Many people aspire to start their own business and be their own bosses and there’s honestly nothing wrong with that. The barriers to starting a business in Singapore are low and as a result, many business startups choose to base their operations here.
Although many have started their own business, there are also many who have failed. Statistics show that 50-70% of startups fail within the first 18 months. If you’re thinking about starting a business and you’re unsure of how you are going to go about it, here are some tips to get you started.
What Kind/Type of Business?
Yes, you may have a great business idea but if your business idea does not meet market needs or if there is no market demand for it, you probably will want to think twice about starting your business.
The kind of business that you want to start will also affect the type of business structure for your business to operate from.
In Singapore, there are generally 5 kinds of business structure that you can decide on; a sole-proprietorship, a partnership, a limited partnership, a limited liability partnership, and a company. All of them have got pros and cons and you will need to assess which business structure is most suitable for you.
How Much Capital Do You Want to Invest?
Please do not think that the more capital you invest, the greater your returns will be. Your returns depend very much on how the capital is being used. More capital can probably mean more money to buy more products, rent a bigger space, or even buy time to sustain the business.
I often see many Facebook Ads that tells many fantastic stories of how individuals can invest, can start a business, can own properties with no money and etc but truly, such ads will often lead you to sign up for previews or workshops that will set you back by thousands of dollars.
For businesses that offer services, the startup costs are generally lower than businesses that offer products. When you buy products to sell, you will need capital and where are you going to get that capital from?
If you want to start a business full-time, you minimally need to have at least 6 months of living expenses. If you don’t, consider hanging onto your full-time job while working on your business part-time. This will ensure that you have sufficient cash flow to maintain your current lifestyle.
Do You Have A Backup Plan?
A backup plan is essential. There’s a common saying, ”When you fail to plan, you plan to fail”. What are you going to do if your business doesn’t turn out well? When will you throw in the towel and admit that starting a business is just not for you? There will be many instances when you will be tested and it is important to recognise how and where you are going to draw the line. Will you still be employable when you call it quits? These are just some important questions that you need to think about when you start a business.
How Marketable is Your Business?
Well, I certainly hope that this post would have helped you to think deeply about what it takes to be an entrepreneur. There will always be risks associated with starting a business; the greater the risks, the greater the rewards, the smaller the risks, the smaller the rewards.
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