Doing business with the government: How to get started
Selling to the government a lucrative business for companies in India. If you have the ability to dedicate employees and resources to winning larger contracts, you should do it. Government agencies are the best clients for your business because they acquire goods and services in large quantities. A startup company has just as much opportunity as a large one to win contracts. Nowadays, it is easy for new and innovative organizations to do business with the government. So, what are you waiting for? Continue reading to discover how to win a contract for your startup.
Figure out what to offer
The Government of India is one of the world’s largest buyer of products and services. Billions are spent each year on purchases such as equipment, professional services, and information technology. Procurements are always set aside. Needless to say, you will not be able to sell every product or service on your portfolio. Go through the inventory paperwork to identify what you can sell. Government institutions have clear goals and priorities, so take as much time as you need to understand what is at the top of mind for your prospect. Make sure your offering matches the existing need.
Understand the types of government contracts
There are so many differences in government contracts. They can differ depending on what state the company is located. In the United States, for example, the government offers commercial firms long-term contracts which give companies the chance to gain a competitive advantage. According to the experts at GSA Scheduler, the sellers are predominantly small businesses with specific sets of supplies and services. Getting back on topic, the Government of India offers several types of contracts, as follows:
· Fixed-price contracts – Payment does not depend on the time or resources deployed. You agree to the total value of the agreement before signing.
· Cost reimbursement contracts – Not only can you set a limit, but also negotiate the incurred expenses. You must present an estimated cost. The government must approve the additional costs, otherwise you will end up in loss.
· Incentive contracts – Additional compensation is rewarded based on the contractor’s performance. Basically, you are encouraged to do the work.
File your application for registration
To be eligible to receive a contract award, you must register your business with the Ministry of Corporate Affairs. Get a Digital Signature Certificate and a Director Identification Number. You can file the application for registration online. The whole process is easy – finalize the process to be in full compliance with the requirements. Once you incorporate your company, you will be able to receive electronic payment from the government. The government has the right to make changes in terms of purchase orders and even contracts. It is necessary to respect certain laws, rules, and regulations. See what requirements apply to business.
Consider going into a joint venture with an experienced company
Jeff Gilden, CEO of Charlotte SEO and Forge Web Design believes that content promotion helps a company maintain a high profile. And who are we to argue? If you want to capture government opportunities, promote your startup. Elevate your profile in the community and think about establishing a partnership. Work with a company that has experience in doing business with the government. One of the reasons why companies do not win bids is the lack of experience and turnover. Going into a joint venture is not a bad idea. The government gladly accepts joint ventures, so why not?