Business on public procurement – what is it and how much can you earn?

Today in Russia, one of the most popular types of commercial activity is a business based on public procurement. Public procurement is an order from the state for the supply of certain goods and services at a certain place and time. The placement of such an order takes place on special sites, and the choice of its future executor takes place on a competitive basis.

How to start a public procurement business and how to choose a niche?

In order to choose your niche in the public procurement business, you need to familiarize yourself with a large number of different documentation. Usually, specialized organizations help in solving this issue. But if there is no additional money for this, you need to allocate time for this and deal with this issue yourself.
The most effective platform for starting in this field of activity is electronic auctions. They often don’t have much competition. After the entrepreneur chooses the tender he is interested in, he needs to submit an application for participation in it. In addition, you need to collect a package of certain documents.

At the auction itself, members of the commission will choose the most profitable option for further cooperation.

Each commercial organization can submit its offer at such an auction. In order to get admission to participate in such a competition, you need to know all the stages of its implementation.

In order to open a public procurement business from scratch and earn up to 100,000 rubles. per month, you need to familiarize yourself with the basic principles of work in this field of activity.

Interaction

The state is like a large organization that needs to be provided with certain services and resources. Since it is involved in all spheres of human activity, there are a lot of options for choosing a niche. A novice entrepreneur can safely consider areas such as:

• industry;
• Agriculture;
• education;
• medicine and others.

To participate in the tender, a commercial organization must comply with all the norms and requirements that the state has created. The more open and transparent the activities of the enterprise are, the greater the chances of creating a business on public procurement.

In this case, any tricks and tricks, even if they are legal, will have a bad effect on the image of the organization in the eyes of the members of the tender commission.

What is open and closed competition?

Open tenders are the most popular form of implementing orders from the state.

The biggest advantage of such a system is that the public tender advertisement is placed everywhere where it can be seen by potential bidders.

Within a whole month, from the beginning of the tender, all interested enterprises can apply for participation in it. Any procedures at such an auction are recorded in documentary form.

The essence of the closed competition is that the list of its participants is determined by the organizers. It is appropriate to carry out in the case when a large number of participants is not required. Closed tenders are also carried out in cases where it is necessary to work with classified information.

Auctions can also be closed or open. The peculiarity is the conduct of an electronic auction. You can participate in it exclusively in virtual mode.

Commercial organizations of various forms of organization can take part in the tender and auction for public procurement. In the case of individual enterprises, they cannot work with legal entities.

How to choose a site?

Before selecting a site, a digital record must be obtained.

In Russia, the relevant sites for searching for records are as follows:

• JSC “Goszakupki”;
• RTS tender;
• Sberbank-ATS;
• Unified information system in the field of procurement.

In order to register (pass accreditation) at the selected site and start a public procurement business, you need to identify yourself. To do this, you must submit an application and documents.

The application must be made as correctly as possible, since the result of the company’s participation in the tender will depend on it. It consists of an anonymous and informational part. The information part includes all data about the enterprise. In the anonymous part, all information about the offered product, the method of its delivery, the period for fulfilling the conditions of the offer and other similar information are prescribed.

Further, it is necessary to attach to the application the TIN, a copy of their extract from the Unified State Register of Legal Entities, certified by a notary, a copy of the passport of an individual or copies of constituent documents for a legal entity, a document that confirms the previous activities of the company.

Communication between the organizers of the competition and its participants takes place via e-mail.

The decision on the submitted application for participation is made within 5 days.

To participate in tenders for public procurement, you must open an account that will be linked to the selected site. You will need to deposit a certain amount into this account. When submitting an application for participation, 5% of the cost of the tender is charged from the respective account of the entrepreneur.

You can open such an account at Gazprombank, VTB, and other commercial banks. If an account is already opened in one of these banks, then it can be used to participate in such auctions.

How is the analysis of public tenders and the search for suitable procurement options carried out?

Any public procurement tender in Russia can be found on the Rostender resource. In the search bar, you can enter a word that relates to the field of interest. For example, if an entrepreneur is engaged in the production of milk, the system will give him state requests for the supply of this type of product.

In the proposed list of open tenders, you can choose the one that interests you the most. The offer will contain all the detailed information of the order: cost, place of delivery, and more.

On public procurement, you can start a business from scratch. An entrepreneur sees an open tender from the state and can find an organization that has the right and opportunity to participate in it. In this case, he will act as an intermediary. In case of successful conclusion of the transaction, he will receive his interest.

How can you win a public procurement tender?

There are several options that can lead an aspiring entrepreneur to win the tender:

• It is undesirable to start your activity in the public procurement business with large objects. At the beginning, it is best to participate in competitions, for example, with requests for quotations.
• When an entrepreneur submits an application for the first time, it is better for him to consult with specialists. Its competent compilation is a huge part of future success.
• It is best to offer a price slightly lower than the rest. Here you need to act very carefully so that the price reduction does not bring losses.
• If the entrepreneur has won the tender, he must responsibly fulfill all the conditions of the contract. Otherwise, it will be entered in the register of unscrupulous suppliers. Then you can forget about a career in the public procurement business.

Is it possible to make money on public procurement without investments?

In addition to intermediary activities, there is another opportunity to earn money.

The state often needs people/organizations that can work in the IT field, translation of texts, and so on. Therefore, in the tender, you can act as an individual or legal entity that can provide such services.

What mistakes can beginners make in public procurement?

Entrepreneurs who first entered the field of public procurement very often make certain mistakes. They are not critical and can be avoided as follows:

• The opinion that public procurement is an exclusively corrupt system is erroneous. A huge number of requests come from the state, which will not give great benefits and can be received by a representative of medium and small businesses.
• You need to understand that public procurement is a real business, and not a game of luck. If you take participation in them seriously, then over time you can make very good money on such a business.
• If an entrepreneur wants to seriously engage in this type of commercial activity, it is better for him to be accredited at once at several sites.
• It is most effective to choose customers in your or the nearest region. Savings on logistics is a huge plus for future profits.

How to organize training?

If an entrepreneur is well versed in organizing and participating in public procurement tenders, and also loves this business, he can earn on such knowledge. In Russia, there are many enterprises and individuals who would like to be able to properly participate in such competitions.

You can create such a school in different formats. Someone can rent a real room and conduct live lessons. The organization of trainings and seminars helps students gain more useful experience. No one will make a better advertisement for a school than successful students.

Someone can create their own YouTube channel and post lectures there. With the latter option, you can still make good money on advertising from search engines.

You can also write your own books and lectures, which will be sold in electronic form. Such a passive type of learning is beneficial in that you can work well here once (by writing a book), and then receive income from it.

For a school or courses to be truly successful, they must be created with a strong interest in the success of their students.

How to become a partner?

Another option for public procurement business is a partnership. This area of ​​activity is relevant for those who know how to use Internet resources, have their own popular pages on social networks, websites, and so on. Most of these activities are done by students.

Many courses or training have partner programs. Owners of sites and pages will place their special links on their resources. Further, each click on this link and the payment made by the visitors of the page will bring income to its owner in the form of interest.

It is unlikely that you will be able to make a lot of money on such a small business. But a couple of tens of thousands a month from such a case can be received calmly.