Three key steps to start bidding successfully

A clear pathway forward

 Kate Burrows, Managing Director, Tender Training College

I am regularly approached by business owners and employees wanting to know how to start tendering. It can be confusing space to find a clear pathway forward.

Tendering can be a gateway to business growth, particularly for small business – offering opportunities for secure revenue streams. This is even more attractive in the current uncertain financial market.

But a strategic and considered approach is needed for the following reasons:

• To reduce risk to your business and the entity you are wanting to supply to
• To have a reasonable chance of success in winning the tender and delivering the contract
• To save yourself a whole lot of time and effort by focusing your energies at the right tender client and contract.

Here are three bits of advice I give my clients to help get them started:

1. Establish online credibility

The first element to consider is whether your business can be verified as a credible entity. Government bodies and private companies will conduct due diligence to confirm the legitimacy of potential business partners.

It is essential you have a credible online presence. This includes having a registered business, an Australian Business Number (ABN), and a website or Facebook page that clearly communicates who you are and what you do.

These digital touchpoints serve as your online resume. They reassure potential clients that you are a legitimate player in the market and will enable them to build trust with your brand.

Importantly, include details about the products or services you are going to be tendering for on your website.

For example: If you are going to bid for commercial cleaning contracts, include information about your commercial cleaning offering, including your approach and past clients you have worked for.

2. Showcase relevant experience

Demonstrated relevant experience is GOLD in the world of tenders. Before pursuing contracts, evaluate your company's relevant experience in delivering similar contracts to what you will be bidding for.

If you plan to offer electrical services to a local council, have you successfully completed similar contracts in the past?

Compile a list of these contracts over the last three years, including details like project values, client names, scopes of work and outcomes achieved. This information helps potential clients gauge your ability to deliver their contract and reduces their risk.

If you lack direct experience or are looking to expand into a new area of work – then you need to show how you can bridge the experience gap.

For example: An electrician wants to supply electrical services to his local council, except he doesn’t have any prior experience delivering to local government. However, he does have experience supplying electrical services in a long-standing arrangement to a local real estate agent. The electrician developed a case study of this experience to demonstrate his ability to deliver electrical services with successful outcomes over an extended period.

3. Identify ideal clients and contract values

Defining your ideal tender client and contract value is crucial. Focus on contracts within your capacity and experience range – this is where you will have the greatest chance of success.

Local councils can be excellent starting points for smaller businesses. They often prioritise local suppliers in the evaluation process.

As part of their procurement policies, councils have set thresholds values – around $250,000 – so that contracts under this value are sent out to suppliers on their database to quote on rather than issued through a competitive tender process.

The first step is to register as a potential supplier on your local council's website. Visit the tenders page to find out how to register.

Winning council work at this level is a great way to get a portfolio of work together if you haven’t tendered to government before. It is low risk for all parties.

If you are tendering for contracts above the threshold value, contact your local council to learn about their procurement processes. That is, ask them how they purchase cleaning or electrical services, and how often are the tenders for their services released.

The same approach applies to state and federal governments. Often individual agencies have panel arrangements with preferred suppliers, so it is helpful to keep an eye out for these.

Once you have identified your ideal client, download a couple of their tender documents to understand the information being requested. This will help you to know what you need to supply to win the job.

If you're ready to start tendering strategically – let us help you. Our Tender Starter Program will give you the guidance you need to get your business on the right tendering track.