May 20, 2014 | SERVCORP
Singapore is deemed as one of the cleanest (if not the cleanest) country in SEA. It is modern, well developed, efficient and definitely one of the richest countries among its neighboring nations. The country is a veritable melting pot of peoples and their cultures. It has become an economic force in Asia and has attracted numerous multinational companies, educational facilities and institutions, and small and medium companies to set up base in Singapore.
Majority of businesses in Singapore are experiencing unprecedented growth. Consequently, their only option is to expand; but business expansion in Singapore calls for detailed planning, including a plausible business plan, strategy for market entry, market research and capital.
Is Your Business Ready for Expansion?
It is not enough that your business is successful in terms of financial returns. Aside from a feasible business strategy and a strong business foundation, you must have the resources and skills to support your business expansion.
How will you expand your business? Is your business growth dependent on a new outlet, or a new product/service or a new market? You should have the tenacity to weigh the pros and cons of each method in reference to capital, time and market.
Will your business's current financial status be able to afford an expansion? The money we are talking about here is separate from your working or operations capital. It is a fact that it takes time for a business to achieve a satisfactory ROI so your current cash flow must be in good shape to tide you over should your new investment fold. You should also make sure that your business will not be negatively influenced or affected by the expansion.
Ways to Expand Your Business
There are numerous ways to expand your business - from establishing a new company outlet or store to going online. Each method could or could not be effective as no two business plans and strategies are truly foolproof. Here are some feasible means for business growth in Singapore.
Importing/Exporting Your Products or Services: If your business has an excess of goods that you sell locally, you can export them to other countries that need your goods. If you are sourcing for high-quality products not sold in Singapore, or in search of cheaper raw materials or components for your products, then you import from other countries. Before you plunge into importing/exporting, study if these methods are cost-effective and if you have sufficient cash flow to support the expansion (i.e. local taxes, import/export duties, large volume of products, and more). In the case of exporting your products, study the new overseas markets and efficient ways to distribute your products abroad.
Opening an Outlet Abroad: An overseas venture affords your business a great opportunity to target and capture new markets that would most likely increase your customer base for a successful business growth. The size of your business is not a major consideration. In fact, a small scale business is likely to quickly adapt to the new business environment. It is to your advantage to research on the political situation, economic status and other social-cultural issues, including the current technological aspects of your targeted country. It is imperative to research the new market and connect to plausible partners or investors.
Supplying the Government with Your Products or Services: The government of Singapore has budgeted more than S$10 billion for the supply of products and services to its various ministries, agencies and boards. You should consider bidding for a product or service that your business can readily supply. It's also possible for you to form consortiums and bid for particular projects. Projects are divided into three types of purchases: small value (up to S$3,000); quotations (S$3,001 to S$70,000) and tenders (S$70,001 and up).
Franchising Your Business: Franchising your business is a fast track to expanding your business. With this method of business expansion, you sell the franchise rights to other entrepreneurs who are ready to venture into your type of business. These investors set up a new enterprise using the blueprint of your business. They pay for the franchise right and royalties for long-term support and advice. Franchising is a sure way of expanding your business with less capital and manpower involved. You will certainly maximize your income potential through royalties and other related fees.
Some of the most successful franchises in Singapore are in the following industries: retail stores of shoes, convenience stores, hardware and other shops; food and beverage such as restaurants, fast-food, bakeries, milk/bubble tea and coffee shops; private education sector, such as childcare centers and tutorial centers; services such as car repair centers and cleaning services; health and lifestyle such as spas and fitness centers.
Are you considering expanding your business in Singapore? Now is the time as the business climate in Singapore has never been more favorable. There are now more than 6,000 conglomerates in Singapore because of the positive business climate. Do not where and how to start? Servcorp will help you in any matter relating to your business expansion in Singapore.