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Why sell to the government?

Fair Business Practices

Even if your business is new or small, you still have a chance of winning a contract with a government body, because government purchases are subject to laws, regulations, policies, and must meet trade obligations. The bid or proposal that you submit will be evaluated and scored based on predetermined criteria and compared to the scores of your competitors.

Different governments may have different policies; for example, the Government of Canada must procure goods and services in a way that:

• Enhances access and competition
• Treats industry fairly
• Gets the best value for Canadians

Large Market

The Government of Canada alone spends about twenty billion dollars a year on goods and services. Add to that, the amount spent by each and every municipal, provincial and territorial government with whom you could be doing business - now that is quite a large market! You can even extend your business overseas and export your goods and services to foreign governments.

With the government being such a large potential market, why then don't all businesses target it? It is most likely because of the regulations and activities that surround the procurement process, such as:

• Registering in specific vendor databases
• Watching for 'call to tenders' or 'request for proposals'
• Bidding on jobs or preparing detailed proposals
• Providing detailed updates or progress reports on large jobs

It will be up to you to decide if doing business with the government is a good fit for your business.

Wide Range of Opportunities

Governments buy a wide range of products and services. Such procurement needs range from buying office supplies to contracting for the construction of hydro-electric power stations. Therefore, there is a good chance that your company's line of business matches up with a government procurement need.

Trusted Status

Apart from the financial benefits, your business will gain status and recognition as a supplier to a government body. Being a supplier to government tends to carry some weight with regard to credibility and competency when dealing with other local, national and international markets. It can be time-consuming to deal with the complex regulatory nature of fulfilling government contracts. However, your business' reputation will benefit from proving that you can meet requirements, deadlines, and terms and conditions of delivery.

Increased Marketplace Knowledge

Other benefits that may emerge from government contract experience include:

• A better appreciation of market trends (standards, requirements, and so on)
• The possibility of identifying and rating your competition
• The possibility of identifying mid-term and long-term strategic opportunities

Participation in public markets can generate these and other key marketplace information that can help your business.