Written by Werner van Rooyen
We often receive inquiries about “How to start a tendering business.” It’s important to clarify that having a registered company is not the same as running a business.
In simple terms, registering a company is merely a paperwork task where you list the name and details of a legal entity under which you wish to operate. Unfortunately, there are additional requirements you must meet to be prepared for tendering.
Many people mistakenly believe that merely registering a company means they are ready to tender, but this is far from the truth. Simply having a registered company does not equate to being ready to participate in tenders.
How to tender Successfully
You need to have an active business—not just a registered company. This means your business should be operational, trading, and generating income. Essentially, you should already be engaged in business activities.
Even if you are a start-up, you must have the intention to conduct business, regardless of whether you win a tender. There is a misconception that a “tendering business” exists and that it’s possible to win a tender without having started business operations. While some tenders may be awarded to start-ups, the majority go to established businesses with proven track records.
Do not assume that registering a company, obtaining a Tax Clearance Certificate, and securing a B-BBEE Certificate means you are ready to tender. Relying solely on these three documents will not guarantee success in your bidding endeavors. In reality, you may be fortunate if your tender response makes it past the initial evaluation round.
Tendering itself is not a business; however, if you have an operational business and respond to tenders, it can be very rewarding.
Keep in mind: having a registered company and running a business are not the same.
For more insights on this and other tender-related conditions, consider attending our “Become a Tender Expert” two-day workshops and webinars. You can register online at www.howtotender.co.za/workshops/. If you need further information, please contact us at info@howtotender.co.za.
Additionally, we offer a variety of manuals and guides to assist you in completing your tender documents.