Issue Date: 
Monday, January 5, 2015

5 Facts to remember when starting a business

Article by W van Rooyen

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 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

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.
Pretoria: Leasing of Office Accommodation of 30 223 square meters and 1 584 parking bays usage by the Department Home Affairs for period of 5 years in Pretoria CBD 2019-05-14 11:00 PT19- 002
Appointment of a professional technical expert to advise the Energy Regulator on the prudency of asset acquisition in Transnet SOC limited’s new Multi Products Pipeline project for a period of seven (7) months 2019-05-09 11:00 NERSA/ 1920/ PPT/ PAA/ BID001
Pretoria: Leasing of Office Accommodation of 18 873.86 square meters and 454 parking bays usage by the Department of Correctional Services Head Quarters for a period of 5 years in Pretoria CBD and the outskirts 2019-05-14 11:00 PT19/ 001
Appointment of a service provider to undertake the ex-post regulatory impact assessment of all Energy Regulator decisions and stakeholder perception/ satisfaction survey 2019-05-09 11:00 NERSA/ 1920/ RAR/ RIA/ BID002
ICT Research Support Membership for a period of 36 months 2019-05-24 12:00 DPME 05- 2019/ 20
Appointment of a Service Provider to Render Organisational Work-Study Services for a period of six (6) months 2019-05-23 11:00 NCC/ 04/ 2018/ 19
The appointment of a service provider to outsource the management, operating and maintenance services of three Messerschmitt-Bolkow-Blohm BO 105 helicopters to be used by the Department of Environmental Affairs for fire-fighting duties; planning and mapping work; anti-poaching work; surveillance; search and rescue; monitoring and evaluation; compliance and enforcement; advocacy and extension services; and the taking of teams to inaccessible areas for the control of invasive species 2019-05-13 11:00 E1503
Kwazulu-Natal: Department of Education: Durban: Thandimfundo Junior Primary School: Storm Damage Disaster Programme: Phase 16 *Contract Period: Four (04) months *CIDB Grade: 2GB only. 2019-05-23 11:00 ZNTD 04568W
Appointment of a Service Provider to undertake a research project CoE 190905 “Front line Supervisors Role and Challenges towards Improving Occupational Health and Safety in South African Mining 2019-05-22 11:00 MHSC003/ 2019- 20
Supply and delivery of food products and cleaning consumables to the Department of Water and Sanitation: Roodeplaat Training Centre as and required for a period of 36 months 2019-05-23 11:00 W11300
Appointment of a Service Provider to undertake a research project CoE 180906 “Determine the Capacity of Mine Health Facilities to Accommodate Surrounding Communities 2019-05-22 11:00 MHSC001/ 2019- 20
Appointment of a Service Provider to undertake a research project CoE (190301) “Determine Best/Leading Preconditioning Practices Applicable for Shallow, Intermediate, Deep and Ultra-Deep Mining Taking Cognisance of Rock Strength and Type and Mining Method” 2019-05-22 11:00 MHSC002/ 2019- 20
Supply, packaging and delivery of three (3) broadband radio frequency power amplifiers including special tooling required for operation, maintenance and repair at iThemba Labs, Faure, Cape Town with support for fifteen years 2019-05-24 11:00 NRF/ iThemba LABS/ 2018 - 19: 14
Provision of Banking Services for a period of five (5) years 2019-05-21 11:00 01/ 2019
Re-advertisement: Industrialise the SKA Band 2 Single Pixel Feed (SPF), SPF Controller and SPF Vacuum System to achieve a successful Production Readiness Review (PRR) and to establish the Product Baseline (PBL), with the option of extending the bid to deliver a total of 20 production units of each item. 2019-05-17 11:00 NRF SARAO SKA1 001 2018
Appointment service provider for the provision of Travel Management Services for a period of three (3) years 2019-05-15 11:00 FIN/ 2019/ 02
Provision of security operation services for Gauteng E-Gov Department for a period of thirty-six (36) months. 2019-05-13 11:00 RFB 1926/ 2019
The Film and Publication Board (FPB) invites suitable service providers to provide information in respect of a security solution/technology which will allow the track and trace of material (DVDs, USBs, etc) in designated areas within the FPB Office precinct. 2019-05-06 11:00 RFI01- 2019- 2020
Supply fifteen (15) large volume Lanthanum-Bromide with Cerium (LABR3:CE) Detectors with 2 spare Photomultiplier Tubes for iThemba LABS, Faure, Cape Town for ten years. 2019-05-22 11:00 NRF/ iThemba LABS/ 2018 – 19: 10
Terms of Reference For Placement on the Database of Legal Professionals for the period of three (03) years 2019-05-10 11:00 GT/ GDED/ 022/ 2019


Tender Site Visits

By Werner van Rooyen

31 January 2019

If you are so fortunate to have reached the stage where Organs of State or Private Sector Companies want to do a site visit, you must know that you are in the final stage in winning that tender that you have responded to.

But what must you do to prepare for a site visit?

The first thing is to ensure that your place of business is in excellent order. Be sure everything is clean and neat. A clean workshop or office is a pre-... Read More

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