Business Start Up

6 Important Reasons Why Successful SMEs Take Business Loans

Loans have received a bad reputation over the years and especially in relation to SMEs. However, with all the new industries appearing over the years, more and more entrepreneurs are born. Small business owners are wary of debt financing because of the stories and misconceptions they’ve heard. Falling into the endless debt trap sounds terrifying. Many only think of taking loans when they are experiencing financial difficulties, and even then it remains an uphill task because it means accepting that they’re not doing well. Taking up loans isn’t only for the cash strapped business owners. It is actually for those that aren’t risk-averse or those we are seeking to upgrade their company. Large companies with big brands under their belt also take loans but for the right reasons. Their objective will be to bring the company to the next level.    Good reasons to take a loan for an SME  To better explain the line of thought in some of the successful SMEs, here are some situations that make sense to take a loan for a small business. 1. Expansion Businesses are growing and for growth to happen effectively, it usually requires money. Any excess money in business will most likely go into building its capacity and generally growing it in whichever way that is relevant. It is possible to expand using regular cash-flow, but the speed at which it will happen may not be appealing. Taking a loan gives an instant cash injection into the business thus increasing the speed at which expansion can occur. It will also ensure other monies go towards operational costs thus keeping the business expanding and running. 2. Capitalizing on business opportunities Sometimes offers come up and the business could use that particular item being offered at a reasonable price. A loan comes in handy to acquire such things, especially if it is a capital-intensive item required such as machinery or a vehicle.  3. Inventory A business must have an inventory before it can make any money. Inventory comes in large amounts for it to be economically viable and the situation is worse if

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Top 7 In-Demand Business Trends To Pursue In Singapore 2019

With the right amount of capital, almost everyone can start a business in Singapore. However, to ensure that the business remains sustainable in the long run, you’ll have to ensure that it’s sustainable and viable. How do you do this? It’s all through proper research, planning and execution! Singapore has established itself as a global trade and commerce hub over the past few years. With an economy enabled by technology and a government that is fully supportive of techpreneurs, it is unsurprising that our little island offers the perfect environment for hi-tech companies seeking to establish themselves in the region. As a potential business owner, you’ll definitely want to ensure your business remains relevant in the ever changing market. This is why we have consolidated the top 7 business trends that you might consider if you’re thinking of setting up a business in Singapore. 1. Niche E-commerce With increased accessibility to the internet, e-commerce is no longer a luxury for businesses but a necessity. The e-commerce market in Singapore has grown significantly and is expected to amount up to $5 billion by the end of 2019. Any business that hopes to be successful today needs an online presence. E-commerce enables your business to be available to consumers 24/7. However, in order to be heard by above the clutter of information on the internet, you’ll need to identify a niche and target specific groups and their particular needs. For example, you can focus on popular products such as consumer electronics. Going into e-commerce however, doesn’t guarantee you success. You’ll have to invest heavily in digital marketing and establish your brand as an authority to earn the trust of consumers. 2. Digitization and Artificial Intelligence (AI) Contrary to popular belief, this isn’t just for IT companies. Digitization and AI are not only growing business trends in Singapore, but throughout the world. Companies in every industry ranging from multi-national to small business are moving to digitization and AI. Digitization enables companies to access markets that they previously would have only dreamed of. They are able to do so at a faster speed than if

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A Comprehensive Guide For Starting A Business In Singapore – For Singaporeans And Foreigners

Singapore is an economic powerhouse not only in Asia but also across the globe. It’s also one of the safest countries to start and run a business both for residents and foreigners. Most people think it’s challenging to start a business in Singapore. The truth is, with the right amount of business funding and effort, it’s easy especially with professional guidance. Before looking at how to start a business in Singapore, there are reasons why Singapore is an attractive investment spot. Low rate of corporate tax, which is currently at 17 percent No withholding tax on non-resident shareholders’ dividends Tax exemption on a company’s foreign sourced income Ranked third as the world’s most competitive economy Ranked seventh among the most innovative nations in the world Ranked the second-best country in terms of the ease of doing business Ranks top in Asia and fourth in the world for intellectual property protection Has more than 80 Double Tax Avoidance agreements Requirements for incorporating a business in Singapore Before incorporating a company in this great nation, one should: Be at least 18 years Have the right working pass like the EntrePass or Employment Pass for foreigners. However, this is not necessary if one has no plans to relocate to Singapore to run the business. In that case, a local nominee can register it. How to start a business in Singapore 1. Choose a business structure One can select from an array of legal entity forms such as partnership, sole proprietorship, branch office, subsidiary, representative office and more. Entrepreneurs should not choose a business structure randomly as this choice will affect the business in different ways such as the ability to get loans and grow the business, credulity in the eyes of customers, attitudes of banks and much more. For example, when venturing into business with a friend, choose a partnership. On the other hand, if the small business has few risks and less likely to cause legal trouble with anyone, then sole proprietorship would do. These two structures aren’t subject to corporate taxes. A private limited company is the most preferred form of

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7 Steps to Starting Your Own Business in Singapore – One Of The Most Ideal Business Hubs In Asia

Got a great business idea? Thinking of starting your own business? Starting a business takes more than just having a great idea. Oftentimes, you might get discouraged and even throw in the towel when you encounter various roadblocks required to get your business up and running. One of the best things about starting a business in Singapore is that the government has done a lot to support entrepreneurs. Singapore has quickly become one of the most ideal places to start a business in Asia. This doesn’t mean that entrepreneurs setting up base in Singapore don’t have to go through the many administrative tasks of setting up a business. These are unavoidable. However, understanding what needs to be done and how it can be done ensures that as an entrepreneur, you can hit the ground running. If you’re thinking of starting your own business in Singapore but are at a crossroads, this article might just be able to help! From Idea To Reality Taking an idea and turning it into a reality isn’t as easy as many people would like to believe. A lot of work goes from taking an idea from paper to business. The following are steps that an entrepreneur with a great idea should consider when starting their own business in Singapore. 1. Have A Plan Before anything can get started, it is important for you, as the entrepreneur to give your idea some structure. You should sit down and turn the idea over in your mind. Having a pen and paper handy is advisable. This first step is crucial for turning an idea into a business plan. The idea stops being just a thought and becomes an actual business concept that can be implemented. This may require some research into the niche market that you are seeking to establish your business. Some questions you should ask yourselves at this point include: What product or service do you wish to provide? Is this service or product in demand? Are there opportunities for this product or service? Researching the industry will help in fine tuning the idea. If you

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