How To Start Tender Business – The Check List
Posted: Tuesday, January 19, 2010
by Dr irfan Ahmad
tender service
Entering into tender business can be exciting as well as challenging. If you familiarize yourself with the tendering procedures and do your homework before participating in tenders you will feel much more confident.
Try to answer the following questions before considering to start the tender business. It will help you a lot to understand your own point of view about starting tender business.
Why do you want to start tender business?
Is it a business that you want to build up and run?
Is it your side business?
What’s in for you?
How many people does it require? Who?
Requirements
What equipment do I need?
What equipment is needed? i.e. Computer?
What space do I need to work out of? An Office? A room? Transport?
Do I have it now? Do I need to buy it? Could I hire or lease it? Could I borrow it? Is it essential or just desirable?
What quality do I need? Questions of quality come in here sometimes cheap are tempting, but not good in the long term.
How long does it last? 1 year, 5 year?
Is leasing better because you can upgrade? And it’s fully tax deductible.
If a bit of equipment is only used occasionally, buy or hire?
What are the tax implications/cost?
What impact will the general sales tax have?
What consumables do i need?
This relates to the materials that are used up on daily basis. Possible questions are:
What consumables are needed?
How do I buy it? How much does it cost?
Where can I buy it? What suppliers are there? Wholesale? Retail?
How long does it last? How does it need to be stored?
What are the tax implications/cost?
What impact will the general sales tax have?
What staff do I need?
This relates to the staff requirements for tender business.
What staff is needed?
How many people do I need?
Who will do what work? Where do I get the people from? Do I know people I can use?
Who will handle and manage finances and money?
What other costs are there?
What equipment need servicing?
How much travel is involved? How much will this cost?
What banking and government costs are there?
How long will it take to set up the tender business?
How long does it take to set up the tender business?
How long does tendering process takes?
How soon before the money comes rolling in?
Is it worth doing the tender business?
How much would I make?
Is it a large proportion of my income?
Do I have to pay tax? What could happen if I don’t? Does it depend on who I’m working for? How much does tax add up to?
What is the tax payable on different levels of tendering process?
What records do I have to keep?
What banking needs do I have to keep?
Do I need an accountant/bookkeeper?
How long will it take me/the bookkeeper?
Will the outgoing costs leave much of a profit?
What would that mean in profits per month?
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Top-level comments on this article: (5 total)Hi Dr. Ahmad. Thank you for writing this piece. Can you give me the definition of "Tender business"? I am afraid I am not familiar with this subject. Does it relate to buying and selling stocks? If it is, do you need capital? Welcome to Searchwarp. ~Nenita~Each Year, government departments, semi government organizations, autonomous bodies and large industrial units spend billions of dollars, buying a wide variety of goods, services and infrastructures from the private sector. This purchasing encourages fair & open competition between suppliers & aims to achieve the ‘Best Value for Money’. Private sector suppliers & contractors, both large & small can effectively enter into this market which can open a new avenue of business for them.Thank you for the clarification Dr. Ahmad. It is called "Invitation for Bid" (IFB) or "Invitation to Bid" (ITB). It an invitation to contractors or equipment suppliers through a bidding process and to submit a proposal on a specific project to be realized or product or service to be furnished.Thanks again for your response.Good day!~Nenita~Sir,
As per my point of view, tender requires capital, Source & settings in Government department. Is it true ?
Hi Dr Irfan Ahmad, im a 24 year old and would love one day to have a tender, like next year,, but now i dont know where to start and where to end,, please what are the key points? when you interested in having a tender..
Hi Dr Ahfan
Please give me some details on how to start the tender business, I want to start before the end of the this year 2011.I dont have any degree in bulding or archietect or tender faculty.Please help me I want to be a tender woman
Hai Dr irfan Ahmad. Am sthembiso khuzwayo. I want to be a Tendar business man. Please help me. I dnt know where to start on and what to do please help me. I love this business.
A/C Dr Irfan am a young man who has a strong desire to start tendering business and in the country where i live tendering is a very lucrative and stable business but the problem is i dont have a clue about the business and where to start please help me with the basic guidelines of starting and suggest me any degree or diploma that could be of help for my new business. Shukran
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