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London 2012 Olympics: Business Opportunities for Small Firms

London 2012 Olympics: Business Opportunities for Small Firms
London 2012 Olympics: Business Opportunities - Wed Apr 18, 2012 @ 02:06PM
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London 2012 still offers £700m worth of untapped business opportunities and small firms are being urged to chase Olympic deals. What's a winning strategy?

In July, London 2012 organisers celebrated two years to go until the Olympic opening ceremony. Also marking the event was gift company Touch of Ginger, whose souvenir merchandise—including stainless steel wallet-sized tools such as a bottle opener and photo frame—went on sale on the Games website, and in the Olympics shop at St Pancras International station and John Lewis stores.


Touch of Ginger is one of more than 500 small businesses across the UK—from sniffer dog trainers in Wales to tree suppliers in Hampshire—that have already won contracts as a result of the forthcoming Olympic and Paralympic Games.

While the Olympic Delivery Authority (ODA), the body delivering the venues and infrastructure, has already awarded most of its direct contracts and construction is well advanced, there are still business opportunities through the supply chain and with the London Organising Committee (Locog). The latter is urging small firms to become involved by registering their details and expertise on its CompeteFor website—a one-stop-shop for all 2012 tender possibilities.

"There remains more than £700m of procurement to complete over the next two years so there are plenty of opportunities—particularly in the UK and particularly for small businesses," says Chris Townsend, Locog's commercial director.

Townsend is still seeking products and services ranging from construction, engineering and manufacturing to creative, merchandising and retail. "In terms of live opportunities for SMEs, we are kicking off the project for the design of the Olympic and Paralympic torches so we are looking for expertise in this area."

At least 8,000 torches will be required for bearers to carry the Olympic flame across the UK during a 70-day relay. The design and development of the torches as well as lanterns, mini-cauldrons and other related products are also part of three separate briefs.

"It's a unique opportunity for London 2012 to shine a light on the UK's best design, engineering and manufacturing talent," says Locog chief executive Paul Deighton.

After Touch of Ginger's success with its souvenir merchandise, the company is keen to work on the torch relay and is finalising a tender. Alison Bateman, a director at the firm, admits that tendering takes a lot of time and effort. "The early stages were easy, but we did spend a couple of months on and off preparing the tender, it was a huge team effort," she says.

With only 10 staff, Bateman says everyone helped out when needed but it was worth the effort. "It's been fantastic for the business and a huge opportunity. I'm hoping the whole thing could potentially double our turnover," she adds.

Salix wetland nurseries based in Thetford, Norfolk, has had a similar experience. The contract it won through CompeteFor to grow more than 300,000 wetland plants for the 100-hectare Olympic park has enabled it to employ more staff, double capacity and invest in long-term development.

Technical director David Holland says: "London 2012 has provided a fantastic opportunity for the company to invest in and grow our business. We worked hard to win the contract, which has enabled us to double our capacity and become one of the biggest wetland plant growers in Europe."

A whole host of suppliers is still needed to provide ceremonial flags, personal protective equipment and sports equipment, including goal posts, nets and corner flags.

"We are looking for an interpretation company to provide a team of 75 interpreters, a pharmacy within the Olympic park, and we will be sourcing a CRM system to collate and manage all the databases we are building," adds Townsend.

On the infrastructure side, he wants to buy or rent temporary lifts and hydraulic platforms as well as seating, roofing and tents for temporary venues. Other big areas will be catering, cleaning and waste disposal.

"We have some big contracts that we are looking to place in the next 12 months," he says. If smaller companies are not successful in winning those, he adds, they will be required to support key players as subcontractors. All suppliers will be listed on CompeteFor and are contractually obliged to itemise opportunities in their supply chain.

Locog's licensing programme is another area of potential procurement. So far, it has signed up more than 35 licensees and is seeking at least another 10-to-15 companies to license goods such as handbags and cufflinks to complete the programme. Golden Bear, the Telford-based toy company behind the London 2012 mascots, Wenlock and Mandeville, expects the Olympic contract to treble its £11m revenues.

Bateman advises other small businesses to seize opportunities. "Don't be disheartened just because you might think you are not as big or as experienced as the others," she says. "Our involvement with Locog has proved it listens to everyone's case and makes a judgement on that and not whether you are a big name with lots of staff and lots of turnover."

She says London 2012 is about involving everyone. "We feel proud to have been included alongside companies such as Hornby and the Royal Mint. We feel proud to be British and to be a part of it. We've been given the opportunity—it's not just for the big boys."

http://www.director.co.uk/MAGAZINE/2010/9_October/olympic-contract-opportunities_64_02.html

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