One of the best ways to expand your business is through business to government (B2G) projects. Through B2G, you can grow both your revenue and your network. Moreover, winning a government contract also gives you more credibility. With increased trust, it will be easier for you to win more B2B and/or B2C clients.
If you’re interested in serving a government project and start growing your business through B2G, here are a few tips:
Register with PhilGEPS
The PhilGEPS or the Philippine Government Electronic Procurement System is the Philippine’s sole centralized electronic portal that provides information on government procurement. If you want to win government contracts, becoming a PhilGEPS member is a crucial first step. You can register as a supplier by filling out an online form. Afterwards, you have to wait for a confirmation email with your username and password.
Completing the registration will give you a basic membership (Red). This will give you access to government procurement projects listed on the PhilGEPS website. However, before you are able to submit your bid, you must upgrade your membership to Platinum. For this membership, you need to provide your latest valid business documents and pay a membership fee.
Make Sure You’re Properly Funded
The government won’t award you a contract if they don’t see proof that you can see the project through to the end. One solid proof is to show that your business is properly funded. Thus, the next step is to seek financing after becoming a PhilGEPS member. Some of your best financing options include invoice financing and purchase order financing. Invoice financing allows you to get an ample amount of cash for short-term cash flow requirements. If you haven’t made an invoice financing loan before, think of it as a kind of cash advance. Meanwhile, purchase order financing is a good option if you have clients with high order fulfillment requirements.
Develop and Maintain Industry Contacts
Networking is an important part of maintaining a business. Indeed, one of your most valuable business assets is your network. When you cultivate business relationships, it humanizes technical and impersonal processes. This “human touch” can help your partners feel more at ease and more confident doing business with you.
Networking also gives you learning opportunities, so don’t be afraid to cross-network and develop contacts from other industries. Who knows? You might even end up hearing a solid lead through the contacts you’ve built up.
Keep an Eye on the News
Another good way to keep yourself updated about the latest government projects is the news. Pay attention to news about recently passed budgets and project proposals. These can be your clues to new projects that would soon open for bidding. Some of the best sectors to watch out for in the news include education, health, and public works.
Make Your Business Stand Out
Keep in mind that the government receives plenty of proposals each day. As such, you have to make sure that your business stands out. Moreover, it’s important that you know your business inside-out. You need to be able to highlight not just your products and services, but also that unique edge that makes you the better choice. Work toward increasing your visibility, and at the same time becoming an industry expert.
Work with Other Businesses
There will be times when government projects would feel like a little too big for your humble business to tackle alone. If such is the case, you may want to consider joint ventures. Working with other businesses will not only help you with funding, but also allow you to work on projects beyond your industry. This is another facet where the above-mentioned business network can come into play.
Sometimes, it’s truly best to start small. Government projects are not all about nationwide or provincial-level endeavors that cost hundreds of millions. There are also plenty of small-scale projects that you may want to consider. For example, the government is always looking for catering services for various celebrations and training programs across the country. If you’re in the food and beverage industry, this is a perfect opportunity to secure a contract. From here, you can work on getting more contracts until you can land bigger projects.
Do note that B2G projects have stricter requirements and compliance standards compared to B2Bs or B2Cs. Don’t let this discourage you, however. It’s all part of the process to ensure fairness and transparency. In the end, government projects can go a long way in establishing and expanding your business.