While non-profits are a valid market for IT specialists, they are certainly not the most financially rewarding clients.  

The Pros of Non-Profits for IT Specialists

1.     You can easily reach non-profits because they are members of trade groups and publicly listed in directories.  

2.    You can gain great emotional rewards from knowing you are helping a cause in which you believe and that is valuable to society.  

The Cons of Non-Profits for IT Specialists

1.     Non-profit organizations will have very low profit margins.

2.    Getting into bidding wars is a possibility with non-profits.  

The second “con” is dangerous; bidding wars make your firm into a commodity.  Also, when you bid against someone else, your competitor could be cutting corners, leaving the bid price low and preventing you from providing a realistic solution.  

Government Bids Can Be Difficult for IT Specialists

Selling to small businesses and the sweet spot is much easier for IT specialists than dealing with non-profit and government bids.  Regrettably, most non-profits and government organizations have to take the quoted price by law.

More Problems with Bidding Wars for IT Specialists

When you’re involved in a bidding war, your trust, personality and credibility does not really make a difference.  Following the rules and getting the bid in on time are the two most important factors.  

Bidding wars also require IT specialists to do a lot of non-billable work – researching, developing configurations, creating a cohesive plan — that is normally billable with regular small businesses.  And getting the contract can still be a near impossibility.  

Bid Smart

If you want to get in a competitive bid, you can’t put your whole energy into it.  Your bid chasing time as IT specialists should not exceed 20% of your business development time.  Unless you have chosen non-profits as your specialty, you are better off focusing on small businesses within the sweet spot.

If a government agency wants to outsource support services and the RFP is well-defined, you might have an easier time putting in a good bid.  However, if the organization is simply looking to buy hardware or do some installation once, you will have a problem making a real profit.    

IT Specialists and Non-Profits

Non-profit and government agencies are better niche opportunities for IT specialists than regular retail opportunities.  But they are still not as profitable as the sweet spot.

Added By:  Computer Consulting Kit