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.
Supply: Bhizhub printing machine b951 staple kit 2017-12-14 11:00 GM1180491A
Supply and delivery of photocopiers for a period of 3 years 2017-12-18 12:00 TG26
Supply and delivery of stationery for a period of 3 years 2017-12-18 12:00 TG25
Supply: Sun protect sunblock spf 50 (100ml) 2017-12-15 15:00 GF11800533
The supply and delivery of digital panoramic X-Ray unit for Greys Hospital 2018-01-23 11:00 ZNB 9607/2017-H
Invitation for proposals for the maintenance and support of the CCTV surveillance system in the DTPC precinct for three years. 2018-01-23 11:00 DTP/RFP/41/PRO/11/2017
Supply and delivery of sluice pump 2018-02-06 10:00 MPGXC004986
Provision of Office Accommodation for a period of 5 years: Bulwer Satellite Office 2018-01-25 11:00 45/2017
Supply and delivery of Cleaning Material and toiletries for West Coast Management Area for 24 months period 2018-01-25 11:00 WesCoast 01/2017
Supply and delivery of two (2) forklifts for Timbadola Sawmill (Limpopo Province) 2018-01-25 11:00 RFP 071/2017
Appointment of a service provider to provide ERP support and stabilisation for a period of three(3) years 2018-01-25 11:00 RFB 073/2017
Supply and delivery of building material for CSI timber frame structures. 2018-01-25 11:00 RFB 050/2017
Supply and delivery of road pipes for a period of twelve (12) months 2018-01-25 11:00 RFB 068/2017
Alienation of Various Erven in the Mossel Bay Municipal Area 2018-01-26 12:00 52-17/18
Supply, delivery and offloading of chlorine 2018-01-26 12:00 MW/14/2017
Construction Of Messer-Schmidt Street 2018-01-26 11:00 163/2017
Proposed Amendment of the Existing Contractual Appointment Dibanani Consulting for Professional Services Rendered for Construction of the Tienbank Road Paving Project 2018-01-02 12:00 147/2017
Upgrading Of Veza Road 2018-01-29 11:00 162/2017
Amendment of the Existing Contractual Appointment Van Der Walt & Dup Plessis for Professional Services Rendered for Construction of the Kwezi Naledi Stadium Fencing. 2018-01-02 12:00 148/2017
Supply and delivery of voice recorder 2017-12-15 11:00 GK11800376

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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