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We get a lot of questions and requests on “How to start a tendering business”.  First off, to have a registered company and to have a business, is not the same thing.

Put simply, registering a company is a paper exercise where you list the name and detail of a legal entity you wish to do business under and that is it. Unfortunately, there are other requirements that you must comply with in order to be ready to tender. There is this misconception that if you have registered a company, you are ready to tender.  This could not be further from the truth.  You cannot say that you have registered this company and now you are ready to tender. It just does not work that way. 

To tender, you must have a business and not just register a company!  To have a business means that your company are operating, trading, and generating income already. It means you are already doing business.

Even if it is a start-up business, you must have the intention to do business, irrespective of winning a tender or not. There is a misconception that there is such a thing as a “tendering business” and that it is possible to win a tender even if your company haven’t started doing business yet. Few tenders are awarded to a start-up business and you will not get far if you do not already have an operating business.  Yes, tenders are awarded to start-ups, but the bulk of tenders are awarded to running concerns – businesses with a track record.

Do not think that once you have registered a company, got a Tax Clearance Certificate as well as a B-BBEE Certificate you are ready to tender, thinking that these three documents will ensure that you will be successful in your bidding efforts.  The truth of the matter is that unfortunately you would be lucky if your tender response makes it through the first round of evaluation.

To tender is not a business but if you have a business and you respond to tenders it can be extremely rewarding.

Remember: To have a registered company and to have a business, is not the same thing.



To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops and webinars. You can book online at https://howtotender.co.za/workshops/. Contact us at info@howtotender.co.za should you require more information.

Remember:  We have various manuals and guides to assist you in the process of completing your tender documents. ….. More info