Singapore is one of the most friendly countries to start a business. This attracts the world’s top businesses and talent as well. But, Singapore is an expensive country and has strict rules and regulation. There are a few things you need to consider before you march on to start a business in Singapore. All the best for your new venture!
1. Before building a team, build a basic product
Hiring is probably the first thing on your mind when you are looking to start a business. But hiring in Singapore is expensive. To build a team of a developer, designer, copywriter and a manager will at least set you back $15,000 a month. If you have that kind of money to spend, you can. If you don’t, don’t worry, there are other options.
To build a minimum viable product that can go to market, you don’t need a team. You can hire an agency who can build the tool for you. These agencies have a strong team with solid execution skills and in a few months, they can have a fully functioning product ready for you. This also works out to be cheaper initially.
To build a website or an app, you just need to reach out to a web design agency in Singapore and a good one among them is Notch Studio.
2. Understand the cost of rental
Rental is a big overhead. If you enter into a lease agreement in a commercial space, it can turn out to be very expensive. Initially getting shared office spaces will be a reasonable option. You have shared office spaces all across Singapore and especially in the central parts.
Shared office spaces come with furniture, internet, coffee machine, meeting rooms, common receptionist, admin, mailing system etc. For a business that is starting out and doesn’t want to spend on capital expenditure, this is a good choice.
3. Understanding Labour Laws in Singapore
A business will have employees at some point in time. Labour laws are pretty stringent in Singapore. Before you go about hiring an employee you should know how much time they are allowed to work in a week and extra time should be compensated accordingly. The best way is to set up a template for employee contracts. You can hire a lawyer to help you draft a contract.
An employee contract should contain the following information:
- Job Title
- Duration of the contract
- Date of commencement of employment
- Hours of work
- Employee benefits
- Probation clause
- Code of conduct
- Termination details
Information overload? Yeah it’s understandably difficult to remember all of these data along with all the vital stuff you need to remember. It would be best to look for a contract management software for a small business to help you out with all of your contracts.
4. Financing your business
This is a very important aspect of the business that can affect your enterprise in the long term. How are you going to fund the business? There are a wide array of options to choose from in Singapore.
- Borrow from friends and family
- Equity crowdfunding
- Bank Loans
- Venture capitalist / Seed funder
- Loans from Individuals
These are a few things that you need to consider before starting a business in Singapore. It’s a good time to be an entrepreneur in this world, go chase your dreams and good luck!
Additional resources for business experts:
- For helpful advice visit legal experts at JJS Justice.
- Why be a business major.
- How to pursue a business path.