Issue Date: 
Monday, January 5, 2015

5 Facts to remember when starting a business

Article by W van Rooyen

www.how2tender.com

5 January 2015

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 R1.2 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

Resources You cannot start a business or respond to a tender if you do not have resources and by resources we mainly mean financial backing or money! Any start-up business that does not have sufficient financial resources is set to fail. Ensure that you have the necessary resources 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.how2tender.com. You will also find our new revised Tender Manual 2015 there - our Tender Manual 2015 guides you through the whole process of responding to a Tender or a Request for Proposal.

Happy tendering.

Title Closing Date Tender No.
Printing Solution Equipment: Multi-Function Copier Rental Maintanance and Consumables 2018-02-27 12:00 ANDM/CPS/43/14/12/17
Supply: Plants 2018-03-01 16:00 GC11800521
Supply: Plants 2018-03-01 16:00 GC11800522
Supply: Plants 2018-03-01 16:00 GC11800522
Supply pre-packed stationery kits 2018-03-01 12:00 GG11800722
Invitation to bid: Internet upgrade for Maphumulo Municipality 2018-03-09 12:00 KZN294/C0086-4CORP/2017/18
Contractor Roleleathunya: Phase 1 Construction of 1,7KM paved access roads with related storm water. 2018-03-09 14:00 SCM/MOH/05/2018
Appointment of a Heritage Consultant to compile a detailed report to give effect to the record of decision (ROD) and incorporate the recommendations of the latest status quo report on Vlakkeland (Ikhwezi) erf 19519 (daljosafat), Paarl 2018-03-01 10:00 DIP0001798
Professional Engineers: Upgrading of the Rouxville Landfill Site. 2018-03-09 14:00 SCM/MOH/08/2018
Refurbish car shade ports 2018-03-01 09:00 SP11800110
Appointment of a design company to design signage for a heritage building owned by Drakensetin building: Arendsnes Buisiness Hive, Wellington. 2018-03-01 10:00 DIP0001797
Irrigation System Upgrade 2018-03-06 09:00 SP11800111
Replace floodlights at 3 masts at Paarl Waste Water Treatment Plant 2018-03-01 10:00 DIE0013266
Wet-Wall System Upgrade 2018-03-06 09:00 SP11800112
Supply and delivery of sound system 2018-02-27 11:00 GK1180421A
Supply: 3-in-1 combination fans 2018-02-27 12:00 GL11800592
Hired of Venter Trailer - 750kg 2018-02-26 09:00 WJ11800342
To appoint a consultant for recruitment and selection services 2018-03-01 10:00 DCG0010653
Supply wooden portable tool box 2018-02-26 12:00 GD11800762
Supply Pvc kanaflex and lay flat pipes 2018-02-27 12:00 GD11800763

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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