3 Things Start-Ups Should Consider

Are you about to start your own Singapore business? 

You might think the first step is to visit the Accounting and Corporate Regulatory Authority (ACRA) website to register your company.

But before you do that, it’s very important that you consider three things every start-up founder should, before embarking on a business venture. This applies equally to businesses of any size – from major multinationals to a hawker stall.

1. Does your offering have long-term demand?

Offerings that capitalise on the latest trends can take off quickly. It can be tempting to jump on the bandwagon when items are flying off the shelves. But you should always consider whether the business you build around it can continue beyond the hype.

A good example is the fidget spinner craze of 2017, which became a global phenomenon almost overnight. At its peak, fidget spinners made up 17% of all online toy sales in the US. Retailers everywhere - including Singapore - scrambled to import stock as quickly as possible.

The simplicity of the product meant a low barrier to entry, with cheap and speedy production being easily sourced. New sellers flooded the market, resulting in massive oversupply and fierce competition. 

By mid-2017, interest had begun to plummet. Demand collapsed just months after the peak of the trend, leaving many retailers and small importers with unsold inventory because the craze faded faster than they could move their stock.

This episode serves as a cautionary tale to aspiring business owners that a booming trend may mask fundamental weaknesses, and the same factors that drive viral hype can reverse overnight.

So please ensure your business and your products have a sustainable value proposition that can withstand intense competition, demand swings and unpredictable market forces. Which brings us to the next point.

2. It’s more than the product; do you have the right people in your company?

Ask any start-up founder and they will tell you that the initial stages of building a company are brutal. It often involves long hours, sleepless nights and little to zero financial returns. 

The people building this company with you need to have the mental and emotional resilience to push through this early stage before any tangible results can be seen. 

In addition to being technically proficient in their roles, you must also be able to count on them to help create the space and time you need to step back, look at the big picture beyond the everyday minutiae of business operations, and chart the company’s direction. This brings us to the third, and perhaps most important point.

3. Do you know how to avoid getting bogged down by the nitty gritty details?

Most good start-up founders are visionaries. They can see the end goal clearly, they know what they want to achieve at each stage of the business, and they’re willing to put in their blood, sweat and tears to get there. 

But this also means they tend to be big-picture idealists who aren’t necessarily the most proficient at the detail-oriented work which is part and parcel of running a company. Frequently, handling the details is what causes them to burn out over time.

This is why it’s important to look for corporate services that will help you deal with the nuts and bolts of running a company, freeing you up to pursue your vision. This can normally be done by a law firm, accounting firm or corporate secretarial firm that has experience in setting up companies. But for some new businesses, allocating extra funds for these services may not be feasible.

DBS can help here, at least in terms of opening your bank account. Opening a DBS Business Multi-Currency Account – Starter Bundle involves no queuing at a branch - just a simple and quick online application. From start to finish, you might not even need to step out of your home.

Convenience aside, the DBS Business Multi-Currency Account – Starter Bundle is also an excellent choice for new companies due to the cost savings and essential features it has for start-ups – all of which compare very favourably against what other banks’ business banking accounts can offer.

Here’s a quick comparison of the business accounts offered by our local banks:

If you apply for a DBS Business Multi-Currency Account - Starter Bundle online, all initial deposits, service charges and minimum balance requirements will be waived. This means you only have to pay $10 per month for the account. That’s a pretty low price, for all that DBS is offering to newly-incorporated companies.

For instance, you get savings monthly with unlimited free FAST and GIRO transfers, unlimited 1% cashback on everyday B2B spend, and $0 FX fees on the Business Advance+ Debit Card that comes with your account.

If you need to make cross-border payments, DBS has 2 powerful solutions to protect your margins from FX volatility - both integrated into the DBS IDEAL banking platform for convenient access and management. 

One of these is SecureFX, which lets you lock in your preferred rates up to 1 month in advance for 5 key currency pairs: USD/SGD, EUR/SGD, EUR/USD, GPB/SGD and JPY/SGD, with no credit line or upfront cash commitments, for your future-dated payments. This ensures predictability for budget planning on all your overseas financial obligations in the month ahead.

For more complex cross-border payment arrangements, DBS FX Online lets you book live, competitive FX rates up to 1 year ahead on 100+ currency pairs.

A DBS Business Multi-Currency Account - Starter Bundle offers immediate benefits in terms of convenience and savings. But there are also other long-term benefits, such as being a part of the DBS BusinessClass community.

This is an invaluable network built by DBS, which allows you to connect with business leaders across the region, gain insights from industry experts, and discover disruptive solutions that can help your business innovate and boost productivity. These resources are designed to give you and your business the competitive edge you deserve.

To further sharpen your competitiveness, DBS also constantly looks out for ways to help you leverage the most advanced technologies. One of the latest of these is DBS Spark GenAI - which offers holistic support if you are looking to transform your business using generative AI.

From making it easy for you to get started; to innovative banking services that minimise costs while maximising your margins; to insights and guidance that equip you with cutting-edge know-how - DBS has a comprehensive suite of offerings to support you and your business at every phase of its growth.

And maybe that’s the fourth important thing you should consider.

Apply for a DBS Business Multi-Currency Account - Starter Bundle online today!