There is an increase in the rate of startup failure that occurs within the first one year of operation. In most cases, it has something to do with financial challenges rather than any other factor. In addition to the possibility of the misuse of the available operational funds, there is also the challenge of a lack of clients before the business gets to be widely known.
Singapore has decided to address this challenge by giving startups enough capital to stay healthy all through the first year. Business experts argue that a business that has enough money to run for about six months even without any profits is likely to survive. Luckily, Singapore has various ways a business startup can acquire this funding.
Angel Investor Funding
Young entrepreneurs with excellent ideas can approach any private investor in Singapore and present a compelling business plan in search of capital. There are numerous investors who are willing to offer not only financial help but also share some tips on how to do business.
It is easy to get capital through an angel investor program if you have written a convincing proposal or request. Although it may take some time before they come to a conclusion, their funds are the best since they share the risk with you. In return, you will give them a share of your business.
If you already have a startup with an excellent idea but you are concerned about its future, you can start selling the equity in the form of shares. The Singaporean government has been encouraging investors who are already established to support startups that are looking to raise money this way. Just like the angel investors, this method also requires the convincing of the potential investors through all possible documentation, plans and strategies. If you are planning to move to Singapore to start a business, you can ask the One Visa Pte Ltd experts to guide you in how to go about equity fundraising in Singapore.
Through various ministries and authorities, the government of Singapore offers grants to entrepreneurs who want to start both small and large businesses. The qualification requirements are straightforward and easy to follow, but you have to check if you meet all the criteria before applying. Both citizens and residents of Singapore can access government grants through various programs. According to the experts, the government has been in a position to help numerous people although there is no good follow-up or incubation of ideas.
If you do not want to go through the stress of convincing financial institutions to support your capital needs, you can save for your business startup. One must have a good source of income and a good savings plan. Those who are employed by the government and stable private entities are in a better position to save for their future businesses.
Family and Friends
Finally, you can still find some capital for a small business startup from your family and friends. Depending on the relationship, some will give the financial support without expecting anything in return, while others will extend the money as an interest-free loan. Either way, you need to raise enough capital to support your business plans fully.