Financial Data
Updated 24 Sep 2020

Readying your business for big contracts

10 Tips for signing the big contract.

Entrepreneur, 15 February 2013  Share  0 comments  Print

All the answers to your unique business lifestage questions

1. It’s all about the plan.

Have a proper business plan with vision and mission.

2. Understand compliance issues.

Ensure your business complies with legislative requirements such as tax clearance and other financial requirements. Effective compliance is pivotal to organisational success.

Pro-active compliancy improves productivity, competitiveness and fosters sound relations with regulators.

3. Have a BEE rating.

This is so that you can increase preferential procurement opportunities. There are different annual turnover classifications for different types of businesses but you will need a certificate even if your business qualifies for exemption.

4. Know what’s expected.

Develop an intimate understanding of the technical and other requirements of the corporate and seek assistance well in advance if necessary.

5. Know your numbers.

Demonstrate solid financial management as solvency is a critical factor for large corporates.

6. Be efficient.

Cultivate the discipline of time management as this is a key requirement when it comes to submitting tenders and RFPs.

7. Reputation comes first.

Build your reputation on quality service. That way you’ll always have referrals.

8. It’s all about trust.

Form positive relationships in the industry you operate in.

9. Specialise.

Find your niche and focus your service offering.

10. Innovate, innovate, innovate.

To really offer groundbreaking new solutions, you need to study the market. Where are the gaps?

Before you submit a bid

When large-scale buyers advertise their needs and invite bids or tenders from suppliers, entrepreneurs who want to submit a bid or RFP need to ensure they do the following:

  • Tender only for those contracts that fit your business focus or scope.
  • Plan to use each tender you win to build up capital in your industry – enhance your reputation with credit suppliers.
  • Get an extended overdraft limit at the bank, invest in equipment, skilled staff and project management skills.
  • Do not ever bank on winning a tender. It’s said that successful business owners submit at least twelve tenders for each one they win.
  • Can you deliver the goods?
  • Here are three questions to ask. Evaluate your situation and decide on the following:
  • Can you handle the required workload?
  • Will you be able to deliver the right quality of goods or services?
  • Are you in a position to deliver the goods or services
    within the specified time period?

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