7 Mistakes that can Spell Failure for Your New Company in Singapore
Entrepreneurs are born, not made. This age-old adage is self-explanatory, because not everyone can become an entrepreneur. Only those who can toil endlessly with patience and persistence can handle the spirit of entrepreneurship. To start a company in Singapore, it takes an entrepreneur to understand the dilemma behind trying to increase efficiency, while trying to reduce the cost, both, at the same time.
Only he can feel the perplex of wearing too many hats and carrying out varied roles, just to keep things moving. However, to make things easy, there are some rules, which every entrepreneur should abide by to incorporate. These rules make the journey a little less painful, and even help to take the business off the ground easily.
On the other hand, if an entrepreneur, who is interested for business formation in Singapore, avoids the basics and tries to go the other way, he may be in for some serious trouble. His mistakes or ignorance, may spell doom for his business. Let us quickly leaf through a few mistakes that every new entrepreneur should avoid like plague.
- Having a Vague Business Plan – A shallow business plan tops the list of mistakes. Jumping into a business venture without a proper plan in place is delusional. It is very important to avoid this pitfall. Be prepared with a crisp business plan. Forecast your expenditures, as well as other investments such as your time. I would say it would be even better, if you chalk out a proper strike off process. Always be prepared for the worse, and then give it your best.
- Borrowing Loan from Family & Friends – Taking financial help from family and friends would end up in a catastrophe, if you were to run into failure. If you have a good business plan and a strong idea that has the potential to work, then better take loans from institutes’ setup for such purposes. Why strain relationships with your loved ones, over money matters.
- Not Networking Adequately – Unless you do not reach your target audience, and tell them you exist, how they will come to know about your presence. Leverage the power of social media, visit conferences, seminars, events, conclaves, and group meetings. Give your business card to the relevant people. Broaden your social circle. Develop friendships. Put the word out in the market about your USP.
- Targeting a Niche Market – If you concentrate your efforts on a very small target audience, there is a possibility that your company may not take off the ground. In addition, what are the chances that you will be able to reach out successfully to each of your limited audience? Therefore, if you are not marketing well, and top of it your target audience is limited, then you are in a hex.
- Hiring ‘not–so-good’ Employees – Always hire good caliber, even if it takes a little time. These first few employees will be foundation of your organization, so take your time to choose the best one. Do not rush through the hiring process, just because you need immediate help. These foundational people can make or break the future of your company.
- Expecting Immediate Profits – It is said that an entrepreneur should not expect profits for at least 2 years from the time of incorporation. In this growing and learning phase, the entrepreneur should have enough financial backup to support his daily needs, as well as liquidity for spending on the business. Once you accept this fact, it becomes easy for you stay afloat, and avoid getting demoralized.
- Multi-tasking All by Oneself – An entrepreneur will require assistance in many fields like those related to taxes, legal and compliance, bookkeeping and accounting and so on. If an entrepreneur tries to handle something in which he is an amateur, then he may commit mistakes that are difficult to rectify. Therefore, it is always wise to take assistance from the most reliable expertise in the area.