Over the last few years, BIZphit has been involved in a high number of competitive tendering opportunities. We learned 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 a no-win. And sometimes vice versa. Here’s 6 things to consider when you write your next tender. We know clients can improve their tender processes achieving greater outcomes – basically run the tender process like you own it!
We’re often told by clients that we work with why they don’t tender. ‘It takes too long’ is often heard. ‘It’s just to difficult’. ‘We just don’t have the time for it all’. So, what are the 6 things to consider to make it an easier and more productive process?
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 for a contract or two, it can add much value, and if you go about it in the right way with the right mindset 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. Do remember to ensure you prepare first.
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’s needs. 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 halfway through the contract period
The public sector is 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 contracted to work 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 a 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. The 6 things to consider when you write your next tender are considerations but never the less important. 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 we also have resources to help clients through this phase.
There is more information on tender preparation here.
As always if you need any support or further information then do please get in touch. So, Here’s 6 things to consider when you write your next tender, you may wish to read our 14 awesome tendering tips post to give you some inspiration.
