Starting a Small Business in Singapore: All you need to know

You would definitely want to run your business in Singapore because of the growing opportunities. Along with this, the idea of starting a small business in Singapore is also intriguing. Such a process can be easily carried out. However, in order for starting a small business in Singapore, it is necessary for you to be diligent and research the market thoroughly.

Along with this, a business feasibility plan has to be made for you to achieve your required outcomes. There are high chances of risk present in Singapore, even though it is quite straightforward to start a business. However, having this feasibility structure would help you achieve your goals.

Requirements for Starting a Small Business in Singapore

There are several requirements that you have to bear in mind in order for starting a small business in Singapore. The requirements for starting this business have been outlined and explained below:

1. Viability and Feasibility of Idea

In your feasibility study, this would be your first step to understanding whether your idea is feasible. This is carried out to understand if your idea can secure enough customers to generate revenue. Implementation is the key to carrying out the business. The business is ought to fail if there is no effective implementation carried out. There are specific factors to consider under business viability which are:

• Features which you offer in the product
• Customer Satisfaction
• Market Information
• Competition and Prevailing economic conditions

2. Model for your Small Business

You are starting a small business in Singapore. You should always start small and aim at achieving the desired outcomes. However, along with this, you must have a precise and fixed model to consider for your business. Whether you will target your products to customers or business (B2C or B2B) would be the key indicating factor of your success. There are several business models which you can consider:

• Website e-commerce- By building a website, you can increase consumer traffic thus increasing the number of sales of your products. There are many customized website companies. This would include Wix.com. You can either go ahead with the e-commerce website or choose another e-commerce company in Singapore to sell your products.
  
  
• Advertising- Advertising does not stop itself from conventional methods. There are other methods of advertising your business. You must exploit the internet in making your business successful. Having a YouTube channel to market your products can be a good start.
  
  
• Subscription Services- You can start by providing free services for your products for some time, then change the model of subscription. This is carried out by several companies such as Amazon.
  
  
• Razorblade Model- You can choose this model when offering products to consumers. For example, Microsoft Xbox offers games and allied accessories with every purchase of the gaming console. This is known as the razorblade model of business.
  
  
• Digital Marketing- As mentioned earlier, you have to make use of the internet to market your business. This is a crucial factor in making your business successful.

3. Plan for Business

Before going ahead with your business, you have to develop a concise business plan. This is one of the key elements of starting a small business in Singapore. When drafting this plan, research the market and understand how your product would fit. Remember, you are starting a small business in Singapore, so you will have many competitors. Keep several factors in mind while making the business plan. A business plan would have the following:

• Executive Summary
• Products
• Brand Name
• Operations
• Marketing Plan
• Funding
• Financial Plan
• Target Customers

4. Choose a Name

Next, you would think of a catchy business name that differentiates your business from your competitors. When registering the name of your business, there are a few requirements to be carried out.

• The name of the business must be reserved with the Accounting and Corporate Regulatory Authority of Singapore (ACRA)
  
  
• The name of your business must not be similar to any other business
  
  
• The name of your business must not infringe any provisions of intellectual property law in force in Singapore
  
  
• The name of your business would be reserved for a specific period.

The above would sum up the legal and statutory requirements of your business name. There are other specific considerations for your name:

• The name of your business must be catchy. Customers should easily identify the products offered by your business.
  
  
• The name of your business must be easy to pronounce. Consumers must not be confused with other business names.
  
  
• Choose a good domain name for your business. This can be carried out through GoDaddy.
  
  
• Choose a name that is acceptable and ready to grow.

5. Developing Value of Brand

By starting a small business in Singapore, you not only offer products in the market but also get recognized by different consumers. Business is not just about making profits. Customers always look for a brand that supports a social or core cause. For example, consider the topic ‘Sustainable Development. Many companies and start-ups launch products around this area as it attracts consumers. For example consider the Singapore Food and Beverage Company, Super Loco. They carry out sustainable practices in the food and beverage business by using locally reared barramundi when they prepare seafood cuisine. Like this, there are other companies that carry out sustainable practices that attract customers.

6. Costs

When talking about business, the cost is an important factor that determines the value of the business. You need to have knowledge of the associated costs with respect to the business. There are different forms of costs which include fixed costs and working capital costs. When you register your business with the ACRA, you would be paying them a registration fee. These would be the fixed capital costs for your business. The day-to-day costs of your business would be the working capital. It is crucial for you to keep in mind all the costs of your business.

7. Business Structure

Next, you have to consider the types of business structure which is ideal for starting your small business in Singapore. There are different types of business structures offered in Singapore which would include:

• Sole Trader
• Limited Liability Partnership
• Partnership
• Company

As you may be setting up a small business in Singapore on your own, you can choose the sole trade type of business structure. You are your own boss, under this form of business. However, all the business debts would be under you. If you have another individual, then you can opt for the partnership type of business model.

8. Registering your Business

One of the most crucial steps for starting a small business in Singapore is to register your business. You have to register your business with the ACRA. If you are carrying out your business through your home then you would have to eventually have a registered place of business. Along with this, there are other compliances which you have to keep in mind.

Typical Small Business which can be started in Singapore

The effects of Covid-19 have affected many individuals. Some businesses in retail and transportation have been impacted severely. During this time, consumers are turning toward mobile-based apps which make their life easier. They are depending on online services to carry out their daily routines. 

Considering the above, you can think about starting a small business in Singapore. You can go ahead by starting a small business in Singapore from the following:

E-commerce- This is one of the areas which is less affected when compared to other sectors. Starting a small business in Singapore such as an e-commerce operator is straightforward. It does not require much technical knowledge. Only you have to understand the market and carry out feasibility. You can also use other e-commerce companies in Singapore to sell your products.

Editing- We are confined to the four walls during the pandemic. You can use this opportunity to carry out freelance blog work or writing services. Such services would include copyrighting services. You can even carry out the editorial work of a magazine. 

Delivering Industry- Another sector that is linked to the e-commerce business.  To start this, the business would require manpower along with capital for securing vehicles.

Conclusion

Starting a small business in Singapore is quite straightforward. In order to succeed you require to have a feasibility plan and study for which small business to incorporate. By having this, you would have a specific idea of where you are headed. At ScaleX, we thrive to ensure that the requirements of your small business are fulfilled.

If you are interested in obtaining more information on starting a small business in Singapore, then you can contact us for a free consultation.