7 Essential Tips for Launching Your Own Business

Starting a business is an exciting but challenging journey. My father and I are experiencing this firsthand as he focuses on sporting goods, while I’m building a wellness brand with balms, oils, and perfumes. The learning curve has been steep but rewarding, and strategies like connecting with customers and promoting products online have already proven effective. Within the first week, I saw a promising return on investment and even expanded my inventory to include collectible POP MART items.

If you’re thinking of starting a business, here are some practical tips that can help guide you through this journey.

#1:  EMBRACE YOUR STRENGTHS AND WEAKNESSES

Understanding where you excel and where you could use some help can make a big difference. As a new business owner, you’ll often need to juggle many tasks, from product development to customer service. Recognize your strengths, but don’t hesitate to seek help or learn new skills for areas where you may lack expertise.

#2: BEGIN WITH A SIMPLE BUSINESS PLAN

A clear, concise business plan is crucial for laying out your vision and keeping yourself on track. Begin with a one-page plan outlining your goals, target customers, and products or services. As your business grows, you can expand this plan to cover additional aspects, such as marketing and financial projections. A straightforward plan will keep you focused on your priorities without overwhelming you.

#3: EXPLORE FUNDING OPTIONS

Funding is often a major consideration for new businesses. Whether you use personal savings, take out a loan, bring in investors, or apply for grants, make sure you have a plan in place. Break down costs into one-time startup expenses, like equipment, and recurring costs, such as rent and utilities. Planning for these expenses will help you maintain cash flow as you grow.

#4: UNDERSTAND YOUR TAX OBLIGATIONS

Tax requirements in Singapore vary depending on the business structure and revenue. Sole proprietors report business income as part of their personal taxes, while corporations have different rates and reporting obligations. For income over specific thresholds, such as SGD 200,000, reporting becomes more detailed. Singapore’s Inland Revenue Authority (IRAS) offers guidance and resources to simplify tax compliance, and consulting a tax professional can ensure you stay on track.

#5: REGISTER WITH CPF

If you plan to hire employees in Singapore, you’ll need to register with the Central Provident Fund (CPF) Board to manage mandatory contributions. Singapore’s Employment Act also sets guidelines on wages, hours, and leave entitlements for various types of employees, so it’s essential to stay updated on these requirements to ensure compliance.

#6: CHOOSE YOUR INDUSTRY CODE (SSIC) ACCURATELY)

Singapore requires new businesses to register under a specific industry code, known as the Singapore Standard Industrial Classification (SSIC) code. This code defines your business category and helps the government manage industry regulations. When registering with the Accounting and Corporate Regulatory Authority (ACRA), use an SSIC code finder tool to identify the right classification.

#7: RUN YOUR BUSINESS WITH PASSION

Running a business you’re passionate about can make the challenging moments more manageable. While passion alone isn’t everything, it does provide motivation and resilience, especially in the face of setbacks. Aligning your business with your interests can keep you engaged and focused on long-term success. Your customers can easily feel when you love what you are doing, and that energy can radiate.

Image Credits: unsplash.com

Starting a business requires planning, adaptability, and dedication. With a clear vision and the right strategies, you’ll be well-equipped to turn your business idea into a thriving venture.

Sources:1,2, & 3

Read More...

Why you should treat your startup like a child

parent and child holding hands

You’ve probably heard the saying, “Treat your startup like a child.” But what does that mean, exactly?

In short, it means being patient, nurturing your business through its early stages, and not pushing it too hard. In this post, we will explore the reasons why you should treat your startup like a child and offer tips for doing so.

A startup is a new beginning

Think about it this way: your startup is like a newborn child. It’s fresh and full of potential. It’s up to you to nurture and help it grow into something extraordinary.

Just as with a child, you will need to give your startup plenty of attention and set rules and boundaries. It’s also good to know what you want to get out of it. Most importantly, you will need to be uncomplaining. Rome wasn’t built in a day, and your startup won’t become a success overnight. It will take dedication and perseverance.

A startup will make mistakes

It’s only natural that a startup will make mistakes. After all, it’s still learning and evolving. But the key is for you, as an owner, to learn from those mistakes and not make them again.

Just like you would with a child, you need to be forbearing with your startup and help your team grow and learn. Guide your first batch of employees through its early years, teach them the right processes, and be there to support them when anything falters. Most importantly, don’t be afraid to make mistakes yourself.

A startup will grow and change
colleagues in a discussion

Image Credits: forbes.com

A startup will grow and change over time and need your unwavering attention to thrive. Just as you would provide for your child’s needs, you must also attend to your startup’s growth needs. This means keeping up with research, marketing it to the public, and gathering feedback.

As your startup grows, don’t be afraid to change with it. If something isn’t working, be willing to let go of your old ideas and take on something new. Always be open to fresh ideas and modifications because that’s the only way your startup will continue to tweak and improve.

A startup needs care and attention

Starting a business is no easy task. It takes a lot of hard work and most importantly, care and attention. Just like you would with a child, you need to make sure you’re providing your startup with the support it needs to sprout and succeed.

Here are a few tips on how to give your startup the care it deserves:

  • Set achievable goals. Don’t try to do too much too soon; gradually increase the scope of your objectives as your startup grows more capable.
  • Take breaks! It’s important to step away from your business occasionally and just relax—you will come back refreshed and ready to work harder than ever.
  • Celebrate your successes! No matter how small they may seem, celebrate every victory that your startup achieves. This will help keep you motivated during challenging times.
  • Make time for it every day. Whether you’re working on it yourself or outsourcing tasks to others, make sure you’re dedicating some amount of time to your business every single day.

Your business needs continual care at the outset if you want it to develop and be robust. Your business, like your child, will start to support itself as it “grows older” and as you get more expertise as a business owner. After that, you can back up while advising as part of the management team. And ultimately, you should be loving what you’re doing. No matter what the outcome, if you thoroughly believe in your business idea, you will survive it somehow.

Read More...

Useful Schemes And Grants For Startups And SMEs

Sourcing funds as a startup business is not as easy as it seems. Focus on making sure that you set realistic and achievable goals with the help of the following schemes and grants.

#1: ANGEL INVESTORS

Believe it or not, angels are among us. These “angels” let startups and small businesses fly by providing necessary funds. Angel Investors invest money to said businesses at their seed stage despite having no proven success in their business model. In Singapore, here are some Angel Investor networks that you can tap.

BUSINESS ANGEL SCHEME (BAS)

Supervised by SPRING SEEDS, Business Angel Scheme is an equity investment scheme for Singapore-based businesses. It partners up with angel group investors to let them invest in innovative startups. SEEDS can invest up to a maximum amount of S$1.5 million! They profit by taking an equity share from the startup, which is in proportion to their investment.

SINGAPORE ANGEL NETWORK (SGAN)

There is a network of angel investors that invest in the later stage of the startup’s financial requirements. This network is none other than the Singapore Angel Network (SGAN). SGAN is the investment arm of Thakral Group of Companies. Interestingly, this network does not target any specific industry. This means that startups will have an equal chance of being selected. In fact, this network invests in other countries as well.

#2: ANGEL INVESTORS TAX DEDUCTION SCHEME

Be an angel! Invest in start-up companies in Singapore to receive a huge tax benefit from the Angel Investors Tax Deduction Scheme. You read that right! The Government introduced this incentive scheme to help businesses grow through their management expertise and expansions.

Valid until March 2020, angel investors can enjoy 50% tax deduction on the investment costs at the end of a two-year holding period. It is capped at S$500,000 worth of investments in each Year of Assessment.

#3: MAS FINANCIAL SECTOR TECHNOLOGY AND INNOVATION SCHEME (FSTI)

Launched by the Momentary Authority of Singapore (MAS), the Financial Sector Technology and Innovation (FSTI) scheme aims to provide support for the vibrant ecosystem of innovation. It attracts fintech companies to set up their labs, to develop solutions, and to build their technology infrastructures.

Under this is the sub scheme called FSTI-Proof of Concept. Through this sub scheme, you can receive support of up to 50-70 percent of qualifying costs capped at S$200,000 for up to 18 months.

#4: BUSINESS IMPROVEMENT FUND

Business Improvement Fund (BIF) is open to all Singapore-registered businesses with projects directed to tourism. It comes as surprise that it is run by the Singapore Tourism Board.

Eligible SME applicants can receive a funding support of a whopping 70% of qualifying costs. On the other hand, non-SME applicants can receive a funding support of up to 50% of qualifying costs.

#5: ALTERNATIVE OPTION: VENTURE CAPITALISTS

Venture Capitalists (VCs) are investors who provide capital to support small companies or to aid startup ventures. They strategically invest on businesses that will generate significant profit and experience extensive growth.

Image Credits: pixabay.com

More and more venture capitalist firms (VCF) have entered the shores of Singapore in the recent years. Exhaust your resources to familiarize yourself with the available firms, which are in lined with what your company represents.

a. SEQUOIA CAPITAL (focused on financial, healthcare, energy, mobile and internet startups)

b. 500 STARTUPS (a seed fund and startup accelerator)

c. SPH MEDIA FUND (Singapore Press Holdings’s investment arm)

d. SINGTEL INNOV8 (Singtel’s investment arm focused on digital media, internet apps, and other tech startups)

e. Life.SREDA (focused on fintech companies)

Sources: 1 & 2

Read More...

Helpful Tips For Hiring Employees As A Startup

One of the most stressful tasks that business owners ought to face is the hiring process. In particular, each new hire for a startup causes a significant impact on the work culture. Why is this so? Cultivating a business from scratch entails that the stakes are high. The owner is diving into the market with an innovative business model. Thus, he or she needs to ensure that the recruits are creative, passionate, and committed.

Considering all these factors as well as the limited resources makes the hiring process more complicated. On that note, here are 5 helpful tips to ease the stress of recruitment.

1. FAIR PAYMENT

Whether you are aware of it or not, many startup owners undermine the worth of a position. These owners offer salaries based on the company’s size instead of the market’s competitive rate. As a result, the recruitment efforts seem to be unsuccessful. Who can blame the candidates?

If the going rate for administrative officers or receptionists is S$12 per hour, why would you settle for S$7 per hour? You would receive better response by offering a salary that matches the market or at least a dollar off it.

2. NOWHERE BUT UP

Let’s face it! Millennials crave dynamism in all areas of life – including the workplace. Said generation has shifted away the traditional view of holding a position for 20 years and beyond. Millennials are looking for jobs that will fulfill their present purpose. So, consider luring them in by offering opportunities for advancement.

What can the position offer aside from monetary gains? Is this position a stepping stone for more responsibilities within the company? Highlight the skills and knowledge that they cannot learn elsewhere. Self-enhancement through experience is a priceless and valueable incentive.

3. EMBRACE CHANGE

Another way to attract the Millennial employees is to know where they lurk. Millennials frequent social media pages and popular recruitment sites. Advertise on these platforms to widen your search. For instance, you may set up a public Facebook page for your startup. Regularly post the vacancies on your feed (i.e., at different time-slots). You may also post a job advertisement on JobsCentral or Gumtree. You need the nationwide traffic that these online classifieds receive.

Image Credits: pixabay.com

Image Credits: pixabay.com

Aside from refining your job search, you may assess a potential employee by scanning his or her online profile. A standard background check may provide a supplement to your initial interview. The candidate’s social media profiles can give you a better picture of his or her personality and working experience. The latter can be achieved by examining one’s professional blog or online portfolio.

4. MORE BENEFITS

Given that you are nurturing the crucial years of your company, it may not be a wise idea to exhaust all your efforts and funding to the employees’ wages. It is acceptable if you are not able to shell out the monetary incentives right away. Consider adding the surrounding lifestyle as an incentive. Attract a potential quality employee by selling the non-monetary benefits of working in the startup.

If you are fortunate enough to be located in a place where there are various dining options, sell that too. If your business includes a health facility (e.g., a meditation spot) or is near the town park, sell that too. If there is a possibility to work from home, sell that too. Other enticing workplace features can play a part when the candidate decides to take your offer.

5. PROVIDE FLEXIBILITY

More and more employees in Singapore are opening up to the idea of deviating from the 9-to-5 jobs. Top talents desire to have the choice of accomplish their tasks at the coffee shops or at home (while in their pajamas). I, for one, am one of these people. I am certainly guilty of wearing my slippers and comfortable clothes as I wrote this. With its convenience, flexibility is a strong selling point.

Image Credits: pixabay.com

Image Credits: pixabay.com

As long as your humble team can meet the goals and collaborate well, you may consider putting the flexible schedules on the table. Think about the amount of electricity and water consumption you can save by minimizing the “office” costs. If it is doable, allow remote once in a while.

Sources: 1 & 2

Read More...

Fundamental Financial Tips For Startups

According to Investopedia, a startup is a company that it is in its first stage of operations. The founders of a startup often attempt to make money by developing product or service that they deem to be in demand. Startups are all about finding a market and a business model that works.

And since you are a newbie in the field, here are 5 essential financial tips that you must keep in mind:

1. GET A CLEAR IDEA OF THE TOTAL COSTS

The costs of the business depend on its scale. Say you and your spouse are the founders of an online company in a basic office setting. You would need to pay these expenses (approximately):

  • Office Rent = S$500/month
  • Tables, Chairs, and Office Supplies = S$400
  • Internet Access = S$150/ Month
  • Salary = S$2,500 /Month
  • Company Registration = S$100

As a startup, you must think of ways to minimize your cost by comparing prices and doing in-depth research.

2. VALUE EXPERIENCES

Degree and certificate qualifications seen on your C.V. are important but so does your experience. Experiencing both failure and success in the field determines whether you are suited for the market and whether you are passionate about what you do. Especially in the Silicon Valley or Tech World, experience matters massively. Bringing seasoned managers and talent is not only critical to your success but is also worth every cent.

3. ONLY HIRE PEOPLE WHEN YOU NEED THEM

As a startup, you are testing every aspect of your business including the amount of labor necessary. Do really a marketing team or can you handle the marketing aspect by yourself? Instead of hiring professionals to do the job for you, you can commit several hours in developing skills.

And when you decide to hire help, good sources of quality yet low-cost labor are university or polytechnic interns. If you are willing to supervise and devote your time to training, both of you can benefit from the experience. Think about it! You are giving a worthwhile experience and good recommendation for the intern while the business is receiving low-cost (and sometimes free) services.

You can also consider outsourcing your accounting matters to a cloud accounting firm such as Cloud CFO that provide cloud accounting services in Singapore for your company at a fraction of the cost.

4. MARK YOUR CALENDAR FOR TAXES

You are bound to pay your taxes even as a small startup. Otherwise, you will have to face penalties and additional interest from the Inland Revenue Authority of Singapore (IRAS). Also, you shall organize the allocation of money to pay taxes on time to avoid the extra fee of late payment.

 

Image Credits: pixabay.com (CC0 Public Domain)

Image Credits: pixabay.com (CC0 Public Domain)

5. GET PAID FIRST

One of the dilemmas you will encounter as a first-time founder is getting your clients to pay for the job. Shall you charge a flat rate or shall you give a discount? No matter what you decide to do, do not start working until you get paid first.

As cash flow is the core of startups, you do not want your company to crash just because of the debt of your clients. To avoid chasing your clients, ask them to pay at least two weeks in advance before you commence your work.

Sources: 1,  2, 3,  & 4

 

Read More...