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.
Consultancy Services on Modernizing Cooking Technologies in Africa 2019-05-03 15:00 AUC/IED/C/039
Cleaning and horticultural services at Salt River Depot - Period of three months 2019-04-30 12:00 WCR 02/2019
Provision Of Cleaning Services At Millsite, Waterval and Robinson Depots For A Period Of Twenty Three (23) Months. 2019-05-07 10:00 RFQ CRAC-KGG-29592.
Aerial fire fighting support services for the period 01 November 2019 to 30 April 2020 and from 01 November 2020 to 30 April 2021 2019-05-15 11:00 T 2019/008
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in Western Cape for a period of two (2) years as and when required by Broadband Infraco 2019-05-17 12:00 INF/TEN/0240
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in Northern Cape for a period of two (2) years as and when required by Broadband Infraco. 2019-05-17 12:00 INF/TEN/0241
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in Mpumalanga for a period of two (2) years as and when required by Broadband Infraco. 2019-05-17 12:00 INF/TEN/0242
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in Limpopo for a period of two (2) years as and when required by Broadband Infraco. 2019-05-17 12:00 INF/TEN/0243
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in KwaZulu Natal (KZN) for a period of two (2) years as and when required by Broadband Infraco. 2019-05-17 12:00 INF/TEN/0245
Supply and Delivery of Conference and Printing Equipment, Accessories/Spare Parts and Consumables 2019-05-17 15:00 AUC/DCMP/G/001
Consultancy service to develop an accountability framework for the CARMMA campaign 2019-05-03 15:00 AUC/DSA/C/012
Appointment of a service provider for the provision of media monitoring services for the WRC for a period of three (3) years 2019-05-03 11:00 WRC-003-2019/20
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in Gauteng for a period of two (2) years as and when required by Broadband Infraco. 2019-05-17 12:00 INF/TEN/0246
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in free state for a period of two (2) years as and when required by Broadband Infraco 2019-05-17 12:00 INF/TEN/0247
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in eastern cape for a period of two (2) years as and when required by Broadband Infraco. 2019-05-17 12:00 INF/TEN/0248
Maintenance of CCTV and access control systems and adhoc repairs and installations 2019-05-07 11:00 RFP-GSM058/18
Appointment of a service provider to supply and install CCTV Cameras in the Office Building of Dr Kenneth Kaunda District Municipality 2019-05-10 12:00 KKDM 02/18
Invitation to bid for the collection, dispatch, conducting customs clearance and delivering of diplomatic freight “AF” bags to and from DIRCO head office and South African missions abroad including Department of International Relation and Cooperation (DIRCO) parliamentary office and the protocol offices in Cape Town, Durban and Johannesburg for a period of two (2) years. 2019-05-08 11:00 DIRCO 01/2019/20
Purchase of uniform for protection unit 2019-04-26 12:00 MBIZ LM 02/04/19/01 UPS
Personal insurance - Mechem Contractors 2019-05-20 11:00 DLS150683

Pages

Tender Site Visits

By Werner van Rooyen

www.howtotender.co.za

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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