Should my business bid for Government contracts?



In short, yes.

Why tender?

Providing goods and services to Government can be very rewarding for your small business. Being awarded a Government contract can be an excellent way to establish your name, generate steady cash flow and safeguard the future of your business. But you need to be aware of all the risks and prepared for strong competition.

Why small businesses do not engage in government tenders?

Small businesses in Australian are more averse to risk than their larger counterparts and often have more to lose. A big government contract could be the life saver, although it could be seen as a risk to have all your business tied up in one client.

Other barriers for small business can include a lack of understanding the minimum requirements for a Government tender, the steps or the jargon. Limited resources can be a barrier as well as a small business may not have the time or people to produce the necessary documentation. The risks may seem too high with small businesses often having personal collateral at stake.

Tips to winning a government tender

Fully understand the tender inside out. Read all the questions very carefully and understand all the conditions of the tender submission. Failing to meet the minimum conditions is wasted effort.

Understand the scope of works. Based on your current situation, do you have the capacity to deliver on the contract? Will you need to change your business model? Will you need to increase your employees, employ sub-contractors or invest in your infrastructure to deliver on the contract?

Meet the criteria. Ensure you address every question within the tender. Double check that you have provided all details and evidence requested. Do not provide unnecessary content and information.

Differentiate yourself. A capability statement will help identify for the reader, what makes your business superior to the competition and refer to this throughout your tender submission.

Learn the tendering process and language. Take time to thoroughly familiarise yourself with all the documentation required.

Know your pricing structure. Are you competitive? Do you have a competitive pricing structure? Ensure your pricing structure is aligned with the conditions of the tender.

Hone your persuasive writing skills. Make sure you have answered all the questions fully, kept to the word count as well as adhered to all other specified constraints.

Check, and check again. Proofreading is vitally important. Use a second pair of eyes to make sure you do not let yourself and your business down with sloppy spelling or editing.

Find the right opportunities. Take time to research and sign up for a tender alerts service. This will keep you up to date with what is available now and what is coming up in the future.

Play the long game! Don’t give up!.  Many small to mid-size enterprises make the mistake of only considering the tender process as short term. The tender process needs to be a central part of your business plan. It needs to include your strategy and budget.

Get help!! Red Tape Busters offer a range of professional services which include tender writing. With experience in Government tenders, Red Tape Busters is the perfect fit to help elevate your business. Tender writer Sydney, tender writer Melbourne or tender writers Australia wide, Red Tape Busters can help. 

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