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.
Paving of internal streets at Majembeni Village in Shatale Region Phase 7B 2019-08-21 12:00 MIG/MP/1711/18/18
Paving of internal streets at Agincourt 1B 2019-08-21 12:00 MIG/MP1681/RST/18/19
Paving of internal streets at Kildare 2019-08-22 12:00 MIG/MP1681/RST/18/19
Upgrading of internal streets at Acornhoek 2019-08-22 12:00 MIG/MP/1686/RST/18/19
Provision of waste management services to Denel SOC Ltd for a period of three (3) years 2019-08-14 12:00 DEN412/05/02/2019
Construction of the Archive and Academic Building at University of Mpumalanga 2019-09-03 12:00 NIT0070
Experienced traffic management service providers are invited to submit proposals for the traffic management system for the period of 3 (three) years. 2019-08-30 12:00 LIM473/traffic-management/19/20/003
Waterberg District Municipality Building Repairs and Maintenance 2019-08-20 11:00 WDM/2019/20-01
Supply, delivery and installation of shacks for the period of three (03) years. 2019-08-30 12:00 LIM473/shelters/ 19/20/002
Landscaping Services 2019-08-12 14:00 MAJV/ P14398/028
Consultancy service to develop an accountability framework for the CARMMA campaign 2019-08-06 15:00 AUC/DSA/C/012
Supply, delivery, installation and commissioning outdoor soundproof emergency standby generators including electrical installation at Goldfields Tosa and Welkom Campus. 2019-08-16 10:00 GTVETC/06/2019
Reinsurance Broking Services 2019-08-05 12:00 2019/19
Provision of IT equipment 2019-07-24 13:00 EWSETA/RFQ/24/2019
Provision for supply and installation of network cable 2019-07-29 13:00 EWSETA/RFQ/25/2019
Bids are hereby invited for the provision of electronic works maintenance – CCTV 2019-08-20 14:00 382-QAS-05-TEN-907467
Leasing of office accommodation for the Northern Cape Regional office preferably Kimberley, in a Central Business District(CBD) or surrounding areas for a period of 5 years with an option to renew for a further 5 years 2019-08-16 11:00 ICASA 12/ 2019
Fort Beaufort Prison: Minor Repairs & Renovations 2019-08-13 11:00 PE10/ 2019
Polokwane Magistrate Offices: Reconstruction of Office, Replacement of Generator, Fire equipment, Air Conditioners Damaged by fire 2019-08-13 11:00 H19/ 005 AI
Appointment of a service provider for the replacement of damaged floor boards and vinyl covering inside IMCI parkhome unit at Nseleni Community Health Centre. 2019-08-23 11:00 92 / 2019 - 2020

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10 things to remember when you tender

By Werner van Rooyen

31 January 2019

There are many things that you as a small business owner must remember when you respond to a tender and sometimes responding to a tender can be overwhelming. Experience has taught me that there are some important things to remember when responding to a Tender and there are some less important things to remember when responding to a Tender.

Here are ten of the important things to remember when responding to a Tender. Please remember that all ten of these items mention here are equal... Read More

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