Nail your SME strategy in the UK tender market

For many small and medium-sized enterprises (SMEs) across the UK, winning a public or private sector tender feels intimidating and unachievable. There’s a constant feeling of not being able to compete with larger more established players in the market, some of which are in-house bid writers and a process for bidding for nearly any and every opportunity.

Fortunately, the very attributes that define an SME – agility, local presence, and direct leadership – are precisely what can give you an edge in government tenders, and in particular, local government contracts. The government – and sometimes private sector – also has requirements and processes built into their procurement documentation that ensures small businesses are not disadvantaged in the tender or bidding process including for frameworks.

Here are some strategies small businesses can adopt to win.

Implementing a robust strategic ‘Bid/No Bid’ process

Before a single word is written for a tender submission, the most impactful strategic move an SME can make is the ‘bid/no bid’ decision. The temptation to chase every potential opportunity, fuelled by a fear of missing out, is a common pitfall for many small business owners across the UK. Bidding is an investment – particularly for small businesses with limited time and resources. It demands significant time from your key personnel, including directors, and a deep dive into the client’s complex requirements. Key questions small businesses should ask themselves as part of the decision process include:

• Can we meet all the mandatory criteria? Checkfinancial thresholds, specific certifications, or demonstrable experience levels. Compliance with the mandatory criteria is dealbreaker.
• Understanding the ‘why’: Ask yourself what the client’s underlying needs, challenges and strategic objectives? Do you have a solution that helps them achieve those objectives.
• Do we have a distinct competitive advantage? For SMEs, this often isn’t about being the cheapest but about delivering value through flexibility, specialised expertise, or crucially, your deeply embedded local presence.
• Deliverability and capacity: Can we deliver the good or service if we are successful? Do we have the internal resources, infrastructure and bandwidth to deliver?

For SMEs (and large corporations), a well-considered ‘no bid’ is not a failure; it’s a strategic choice that frees up resources to pursue other opportunities.

Focusing on the strategic advantage of being ‘local’

For public and private sector bids in the UK, being locally based is often a major strategic advantage. In public sector procurement, social value and local economic impact are increasingly weighted. This focus on community benefit presents a substantial opportunity for businesses deeply rooted in their areas. For SMEs, when writing bids or tenders, you should move beyond simply stating your address. They should weave the narrative of their local commitment throughout your bids by:

• Being a local employment champion: Detail your dedication to creating and sustaining jobs within the immediate community. Quantify this where possible, highlighting the number of local residents you employ and how their skills contribute directly to the local economy. This resonates strongly with public bodies focused on regional prosperity and will also show that there are training opportunities for locals that will be driven and supported by the contract.
• Put forward a local procurement plan: Talk about your preference for sourcing materials, services, and expertise from other local businesses. This demonstrates a multiplier effect, illustrating how your operations funnel investment back into the community, fostering a robust local business ecosystem. It’s best to list the suppliers you propose to purchase from and detail their local presence.
• Community engagement and investment: Showcase any involvement in local charities, sponsorship of community events, or participation in local initiatives. This provides tangible evidence of your corporate social responsibility and reinforces your role as a contributing member of the community. Even local businesses supporting local football and other teams is important and should be integrated into your bid and social value proposal.
• Reduced environmental footprint: Local operations inherently lead to reduced travel, shorter supply chains, and often a lower carbon footprint. This aligns perfectly with the growing emphasis on environmental sustainability within procurement frameworks, offering a subtle yet impactful selling point. The important point here is that you have to clearly explain this in your bid.

Playing to your strengths as an SME

Many small businesses across the UK think they must imitate the structures and processes of larger corporations to succeed in tenders. This is a fundamental misunderstanding. Your size, far from being a handicap, is often your most potent competitive advantage.

Strategically highlight your inherent strengths in your bids to increase your success rate by talking about:

• Hands-on director involvement: Emphasise that your company directors are not merely executive oversight but are intimately involved in project delivery, client relationships, and key decision-making. This offers clients unparalleled access, direct expertise, and a level of personal commitment that large, multi-layered organisations often cannot replicate.
• Exceptional agility and responsiveness: Showcase your capacity to adapt rapidly to evolving project requirements, offer flexible solutions, and provide an exceptionally responsive service. Detail how your streamlined internal communication and decision-making processes enable quick pivots and efficient problem-solving, which stands in stark contrast to the often-rigid procedures of larger firms.
• Personalised client experience: Unlike the standardised, often impersonal, service of a larger entity, an SME can offer a truly bespoke and client-centric approach. Explain your commitment to assigning dedicated points of contact, ensuring proactive and regular communication, and meticulously tailoring solutions to the client’s precise needs rather than deploying a generic model. Personalise your bid by inserting direct quotes from your team members throughout your bid or framework application.
• Deep niche expertise: Many SMEs are born from specialised knowledge and passion. Leverage this. Position your business as experts in your specific domain, demonstrating profound understanding and experience that transcends generalist offerings.

A methodical approach to winning bids, contracts and framework for small businesses across the UK

Bidding confidently is critical for SMEs to win government and public sector contracts. By making rigorous ‘bid/no bid’ decisions, amplifying your local impact, and showcasing your inherent agility and hands-on leadership, you turn a negative into a positive and give your business the best chance of success. A concise writing style, lots of engaging content filled with evidence and proof points, and no marketing ‘fluff’ will also help you win your next RFT, ITT, SQQ or framework application.

Key takeaways for winning a tender

•  Be selective with your bids – and ask why you’re applying for them.
• Some organisations and businesses have requirements built into their processes so that small businesses aren’t disadvantaged.
• ‘No bid’ isn’t a failure, it’s a strategic choice.
• Being local is valuable when making bids.
• Use your strengths as an SME to your advantage.

Jason Cooney is the director of Tsaks Consulting.

Read more

How to apply for public sector tendering as a small business – The public sector, including the government and local authorities, spend around £284bn each year on goods and services. Yet 75% of small businesses never even apply for public sector contracts. Melanie Bryan guides you through the process