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.
Xhariep District: 24 months preventative maintenance of freezer and cold room installation in state buildings 2019-08-13 11:00 BL19/ 017
Lejweleputswa District: 24 months preventative maintenance of freezer and cold room installation in state buildings 2019-08-13 11:00 BL19/ 018
Invitation to submit offers for vacant land in the Kayamandi, Stellenbosch Region 2019-08-13 11:00 S019/ 19
Supply and Delivery of Various Embossed Insignias (Qty 4436) for the SA Air Force 2019-08-12 11:00 SPU/ B/ DSS/ 007/ 19
Security services at West Rand Region for Gauteng Department of Social Development for a period of 18 months 2019-08-12 11:00 GT/ GDSD/ 043/ 2019
Supply and Delivery of Tag Key Stainless Steel Octagonal 50.0MM (Qty 1000 Pair) and Chain Bead Stainless Steel 0.635M Long (Qty 500 Pair) for the SA Air Force 2019-08-14 11:00 SPU/ B/ DSS/ 021/ 19
Appointment of a service provider to render standard cleaning services for the Department of Rural Development and Land Reform in the office of the Surveyor General for a period of twenty-four (24) months within Ehlanzeni District in Mpumalanga Province 2019-08-07 11:00 RDLR- MP0003 (2019/ 2020)
The appointment of a service provider to supply and deliver moulds for Mamre Concrete Project located in the City of Cape Town Local Municipality, Cape Metropolitan District in the Western Cape Province. 2019-08-12 11:00 SSC WC 05 (2019/ 2020) DRDLR
Supply and Delivery of Duffel Bags Blue Grey (Qty 1000) for the SA Air Force. 2019-08-12 11:00 SPU/ B/ DSS/ 017/ 19
The National Department of Public Works invites interested parties to submit their applications to hunt the listed animals below for a period not exceeding the hunting season in terms of the Nature and Environmental Conservation Ordinance 19 of 1974 Sections 39 and 40. 2019-08-13 11:00 DPE03/ 2019
Appointment of panel of contractors to render a service of maintenance of water supply and sewerage network for 24 months in Sekhukhune & Capricorn District. 2019-08-13 11:00 PLK 19/ 12
Appointment of panel of contractors to render a service of maintenance of water supply and sewerage network for 24 months in Waterberg District. 2019-08-13 11:00 PLK 19/ 11
Supply and Delivery of Gorget Patches (Qty 150), Hand Embroidered Cap Badges (Qty 105) and Gold Embroidered Onlays for Women Hats (Qty 40) for the SA Air Force. 2019-08-13 11:00 SPU/ B/ DSS/ 006/ 19
Appointment of panel of contractors to render a service of maintenance of water supply and sewerage network for 24 months in Vhembe District. 2019-08-13 11:00 PLK 19/ 10
Supply & Maintenance of electronic student assessment & placement tool to all Westcol campuses for a period of 24 months. 2019-08-12 11:00 WT 2019/ 0002
Appointment of an experienced service provider to render travel and related services to the institution for a period of 24 months 2019-08-12 11:00 WT 2019/ 0001
Website Development, Maintenance And Support Administration Services for a period of 36 months for Capenature 2019-08-16 11:00 WCNCB 02/ 07/ 2019
The Appointment of an Accredited Service Provider for The Supply, Installation, Integration, Operationalisation and Maintenance of a Vulnerability Assessment and Management Solution/Tool for a Period of Three (3) Years. Tenable Nessus Or Equivalent. 2019-08-12 12:00 UMALUSI(19- 20) T0006
Appointment of panel of contractors to render a service of maintenance of water supply and sewerage network for 24 months in Mopani District. 2019-08-13 11:00 PLK 19/ 09
Kimberley Family Law Centre: Provisioning of cleaning services for 36 months. (2150.79m²) 2019-08-13 11:00 PF24/ 2019

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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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