Running a business that regularly gets contracted by the government is a very good way to make money in South Africa. This is a guide on how to start a tender business in South Africa.
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Overview
The government or the private sector usually outsources some of its work to contractors, the contractor is awarded a tender. Most entrepreneurs target government tenders, there is a lot of money to be made from government tenders, some tenders can be as high as R50 million, some even more.
There are certain steps that you have to take before being awarded a tender by any government entity. Here is some of things you should do in order to stand a good chance.
Start a business
You have to have a registered business before you can even bid for a tender. Your business has to be inline with the type of tenders that you want to bid for. If for example; you want to cut grass and maintain the lawn at government institutions then you have to start a business doing just that.
You might also start a waste removal business; you should research the types of businesses that are regularly contracted by the government. This research doesn’t have to be difficult, just go to your municipality website and look at the tenders that are currently being awarded.
You will have to register your business with the CIPC, this currently costs R125. You will also need a tax clearance and certificate. It’s possible to apply for a tender as soon as you have your papers in order, the business doesn’t have to be in operation for a certain time before you can apply. But it has to be a business that is operating.
Apply for a tender
Applying for a tender is fairly easy, go to any government website, they all have the “tender” section. This is where you will find the tenders that are currently active and the tenders that have been awarded.
Each tender document contains details on what you are expected to do and all the minimum requirements that you should meet. It also includes the amount of money that will be given out for the tender.
I am not completely sure about the criteria that is used when awarding tenders and how they get to decide who deserves the tender. Go to any government website, there are always tenders that are listed. This includes government colleges and other public institutions.
Conclusion
This was a guide on how to start a tender business in South Africa. Do you have any thoughts or questions? Comment below.
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