Living in Singapore and thinking about your own business startup is natural because there are a lot of inspirations for people to launch their business in Singapore. If you are thinking about starting a business, you should prepare yourself to face different challenges.
A business that has already been extended for some time and thinking about its growth will not face many difficulties as the newly launched startups could face due to the early stages of business and not having enough working capital.
So, if you are thinking of going to start a business, the most important thing you will check is having enough funds as it’s the central component for a business. The following article will describe some common ways through which you can get funding for your business to ensure growth and turnover.
Crowdfunding
Crowdfunding means to collect contributions from a large group of people to make a business financially strong. Most businesses start marketing their product before the launching of the product so they can first market the goals, ideas, and innovation. With the help of the right marketing decisions, a business can get many customers for their products and services.
There are many crowdfunding platforms in Singapore, such as Indiegogo and Kickstarter, which are helping startups to compete in the market. You can get a continuous way to get funds for your startup by getting attention and support from an interested audience. These platforms help you to reach interested and target audiences to bring your idea into reality.
Crowdfunding is the best way to get brand followers before its launching, and depending on your product, it’s also a better option to get your business off the ground. Achieving a group of interested audiences before the launching of the product allows you to get a high level of sales when the product launches.
Self-funding
Using your own financial resources within the business is known as Bootstrapping or Self-funding. It is one of the most direct ways to fund a business and make it strong in the early stages. The most important benefit of self-funding is that you think more about using funds in the business because these funds are coming from your savings account or personal credit cards. It is also the best way because it doesn’t put any other at risk of suffering from any financial loss.
In self-funding, you are the only one who is accountable for all financial risks, so you become more careful with your decisions. It is an effective way but building personal funds can take a much longer time and sometimes stop you from spearheading. If self-funding is stopping you, then it’s not the best option for your business, and you should move forward to another option.
Angel Investors
Angel investors are some rich individuals or groups of people who create resources to provide capital to your business so your business can keep growing. To get funds from angel investors, generally, businesses need to dilute their ownership equity of the business. With Angel Investment, business owners gain access to a significant pool of funds that can range from $50000 to $500000. With this high amount of funds, you can deliver your products and services in a better way and can focus on building up your business.
Not everyone can get angel investment; you need to fulfill their preferences to get funded. Angel investors thoroughly inspect your business to decide whether to invest in your business or not. They will also get a share of the company, so you will need to ensure that your business goals include decision making processes. You can get angel investment, depending on the type of your business and your working style.
Government funding
The Singaporean government is helping businessmen to grow their businesses without thinking about their financial issues and providing a significant number of financing schemes and platforms. The government is facilitating all the businesses by these schemes and platforms to encourage entrepreneurial activity in the country. Each of the government schemes and platforms targets a significant market or industry to serve in a better way.
Singapore is also known as the hub of businesses and startups, so running a business in Singapore is not easy, and most businessmen seek help from government grants and funds.
Organisations such as Enterprise Singapore provide funds and grants to the entrepreneur so they can boost their business growth and improve their brand image by branding and marketing.
Some other government organisations, such as Startup SG Founder and National Research Foundation, allow different forms to move their business forward.
Also, they are providing fund categories for each industry, such as The Early-Stage Venture Fund (ESVF) by the National Research Foundation, which is specific for tech startups.
Incubators and accelerators
Incubators and accelerators are two different terms with different functionality. An incubator works with the businesses that are in their early stage and are preparing their businesses to compete in the market. Incubators allow these kinds of startups to get off the ground and become an independent brand. While an accelerator is a funding system that works with those businesses that are already running and wanting to expand their branches to overseas locations or entering in a different market or industry.
There are a lot of incubators and accelerators in Singapore to help startups and already running businesses. Also, there is no specific schedule to follow while dealing with incubators. While businesses working with accelerators will have to work closely with investors.
Venture Capitalists
Venture capitalists are professional investors who invest in startups and have a condition that they are allowed a more hands-on role in the business, and their main vision is to ensure their own profitability.
They do not only invest in startups but also take part in operational matters and advice on how to increase profitability.
Venture capitalists work with those startups that are holding high growth potentials, such as businesses in IT, nanotechnology, biotechnology, scientific breakthroughs, and intellectual property creation. Generally, high net worth personalities, large corporations, and government bodies are venture capitalists.
Business Loan in Singapore
After you’ve got some fundings, you may find that it is insufficient. Getting a business loan is ideal in that situation. It can help you achieve your business goals. You may get started looking for a business loan using our loan matching platform. We can help you find the ideal business loan for your business needs.
