How to Decide Whether Your Business Should Bid for a Tender
Bidding for a tender can be a daunting process, particularly if you’re new to the process. It is a lot of work (particularly administration), with no guarantee of success at the end. With so many tenders out there, it can even be hard just choosing the right ones when bidding for a tender.
Don’t be discouraged. Here at Your Tender Team, we have been helping clients with their tender bids for many years and there are ways to tell if you’re ready to make that bid or not. Here are a few things to consider:
Deadlines
Compiling all the information together to make a convincing bid for tender takes time. Even experienced bidders have to tailor each new bid to meet the requirements of the tender. If it’s a tight deadline you have to ask yourself if you will be able to do you and your company justice in such a short time frame.
Experience when bidding for a tender
Most buyers will expect you to have worked on similar projects in the recent past (say within 5 years). This might mean projects in the same sector, the same budget, or a similar level of complexity. If you have case studies that can demonstrate this – excellent! If not, your time might be better served looking for another project.
Money
A general rule of thumb for tenders is never make a bid on a contract that is worth more than half your annual turnover. While bigger projects might be tempting, sticking to this rule ensures you have the resources to deliver on your bid.
USPs and UVPs
Every company has its unique selling propositions and unique value propositions for its clients and you should put yours front and centre of any bid you intend to make. Take the time to figure out what your company offers that none of your competitors does and make sure the buyer knows about it.
Outsourcing when bidding for a tender
Can you do everything demanded in the tender in-house, or are you going to have to outsource some of the work? While the latter is not necessarily a stumbling block (very few businesses can expect to cover all the bases with their permanent staff), the more work you have to subcontract, the more questions the buyer will have regarding your ability to deliver.
Can you do this?
Answer this question honestly. Don’t think about perfect scenarios where everything comes together in unison and your team are happy to put in the extra hours to get things done on time. Think of a regular work pattern, the resources at your disposal, and possible supply-chain issues. If you still think your crew can handle it – then go for it!
Bidding for a tender, Is it worth it?
It’s another question that you need to answer honestly. Will winning this tender be beneficial to your business? Does the remuneration justify the amount of work you’ll put in? Will you make a profit. Will the project make for an interesting case study for future bids?
If you’ve gone through this list and you’ve decided that you want to bid on a particular tender, we can help you out. With years of experience in the industry, Your Tender Team can help the bidding process run smoothly for you. Call the team today on 0116 218 2700 for a free, no-obligation quote for our services.