Business mentor: Concrete steps to expand business

Q. I'm a small local manufacturer, well positioned to expand rapidly. I'd like to secure a few large contracts rather than a lot of small ones. What can I do?

A. Harold Williams of the New Zealand Industrial Supplies Office replies:

If your business is well positioned for expansion, then there are some concrete steps you could take to get in touch with suppliers and secure larger, more lucrative contracts.

As the Government is such a large purchaser of products and services, there are lots of opportunities for competitive local businesses to win contracts that may lead to more significant work immediately and in the future.

NZISO actively encourages government organisations to consider the products and services of competitive New Zealand businesses, with the aim of maximising competitive local content.

Government organisations range from government departments, to district health boards, Crown entities and state-owned enterprises.

Government contracts can help build our country's international competitive advantage by upskilling local business capability.

Under the Government Purchasing Policy, all government departments have to notify the NZISO of any tenders or purchasing opportunities worth more than $50,000.

All other government agencies are strongly encouraged to notify the NZISO of tendering opportunities.

This is to ensure that New Zealand suppliers can effectively participate in tenders.

It helps ensure that if the best value can be obtained with a locally produced product or service, then it should not be overlooked by government organisations.

NZISO uses its free, user-friendly GETS website, www.gets.govt.nz, to list current government opportunities available to Kiwi suppliers.

Local businesses can register for access to the GETS website and find information on tender opportunities from New Zealand and Australia.

GETS includes TenderWatch, which provides local businesses with relevant automatic email alerts, of newly listed tenders and opportunities.

NZISO works with local suppliers to interpret the quality and technical requirements of purchasers and link them with government purchasing requirements.

This is something local suppliers may find difficult to do on their own and may therefore miss out on many opportunities.

Our specialist staff understand the government tendering process and can talk businesses through what may be unfamiliar territory.

Australia is a significant and close market for New Zealand. Under Closer Economic Relations (CER), NZISO can put local suppliers in touch with opportunities in Australia.

As NZISO is part of the national economic development agency, Industry New Zealand, it can also put businesses in touch with business development programmes.

Local suppliers can strengthen their capability and experience by supplying the government sector. This can open up future opportunities both within the private sector and for exports as well.

In the long term, NZISO works to maintain productive relationships with key people within your industry or trade organisation, to ensure you are aware of opportunities.

Finally, key to securing bigger contracts is building up your reputation and capability. If you are known as a competitive, quality-focused supplier, this will aid you in any efforts to secure bigger contracts in the long run.

* Email us your small business question. Answers will be provided by Business in the Community's Business Mentor programme.

New Zealand Industrial Supplies Office

Government Electronic Tenders Service