to replace flagging orders from the private sector with new public sector deals'.

At last, change is on the way that should make the process easier, but in the meantime small firms can do a lot to help themselves.

In response to the problems faced by members, the FPB has long campaigned to improve the public sector tendering process and open up more contracts to small and medium-sized businesses.

Most recently, it has been pressing the Government to fast-track measures outlined in the Glover Review, at present scheduled for implementation in 2010

"It's important that the Glover measures move in the right direction as quickly and as effectively as possible," says the FPB's policy representative Matt Goodman. "That would help to save more small firms from closure and provide a catalyst for economic recovery."

In the meantime, there is much that small businesses can do to help themselves to a share of the £175bn of public sector business that is put out for tender every year.

Tim Williams, Managing Director of Millstream Associates and the FPB's adviser on public sector tendering, says now is the time to bid. "Public spending levels are staying constant at the moment and some spending is being brought forward to boost the economy," he says. "There'll be cuts in future years though, so make hay while the sun shines."

Another procurement and tender specialist Wendy Wills, Managing Director of Ways2Win, says that preparing for tenders should be a key marketing strategy for UK businesses, but many suffer from lack of confidence and inadequate planning.

"All too often small companies shy away from tendering," she says. "It's true that they need to prepare themselves, but done properly this can reap real rewards."

Top tips on getting 'tender fit'

•Get reliable and timely information on available contracts. At present there are disparate information sources, some free and some subscription-based. An online search will identify a range of providers, including the Government's website, supply2.gov.uk, and Millstream's TendersDirect.co.uk.

•Ensure your business is prepared. You will be asked about your standards and policies on issues ranging from HR and the environment to quality assurance and full financial disclosure. Producing all this information may be tedious, but once in place there should be a large number of contracts you can bid for.

•Fill in the pre-qualification questionnaire correctly. This is critical if you are to progress, so take it as seriously as if it is the final stage. Click here to see a sample pre-qualification questionnaire.

•Avoid surprises. Find out as much as you can about each specific tender process and expectations. If you are given the opportunity to ask questions, do so. If there is a phone number or email address, use it.

•Try to build a relationship with the buyer. This can often be difficult, but it is the most powerful tool in winning contracts. It may help to aim for smaller contracts, at first, to build contacts and a track record.

•Put yourself in the shoes of the person who will be reading the tender document. Keep it short, neat and relevant and include relevant images. Consider what will make you stand out and get you into the ‘yes' pile?

Happy tendering

John

Quote for the Day:

“The distance between you and your dreams is often the length of a single idea.”

Vic Conant, (Nightingale Conant)

[MandsPAs]

Hi John

I personnally would not recommend supply2gov as a way to government contracts. I am currently registered with them and despite getting emails every day, there has been very little published for Scotland. I am inundated with leads outwith my territorial area and need to "subscribe" and "part with cash" to get access to leads for the whole of the UK.

I attended the business 2 business networking event 2 weeks ago and whilst in some respects for my own business it was a little bit of a waste of time, in other respects, it gave me better insight into what I should be doing with my business so I can even get a look-in.

One example is when I explain I am a Virtual PA I get blank stares. I promote the fact that I can offer an alternative to using recruitment agencies as I provide an ad-hoc service that means things don't need to be completely out of hand before getting help. Again, blank stares. The other lesson I have learned is that being a Sole Trader is a big no-no for the public sector contracts - I need to be a limited company - which I am in the process of doing.

The best - and free - site in my opinion is Public Contracts Scotland - Home where you can register and receive alerts for your business type. You can also view all public service contracts ranging from NHS, Fire Brigade, Police, Councils and Scottish governemnt contracts and you are not restricted by area.

Thought I would share my experience and hope it might help others too.

Regards,


Sharon
M and S PAs

[Adventurelife]

All good info John

Please excuse the below if out of date as the last time I was involved in Gov tenders was 2003 but at that time we had over £100m under contract from government departments

I would strongly support small/medium businesses having a government revenue stream coming into their business , however, unless things have changed a lot the following was my experience.

Very long drawn out processes.

Very expensive in time and resources for the business that is tendering.

Encourages businesses to do stupid pricing levels to win thinking they can win the margin back during the contract.

Ensure it is only part of your business and not your business!


I hope the situation has changed to make the system easier. That said once you have mastered it and have a reputation in the sector it is a good revenue stream.

[MandsPAs]

Hi

I would agree with Adventurelife. It is a long drawn out process and can be costly to a business in time and effort if you don't get past the Pre-qual stage but one thing that did come out of the Public Sector event was that they are encouraging small / medium sized businesses into the Public Sector and even highly promoting the Consortiums / Sub Contracting to smaller businesses as well.

I am fortunate I have direct experience of Pre-Quals and Tender processes as I worked in Construction for a number of years so I can only try my hardest.

As I said in my last post, it made me realise things I needed to do for my business to work in public sector - primarily being a Ltd Company, which I am happy to announce I did a couple of weeks ago!

Cheers,


Sharon

[johnthesearcher]

Hi Sharon

Congratulations on going LTD.

It's true it is a complicated structure to break down but there is a great deal of pressure on the process to make it available to SME's ...... in both direct contract and indirect contracts.

I am on the pre qualification alerts for Public Contracts Scotland too and they appear to be leaning towards 'splitting' contracts into smaller packages to make the tendering process available to all.

Good advice from AdventureLife above ..... in that it should only be considered an option for additional revenue streams and not a core part of our business.

John