Business Opportunities and Tenders
We know access to new opportunities to expand your business is important to you as a small business owner – And we’re here to help! This article will introduce you to three online platforms that advertise tenders in both the public and private sector. First things, first:
What is a tender?
A tender is an offer or invitation to bid by the public or private sector to deliver services or to supply goods at a fixed price. The tender process is designed to ensure the buyer appoints the right supplier by assessing applicants against a pre-defined evaluation criteria. The evaluation criteria is shared when the tender is advertised to create transparency as well as ensure only qualified applicants, apply. Typically set over a longer period or worth a big value, securing a tender and successfully fulfilling on the requirements is often life changing for a small business.
Etenders.gov.za – Tender opportunities in the public sector
Launched in 2015 to “eliminate the duplication and fragmentation of notices for government tenders”, Etender is a free platform to advertise tender opportunities in the public sector, across all municipalities and departments of government. Covering an extensive range of categories ranging from professional services to supplying computer or electrical equipment, tenders can be a lucrative source of income for your business.
While there are filters and a search bar to help navigate thousands of opportunities advertised, it can be quite overwhelming if you’re new to the tender process. You will also be required to register your business on the central supplier database for government before you apply.
Vodacom Trade Direct
Vodacom Trade Direct is a business-to-business online portal which allows both verified business buyers and sellers to come together in a secure and reliable online environment. Aimed at creating new opportunities to help small and medium sized business expand, the platform makes procurement of products and services simple by making it easier for suppliers to share information about their business products and services on one platform, and for buyers to find the products and services they need from a bigger group of potential suppliers.
You can sign up for a standard membership for free if you have a registered business in South Africa.
Online Tenders
Online Tenders is a tender notification service that researches business tenders and business leads across all regions of South Africa and Africa, classifies them into relevant categories like location and sector, and alerts the subscribers that are the best match for the opportunity via email.
While this service comes at a minimum cost of R740 p/m, they do all the tender research heavy lifting on your behalf ensuring you never miss an opportunity to bid for new business.
Now that you know how convenient it is to access opportunities, it is worth pointing out the intensity of the application process.
If you want to find out more about the tender process, Douglas van der Merwe, CEO and founder of SwiftReg explains the process clearly in this 8 minute video.
Should you bid for a tender?
Being well prepared to participate in the business tender process can help you secure big deals that can transform your business, but it can also be time-consuming and expensive. If your application is unsuccessful, chances are the money and time spent during the process is usually lost, so you need to weigh up whether or not the tender is worth bidding for.
Key considerations before you apply
Does your business meet all the requirements listed in the bid documents?
How much will it cost to prepare your bid? It’s important to consider the cost of your time and any staff involved in the process. Time is money!
Is this project aligned to your business strategy? Will winning the bid allow you to better position and scale your business in future?
Can you deliver the product or service profitably? Do you have the people and resources readily available to fulfil the contract?
Documents you will need to submit
While the requirements for each tender or business opportunity may be unique, there are a few standard forms required for national and provincial business tenders in South Africa:
Signed bid: In this document you agree to be bound by the terms and conditions of the tender or bid.
Tax Clearance Requirement: Your business taxes must be in order to be successful with your tender or bid.
Price and motivation: In this form, you motivate your price, by describing the product you will supply or the experience of the person who will perform the service.
Declaration of Interest: Form to declare whether or not you have a relationship (friend, family, ex-colleagues or business partners) with anyone who works for government. This is so that those individuals are not involved in awarding the tender in anyway, to avoid corruption.
Preference certificate: This form allows you to claim preference points based on your Broad-based Black Economic Empowerment (B-BBEE) Status Level.
Valid B-BBEE certificate (or Affidavit): While certificates are required for the tender process, exceptions have been made for smaller businesses with turnover of R10 million or less allowing for an affidavit to be used. The information supplied is legally binding.
Want to learn how you too could use online to advertise your business? Read more about Online Marketing and why you should use it for your business
