Governments from all around the globe are buying more than $5.5 billion annually in diverse products and services ranging from pens, software and construction hats to fighter jets, brain scanners and wastewater management facilities. Selling to public sector buyers has many advantages. Not only is the chance of a government going bankrupt on you is virtually nil, but they have a higher tendency than the private sector to pay on time and they are less affected by economic downturns. For those of you who are still not convinced that government markets are more synonymous with red tape, bureaucracy and lengthy delays than with attractive business opportunities, here are some tips to help you find your way in foreign government markets.
With over 160 countries with federal, provincial/state/territorial and municipal governments, selecting the right agency to promote your goods to might be the greatest challenge your company will face in its quest to sell to the public sector. However, the advent of the Internet and the requirement for most governments to become more transparent has made the task much easier for Canadian companies.
Check the Central procurement department
Most countries’ governments have a central procurement department that is responsible for most of the general purchases of the government, similar to the role Public Works and Government Services Canada plays for the Canadian federal government. Various governments have a central website where all the requests for proposals (RFPs) above a certain dollar threshold are posted.
The announcement of requirements or RFP always identifies the name and contact information of the procurement officer for the purchase. Usually procurement officers specialize in a product category or sector. If you do a little research for RFPs for products or services within your own category, chances are you’ll be able to identify the procurement officer for the purchase of your product. This allows you to focus on one or two key procurement officers with whom you need to build a relationship to promote your products or services. The key is to develop long-term personal relationship. You should not only send your promotional brochures, but also give them regular phone calls and even book an appointment when feasible.
Beside the procurement officers, you should also get to know the end-users of your products within the organization as they are instrumental in determining the specifications for the products or services the procurement officers will purchases.
Look for government announcements and strategic plans
Companies in search of business opportunities should also be looking at the buying (end-user) department’s strategic plan. This will identify the short and medium-term needs of the department or agency as well as the major projects they are planning to embark on. This can help you develop relationships with key decision makers well before the procurement officer gets the purchase request.
Your product or service may be the perfect solution to assist the department in fulfilling its mandate for the project. Look for news releases or for newspaper articles on the department or agency. Entrepreneurs who identify a business opportunity by reading an article on a major government’s undertaking and start promoting their products at an early stage are often able to knock out their competitors before the game is initiated.
Check with Prime Contractors for subcontracting opportunities
Another place to look for opportunities is the list of contracts awarded for that agency. Companies with little or no experience in selling to government may find it easier to act as subcontractor to a larger prime contractor. By finding out the firms that have won major contracts with the government, smaller exporters can get the experience of working on government projects without the obligation of directly reporting to government officials.
Use the resources Canada has to offer
Canadian companies have a number of government resources at tips of their fingers to facilitate their entry into foreign public markets.
SourceCan, an online service portal offers business leads with its Opportunity Matching Service. This customized matching service gives Canadian companies easy access to more than 30,000 electronic tenders from various public sector organizations in Canada, the United States, the European Union and various International Financial Institutions (IFIs).
Once you’ve identified an opportunity suited for your company’s capabilities, you can get online support from CCC whenever you need it at NEXT STEPS, so you can find out what you need to do to win the sale.
There’s nothing quite like talking to a real person to find out what you should do with that hot new lead you’ve just spotted. CCC also offers you advice by phone with a simple call to Ron Linton at 613-995-0140.
Finally, Canada ’s Trade Commissioner Service (TCS) is another source Canadian exporters can tap into for information on other governments procurement plans. Most Canadian embassies and consulates have a Trade Commissioner in most markets that is responsible for handling government procurement issues and who will direct you to the right contacts within foreign government departments or even give you some interesting leads.
TCS also offers on online resource in the Virtual Trade Commissioner that can assist you in identifying opportunities in the markets you are targeting.
The opportunity that exists in international public sector market has been largely untapped by Canadian exporters. But with growing awareness of how to identify projects and greater understanding of the support that’s available to them for complex export deals, Canadian exporters are well positioned to grow their share of this market.
Once you've penetrated the market, you may find yourself the vendor of choice for the product or service you provide.
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