Should Startups Bid For Government Tenders?

Bidding for government contracts is an overwhelming and exhausting task at times. But for new businesses, it is an excellent opportunity to grow big. Startup owners often think that government tenders are far off from their reach and so they would keep themselves away from applying for government projects. Considering the competition, government contracts are not an easy nut to crack. But thinking startups cannot ever win government contracts and benefit from it is a sole misconception that needs to be busted. 

For startups, government tenders are highly rewarding and beneficial. From medicine supply tenders to government public works department tenders, startups have made their space in all the sectors and are successfully serving the government today. 

Government can be Your Best Client

For startups, the government can be your ideal client if you are seeking business growth and are willing to enjoy profits. Government looks for potential contractors that could finish the project in a meaningful budget while delivering quality. To fulfill its requirement, the government needs service providers with a good approach and innovative ideas. So, even if you are a startup, you stand a good chance of bagging the contract. All you have to do is prepare for delivering the service efficiently and communicate your strengths well while applying for the tender.

The Significance of ‘Experience Clause’

After the Start-up India initiative by Prime Minister Narendra Modi, the government bodies have made necessary amendments in the tendering process. Owing to this, the government has decided to exempt new businesses, startups, and budding entrepreneurs from experience clause in all the public procurements. The government considers startups and small enterprises an equal potential service provider as established businesses. 

Earning Good Profits from Government Contracts

It is clearly a myth that keeping a lower bid could bag you a government contract. Many people have this misconception that startups that might be winning government contracts would be keeping the lowest bid and could hardly earn profits. Well, that is not true. Government does seek lower bids but there is much more to it. Government looks for efficiency, innovation, quality, budget, supplier company’s reputation and business objective and much more before finalising a contractor. So, like established businesses even startups have a fair chance of earning good profits from a government project. 

Hope this post could be of help to you. If you are looking forward to staying updated with the information of the latest tenders in India, consider dropping us a line and we will be more than happy to help you.