“Economic stability, government support, established networks and know-how across other Asian markets, an abundance of seed capital and a robust infrastructure for entrepreneurs are big pull factors for new business in Singapore.”
Get your Start-Up Started in Singapore
Singapore is alive with capital for the burgeoning start-up scene. The combination of physical location within SE Asia, access to a fast growing consumer class and a pro-development government is attracting investors to Singapore keen to start up and grow into neighbouring Asian countries.
SE Asia is seen as an undeveloped market in comparison to China and India. The growing consumer base centred around Indonesia, Malaysia, Thailand and the Philippines offers easy access for Singapore based enterprises.
Whilst Singapore is sometimes considered out of touch with it’s neighbours and more aligned to the West, it is these same considerations that make the city/state attractive for new business development, from both outside and within. These and the fact that countries like Indonesia and the Philippines, whilst huge markets, are more domestically focused.
Economic stability, government support, established networks and know-how across other Asian markets, an abundance of seed capital and a robust infrastructure for entrepreneurs are big pull factors for new business in Singapore. According to the World Bank, Singapore rates number 1 for the ease of doing business.
To succeed in this fertile market new start-ups should also be aware of some of the pitfalls. Stefan Focus, Co-Founder and Managing Director of Stepping Stone, who has been helping entrepreneurs start up their businesses for years in Singapore says,
“Some start ups pass equity/shares out like they come from a tap that will never be turned off. Often this is quid pro quo exchange for helps/services. One should think of this as closely as they would if the consideration was cash. More shareholders, equals more complexity, more people and more expectations to manage.”
Another common mistake made by start-ups is not having an exit strategy. Coming up with the idea, testing it and then going for it is all well and good but beginning with no end game is not. Having an exit strategy allows you to demonstrate to investors that they’re investing in a business model, not just an entrepreneur. It also keeps a clear primary goal for you and your team to have at the forefront of your minds and thereby assist in keeping distractions to a minimum.
The flip side of having a clear exit strategy can also blind you to changes in the market or potential opportunities that arise in the course of starting up. So whilst you as an entrepreneur maintain a firm focus on your end game, it pays to keep an eye out for spin offs and likely synergies that might influence your exit strategy or steer you in a new direction.
Perhaps the greatest pitfall is the burn out. Determined entrepreneurs are famous for burning out. Regularly. Some see it as the obligatory right of passage for all entrepreneurs. There are only so many hours in the day. You can not control everything. Managing your time and your resources effectively is a great learning experience. Beware the vortex of over focusing your energies and passions into unbalanced territory.
By avoiding the hype of Singapore’s start up scene and keeping a balanced eye on your own business and its goals these pitfalls can be kept to a minimum. Having good counsel, a mentor and the ability to seek advice from the right people at the right time will also make the difference.
Every new business faces challenges, starting up in Singapore is no different. However, with the above factors at play this year, there’s never been a better time to get a great idea off the ground.
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