How to Identify the Right Tenders to Bid On (and Avoid Wasting Time)

Bidding on tenders can be a game-changer for businesses looking to expand, secure long-term contracts and boost revenue. However, not every tender is worth pursuing. Chasing the wrong opportunities can lead to wasted resources, financial losses and unnecessary operational strain.

So, how do you determine which tenders are worth your time and which ones to skip?

Follow these six key steps to make informed bidding decisions.

1. Assess the Fit for Your Business

Before committing to a bid, analyse whether the tender aligns with your company’s expertise, capacity and strategic goals.

Ask yourself:

✔ Does this tender match our core competencies and strengths?
✔ Can we meet the project’s technical requirements and deadlines?
✔ Do we have the necessary staff, equipment and financial capacity to complete the contract successfully?

If the answer to these questions is “no,” the bid may not be the right fit and it’s best to focus on more suitable opportunities.

2. Analyse the Competition

Understanding your competition can help determine whether you have a realistic chance of winning the bid.

Consider:

✅ Are larger, well-established companies likely to bid?
✅ Do we have a unique selling point, such as specialised skills, industry experience or cost advantages?
✅ Have we successfully won similar contracts before, or is this new territory for us?

If the competition is too strong and your business lacks a clear advantage, it may be wise to invest your efforts elsewhere.

3. Evaluate the Cost vs. Reward

Bidding on tenders requires time, effort and financial investment.

Before proceeding, assess:

💰 The estimated cost of bid preparation (e.g., proposal writing, hiring consultants such as the team at Bid Wizard, etc.)
📈 The potential profitability of the project – is the Return in Investment (ROI) worthwhile?
💳 Payment terms and cash flow impact – delayed payments can put financial strain on your business.

Even if a project has a high revenue potential, it may not be viable if profit margins are too thin or if it requires excessive resources.

4. Review the Terms and Risks

Every contract comes with obligations and risks. Scrutinise the details to avoid hidden pitfalls:

🔍 Scope of work – Is it realistic and clearly defined?
⚠ Penalties for non-compliance – Are the financial risks manageable?
📑 Hidden costs – Consider insurance, compliance requirements, and administrative overhead.

If the risks outweigh the benefits, reconsider whether the tender is worth pursuing.

5. Consider Long-Term Strategic Value

Not all contracts should be judged solely on immediate profit. Some tenders provide long-term benefits, such as:

🏆 Establishing credibility in a new market
🤝 Building strong relationships with key clients
🔁 Creating recurring revenue through contract extensions

If a tender aligns with your company’s long-term growth strategy, it may be worth considering even if the short-term returns are modest.

6. Trust Your Instincts

Sometimes, even when a tender seems perfect on paper, something feels off. If you have doubts about unrealistic expectations, unclear contract terms, or an unreliable client, trust your gut—it’s often best to walk away.

Final Thoughts: Make Smart Bidding Decisions

Choosing the right tenders requires a strategic balance of financial analysis, industry insight, and careful evaluation. By filtering out unprofitable or high-risk contracts, you can focus on bids that truly support your business growth and long-term success.

Need Help with Your Next Tender Submission?

🚀 The experts at Bid Wizard are here to help! Contact our team today to maximize your chances of winning your next contract.

BW!