Top Mistakes You Must Avoid When Incorporating a Company in Singapore
Doing business in Singapore is relatively easy compared to other destinations around the globe. The low tax regime, world-class infrastructure, highly educated manpower, and several government incentives to support and create a favorable business environment are some of the things that make the city-state more preferable than most countries. However, the mere ease of doing business is not a guarantee that every business established in Singapore is going to be successful. Though many parts need to fit together to have a successful business in Singapore, there are certain mistakes which will undoubtedly hamper your success. Here is a brief look at some of the mistakes you must watch out for if you want to be successful when incorporating a company in Singapore-:
Failure to research properly
That businesses are thriving in Singapore doesn’t mean that any business will do, and you should start a business just for the sake of having one. Most businesses would fail to take off the ground in Singapore if proper research was not done to determine if there is a real demand for the business. This is a step that can never be ignored if you want to have a successful business anywhere in the world. Yes, Singapore is ripe for lots of businesses, but you have to take your time and find a unique strategy that will make you appeal to your target audience immediately. Without a product or a service that solves the need of the people, you might as well forget about having a successful business in Singapore.
Choosing poor location
Location is everything when it comes to incorporating a company in Singapore. You want to establish your business in a place where you will not just find the right customers or clients, but also you won’t face a lot of competition. Remember, customers are very loyal and if you want to introduce a service or a product in a place or region where there are already providers, you will find it an uphill task to get new customers, unless you have very unique selling proposition to convince the masses to avoid their regular provider and come to you.
Regarding location, you still should not target prime regions in Singapore when you haven’t developed the financial muscles to meet your rent obligations in such places. The rent in Singapore may be relatively high in some places, and many businesses have closed shop in the past simply because they were unable to keep up with huge rents.
Poor financial management
The other mistake you have to avoid when incorporating a company in Singapore is poor financial management. There are very many faces of poor management of funds, and it is something you should be vigilant about right from the word go. To begin with, starting any kind of business will require some money. As an investor, it is imperative to work out your numbers right and know that you have the funds you need to get the business running. If you are not sure about how to go about this, don’t hesitate to hire a professional to help you out. Never start a business if you are not prepared financially because you will end up losing the little funds you have.
Not involving a lawyer
Incorporating a company in Singapore involves a lot of details and irrespective of the business field you will be venturing in, there will always be regulations you have to comply with. As a foreigner, you may not be aware of all the requirements, and even if you were to take your time to find more about them, you may spend a lot of time that may end up eating into your incorporations schedule. Besides, you will still be prone to making mistakes and omissions which may be very costly for your business in the future. In as much as you can do all the processes in your own, it is highly advisable that you work with a lawyer throughout the stages so that you get it right the first time. This may come at a cost, but it will save you a lot of time, money and stress in the long run.
Scaling too fast
When the customers start coming after incorporating a business in Singapore, there will always be the excitement to scale the business to greater heights. This is a reasonable way to think, especially if the product or service you were offering has stroked the right codes with the customers. However, there are dangers in scaling too fast, and if you don’t do it right, it could be the beginning of the end of your business. The best way to go big is not to do so at once but do it iteratively so that you can consolidate your customer base and grow gradually, but steadily.