Starting a company in Singapore comes with its own set of challenges. It is essential to address these common obstacles to ensure the success and longevity of a business. In this article, we will explore some of the most common challenges entrepreneurs face in Singapore, so you can prepare yourself to overcome them.
Five Common Challenges
In entrepreneurship, challenges when starting a company are an expected part of the journey. For those starting a company in Singapore, some challenges are unique to the country’s business landscape. By understanding these challenges and developing strategies to overcome them, entrepreneurs in Singapore can increase their chances of success and build a thriving business in this dynamic market.
Financing
Starting a company in Singapore requires significant capital, and securing that can be challenging at first. Entrepreneurs may face limited financing options, strict requirements, and high capital costs when seeking financing for their new businesses. Banks may require a high minimum annual revenue, while venture capital firms may only invest in established companies.
Entrepreneurs can use several strategies to overcome financing challenges when starting a company in Singapore, such as:
- Planning and establishing a solid business plan.
- Exploring alternative financing options like crowdfunding and government grants.
- Building relationships with potential lenders and investors.
- Working with a financial advisor.
Planning to start a business in Singapore? Learn key considerations for a successful company setup in our article Preparing for a Successful Company Launch: What to Know Before You Start.
Laws and Regulations
Singapore’s well-developed legal and regulatory environment is known for its transparency, efficiency, and effectiveness. The country’s legal system is known for being business-friendly, with solid protection for intellectual property rights. However, some entrepreneurs in Singapore still need help in complying with the country’s legal and regulatory requirements. It includes understanding complex and ever-changing regulations, obtaining licences and permits, and meeting compliance deadlines.
Here are some methods that may help you overcome this hurdle:
- Seek professional advice and guidance.
- Keep yourself informed and updated about the latest regulatory developments.
- Establish effective record-keeping systems to easily comply with the deadlines for submitting relevant reports and documents.
- Prioritise compliance and make it a part of your company’s core activities.
Need help in the registration process? Check out the guide we made on how to set up a company in Singapore.
Marketing
One of the most common challenges when starting a company is how they are able to market themselves early to get their name out there to potential clients. This challenge is all the more present here in Singapore, as the market here is highly competitive. A well-executed marketing strategy can help entrepreneurs to build brand awareness, attract new customers, and increase sales. Yet, entrepreneurs in Singapore need help marketing their businesses, including limited budgets, identifying the target audience, and measuring the effectiveness of marketing campaigns.
There are several methods that businesses, including small businesses, can use to promote marketing in the competitive Singaporean market. Here are some:
- Develop a strong brand identity.
- Utilise social media platforms.
- Offer value-added services.
- Invest in content marketing.
For other methods, please read our guide on marketing techniques to increase your business’ revenue.
Competition
As mentioned, Singapore is a highly competitive market. Many different industry players have established themselves and have a strong following. Competing against well-established players in your industry can be daunting as an entrepreneur. Nevertheless, it’s essential to remember that competition is healthy and can drive innovation and growth.
Here are some approaches you can use to handle this challenge:
- Figure out what product or service you have that will make you stand out.
- Use online marketing effectively.
- Set prices that are competitive with other businesses.
- Focus on customer experience.
Staffing
One of the biggest challenges when starting a company in Singapore is the tight local labour market. There is a high demand for skilled workers, and many companies compete for the same talent. With a highly competitive job market, finding the right candidates for the job and keeping them on board can be difficult.
Here are some tactics you can use to handle this problem:
- Strive to create a positive work environment.
- Provide competitive compensation packages.
- Use online recruitment strategies to attract a wide range of talents.
- Consider outsourcing some of your business activities to payroll service providers, accounting outsourcing companies, tax professionals, etc.
Check out our article on hiring the right staff in Singapore. Furthermore, companies must pivot their recruitment efforts and consider outsourcing as an alternative. To learn more on this visit our article on outsourcing.
Launch with Lanturn
Starting a company in Singapore can be intimidating because of the many different requirements you would need to prepare — but with the Launch with Lanturn Programme, you can get your company up and running in no time!
With a proven track record of successfully helping over 400 companies in Singapore, our incorporation experts are here to help smoothen the incorporation process, so you can focus on running your business.
By availing of the programme, you can enjoy the following benefits:
- Professionals to handle your preparation and maintenance of company registers
- Affordable incorporation with minimal hassle
- A premium registered business address for a year
- Expert corporate secretary services for a year
Don’t know how to tackle the challenges of starting a company in Singapore? Let Lanturn handle the task while you concentrate on other important details.
