Company establishment is usually a difficult and complex process and entrepreneurs can make some mistakes in this process. Ignoring or not realizing these mistakes during the establishment of an e-commerce company may cause some problems in the future or the expectations at the beginning of the business not come true.
In this guide, experts will cover the mistakes that you should avoid when starting Singapore company formation, since the mistakes that entrepreneurs make often cause many companies to have a difficult start-up process.
- Not making a business plan
The business plan is one of the important steps forSingapore company formation. Making the company’s forward plans, business model, products, target audience, marketing and advertising efforts, financial forecasts and goals, starting a business without the milestones set for the company in general causes it to be unclear which paths to follow to grow the company.
While you are in the process of establishing your company, you need to make a detailed business plan, determine your strategies and set certain goals for your company.
- Not being financially prepared
Although the idea of starting a company may be attractive to entrepreneurs, it is very important to be prepared for financial difficulties and company-related expenses. While you will encounter many different expenses during company establishment, you also need to factor in marketing and advertising budgets to increase brand and product awareness.
For this reason, before starting the business, you should calculate the costs of establishing a company, product supply or production processes, if you have employees, their salaries and insurance fees, rent, tax and office expenses, and how much budget for annual marketing and advertising work. You have to plan your allocation.
With the help of accounting experts, you can reduce your Personal Singapore Income Taxand manage your financial matters more efficiently.
- Getting the price strategies wrong
Pricing in e-commerce is one of the important factors in competing with competitors. Especially if you have products that sell well and are sold by other companies, you need to determine the right pricing strategies.
Pricing is one of the important issues in the products you produce. Having a high value on the product may miss your target audience, and keeping this price low may reduce your profitability. For this reason, you need to find the right price ranges and keep the value of your product and ensure that it brings you profit.
In order to do this correctly, you should examine and analyse the products in your sector in detail. Examining the prices of similar products allows you to see the state of the market and the expectations of consumers.
- Not doing market research
Market research is also one of the important criteria to be considered during the establishment of a company. Market research allows you to get information about competing companies, while allowing you to see the status and future of the market. In addition, it helps you see the expectations of consumers from the market, products and companies. These researches need to be done in order to see price strategies, correct product choices and consumers’ interest in products. Otherwise, without knowing the sector you intend to enter, in other words, you will do a bit of a blind dive. This complicates your business development and how to set your strategies.
- Trying to grow too fast
One of the mistakes to be made during the establishment of a company is to try to grow too fast. In the beginning, things may go better than you expected, and then you may want to expand your company. However, the fact that your infrastructure is not ready, that you do not have the capital to meet this growth financially and that the order among the company management or employees is not fully established can cause many problems.
Rather than growing rapidly all at once, it would be a better approach to grow in stages. You should better manage this growth in both financial and company management and proceed in a controlled manner. Otherwise, both the quality of your work and services may decrease, and the discipline and efficiency in the company may decrease because a correct business management method is not determined.