Huge opportunities for SMEs

In other developed countries you will find two and three person businesses making millions through understanding procurement systems

Remember, there are huge opportunities for SMEs to sell to this
marketplace; local government alone spends £27 billion per annum on
bought-in goods and services. With ongoing requirements across all
industry sectors, opportunities really can be quite diverse, so it is important
to monitor the marketplace to ensure you do not miss that one opportunity
which may prove vital to your business.
Understand the market and your potential customers
Knowing your market and gaining an insight into the procurement
procedures public bodies are required to follow will better position your
company to take advantage of potential opportunities. So, do some
research, build strong relations and network with prospective customers by
attending conferences and Meet the Buyer events.
Monitor the market for potential opportunities
Tender portals offering contract alert services will inevitably save you time
and effort. The public sector is vast, and with a focus on value for money
and increasing efficiency, there could potentially be an increase in the
number of smaller contracts advertised. Due to their lower values, they
could prove to be a more viable focus for your business.
Moreover, working with the public sector indirectly as a subcontractor can
also be a great way to increase reputation and gain valuable experience, and
may be a faster route to securing public sector revenue.
Finally, be selective!
The timescales set for expressing your interest can be short; however, it
is important to spend time carefully evaluating opportunities which may
appear relevant. Read what is being asked of you and then read it again to
ensure you understand all the requirements. Do not spend valuable time and
resources preparing a bid if you are unsure that you can deliver.
Public bodies are aware of the real benefits working with SMEs can offer
them. Government spend is crucial to the future competitiveness of the
economy and accelerating our recovery from the recession. Procuring using
processes that are open, fair and transparent not only allows the public
sector to achieve cost savings through obtaining value for money, but also
ensures the market is opened up to competition, presenting real
opportunities for many businesses to help the entire public sector drive its
efficiency agenda and assist in delivering cost savings.