For a small business, bagging a contract with the big boys in the business world can be considered a huge success. Imagine standing out from the rest of your competitors hoping to land that contract with a major company. Now, isn’t that a great feeling of triumph?
Although we all know that customers are the lifeblood of every small business company, signing a contract with a big company can cement your foothold in the business. This means you get to enjoy more privileges, more profit, and increased brand awareness and recognition.
If you are someone who is about to enter the world of business, it is important to learn the different strategies on how to win contracts effectively and successfully. You may also like to check out the following business contract templates before we proceed to the next section.
Bidding on Contracts
We all know that securing a business contract with big companies is essential for every small business entrepreneur because it can be a lucrative way to gain long-term profits for your company. In this section, we will discuss the different techniques that will guide you through the whole bidding process and secure that major business contract you have always wanted.
1. Do your homework.
Taking some time and effort to get to know the different companies that might be needing your services is a great way to start. Let us say, for example, you are running a small company that offers cleaning services. Make a list of the companies that might be needing your services and research essential contact information so that you will know who to get in touch with.
2. Contact each company on your list.
Once you have all the contact information you need, it is time to phone the procurement manager. Inquire whether they currently have or will need a cleaning service contract in the future. You can also ask them whether they already have a list of potential contractors for contract bidding should they require to obtain their services. If they already have, you can request politely to include your company on the list of prospective contractors.
3. Explain the value of your company.
If you want the company to include you in their prospective contractors list, you will have to provide them with valid information and details on how they can benefit from your company’s service. You need to differentiate your company from your competitors in the market by talking about the things that set you apart and how your service offerings are lot better than the others. How well you convince the company might win you a business partnership contract. You may want to check out the partnership contract templates before we proceed to the next tip or see the samples provided below:
Sample Partnership Agreement
General Partnership Agreement
4. Never make promises you can’t keep.
Oftentimes because of our desire to impress a prospective company, we tend to offhandedly make promises that we can not keep. As a rookie entrepreneur, you will need to understand how over-promising can damage the reputation of your company.
5. Request an information packet.
Once you have convinced the company to include you in their list, you can ask for an information packet. Make sure that it contains crucial information, such as company details, procurement process, and their requirements for the bidders. Before you submit the form, be certain to fill it out with supplemental documents that verify the history of your business, its service capabilities, financial viability, as well as the products and/or service provided.
6. Understand the content of the Request for Proposal (RFP).
If the company sends you an RFP, it is important to really spend some time examining its content before writing a business proposal. Your ability to understand the proposal requirements can hugely and negatively affect your chances of winning the bid. Once you get a hold of what the company needs and how you can provide solutions to their problem, you can download our business proposal templates and use it as your reference. Once you bag the contract, you and the company will sign a service contract to make the agreement official and legal. See the following templates below:
Service Provider Agreement
Cleaning Service Contract
Professional Service Contract
Framework Service Contract
Printable Lawn Care Contract
Hopefully, over the long term, you will bag as many contracts for your company. If you ever feel to go out of track towards success, make sure to always refer to the tips provided in this article. Do not hesitate to check out our article on agreements for startup entrepreneurs.