Main types of B2G sales

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There are several types of business services in the B2G segment:

Sales of products or services to state and municipal institutions . The range of forms is very wide - from consulting to supplying premium cars, from providing kindergartens with food to supplying libraries with books.

Lease of buildings and land plots owned by the nursing homes email list state or municipality. Both the tenant and the owner (the state) remain in the black: the former saves money by not spending money on buying an office or industrial facility (it is cheaper to rent), the latter receives payment for unused plots.

Public-private partnership - in the sphere of housing and communal services, road construction, education, etc. Usually the government provides tax and other benefits, land plots, and also the right to receive a part of the income from the finished work. The company fulfills the state order, and then receives the profit from the use of the object, stipulated in the terms of the contract.

Concession : The government engages a business company in the mutually beneficial use of state-owned property or services provided by it on affordable terms.

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A concession is perhaps the most unique type of B2G sales. It is the construction or restoration of some property (a building or structure) at the expense of an investor company or with the support of the state, which acts as the owner of the property rights under the signed contract.

After completion of the work, the property created, leased or reconstructed continues to remain (or becomes, if it was only created) the property of the state.

The investing company, depending on the terms of the contract, is given the right to fully or partially use the property to generate income. Concluding concession agreements with investors from other countries is a fairly common practice. It is interesting that the subjects of the concession may be trademarks, service marks, logos, commercial secrets (know-how).

Ways to effectively organize a B2G business
By participating in profitable tenders, you receive large profits and guaranteed protection against fraudulent actions on the part of the customer. Potential business risks are reduced. In addition, the state partner's reputation is significantly enhanced.

It should be noted that it is not advisable to start your business by relying only on B2G sales. For a beginner, the conditions may become unbearable: a large volume of deliveries, the need to strictly comply with all points of the contract, a long wait for payment, high competition in the tender. All this makes the threshold for entry into this segment too high for non-professionals.

You can handle a government order if:

you and your team are ready to monitor the needs of government agencies;

know how to interact with government customers: find and select them;

you have experience in supporting transactions;

you are able to control the quality of goods and services and are not afraid of a long time for payment to be credited to your accounts.

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All interaction with government customers occurs through the official government procurement website. In this regard, you need a specialist who is well versed in the functionality of this resource.

The essence of work in the B2G segment is searching for suitable tenders, quickly assessing notifications of planned purchases and drawing up applications. Organizing a business in public procurement consists of the following stages:

It is important to decide on the principle of selection of purchases . You can submit applications to all tenders in a row that suit you, with the expectation that you will be lucky somewhere. Another option is to pay attention only to the most profitable lots and place a bet on them.

Choose an application that matches your physical capabilities as an order executor . For example, it is quite possible to make deliveries of juice in tetrapacks from Krasnodar Krai to Sakhalin, but it is worthwhile to sell perishable products only over shorter distances.

Decide in advance how much you can lower the price to participate in the auction . Without calculating the minimum allowable product margin before the start of the electronic auction, it is easy to make an irreparable mistake. The tender will be won, but the conditions will either ruin the supplier or force him to work to his own detriment.

Also, before submitting an application, you need to calculate the exact cost of work, goods and services in the required tender . After taking into account the minimum marginality, you will understand what your chances of winning are. It is advisable to contact an experienced economist if you do not have the appropriate skills.

Complete all technical procedures : obtain an electronic digital signature, register on the resource with ongoing trades, after which you can participate in them.

As mentioned above, a start-up business is unlikely to win a major government tender, so it is worth counting on municipal customers. It is important to know that government orders are also made by various budgetary institutions: they are required to issue tenders for almost all their needs (from office supplies to repair work).

Why is it difficult for small companies to compete in B2G sales? The state requires guarantees that its order will be completed accurately, efficiently and on time. When taking on a multi-million dollar tender, be prepared to have 10% of the amount in your account. This money will be frozen as security and cannot be used until the terms of the contract are fully and completely fulfilled.

One of the main problems facing businessmen working with government procurement is not legislation, but bureaucracy. Properly built relationships with government officials are becoming a key moment in developing successful cooperation with the state.

Let us note once again that B2G sales require a great deal of attention and responsibility from the businessman. If the company fails to fulfill the order, violating the terms and conditions of the contract, it will never participate in government procurement.

The state will no longer sign a contract with an unreliable supplier. If it wants to make another attempt, it will have to close the company that failed and open a new one.

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