IT specialists can work with non-profit organizations.  However, there are many more financially-rewarding arenas to occupy.  

The Pros of Non-Profits

1.    You can reach non-profits easily because they are part of trade groups and you can find public directories.  

2.    Working with non-profits as IT specialists is emotionally satisfying and gratifying because you are helping a cause.

The Cons of Non-Profits

1.    Thin profit margins.

2.    Possible bidding wars.  

Bidding Wars Explained

When you get into bidding wars for contracts, your firm becomes a commodity.  And when you bid against someone else’s specs as IT specialists, you can guess that your competitors could be falsely lowering the bid price and keeping you from making a real quote.  

Non-Profits and Government Bids

IT specialists will find that selling to private sector small businesses will be simpler than attempting to work with non-profit and government bids.  A lot of times, non-profit organizations and government entities have to take the quoted price.  

More Cons about Bidding Wars

When you are bidding on projects with non-profits as IT specialists, you don’t have trust, personality and credibility helping you very much.  The main factor is who can post the bond, follow the rules and be on time with the bid.  

You have to do a lot of non-billable work up front that in the private sector can go on a bill.  You will be doing a lot of researching, developing configurations and organizing.  And the contract might be a real long shot.  

Bid Smartly

IT specialists need to bid on non-profit jobs very wisely.  If you want to be competitive, you can’t bet your entire company on it.  Don’t spend more than 20% of your business development time and energy on chasing the bid.  Unless you are devoted entirely to non-profit organizations or government organizations, you are typically better positioned to focus on private sector small businesses.  

When you find a government organization that is looking for outsourced services specifically from IT specialists, you are going to have a better opportunity than if you encounter  someone just looking for hardware or a one-shot installation deal.  

The Main Idea

Non-profit organizations and government entities are better niche options for IT specialists than simply doing retail, but you have to be careful and weigh the pros and cons before getting involved.  

Blogged By:  Computer Consulting 101 Professional Kit