In Singapore, while some young people continuouslypursue how to start and run their own businesses in order to eke out a living, others think of how to invest their money upon retrenchment. Furthermore, existing businesses are going under or struggling to breakeven because of bad business decisions. Well, if you fall into the category of these people above, well,this piece is specially written for you.Now, just keep reading.
To Start Your Business In Singapore, Follow These Steps Closely
- Discover your interest or skill
To start your own business and run it successfully, the first step is to discover yourself. Ask yourself these questions: “What’s that business I have a flair for?” “What’s that skill I can do effortlessly?” “Where does my interest lie?” There must be something you are good at.Is it agriculture, fast foods, transport, electronics, online marketing or financial services? Discover your business ideas or skill. Afterwards, you take the next step.
- Get trained
After discovering yourself, the next step is to attend vocational training or school in order to perfect it. At this stage you should also learn from the things successful people in your area of interest are doing. Lest I forget, you would do well to learn from their mistakes as well. So, at this stage of your career all you do is learn!
- Map out a business plan
Draw a plan of how you want your business to be: small or big, funding, staffing (if needed), raw material sources, goods and services, machines, and everything you require for starting the business. After taking care of this step, you proceed to the next.
- Start your business
The most important decision to be made at this point is funding your business. Yes, with money, everything else can be sorted out. Some key sources of business funds include:
– Loans：You can use personal loan or get from family, friends, money lenders, banks and many others to fund your business.
– Incubators and accelerators：While an incubator involves startups that do not operate on an already established standard, an accelerator, on the other hand, involves timeframe you spend learning with mentors before graduation. A typical example is Angel Gate Advisory.
– Grants：The Singaporean government gives grants to startups as a way of creating reducing unemployment. For example, The Spring Singapore ACE grant is a scheme where startups are matched with business gurus for mentorship period of one year. Another form is the ComCare enterprise fund made for social enterprises.
– Crowd-funding：Instead of borrowing from money lenders, banks or waiting for grants, you can take advantage of crowd-funding. Basically, this means getting financial support from individuals’ contributions. In the course of taking advantage of this source of fund, you may also advertise your new business to them.
- Assess your business
Why do you have to assess your business? Well, the answer is to simply know the next step to take.When you realized that your company is now beginning to earn enough money to sustain itself, it’s critical you take the step below. This assessment will enable you figure out if your business is growing, stagnating or retrogressive. There is no sitting on the fence; a company MUST fall into any of the three categories. If you discover that your company is struggling, also find out why it is so. Well, if that seems confusing to you, involve a business expert or seek expert advice.
- Place yourself on a salary
Now that your business has kicked off, don’t be bigger than it. No, you should place yourself on a salary. No matter how much you make from your business, don’t be overwhelmed by it yet. It’s normal to want to go and unwind, go on a vacation and start a family. All this sounds great but ensure you have personal savings where they will be funded from. And it’s critical that you don’t place yourself on a salary that will hurt your business. You can only start earning salaries from your business when you are obviously making some gains from it otherwise you don’t do that yet. Ensure you separate two separate accounts: one for your business and the other will be for yourself.
- Repay your loan
To ensure that your business is always creditworthy, do well to start repaying your loans. Yes, at some point you may need to source for fund to boast your business, but make sure you repay such loans to remain credit worthy before banks, money lenders or whichever source you got the money from. Credit worthiness is determined using credit score and credit rating. The importance of repaying your loan is that whenever you approach the same source for assistance they will be willing to assist. Companies’ payment histories are often used to check their credit worthiness. Keep it clean.
- Make a financial plan
Evaluate your current and future financial statues. This is called making a financial plan. Don’t lose focus of why you started your business in the first place and go spending extravagantly because you see money coming in. Financial plans are critical in making business decisions. Be prudent with money regardless of how much you think your business is raking in. To make a perfect financial plan, follow these steps:
– Be mindful of what you spend money on
– Set your monthly savings target
– Set financial targets and strive to reach them
– Reduce your borrow rate
– Always save no matter the challenge you face
- Invest more
Ron Sim, Jason Chang and Danny Yong wouldn’t have gotten their companies where they are today if they hadn’t looked for ways to invest more and more. So, follow in the steps of these billionaires and expand your business horizon. Look for places that are in dire need of the services you offer and take your business to them. Take that bold step and invest more. Yes, always be on the lookout for more opportunities to invest more. Investing more could mean taking loans you could repay at a later date because there are obvious business leads. This is why you need to always repay your loans to remain credit worthy.
Indeed, the choice to graduate from borrowing from money lenders to becoming a money lender is yours as clearly explained in this piece. In truth, steps of running your own business are no easy tasks as they come with everyday risk and challenges. Truly, Singaporeans don’t have to bother so much about how to fund their new businesses as the piece has explained some of the key sources. Don’t procrastinate anymore, start a business today.