7 Ways Public Companies Can Capitalize on the Private Sector

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defreferfqIt is often said that the public sector is accustomed to dealing in millions, while the private sector operates in terms of billions and trillions. It’s certainly true that government and infrastructure spending accounts for an incredibly large portion of the overall economy, which is evident by the size of the budgets that are allocated to each department and initiative. However, all of that money doesn’t stay in the private sector, as much of it is paid to companies in the public sector via collaborative projects and partnerships. With that said, here are seven ways conventional businesses can seek to expand by capitalizing on the opportunities provided by the private sector:

1. Public Private Partnerships

Recently proposed as a solution to the current infrastructure spending problem, public private partnerships, also known as PPPs or P3s, are a bit different from the typical procurement process in that they involve an ongoing, exclusive arrangement between a private sector entity (i.e. – federal, state, or local government agency) and a public company, in which the latter fulfils all the needs of the project instead of just handling a specific part.

2. Conventional Government Contracts

Although traditional government contracts may not be as lucrative as PPPs, they are easier to land, more prevalent, and easier to fulfill, which makes them an ideal first approach for businesses looking to land their first private sector arrangement. Infrastructure is always in need of provisions, many of which are supplied by the public sector, so this continual exchange provides a lucrative opportunity for companies that are willing to get in on it.

3. Providing Services to Government Facilities

Aside from tangible provisions, the private sector is also continually in need of maintenance, cleaning, upkeep, and construction services. If your company is already a service provider, it would make sense to pursue relevant contracts and agreements to keep your workforce busy with private sector work. Such jobs typically pay better than the clients you would find in the public sector, so attempting to become an exclusive provider for a private company is definitely worth the groundwork.

4. Recognizing and Reacting to Political Trends

Sometimes events and shifts within the private sector can have an impact on sales and transactions in the public sector. For example, a heightened sense of economic uncertainty often prompts consumers to invest in products that will safeguard them from currency devaluation and economic collapse/recession, which is one of the reasons why cyptocurrencies and precious metals have become so popular in recent years. Thus, it’s a good idea to learn how to capitalize on all sorts of trends, not just those started by occurrences in the private sector.

5. Identifying and Accommodating Demands in the Private Sector

Aside from using your current company to apply for partnerships with private sector entities, it may also be a good idea to found new businesses based on emerging infrastructure demands. The rise of America’s continually expanding construction industry is one example. Depending on your innovative expertise, you might also be inclined to develop a new product or engineering solution that will place your company on a pedestal when agency procurement managers are comparing bids from prospective providers.

6. Getting Involved in Construction and Infrastructure

As mentioned, the construction industry is huge right now and it’s only going to get bigger as infrastructure continues to expand into the rural areas of the country. Of course, such expansion is inevitable due to the growing population, so “becoming part of the solution” is an excellent way to prepare your business for exponential growth. After all, a single construction contract from the private sector can be worth hundreds of thousands or even millions in profit.

7. Partnering with and Sponsoring Public Figures for Promotion

Finally, one extra way you can use the private sector to your advantage is by sponsoring or supporting public figures for positive publicity. Although taking definitive political stances as a company is sometimes discouraged, in many cases it can increase profits by attracting more of the demographic that you serve. For example, a business that operates in an area that is predominately republican could benefit from showing support for their republican candidates.

Positioning Your Company as an Ideal Candidate

In closing, regardless of which path you choose from the above list, it should go without saying that you’ll need to have a solid business reputation, plenty of experience, and preferably a portfolio/resume to prove it if you want the highest-paying partnerships/contracts. However, there have been success stories of fairly new companies rising the ranks and securing highly profitable government contracts by taking lower compensation and/or proving their ability to fulfil the contract requirements. Thus, even if your company doesn’t have a long-standing reputation or an excessive annual revenue stats, private sector partnerships and projects are still worth looking into.

Published by Kidal Delonix (857 Posts)

Kidal Delonix is a contributor to Mr. Hoffman's blog. The views and opinions are entirely his/her own and may not reflect Mr Hoffman's views.

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