Marketing

The Top Benefits of Partnering with the UK Public Sector for your Business

The Top Benefits of Partnering with the UK Public Sector for your Business

Are you a small business owner looking to expand your sales opportunities? One option you should seriously consider is partnering with the UK public sector. In this blog post, we explore the top benefits of partnering with the UK public sector and illustrate how it can help your business grow.

  1. The opportunity to scale your business

The public sector is often referred to collectively as the government. It is in fact made up of many different organisations, so opportunities to sell into the sector are wide and varied. To give a sense of its magnitude, gross spending on public sector procurement was £379 billion in 2021/22 across the UK.

It is an extraordinarily large market, which includes the NHS, central government, local government, schools, and further and higher education (colleges and universities). The NHS, which forms a large part of the public sector, is the fifth largest employer in the world! Then there are many charities and private organisations working within the public sector domain, such as housing associations, care homes and health and social care providers.

The potential for business growth and expansion through public sector partnerships is huge.

2. The potential for long-term, stable business relationships

When public sector clients find a supplier that they like to work with, they tend to remain loyal to them. The inherent risk in changing suppliers is that the new vendor may not meet the exacting standards required. People tend to take the view that if it’s not broken, don’t fix it.

The onus is, however, on you, to ensure there is no reason for the stakeholder to switch to a new supplier. If you don’t take the contract for granted, and remain agile and flexible, there is the potential for a long-lasting partnership.

Tendering for public sector business can be long-winded and require you to jump multiple hurdles. In short, it can be painful. Conversely, the tendering process is probably not too enjoyable for the client either. They would rather find a vendor that gets the job done with minimum fuss. Once they have found a vendor that they trust, why would they want to change?

This stability allows you the opportunity to forward-plan with confidence and take on new members of staff, safe in the knowledge that there is a good chance of regular work.

There is the caveat that the public sector must be transparent and open, and there is no longer a guarantee of continued repeat work. However, the public sector is here to stay and is less prone to change than the private sector. Working for the government undoubtedly offers greater opportunities for long-term relationship building.

Once you get your foot in the door, you have the potential to reap the benefits of a fruitful long-term relationship

3. Help solve some of society’s problems

The public sector exists to provide services that are essential for the well-being of society. Whether it is the NHS keeping us alive and well, schools and colleges teaching valuable skills, the police and armed services keeping us safe or the emergency services who arrive when we need urgent help, the public sector is there for us. By providing services to the public sector, you are helping with the smooth running of our society.

More businesses are placing greater emphasis on having a purpose, and they enjoy tangible benefits in doing so. There is currently a global skills shortage, so staff retention and attracting skilled people are vital. More and more people want to work for a business that is ethical and adheres to a positive set of values. A 2022 survey by Deloitte found that “purpose-driven companies” had 40% higher levels of workforce retention than their competitors.

Most of us want to make a difference in the world we live in and working with the public sector really can be a positive move. You don’t need to rescue someone from a fire or perform life-saving surgery to make a difference. If you can provide a service that increases efficiencies or saves money, then more resources can be dedicated to frontline services. Everyone can play their part.

4. Why partnering with the UK public sector can be good for small businesses

More than ever, partnering with the UK Public Sector provides valuable opportunities for small businesses. In recent years, the government has opened the gateway to smaller companies by committing to spending £1 in every £3 with SMEs and involving them in more projects.

Aside from the financial rewards, partnering with a public sector body can have wider reputational advantages. With robust procurement and carefully managed budgets, becoming a partner in a public sector initiative isn’t an easy achievement. It demonstrates that your business can be trusted and that you are regarded as being reliable and professional.

The enhanced reputation and profile can also be beneficial when seeking future contracts, whether public or private.

Another factor to consider is that you are dealing with a client who will pay you! Public sector bodies will not go bust, owing money to suppliers. The payment terms are transparent and fair. Public sector bodies are required to pay suppliers within 30 days. Knowing when you are getting paid can be very helpful when it comes to cash flow planning.

Tips for getting started with selling to the UK public sector

  • Start small. Getting your first contract can be a stepping stone.

  • Smaller tenders (under £10,000 in value) may not be on the government portals. Keep an eye out for opportunities in the local press and on social media channels.

  • Only apply for tenders where you have the relevant specialism and experience.

  • Think long-term. It may take a while before you get your first success.

  • Ensure your website shows any accreditation you may have.

  • Make sure your website highlights any community or charity work you have undertaken.

  • Know the customer. Research into the public sector body won’t be wasted time.

  • Understand the procurement process.

Maximising your sales potential with UK public sector partnerships

Partnering with the UK public sector can be a valuable opportunity for small businesses looking to grow and expand. By understanding the benefits and navigating the procurement process, you can open up a world of new sales opportunities.

Get started by downloading our FREE whitepaper and find out everything you need to know about how to market and sell into the public sector.