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7 Reasons Why You Need To Sell To The Government


tendertube | How to successfully write a proposal cover letter (including 5 quick tips)

Before you start applying for government tenders, you need to know the reasons why you need to sell to the government in the first place.


The journey of tendering for government projects is not an easy one.


But if you are very clear on your WHY…


No matter the obstacles and setbacks, your WHY will be the wind behind your wings, propelling you ever forward.


So, it's important to look at your own situation and market dynamics to figure out why you want to get into government tenders.


If you're thinking of selling to the government and you see the dollar signs, take a moment to consider these reasons.


tendertube | All Organizations start with why


Table of Contents

  1.   Revenue Boost
  2.   Stability and Longevity
  3.   Credibility Boost
  4.   Access to New Markets and Opportunities
  5.   Promote Growth and Expansion
  6.   Provides a shield against economic downturns
  7.   Social Impact

Wrapping Up



1.Revenue Boost


Many government departments have big budgets for different projects and services, ranging from infrastructure development to technology and everything in between.


This means that the contracts can also be large in size as compared to the private sector.


For example, if you sell laptops to a small business like Tendertube, we might only be able to buy 3 or 4 of them because we are so small. But if you get a tender to sell laptops to a government agency like Telone, we are talking about maybe 50 -100 laptops. So you see how much money a government contract can bring.


This can be good for your business. Why? Because you are now able to push products in large volumes.


But keep in mind that selling to the government can be very competitive.And the procurement process has strict requirements and procedures to follow.


But keep in mind that selling to the government can be very competitive.And the procurement process has strict requirements and procedures to follow.



2.Stability and Longevity


Unlike some contracts in the private sector, which may only last for a short time, government contracts can provide stability for your business for a longer period.


Let’s explore how that stability comes about.

  1. Government tenders in some industries such as construction can last for months or even years. This means that your business will always have work and money coming in.
  2. There's often the opportunity for renewal or extension even if the initial contract is for a specific period.
  3. Most government clients need a variety of goods and services on a regular basis. Once you build a relationship with them,there's a good chance they will continue to work with you for a long time.


This continuity can provide you with:

  • A more reliable revenue stream that can support your operations
  • A solid foundation for growth.
  • A sense of predictability that help you to plan for the future more effectively



3.Credibility Boost


Government contracts typically involve a thorough evaluation process.


This process may include factors like past performance, financial stability, technical capabilities, and compliance with regulations.


So, if your business wins a government tender, it's a testament to your competence and reliability giving you overall credibility as a business.


In 2021,the government awarded a contract to five companies to construct the Harare BeitBridge Highway. The companies have been mentioned in the media countless number of times.I have seen numerous articles on the internet covering this story


What does this media coverage mean for your business?


Firstly, it establishes you as a trusted vendor in the eyes of the government. Other government departments may take notice of your successful contract and consider you for future opportunities.


Secondly, it can give confidence to potential clients from the private sector as well, as they see your track record and trust that you can deliver on their needs.


tendertube | Masimba Infrastrure projects


Media coverage has established Masimba Construction as a trusted vendor in the eyes of the government. Source |The Herald


4.Access to New Markets and Opportunities


Government contracts typically involve a thorough evaluation process.


Selling to the government not only opens doors to additional opportunities but also to new markets that may have been previously inaccessible to your business.



Like I said earlier on, government agencies cover a wide range of needs and initiatives, spanning from healthcare and education to infrastructure development and technology implementation


The good news is that government tenders can be your vehicle to enter these different markets. And you can expand your customer base beyond what you may have been able to achieve solely in the private sector.


Now let’s see how you can use government contracts to do that.


For example, let's say you run a technology company specializing in software development. If you win a government contract to create custom software for a government agency, it gives you valuable insights into their specific needs, requirements, and processes.


This exposure can also lead to additional contracts with other government agencies or even private sector clients who recognize your expertise.


And the best part?


You can use this knowledge to tailor your products or services to better serve other markets or industries,thus giving you a competitive edge.


tendertube | Masimba construction


See publicity through government tenders has opened doors to more business opportunities, Source | Newzwire



5.Promote Growth and Expansion


Winning government tenders often brings not only financial rewards but also resources to take your business to the next level.


Let’s talk about the financial rewards first.


You can reinvest the money you get from these contracts in your business to fuel growth. For example, you can use the money to hire additional staff, invest in research and development, upgrade equipment or facilities, or expand your operational capacity.


By doing so, you will be able to handle larger projects and perhaps take on multiple contracts at the same time. This not only helps you meet the demands of government agencies .But also positions you to pursue more private sector opportunities that may have been out of reach previously.


Now let’s talk about resources.


I know of a certain construction company that won a government tender to construct a highway. They first managed to secure an advance payment. And they used that money to buy additional equipment to quickly scale their operations.


And you know what that means - growth for the company.


Also, successfully fulfilling government contracts and demonstrating growth potential can attract the attention of investors, lenders, or strategic partners who may be interested in supporting your expansion. This can provide additional capital, expertise, or resources that propel your business forward.



6.Provides a shield against economic downturns


Winning government tenders often brings not only financial rewards but also resources to take your business to the next level.


Let’s talk about the financial rewards first.


During economic downturns, many private companies scale back on spending and delay or cancel projects.


But, the government often continues to invest in various initiatives, projects, and services to support the economy and meet public needs.


So, let's say a recession hits, if you have secured government tenders for various projects, your business can continue to operate


And provide you income despite the downturn in the private sector giving you the much needed stability.


This stability can give your business a competitive advantage and protect you from economic storms.


But keep in mind that even the government isn’t entirely immune to the effects of a recession or economic crisis.


So it’s still important to monitor market conditions, adapt your business strategies, and remain agile to navigate through challenging times successfully.



7.Social Impact


According to Brian Tracy, the author of Maximum Achievement, one of the ingredients of success is to have meaning and purpose in life.


We need to feel that we are making a valuable contribution to the world.


And government contracts can give you the opportunity to make a positive impact in society.


You see, government contracts often involve projects that serve the public interest.These projects or initiatives often contribute to societal well-being, support vulnerable groups, or foster community growth.


Being involved in such socially impactful projects brings a sense of fulfilment and purpose to your team.


Also, these projects can provide you with expertise and knowledge in tackling specific societal challenges.


This experience can position you as a subject matter expert in social issues.


And ultimately, enable you to offer valuable insights and solutions to both government and private sector clients facing similar issues.


tendertube | Harare Beitbridge nightmare

Tackling social issues can bring meaning and purpose to the whole organization .Source | The Herald


Wrapping Up

Alright, there you have it – a rundown of the reasons why you need to sell to the government.


We have covered that sweet revenue boost and the stability it brings.


Selling to the government adds a whole lot of credibility to your brand. And you know what that means – trust from your customers and partners. It's a win-win.


Though tendering for government projects might seem challenging, but trust me, it's worth it if you are willing to trust the process.


Over to you now – why do you want to participate in government tenders? Let me know in the comments below.

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