Over the years BIZphit has been involved in a high number of competitive tendering opportunities. We learnt the hard way that not all tender opportunities are created equal. Try as we might, some of our clients and projects to which we thought were best suited ended with no win. And sometimes vice versa. Here’s ten ways in which we think clients can improve their tender processes to achieve better outcomes, run it like you own it…
We’re often told by companies that we work with, that they don’t tender as it takes too long, they’re never successful, they don’t have the time. So, what are the 6 things to consider.
1. Competitive Tendering is there for every business
Tendering is a very powerful way to generate new business and to also grow your business. So powerful that many businesses use this as their only route to winning new business. We have a belief that every business should at least try tendering, it can add much value, and if you go about it in the right way with the right mind set you could just win.
There are some preliminaries to consider though. We understand why businesses are put off from the long, in-depth process you have to follow, but by spending time upfront to learn how to tender could be vital to the success and growth of your service or product based business. Why do you not participate in a competitive tendering submission? But do remember to ensure you prepare first. Our post preparing to respond to a tender will help.
2. You don’t need to sell to the buyer
Responding to tenders means a buyer or organisation has already established a need for your services and has allocated a budget for it. This reduces the need for selling the benefits of the services. Instead concentrate on the benefits of your particular skill set or the benefits of a particular product. Positiveness is everything in tendering.
Responding to a tender means you’ve just got to prove that you’re the best fit for the buyer. Just make sure you follow a strict process of what you will and won’t apply for. Focus is obviously another imperative.
3. You’ll know exactly the date the contract has to be delivered
Tendering in the public sector means they have to follow a procedure all through the tendering process. This means that you, the possible provider, will have the exact time frames and timelines for the tender process. You’ll know when the contract will start and how long it will generally last. What this means in reality is that you can plan your business around the delivery of a contract. That could be very powerful.
4. The budget doesn’t disappear half way through the contract period
The public sector are good to do business with. As the budget has already been allocated, you know what constraints you’re working within, allowing you to best advise your client. At BIZphit we have been working for the public Sector for many years. In one case we get paid in ten days every single time, no hassle no chasing invoices no excuses, we just get paid. OK the margins might be slightly less than we might have commercially but the payment terms are second to none.
5. Gives you clarity of your offer
You may not always be successful in tendering. But completing a tender document often gives you additional clarity on other areas of your business. This can in itself be very powerful, reviewing the way you respond to clients demands and requests for proposals helps us to find the very things that make our business so unique. In addition we can benchmark our service and determine if we need to do more to show how good our services really are.
6. See your business in a new light
There is no doubt whatsoever that tendering will allow you to see how your business operates and in a completely new light. The reason being is that the demands of the tender process will mean you have to produce information that possibly up to now you have not been asked for. Business Continuity (BC) is a prime example. When we support clients through their tendering journey one thing that is always way under expectations is BC.
Having been asked to produce your BC policy or plan will mean that you have to literally write and present their BC plan. Do you have BC plan right now?
So once again we see some very positive reasons why every business should be involved in competitive tendering at some point. It might not be the right time for you at the moment. But maybe next year it will, so maybe you should. There is some very good advice and articles if you go to the Business Continuity Institute website