Are you ready to start a new business?
In this Covid-19 global pandemic, the economy was being impacted greatly due to national lockdown and various restrictions to prevent the spread of the virus. As a result, many employees are made redundant as companies are cutting losses to stay afloat. Despite that, people are taking this opportunity to start a new business.
From the ACRA records, there is an increase in company incorporation as well as registration of businesses from May 2020 to September 2020. It is no surprise why people are taking the risk to start their own business in this economic uncertainty. Firstly, there are not many job openings due to the company are undergoing restructuring. Secondly, those who got their redundancy compensation will have enough capital to start a small business that they have always wanted to. On the other hand, the Singapore government is giving grants to eligible companies to hire local employees and adopting digital solutions.
Now the question is do you have what it takes to be your own boss?
What are the challenges to start a new business?
Before you start to imagine all the nicest things about having a successful business, let us face the reality for a second. Do you know that most business owner tends to spend more time on work even during the weekends? It is a natural thing to do because you will want to give it your best to grow the company.
Besides that, you will have to wear many hats in your company, such as submerge yourself in administrative, finance, sales, and marketing. In the worst-case scenario, you may not even get a regular income to live a quality lifestyle. So, before you quit your 9 to 5 job, do consider all these factors, as running a business involved risks and requires commitment.
However, if you are mentally prepared to take up all these challenges, then you are all set to move towards your goal.
What is your business plan?
I have seen people who have an amazing idea but still fail in their business. The reason is that they do not have a business plan. What I meant is, before you start any business, you need to have a plan such as;
- Setting realistic and achievable targets.
- Set aside a reasonable capital to sustain the business for at least 1 to 2 years depending on the nature of business.
- Know who are your target audience, competitors, and even strategic partners.
- Analysis of your profit margin. Set the selling price that gives you the optimum returns.
- Know what are the platforms that you can market your product or services.
I would recommend you to think comprehensively as it will shine a light on things that may be an issue along the way. And there is a saying, if you fail to plan, you plan to fail.
What is your unique selling point?
You may have a great product or service to offer, but do you know what are the differentiating factors compare to your competitors. If not, then you may be in a game of price war. A company that does not have a unique selling point (USP) tends to compete on prices. Often, this journey is exhausting and meaningless.
Therefore, you must find out what are the USP and value-added services you can offer to your customers. Only then your business will be sustainable in the long term.
Characteristics of an Entrepreneur.
Honestly, not anyone is cut out to be an entrepreneur. If you look at some successful entrepreneur, most of them possess the same traits such as;
- Resilience
- Confidence
- Perseverance
- Risk-taking
- Innovative
- Self-starter
- Passionate
- Conviction
If you have at least 4 characteristics from the above, I think you will do well in any venture.
Conclusion
Certainly, having your own business can give you various perks like flexibility, uncapped earnings, recognition, and experiences. Be it good or bad, you will definitely gain something out of it. Even though you may face many challenges along the way, it is by having the grit and perseverance to push you towards your goal.
Additionally, it is always good to have a business mentor to guide you along. However, if you do not have one, you can always drop us an enquiry and we are happy to advise you on how to start a new business and the ongoing compliance obligations.
