If you are looking to expand your customer base and boost your revenue, landing public sector contracts can provide a swift and effective way to achieve your goals.
Every business owner knows that holding onto their loyal customers and nurturing relationships with current partners is critical to business success. It is easier to sell to people who already know and trust your products/services, and they also tend to spend more with every purchase. Moreover, repeat customers can serve as great brand ambassadors and help you promote your business.
However, acquiring new customers plays an equally important role in ensuring the growth and smooth running of a company, especially in the B2B sector. While there is a lot of value in focusing on customer retention, it is not enough to keep a business thriving in the long run. Despite your best efforts, existing customers will eventually churn over time and you can’t sit around and wait for new ones to come knocking at your door.
Since a company’s development and profitability are directly linked to its ability to attract customers, you need to take action and start procuring new business as well. This is one of the most vital aspects of running a company, and unsurprisingly also one of the most difficult ones as it requires considerable time, money, and effort investment on your part.
Fortunately, you can significantly improve your chances of winning new customers by expanding your search for new opportunities into the public sector. Securing public sector contracts can provide a reliable and inexhaustible source of new business for your company, so if you’re running short on clients, you might want to take this option into consideration when devising your customer acquisition strategy.
Reasons to pursue business opportunities in the public sector
The public sector comprises a variety of state-owned organisations and institutions that are responsible for providing public services and goods and are typically funded through taxes and other sources of public revenue. This includes all government departments and agencies, local authorities, housing associations, educational institutions, and the National Health Service (NHS).
But why exactly should you consider selling to the public sector? For starters, according to the latest estimates, every year the UK government spends approximately £300 billion, amounting to a third of all public expenditure, on buying essential goods and services from different suppliers. The public sector puts out over 50,000 contracts every year, most of which are low-value tenders and stretch for several years. Therefore, the public sector provides huge sales opportunities that your company can tap into.
Unlike private sector tenders, where companies are not required to disclose procurement offers and they can choose who they invite to their tenders, all public sector contracts are made public. This means anyone can gain access to contract opportunities and submit an application, as long as they meet the requirements established by the tender. To streamline the search process and save valuable time, you can utilise a find a tender service to find contracts that are relevant to your industry or niche.
Furthermore, the UK Government has made it a priority to award 33% of all public contracts to small and medium-sized companies (SMEs), which account for almost 99% of all enterprises in the UK. So, even the smaller firms stand a good chance of winning public sector tenders. The tendering process is fully transparent, with all bidding details available to all participants, providing peace of mind and fair chances for everyone.
As for the payment period, public bodies are required by law to settle all invoices for the contracted work no later than 30 days after receiving them. This guarantees you won’t have to deal with payment delays which could impact your cash flow and bottom line.
How to win a contract in the public sector
While the benefits of pursuing government contracts may be obvious to most, the process one needs to follow to submit a bid and boost their chances of winning is less so. For the uninitiated, it can be quite tricky to decipher the ins and outs of public contract tendering, learn about all the rules and regulations applicable in the sector, and figure out how to go about it.
So, if you’re not familiarised with the public sector, you might want to check out a comprehensive guide to public sector contracts first and do some in-depth research on the topic before you dive in. Here are a few basic aspects you need to keep in mind when planning to step into the public sector.
The first thing you need to do is start searching for public sector contracts. Using a tender alert service is the most effective solution in this respect as it ensures fast and easy access to contract opportunities by notifying you when a tender that matches your search criteria is published, so you do not have to spend ages browsing through data from various sources.
Then you have to make sure you meet the requirements by carefully reviewing the terms and conditions established by the seller. You can usually find this information on the organisations’ website, but you can also contact them and ask for more details about the contract where necessary.
If you do decide to apply, it is very important that you take the time to learn about the rules and regulations related to public sector procurement. After completing all these steps, you can craft an offer and submit your application, making sure you follow the tenders’ instructions exactly as requested.
Bottom line
When it comes to procuring new business, the public sector provides numerous opportunities that can ensure a steady stream of customers for your company. However, you need to do your due diligence and prepare yourself thoroughly before you take the leap if you want to outrank the competition and win the contracts you’re pursuing.
Good luck bidding!