The Pitfalls to Avoid When Registering a Business in Singapore
Singapore has become one of the most popular business hubs around the globe. It’s known for its fantastic first-world infrastructure, low-tax policies, and ease of doing business. If this isn’t enough selling points in itself, then the government actively supports businesses with private funding which has allowed it to become Asia’s hub for incorporating start-ups. Start-ups are now extremely popular in the country, particularly in the industries of green technology, IT and electronics, media and entertainment as well as for biotechnology. If you’re looking for a place to get started with your new business, then Singapore is certainly a good option.
However, one of the main reasons that individuals choose not to set up a business is that it can be somewhat complex at first. Risks must first be taken in order to reap the benefits that Singapore has to offer. These include Singapore business incorporation and an understanding of how to register a business in Singapore. Throughout this process, it’s likely you’ll make several mistakes. What’s important is that you learn from these mistakes and don’t quit at the first pitfall.
Key Pitfalls to Avoid
There are many areas which you must control when applying for Singapore business incorporation. Some of these are internal- your team, support, co-founders, and overall business, whilst others are external- the papers you need, business requirements, and the local economy. To help you get on the right track, we have created a guide on what pitfalls you should avoid to ensure a smooth transition into the country.
Being a Single Founder
Being the sole owner of your business brings with it several benefits. However, bringing in a partner can help you to identify some areas you may have missed as well as help you to spark ideas within your business. If you want to choose the lone wolf option, make sure you have a support team around you consisting of trusted advisors and mentors. These individuals will help you in your first few months of business and ensure your incorporation goes smoothly.
One of the downsides of having partners within your business is that they can discourage or distract you from your main objectives. When two personalities clash as co-founders, the breakdown of the business can be fast and extremely damaging. It’s important that you and your co-founder(s) are all on the same page. Make sure that your vision and growth perspectives are similar from day 1 as this will help with your transition into Singapore.
Work Ethic Extremes
As you incorporate your business, it’s important to be in full control of your working efforts. If you don’t put your full self into making your business succeed, nobody else will do it for you. Alternatively, you have to find the right balance between your work and home life. Working too many hours will only make you burn out and do more harm than good.
Before you start your business in Singapore it’s important that you choose the right location based on your industry. For example, if you run a restaurant, you want to look for areas that are not already saturated. If you plan on running an Indian restaurant, there’s no point in locating in an area that already has 2 others. Although you may still get customers, you’ll be missing out on all the area has to offer and will be competing with businesses who have already established their reputation.
Poor Financial Management
When considering Singapore business incorporation it’s important that you’re on top of your finances. You want to make sure you can raise enough money for your startup without giving up too much equity. Always make sure that you have all the controlling rights of the company as there are many tricks investors may use to take these powers from you.
Hiring the Right Staff
No matter where you’re located around the globe, it’s important to have the right team for the job. Make sure that your working environment is one of support and passion. Nobody can do everything themselves, no matter how hard they work. Hire individuals with the same vision as you. Those on the same path will be best for this, as they will strive to achieve the very best out of each project.
So, how can you overcome these potential pitfalls?
1. Remember, A Good Idea May Not Be A Good Business
Every single one of us has had a good idea in our life. However, a good idea must be followed up with even greater execution to create a successful business. Before setting up a business in Singapore, conduct in-depth market research that provides you with hard data. This will help to make sure there’s a market for your product or you may find out that the market for your idea is already saturated.
2. Think Differently From The Crowd
Being different in business is often a very good thing. You want to be ahead of the competition, not copying their every move to get the same results. Make sure you spend the time to invest in new research and ideas to spark the imagination of your audience. This will help you to stand out from the crowd in a competitive business environment.
3. Be Careful Not To Overvalue Positive Feedback
When starting up, it can be extremely easy to overvalue the feedback from potential customers. Many customers may state they will use your products/ services again, only to back away when it comes down to the payment. Although it’s always good to have great feedback, do not rely on this along to determine the success of your business.