Contract signing checklist for entrepreneurs
As a small business owner, finalizing a contract can be exciting and overwhelming at the same time. It is important to prepare all your company documentation beforehand. This will ensure a seamless process and creates trust between your business and the client. Here is a checklist of items to prepare before signing a contract with a large corporate client.
Have a plan
Have a comprehensive business plan with vision and mission. A business plan is a formal written document containing business goals, the methods on how these goals can be attained, and the time frame within which these goals need to be achieved.
Understand compliance matters
Ensure your business complies with the specified policy regulations meeting regulations such as tax clearance and other financial requirements. Effective compliance is pivotal to organizational success it will demonstrate your company maturity.
Herewith a few compliance documents usually required:
- CIPC Docs
- Copy of shareholders ID’s
- Tax clearance
- BBE certificate/Affidavit
- Company profile (If available)
- Letter of good standing
- Industry affiliations
- Quality management systems (ISO if relevant)
- Insurance (If you have)
Contact our Biz Assist team should you need any assistance on your compliance documents.
Pro-active compliance improves productivity, competitiveness and fosters sound relations with regulators.
Have a BBBEE rating
As more and more companies require a BEE certificate as part of their procurement process. Having a certified rating increases 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.
Know what’s expected
Develop an intimate understanding of the technical and other requirements of the corporate client and seek assistance in advance if necessary.
Know your numbers
Demonstrate solid financial management as solvency is a critical factor for large corporate companies. It is not unusual for a large corporate client to ask for a copy of your recent annual financial statements as they want to be comfortable that your business is financially equipped to deliver on the scope of work. If however, you are uncomfortable to share this information, then it is also fair to contact the client to ask why they need this information and how the information will be used.
Cultivate the discipline of time management Most large corporate companies will accept a late tender, even if it is only 1 minute late! So, make sure to register on any procurement portals well in advance. Remember to carefully read all the terms of the contract and administration should not be left to the day that the tender is due as it often requires considerable time to complete.
Reputation comes first
Build and protect your reputation on quality first. Your reputation is built on past behavior. Build it by delivering the best quality. That way you will always have referrals.
Innovate, innovate, innovate