Issue Date: 
Monday, January 5, 2015

5 Facts to remember when starting a business

Article by W van Rooyen

www.howtotender.co.za

These days it is not uncommon for entrepreneurs to start a business solely for the purpose to respond to tenders or request for proposals. The fact is that in South Africa it has become a fulltime job to respond to tenders, especially if you want to do business with Organs of State or with large Private Sector entities.

It is not a pre-requisite for an entrepreneur to have a registered juristic entity but it surely will be more advantageous. Remember you can respond to a tender in your own name and if you do respond to a tender in your own name the same rules apply as for those of a registered entity.

There are basically five facts to remember when you start your own business. These five facts are even more important if you want to respond to tenders.

  1. SARS
    Always register with the South African Revenue Service (SARS). Firstly and most importantly you have to register for Income Tax. This is very important. You will need a Tax Clearance Certificate if you want to respond to tenders and without an Income Tax number you won’t be able to receive a Tax Clearance Certificate which in turn will keep you from responding to tenders.
    You might be required to register for Value Added Tax (VAT) if your business’ annual turnover exceeds R1.0 million.
    You also might be required to register for Pay as You Earn (PAYE) and Unemployment Insurance Fund (UIF) if your business has any employees.
  2. Bank account
    Unfortunately the days of keeping your money in box under your bed are long gone. You will need to open a bank account for your business. To open a bank account you will need proof of address (point 3) and proof of identity or proof of your business registration details. Remember to take these documents along when opening a bank account.
  3. Registered address
    You will have to have a registered address for your business. Tender Evaluation Committees tend to do site visits and it will be difficult to explain to them that you are doing business from your motorcar. The best is to set up a shop to show your intend of doing business. You will also need proof of address to open a bank account (see point 2).
  4. Experience
    Experience might be the most important fact of them all. If you do not have experience in what you’re doing failure is imminent. This is even more so when you respond to tenders – the Tender Evaluation Committees are vigilant when it comes to experience – so be sure to tender for something that you have experience in.
  5. Resources
    You cannot start a business or respond to a tender if you do not have recourses and by recourses we mainly mean financial backing or money! Any start-up business that does not have sufficient financial recourses is set to fail. Ensure that you have the necessary recourses such financial support, infrastructure and human capacity.

Starting your own business is tough. Starting your own business especially to respond to tenders is even tougher. If you follow these five basic facts or rules you will have the necessary tools to start with an advantage over your competitors.

For more on this and other interesting tender news please visit our website at www.howtotender.co.za. You will find our newly revised Tender Manual there – our Tender Manual guides you through the whole process of responding to a Tender or a Request for Proposal.

To learn more about this and many other tender conditions please attend one of our How-to-Tender workshops. For more information on the tender courses please email Estelle at Estelle@howtotender.co.za.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

Title Closing Date Tender No.
Provision of Professional Engineering Services in Respect of Decommissioning the Radnor Landfill Site. 2019-02-19 10:00 218C/2018/19
Supply and delivery of mill liners -reissue 2019-02-25 09:00 MPGXC005365R1
ICT Infrastructure Services 2019-01-25 14:00 TCTA/2018/IT/ICT INFRASTRUCTURE/024
Construction of Civil Engineering Services - Macassar Housing Project 2019-02-26 10:00 234Q/2018/19
Tender for the purchase, development and management of industrial park on Erven 804, 806, 807, 809, 39202, 39203, 39204, 39207, 39208, 39209, 39210, 39211, 39212, 39213, 39215, 39216, 39217, 39218, 39219, 39220, 45089, 51104, 51105, zoned general industrial 2 except for Erf 45089 which has a general business 4 zoning, bound by Spine Road (South) and, Phumakani Road (West) and Railway Line (East), Khayalitsha 2019-03-11 10:00 219P/2018/19
Provision of Banking Services for a period of five (05) years 2019-03-15 12:00 75 of 2018
Hire of Refuse Truck for a period of 3 years 2019-03-29 12:00 MPO/03/2019
Re-advert for auditing of animal pounds in Elundini Local Municipality 2019-01-22 12:00 ELM-5/006/2018-2019
Facilitation of strategic planning session for budget and treasury / finance section 2019-01-21 12:00 ELM-2/027/2018-2019
Appointment for a service provider for VAT recovery services for a period of three years 2019-02-11 11:00 PSJLM-BTO-2018/19-15
Disconnection, reconnection and inspection/audit of electrical services for a period of three (3) years 2019-02-11 12:00 T01/2019
Supply, installation of wireless internet and wireless access 2019-01-18 11:00 290653
Consulting engineering services for the contract administration for the construction of a pedestrian bridge in Touwsriver. 2019-01-23 11:00 291491
Appointment of a Professional Engineering Service Provider to Carry out the Project Management scope for various Electricity Bulk Infrastructure Projects within KSDLM 2019-02-11 12:00 038/2018/19
Appointment for (02) Electrical Contractors for Electrification of 193 infill Connections in Maiden Farm Township with a CIDB Grading of 4 EP or Higher 2019-02-11 12:00 036/2018/19
Appointment for (02) Electrical Contractors for Electrification of 193 infill Connections in Hillcrest Township with a CIDB Grading of 4 EP or Higher 2019-02-12 12:00 037/2018/19
Bid Specification for Appointment of a Programme Support Unit (PSU) for a three (3) year period to assist the Provincial Department of Education in various aspects of the management of its infrastructure programme. 2019-02-22 11:00 SCMU6-18/19-0007
Supply and Delivery of suction pipes - Honeysucker 2019-01-18 12:00 B424/2018/19
All prospective bidders are hereby invited to submit quotations for accommodation: bed, dinner, breakfast & conference package, supply chain management as specification appear below 2019-01-22 12:00 RFQFIN/01/2018/19
Development of an Implementation Plan and Budget for a Multi-Year History Festival in Plettenberg Bay 2019-01-18 13:00 SCM/RFQ/2019/042/EDP

Pages

Two types of Joint Ventures and Joint Venture agreements 

By W van Rooyen

www.howtotender.co.za

The structure of the joint venture should set out the nature of your partnership. There are two main types of agreements:

  1. If the joint venture is a business in its own right, it will be an incorporated joint venture. This type is not... Read More
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