Summary: Aside from knowing the right ways of getting a contract for government procurement, one should also know the common pitfalls of young entrepreneurs during negotiations and bids. In what ways can they NOT get a contract?
One of the most effective ways for small-scale businesses to thrive is to venture into government procurement. Note that the purchasing scheme of government agencies differs from individual households. They are in constant need of varying and voluminous supplies. This could only mean multiplied return of investments to newer enterprises should they become victorious in bagging federal contracts from the government.
Most young entrepreneurs are well-rounded with the registration processes. The Federal Regulation Law (FAR) makes it easier for them to get their companies in the list of legitimate bidders for government procurement.
Some may also be confident that they will walk out of the room with contracts at hand, after following the tips in making bids and negotiating with government agencies.
Unfortunately, younger entrepreneurs are known to be careless compared to more experienced tycoons. Here is a list of common mistakes they usually do when they try to be a supplier for government procurement:
1. Use of complex language in the proposals. In order to avoid sounding as neophytes, new businessmen try to sound too articulate during bids and negotiations. This is not advisable nonetheless. The proposal needs to be simple, brief and straight to the point. It is a must to use words which are easy to comprehend. Avoid using long-winded sentences.
2. Submitting another bid while another government procurement deals are still in the process. Dedication of suppliers is one of the major demands of agencies. Too often, young entrepreneurs try to bag as much contract as they can while other procurements are taking place. This usually makes them unable to complete the proposals and bids. Before the negotiation, companies should ensure that they can finish the project without putting jeopardizing other on-going government procurement.
3. Refusal to be paid with credit cards. Most agencies currently prefer to submit payments through merchant credit cards for government procurement. Saying no to this mode of payment may cause companies to fail in scoring contracts. Try to widen the payment options by allowing credit card payments. Besides, this payment system can be more beneficial. Companies no longer need to accomplish detailed paperwork and wait for a check. Payments from government procurement can be received easily with this system.
4. Incorrect units in item pricing. When agencies request for price scheme per gallon, it is a big no-no to submit proposals with prices per quart. Adjusting prices during the bids may also cost companies contracts.
5. Submitting proposals with typographical errors. It is best to appear professional when negotiating for government procurement. Avoid having typos, blank pages, smudges, rips, poorly constructed sentences and unnumbered pages when submitting bids.
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There are still numerous of common mistakes made by inexperienced businessmen. To know more of these, visit www.governmentprocurementexposed.com. This will get you prepared for the next bidding for government procurement.
