Going into a bidding business can be exciting and challenging. Familiarizing yourself with the bidding procedures and doing your homework before participating in the bidding will make you feel much more confident.
Try to answer the following questions before considering starting the bidding business. It will help you a lot to understand your own point of view on starting a bidding business.
Why bid for business?
Why do you want to start a bidding business?
Is it a business you want to build and run?
Is it your side business?
What’s in it for you?
How many people does it require? Who?
Requirements
What equipment do I need?
What equipment is needed? I mean, computer?
What space do I need to work? An office? Quarter? Transportation?
do i have it now? Do I need to buy it? Can I rent or lease it? Could I borrow it? Is it essential or just desirable?
What quality do I need? Quality issues come in here, sometimes cheap is tempting, but it’s not good in the long run.
How long does it last? 1 year, 5 years?
Is it better to lease because you can upgrade? And it’s fully tax deductible.
If some equipment is only used occasionally, buy or rent?
What are the fiscal implications/costs?
What impact will the general sales tax have?
What consumables do I need?
This relates to the materials that are consumed on a daily basis. Possible problems are:
What consumables are needed?
How do I buy it? How much is it?
Where can I buy it? What providers are there? Wholesale? Retail?
How long does it last? How does it need to be stored?
What are the fiscal implications/costs?
What impact will the general sales tax have?
What staff do I need?
This relates to the personnel requirements for the bidding business.
What staff is needed?
How many people do I need?
Who will do what job? Where do I get people from? Do I know people I can use?
Who will handle and manage the finances and money?
What other costs are there?
What equipment needs service?
How much travel is involved? How much will this cost?
What bank and government costs are there?
How long will it take to set up the bidding business?
How long does it take to set up the bidding business?
How long is the bidding process?
How soon before the money comes rolling in?
Is it worth doing the bidding business?
How much would you earn?
Is it a large proportion of my income?
Do I have to pay taxes? What could happen if I don’t? Does it depend on who I’m working for? How much is the tax?
What is the tax to be paid at the different levels of the bidding process?
What records should I keep?
What banking needs do I have to maintain?
Do I need an accountant/bookkeeper?
How long will it take me/the bookkeeper?
Will outgoing costs leave a big profit?
What would that mean in earnings per month?
