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.
The CDC is inviting capable and competent contractors with a valid CIDB grading of 7GB or higher to submit bids for building, civil, and security infrastructure repairs and upgrade, including providing new facilities and or refurbishment of infrastructure at the three (3) harbour sites 2019-08-12 12:00 CDC/ 174/ 19
The CDC is inviting capable and competent contractors with a valid CIDB grading of 6GB or higher to submit bids for security and civil upgrade of the existing services, including providing new facilities at the Gansbaai, Struisbaai, Arniston and Stillbaai Harbours. . 2019-08-12 12:00 CDC/ 176/ 19
Manufacturing, Supply and Delivery of Waist Belts Saps Men (Members),Pps and Security Guards in Accordance With Specification Saps 3181/16 Version 01.0/February 2017, Saps 2076 Version 04.0/February And Saps 2855/12 Version 02.0/February 2017 for a Period of Three Years (3): Division: Supply Chain Management 2019-08-20 11:00 19/ 1/ 9/ 1/ 12TC(18)
Manufacturing, Supply and Delivery of Waist Belts Saps Men (Members),Pps And Security Guards in Accordance with Specification Saps 3181/16 Version 01.0/February 2017, Saps 2076 Version 04.0/February And Saps 2855/12 Version 02.0/February 2017 for a period of three years (3): Division: Supply Chain Management 2019-08-20 11:00 19/ 1/ 9/ 1/ 12TC(18)
Manufacturing Supply and Delivery of Shirt Dress Grey, Shirt Field Dress Chambray, Shirt Field Dress, Shirt Field Dress Camouflage Stf Pps, Shirt Saps Guards, Shirt Long Sleeve and Blouse Field Dess Grey,Bouse Field Dress Chambray and Blouse Long Sleeve for a Period of Three (3) Years 2019-08-14 11:00 19/ 1/ 9/ 1/ 94TC (18)
Appointment of a service provider for provision of Biometric Access Control Management (BACM) systems licenses, support and management for the Department of Home Affairs for a period of thirty-six (36) months. 2019-08-02 11:00 DHA07- 2019
Appointment of a Service Provider Who Is MICT SETA Accredited to Deliver and Facilitate an Accredited Skills Programe in Film and Television Post Production Programme For 20 Kwazulu-Natal Filmmakers, Which Will Capacitate Them With The Relevant Film And TV Skills for a Period of Three Months. 2019-08-02 11:00 KZNFC- T05/ 2019/ 20
Bidders are invited to bid for installation of Security Access Control System at Provincial Offices 2019-08-20 11:00 FSDOL 09/ 2019
Ysterplaat: AFB: Installation of fire detection system 2019-08-14 11:00 CPT1004A/ 19
Mthatha Magistrate Office: repairs and upgrades. 2019-08-12 12:00 CDC/ 326/ 19
Event management services for the Gauteng Accelerator Programme (GAP) innovation competition awards ceremony 2019 2019-08-12 11:00 TIHMC/ 2019/ 02
Department of Justice: Vanderbijl Park Magistrate Court: Rendering of Cleaning Services for 24 months period 2019-08-13 11:00 JHB.19/ 21
Maintenance and administration of the SAQA Oracle, MS SQL- and MySQL databases (DBA Services) for a period of three (3) years 2019-08-08 11:00 SAQA 0009/ 19 IT
Provision of Legal Services to the South African Qualifications Authority (SAQA) for a period of three (3) years 2019-08-08 11:00 SAQA 0008/ 19 EO
Provision of Security Services at Regional and MLB Offices, Cost Centre 22 and District Office, Camperdown Depot, New Hanover Depot, Area Office Merrivale, Taylor’s Halt Depot and Nottingham Road Depot. 2019-07-26 11:00 ZNB0010/ 18 T
Maintenance of the existing National Learners’ Records Database (NLRD) and related databases to the South African Qualifications Authority (SAQA) for a period of three (3) years 2019-08-08 11:00 SAQA 0007/ 19 NLRD
Provision of National and International courier services to the South African Qualifications Authority (SAQA) for a period of five (5) years 2019-08-08 11:00 SAQA 0006/ 19 DFA
Invitation to an Open Tender for the Supply, and Delivery of a 500kva Miniature Substation (Mss) Required at Chamdor Automotive Hub, Mogale City 2019-07-26 11:00 AIDC T01/ 2019
Maintenance, repairs and new installations of the electrical infrastructure for the South African Qualifications Authority for a period of five (5) years 2019-08-08 11:00 SAQA 0010/ 19 DFA
Provision of conference stationery and apparel for GOVTECH 2019 2019-08-12 11:00 RFB 1972/ 2019

Pages

Tender Training

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

People often ask me how I know so much about tenders and the completing of tender documents. The answer is easy; training. I believe that we must always try to train as much as possible. The more training you will do the better you will get at responding to a tender. Gary Player, one of South Africa’s best golfers of all time, used to say: “The more I practice, the luckier I get.”

That is the whole point of training. The... Read More

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