According to a survey carried out by the Federation of Small Businesses, almost half of small British companies have warned that the rising costs of doing business in the UK will stall growth this year.
Operating costs have risen for almost nine in ten businesses year-on-year, with rising fuel and utility costs the most commonly quoted issues.
For businesses, operating without a profit after two years of uncertainty and instability at the hands of the pandemic is certainly a worrying thought. Business owners and key decision makers invest much of their time conjuring up ways of growing their business, so much so Google search terms related to the phrase “grow business” generate an average of 8,350 searches a month.
So, if you’re a business owner in 2022, where do you begin when it comes to growing your business in an already complex world? Well, we’re fairly confident you’ll know that there exists a plethora of opportunities within the public sector marketplace, selling your products or services to the government, but did you know that landing a position on a public sector framework could provide your business with some of the most lucrative contracts available?
In this article, we delve into the wealth in frameworks and why they should be considered a solution to limited business growth.
The importance of business growth
It shouldn’t come as much of a surprise that growth is crucial to the long-term survival of any business. It can allow companies to seize new opportunities with a different audience or within a different territory, it can assist in the recruitment of staff which in turn generates increased profitability, and it can allow a business to expand its range of products and services.
That said, what makes or encourages businesses to grow?
Well, lower costs, the thought of market domination, the ability to reduce the impact of competition or the ability to attract the best and most skilled talent within the market are all pretty good places to start!
Long-term survival is undeniably important as American actor, Sam Waterston once noted, “if you’re not moving forward, you’re falling back” and in the dog-eat-dog post-pandemic world we live in, businesses cannot afford to be standing still.
What is a public sector framework?
These agreements are sometimes known as framework agreements or procurement frameworks and effectively they are arrangements in which buyers choose suppliers in advance and call upon them when necessary to deliver a certain specification.
A procurement framework: “allows buyers to place orders for services without having to go through the time process of a full tender application.”
Interestingly, suppliers can enter onto a framework up to four years before being selected, if they’re ever selected at all. We’re sure at this stage you’re probably thinking, ‘how can acquiring a place on one of these so-called frameworks actually benefit my business if it means waiting four years?’ Well, despite the fact generating business directly through the frameworks can prove to be a lengthy process and there is no actual guarantee of winning work, being awarded a place on a public sector framework acts as a signpost of credibility towards your business, highlighting to other buyers in both the public and the private sector, that you’re a key player in your industry, trusted by government and their rigorous vetting processes.
Key benefits of winning a place on a framework
There are numerous benefits of frameworks for both buyers and suppliers however for this exercise we’re going to focus solely on those meaningful to you as a business.
Undoubtedly, one of the greatest benefits to suppliers is the capture and sharing of knowledge and best practice with other experienced suppliers.
Take for example, you’re a business working within the construction sector. Entering into a framework could give you the opportunity to work with huge corporations with vast experience such as Balfour Beatty and Sir Robert McAlpine. Partnering with businesses of this calibre grant you the opportunity to access procurement expertise and construction excellence – tricks of the trade if you will.
Proving your capabilities within a framework can also ensure long term prosperity, as buyers impressed by suppliers often tend to continue their relationship for years to come. There is also the opportunity to discover potential opportunities within the private sector, through businesses similarly working on the frameworks – further enhancing the chance of growth.
Overall, we know that the future inevitably holds a significant amount of opportunity when it comes to the public sector – but businesses can afford to save themselves time and effort, while generating increased knowledge and opportunity through entering into a public sector framework.
If you’re interested in finding out more about public sector frameworks and how you can win a place on one, book a free trial today.
