Businesses often have the idea that getting
its products or services into the public
sector is going to require them to sacrifice
weeks of their lives filling in form after
form only to be told nine months later it
went to someone else. For small- to
medium-sized businesses, this is a
particular worry. An owner tying him- or
herself up filling in forms takes away time
from doing all the other things needed to
run a business. If someone else in the
company has got to carry it out, that could
be even worse because they'll be being paid
to do this and not have any time to do their
normal role. As with every horror
story, there is some truth to it, but only a
touch. For the vast majority of businesses,
it is relatively painless and not hugely
different from going into a competition to
supply another company. Here's the basic
lowdown on what you need to know before you
decide to try this massive market and how it
works.
It comes down to
the difference between buying
and purchasing. You
might well say there is no
difference between them, but in
the public sector, there is. For example, we've
sold a number of UK Education
Discs to local and central
government. We never went
looking for the business but we
got it nonetheless. A person
within these organisations
called us up, asked us what they
needed to know about the product
and whether it was right for
them and a couple of hours
later, we got an order. For products or
services that are not part of a
contract, or where a public body
has a pressing need for
something as fast as possible,
they will just buy it. The fact that you
are not on an approved
suppliers' list does not mean
you can't get business from
authorities. However, it does
mean they are more likely to be
the smaller, one-off purchases
than anything else.
For many
companies, becoming an approved supplier is
important for two reasons - it
gives you more credibility as a
company and the council/public
sector body who has approved you
knows who you are, what you do
and how to get in touch. The process of
becoming an approved supplier is
pretty straightforward although
there's no guarantee that if you
apply, you'll become one. For
councils, you can normally apply
to become approved by filling
out a form on their website
which will then lead onto a
consultation process. Although some
councils will allow you to
compete for business after two
year's trading, most public
bodies want to see evidence of
three years' trading. They'll
also look for any work you've
done in the past with other
publically-funded bodies.
That sounds like a vicious
circle. You can't supply them
until you've got three years'
books and have supplied the
public sector already. There are
other public sector bodies with
far more autonomous spending
regimes - particularly schools.
If you haven't got three years'
books yet and have not supplied
any public sector body, why not
try marketing to schools?
There's a full range of
marketing services to schools
that we offer -
please
click here. These two popular
products, together with our
support and back-up, should help
you on your way to public sector
experience.
On some
contracts, particularly the
larger ones, they may check to
see that your company can
actually financially afford to
do the work. You might bid for a
£250,000 contract which requires
your spending £75,000 upfront -
they'll want to know you can
afford it. Many public bodies
will want to satisfy themselves
that you are technically able to
do the work so they'll look for
relevant experience. On some
contracts, they may ask you to
provide references and further
guarantees about quality
assurance. Also worth preparing
are your Health and Safety
policies and, particularly in
areas where there is a rich
ethnic mix, you may be asked
about your company's policies
towards race.
Public sector
bodies are becoming more and
more aware of small- to
medium-sized enterprises when
they need to purchase. Public sector bodies
have to comply with the
requirements of EU regulations,
Standing Orders (they're lists
of requirements for companies to
become approved suppliers - and
you must be an approved supplier
on the Standing Order before any
work comes your way) and best
practice guidance.
More are working on making
contracts more widely known (for
example advertising them in the
local press) and
contractor-friendly (using
jargon-free language and setting
realistic timetables to submit
tenders and to carry out the
work if successful).
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