If you’re thinking of starting your own business, it’s important to familiarize yourself with the basics of business ownership. Here are some things you need to know before starting your own business- from the legal requirements to bookkeeping basics. If you’re not sure where to start, make sure you consult with a lawyer or an accountant.
What are the legal requirements for starting a business in Singapore?
The first thing you need to do before starting a business in Singapore is to check if your proposed name is available. The Companies Registry keeps a list of company names and the names of all the other entities registered under the Accounting and Corporate Regulatory Authority Act (ACRA) on its website. You can search for names by checking whether it’s taken and reserving the name if it’s not. Registering your business is free if you’re starting a sole-proprietorship or partnership.
You can then submit the necessary forms and documents (for example, employment identification number application form, particulars of partners for a partnership firm) to ACRA.
How do I set up my bookkeeping system to make it easier to manage finances?
It’s a good idea to open a separate bank account for your business if you don’t already have one. Your bookkeeping system should also include regular inventory checks. This is to make sure that you hold accurate records of your stock levels at all times, so your accountant can prepare your financial statements easily and help you make better business decisions. If you’re using any accounting software, make sure you keep updated with the latest features and functions.
Tips for managing your time as an entrepreneur
Time is a valuable resource for any entrepreneur, and it’s important to figure out where your time goes daily. You can start by creating a “time log”, which documents how you spend your time throughout a day. Once you have an accurate picture of how you’re spending your time, you can find opportunities to improve your efficiency by working on your most important activities at the right times.
Creating a time log is a great way to better understand how you’re spending your time. It can help you identify areas where you need to make changes to focus on your most important activities. It can also help you figure out how much time you need to allocate to different tasks so that you can work more effectively.
It’s also important to prioritize your tasks and work on the most important ones first. This will help you make the most of your time and achieve your goals more efficiently. You can start by creating a task list and ranking the tasks according to their priority. You can also use time management tools like time logs and task timers to help you stay focused on the task at hand.
The importance of prioritizing tasks can’t be overemphasized for entrepreneurs. Instead of working on multiple tasks at once, it’s better to focus on the most important ones first. This will help you make the most of your time and achieve your goals more efficiently. You can start by creating a task list and ranking the tasks according to their priority. You can also use tools like time management logs and task timers to help you stay focused on the task at hand.
Ways entrepreneurs can save money on start-up costs
It’s important to think about different ways to reduce your start-up costs when starting a business. Here are some things you can do:
1. Use your own resources
Use your savings or capital from other investments to meet part of your start-up needs. You could also use tools like asset finance loans and loans for SMEs.
2. Rent or share office space
Instead of setting up your own brick-and-mortar office, you can rent an affordable shared office space. This allows you to focus more on building your business and generating revenue instead of incurring high start-up costs. You can also rent a serviced office that provides a fully-equipped workspace with furniture and amenities, so you don’t have to worry about acquiring these items.
3. Consider crowdfunding
Crowdfunding is another way for entrepreneurs to raise funds from the public without giving up equity or control of their businesses. You can launch a financial campaign via a crowdfunding platform and receive funds from the backers who are interested in your business.
Starting your own business can be one of the most rewarding experiences, but it’s good to be well-prepared. It’s important to know all the important points to take note of, and we’ve just listed some of them- from legal requirements to bookkeeping. This way, you can focus more on growing your business and be prepared to meet any challenges that may come along.