Export Business Development

Author: John Dunsmure, Managing Director, The British Chambers of Commerce
Publication: New Business
Date: 05/08/09

In the challenging current climate, it makes sense for all businesses to take time out to think about finding new customers.

One of the most obvious routes is to formally pitch for new work. There are opportunities in both the private and public sectors. For example, the public sector purchases a vast range of products and services each year – many of which are bought via tenders. However, tendering can seem like a formidable task. For many small businesses, one of the main problems is that the process involved can be complicated and time-consuming. Also, they worry about not being able to compete with a larger organisation on price. Although price will always be a factor, it may be an organisation’s sustainability that is the decider.

Before thinking about bidding for a contract make sure you have the right skills to do the job, assess how the contract would affect your other work and your staffing needs. You will also need to calculate how much it will cost you to prepare your bid. It never makes sense to go for contracts that are higher than your turnover.

Tendering is not a speedy process – you need to put enough time aside to do a thorough job and make sure you pull together all the necessary back-up paperwork, such as the most recent accounts, all necessary insurance documents, a written environmental policy and any formal quality accreditation. The key is to read all the instructions carefully and ensure you meet the requirements. If a pre-formatted tender document is provided, then make sure you use it, and always remember that it’s the quality, not quantity, of information that’s important.

A common mistake is to reference back to an earlier answer or miss out a question if you feel you are repeating yourself.  Tenders can be split amongst a panel of people to review so they may not have access to all the information you have provided.

Also, the Government is aiming towards e-procurement, so it makes sense to highlight your ability to invoice and order on-line.

In terms of finding out about public-sector contracts there are a number of avenues you can try such as following up contract notices that are published in newspapers and trade magazines, monitoring online Government tendering notices or using a company that charges a small fee to search for contracts.

For private-sector contracts keep an eye on your local and regional press and relevant specialist magazines and see if any companies are expanding or sub contracting part of a big order. Check out both the editorial pages and advertising sections. Also, make sure you attend local networking events so that you can raise the profile of your business and meet potential customers.

A great place to start is the British Chambers of Commerce (BCC) and its Accredited Chambers Network, who run events across the country.  To find out about your local Chamber and events in your area visit www.britishchambers.org.uk.

However, not everyone has the confidence to walk into a room full of strangers or the time to attend an event. With this in mind, the BCC launched its Business Network Online (BNO) website earlier this year, which combines networking with a tendering facility. One of the key elements of the site - www.thebusinessnetworkonline.com – is that businesses that sign up can receive solid, relevant tender alerts via email or SMS texts.

It doesn’t matter whether you’re applying for a private or a public-sector contract, there are some essential rules you should follow, such as always focus on the client and talk about their needs, consider how you can solve their problems and give details of your team, their skills and experience.

It’s important not to adopt the scatter gun approach as you will simply waste time and money tendering for unsuitable contracts.  It’s all about being selective.

A version of this article first appeared on www.newbusiness.co.uk.