Posted on 15-03-2011 at 10:00
Too small to tender
I've come across many great but small companies recently that seem to be doing well. They have a solid customer base, are respected by peers and clients alike and chug along quite nicely in terms of profit. So it has come as a surprise when asking a couple of them “so where do you look for your tender opportunities” to be met with a look of disbelief. “Oh, we don't do that” they say. Many of these companies thrive on repeat business, good reputations and who they know. Generating business by tendering is an alien concept and one that is often left to 'the big boys'.
Much of the drive from Government to get small and medium sized companies involved in tendering for public sector contracts involves reducing the paperwork, investment and time burden. Many SMEs are not aware of these measures nor understand how it will improve their chances of success. SME in itself is a wide term and encompasses companies that to the layman, appear to be really quite large. The very small companies, those with zero to ten employees, often wouldn't bother to bid regardless of the measures due to the perception that they're just not big enough.
Very small companies are usually owner managed, with a small but specific skill set related to the operational environment. Seeking out, reading up on the rules and rituals and actually forming a competitive and successful tender can seem like a difficult, expensive mountain to climb for what they perceive to have little, probably no return. Most of these companies want to expand and increase their customer base but shy away from official tendering opportunities for a number of reasons:
– They feel they are too small and could not meet the requirements of the contract, operationally or financially.
– They do not feel they would win after putting effort and expense into producing a tender.
– They feel it is a race that is won before the start gun goes off.
– They feel tenders are too complex for anyone within the company to be able complete.
– They are comfortable operating in their current environment and feel a large, particularly government contract, would have a negative impact on their business.
These may be valid reasons for some small companies not to tender, however, forward thinking, growth orientated small companies should look to the tendering process as a valuable learning process that will, sooner or later, result in a successful contract win and business growth. Attempting to tender, even receiving the tender documents, can bring valuable insights into the company and what it needs to grow and sustain that growth. The tender (and PQQ) documents will highlight financial and operational issues that will need attention if the business is to grow.
Employing a freelance, professional tender writer will not only increase a small company's chances of winning one of their early tenders, they will also act, to some extent, as a business consultant because they understand what the client is looking for and will identify weaknesses in their clients business which will impact upon the chances of winning. Although expensive, the long term return on investment for such companies will far outweigh any initial costs.
Using tender opportunities and feedback from unsuccessful tenders as a business growth tool, whether through professional tender writers or DIY, is worth the investment if time and resources allow. Being in the game gives small business a chance of gaining lucrative contracts that otherwise would not be available. The continued efforts of Government and regional and national business organisations to open up the market to such companies will only make it easier in the long run to compete and win if the business is fit and ready.
Much of the drive from Government to get small and medium sized companies involved in tendering for public sector contracts involves reducing the paperwork, investment and time burden. Many SMEs are not aware of these measures nor understand how it will improve their chances of success. SME in itself is a wide term and encompasses companies that to the layman, appear to be really quite large. The very small companies, those with zero to ten employees, often wouldn't bother to bid regardless of the measures due to the perception that they're just not big enough.
Very small companies are usually owner managed, with a small but specific skill set related to the operational environment. Seeking out, reading up on the rules and rituals and actually forming a competitive and successful tender can seem like a difficult, expensive mountain to climb for what they perceive to have little, probably no return. Most of these companies want to expand and increase their customer base but shy away from official tendering opportunities for a number of reasons:
– They feel they are too small and could not meet the requirements of the contract, operationally or financially.
– They do not feel they would win after putting effort and expense into producing a tender.
– They feel it is a race that is won before the start gun goes off.
– They feel tenders are too complex for anyone within the company to be able complete.
– They are comfortable operating in their current environment and feel a large, particularly government contract, would have a negative impact on their business.
These may be valid reasons for some small companies not to tender, however, forward thinking, growth orientated small companies should look to the tendering process as a valuable learning process that will, sooner or later, result in a successful contract win and business growth. Attempting to tender, even receiving the tender documents, can bring valuable insights into the company and what it needs to grow and sustain that growth. The tender (and PQQ) documents will highlight financial and operational issues that will need attention if the business is to grow.
Employing a freelance, professional tender writer will not only increase a small company's chances of winning one of their early tenders, they will also act, to some extent, as a business consultant because they understand what the client is looking for and will identify weaknesses in their clients business which will impact upon the chances of winning. Although expensive, the long term return on investment for such companies will far outweigh any initial costs.
Using tender opportunities and feedback from unsuccessful tenders as a business growth tool, whether through professional tender writers or DIY, is worth the investment if time and resources allow. Being in the game gives small business a chance of gaining lucrative contracts that otherwise would not be available. The continued efforts of Government and regional and national business organisations to open up the market to such companies will only make it easier in the long run to compete and win if the business is fit and ready.
