Before you woo, do your due (diligence)!
We spend so much time making sure we look like the perfect fit for a tendering organisation that we often forget to ask ourselves a crucial question: Do we actually want to work with them?
Recently, I was involved in a bid where everything seemed straightforward. My client put forward a strong submission, and we waited for the outcome. And waited. And waited. Six months later, my client was still waiting.
Curious, I decided to do a bit of digging. A quick Google search revealed that the local government authority in question was $27 million in debt, with calls for it to be placed into administration. On top of that, no one from the council showed up to a key court appearance, which may go some way to explaining the delays in assessing tenders from law firms.
If we had known all this beforehand, would we have still pursued the bid?
Flip the script: researching your prospective clients
When preparing a tender, we spend so much effort ensuring we look like a good match for the client. We tailor our responses, highlight relevant experience, and polish our credentials. But what if we applied the same level of scrutiny to them?
Winning a tender is only the beginning of the commercial relationship. If the client is disorganised, financially unstable, or known for delayed payments, you could be signing up for months or even years of headaches.
Instead of just asking ‘How can we win this work?’ ask ‘Do we actually want this work?’
What to check before pursuing a bid
To avoid investing time and effort in a bid that may lead to an unprofitable or difficult client relationship, consider the following:
Financial health: Check for recent financial reports, media coverage, or signs of financial distress (e.g., mounting debt, unpaid suppliers, or administration concerns).
Payment reputation: Are they known for paying on time? Have other suppliers had issues with delayed or disputed invoices? Google reviews can often be a good source of intel on deliquent payers.
Operational stability: Frequent leadership changes, stalled projects, or governance issues can be red flags.
Cultural and ethical fit: Does this organisation align with your values? Have they been involved in public scandals or unethical behaviour?
Strategic alignment: Is this client and their work the right fit for your business? Will it support your long-term goals, or is it a distraction?
Reputation and publicity risks: Unless you're a litigator or defamation specialist, you may not want to be associated with organisations that are frequently in the news for the wrong reasons.
The true cost of a ‘win’
Not all wins are worth it. If you secure a contract with a client that turns out to be unreliable, difficult, or financially unstable, the cost in stress, time, and potential unpaid invoices could far outweigh the benefits. In some cases, you might even be better off walking away before you even submit.
So next time you’re gearing up to kick off your bid submission, take a step back and ask: Are they the right fit for us?
Because sometimes, the best decision isn’t winning the work, it’s choosing not to go after it in the first place.
For more insights on whether a bid is worth pursuing, check out my blog on bid or no bid decisions and explore Bidtque’s bid qualification checklist to help you make an informed decision.
Happy bidding!