5 Questions to Ask Yourself Before Setting Up a Business in Singapore

Well-recognised in the international community for its exemplary business-friendliness, Singapore provides a highly hospitable environment for local and international enterprises of any size. Its stable political climate, robust economy, world-class infrastructure, and efficient regulatory systems all come together to attract entrepreneurs from across the globe.

Whether you’re a new founder just learning how to set up a company in Singapore or a seasoned exec, you’re likely wondering how to make the most of the opportunities this premier business destination offers. To build a fuller understanding of how your enterprise can thrive in your chosen environment, it may help to ask yourself the following key questions:

What Business Structure Will You Use?

The Accounting and Corporate Regulatory Authority (ACRA) licenses and regulates all business entities in Singapore. To establish a business in the country, owners must first determine what business structure best suits their particular needs and company goals. The four main types of business structure to choose from are the following:

● Company

● Limited Partnership (LP)

● Limited Liability Partnership (LLP)

● Sole Proprietorship (single owner) or Partnership (two owners)

Key considerations when choosing a business structure include how much capital founders intend to invest, how many owners will be involved, what risks they are prepared to take, and other factors.

pic: pexels.com

How Will Your Business Generate Revenue?

Any commercial enterprise necessarily aims to generate profits, and it’s impossible to do this with an attractive business concept alone. As part of your preparations, you need to think about how, when, and where your business will bring in revenue.

To start, you’ll have to determine a pricing model for the products and services your business intends to offer. Afterwards, you can then begin defining other aspects of your revenue plan. Does it make sense for your business to sell ad space on its company website? Will it benefit you to charge a subscription fee for use of your company’s site, mobile app, or other resources? Putting thought into revenue generation early on will give you a clear picture of your company’s potential profitability.

pic: pexels.com

Who Are Your Potential Customers?

No product or service is so universally valuable, useful, or attractive that any person could logically be a potential buyer. Realistically, one of the first things an entrepreneur must do before setting up shop is to identify their target market. This target market encapsulates a specific, defined group of people who are most likely to buy the company’s offered products and services. 

Catering effectively to your potential customers also involves identifying effective platforms of distribution for your company’s offerings. Singapore’s highly tech-savvy young adult population, for example, will probably be happy to buy from you via an online platform such as a website or mobile app. An older customer base, meanwhile, may be mistrustful of or confused by technology and prefer a brick-and-mortar store. If you’re able to devise ways for your products to reach the people they’re meant for quickly and reliably, you’ll be well on your way toward establishing a profitable business.

Who Can Help You?

Not even the most hardworking and business-savvy entrepreneur can get their company off the ground completely on their own. You’ll need skilled and hardworking people to fill a variety of roles within your company and help you realise your vision. This means you should be ready to allot time and resources to extensive networking and scouting out potential talent for sales, marketing, administrative and other positions. If you want a website for your business, for instance, you’ll need someone to code it, and you may also want to hire a graphic designer to make it appear pleasing and accessible to visitors. 

It’s also beneficial for business owners to seek out and connect with productive professional partners in the city and even abroad. These might be other companies in your industry, government organisations, media outlets or other entities. Business partners can help each other further their goals and interests by exploring collaborative initiatives and promoting each other’s work.

What Are Your Long-Term Goals?

As you prepare to set up your business, it’s important to think about your long-term goals. Will you be content to draw just enough profits to maintain a steady cash flow? Are you seeking to cater to a small, local community that’s well-known to you, or would you like to expand outward? Do you dream of franchising your business and eventually growing it into a large-scale enterprise? 

However small or big you’d like your company to be during its lifetime, it’s imperative for you to define and work toward clear objectives. Clarifying your vision for your business will in turn push you to think about what you need to make that vision a reality. 

Any founder wants to ensure that the organization they build will flourish, grow, and outperform its many competitors over time. The above questions aim to encourage you to reflect at length on your vision for your enterprise, your target client base, and the business environment you’re about to enter into. Once you have a clear picture of what success in Singapore looks like to you, you can begin to work toward it intelligently and steadily.

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