Company Incorporation Singapore: 3 Common Pitfalls Every Entrepreneur Should Avoid

For last few decades, Singapore continues to woo thousands of aspiring individuals annually to start their own business. While some entrepreneurs see success exponentially, some encounter failures. As much as 70% of entrepreneurial start-up ventures fails within their first five years of company incorporation Singapore. It has been noticed that many businesses failed due to some common pitfalls. However, understanding those pitfalls can help you prevent them.

New or start-up businesses are vulnerable because of limited funds and resources. The entrepreneurs must take measures to overcome these issues and avoid any disaster. Singapore has known for having a plenty of fund assistance from both government and private venture capitalists. Plus, there is no dearth of qualified resources, who can bolster your efficiency. Most small businesses collapse within first few years of operation due to lack of diligence and planning. This guide will outline the common pitfalls every entrepreneur must avoid for seeing success in Singapore company incorporation.

Insufficient Fund or Capital

Not having enough capital in hand is the common problem most start-up entrepreneurs faced with. It happens due to lack of proper planning ahead of incorporating a company in Singapore. It is apparent that you need a good share of money to run a business. New business usually faces trouble in finding fund assistance. It is because they either could not build the credibility of their business or are not well aware of the availability of funding assistance. They ended up pooling their personal capital to meet the financial commitment of their business. It can be avoided if the entrepreneur gets accustomed to the business environment of the country he is starting a business in.

Inappropriate Growth Rate

Businesses having tendency to grow too slowly or rapidly are vulnerable to failure. They must follow some parameters to decide the growth rate of the businesses. While growing too slowly will keep you at the risk of running out of capital needed to maintain operational activities before the business generates profits, fast growing rate will bring a set of challenges- demand becomes too high, resources overloaded with work, quality of service diminished, customers receive inconsistent experience. A well-managed growth strategy is needed to keep the service delivery in a consistent manner.

Not Understanding the Competition

One mistake every small business owner tend to make is underestimating the competition, particularly when responding to the competitor's product or service. They must realize the fact that understanding the competition is the key to success. It helps you gain a market share to retain and grow your business in the long term. On top of it, you can evaluate the potential obstacles and find the ways to prevent them.

You are also advised not to treat your competition as static. Keep tabs on the strategies and tactics of your competitors. It will help you create unique ideas and planning, which eventually help you stand out of the competition. Do not let your competitors leave you behind.

Now that you know the most common pitfalls start-up businesses in Singapore are facing. The new entrepreneurs must stay informed, not only to have the edge over the competition but also to keep the business afloat. Keeping the points mentioned above in mind, you will be able to start company incorporation Singapore with the least problems.

About SBS Consulting:

SBS Consulting is one of the leading corporate services providers in Singapore. It specializes in business services like company incorporation, accounting services Singapore, bookkeeping, company secretarial services, preparation of director’s report, GST, payroll and XBRL Filing.