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If you’re a small business,
you’re in a great position to
benefit. It’s not that
complicated to win your first
contracts from the public sector
– many buyers and purchasers
actually prefer to specify from
smaller businesses for the
higher service levels, fair
pricing and ability to adapt
quickly to circumstances.
SMEs gain 59% of the total value
of local-authority contracts
advertised. At central
government level, it's 22%. The
figures get higher each year
too. Did you know that 16% of
all business won is gained by
micro-businesses – 10 members of
staff or less? |
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The public
sector prefers a diversity of
suppliers
Why other companies seem to get
public sector work falling in
their laps, the difference
between "buying" and "selling"
in the public sector, approved
suppliers lists, the types of
contracts on offers and does
size matter?
Value of
public sector contracts
The public sector advertise
contracts often according to the
size of contract on offer. Find
out about the three main bands
of contact and how they differ.
Types of
public sector contracts
There are five main types of
contracts awarded by the public
sector and they vary according
to timescale and whether the
amount of goods or services
provided are fixed in amount or
variable. Find out about
framework contracts,
measured-term contracts,
call-off contracts, fixed-price
contracts and spot contracts.
How do
they choose who wins the
business?
The method of awarding contracts
has moved onto a set of
principles called the Best Value
Initiative and it means that
bidding for public work is no
longer a race for the bottom
where your profit margins are
tiny. What's involved in the
Best Value Initiative and how it
works with the Small Business
Friendly Concordat, a scheme to
get the numbers of SMEs winning
contracts even higher.
Buying
versus purchasing - what's the
difference?
The public sector boths "buys"
and "purchases" from businesses
and the distinction between the
two methods is important. Find
out what "buying" means and the
types of products and services
most likely to be "bought".
"Purchasing" is a longer buying
process - we explain how that
works and what part central
purchasing departments play in
it.
Marketing
your company to the public
sector
The way you market and how often
you market depends on what it is
you are selling and how the
public sector bodies are most
likely to order it. Direct
marketing (where you send
mailshots, emails and make phone
calls) is the best way to get
your name and your activities in
front of potential public sector
customers. There are many
different layers of
responsibility when it comes to
awarding contracts - find out
the best way to deal with them.
Becoming
an approved supplier to the
public sector
It's very unlikely you'll win
the big orders unless you become
an approved supplier - you'll be
pleased to hear it's a lot more
easy and a lot less daunting
than it sounds. Find out the
types of things they're going to
want to know about your company
together with a handy service
for construction companies.
Other
things public sector bodies will
be looking for
Quality, a commitment to health
and safety, reflecting the
community in which the services
are delivered and a commitment
to environmental and
sustainability issues - four key
areas you can concentrate on to
win friends within the public
sector and orders from them.
Getting
started - your public sector
charm offensive.
You need to get eight key areas
sorted before you've got the
best chance of winning the
business - your books, your
regulatory requirements, your
reputation, referees about your
quality, professional
memberships, environment and
sustainability, reflecting the
community the service is
delivered in, health and safety
procedures and insurance. This
covers how to present yourself
to potential new customers.
A quick
guide to council departments
Local councils are truly mammoth
organisations and it can be
difficult to navigate your way
around if you're new to the
sector. This is a quick and easy
guide to who does what within a
typical local council.
The steps
involved in tendering
A quick, at-a-glance guide on
how the tender process works,
from becoming an approved
supplier right through to the
award of the tender. |
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