small business Archives | MoneyDigest.sg

4 Business Expenses That You Should Eliminate Right Now

I have good news for you! Reducing costs in your business does not have to take a lot of time or a significant amount of effort. In most cases, it comes down to making smarter choices. Continue reading on to find out what I meant.

MARKETING COSTS

Use technology to your advantage as you jump on the social media marketing wagon. Social media has a vast and diverse audience that you can tap. You are missing out on the potential of having fast-paced and low-cost marketing when you do not make use of Instagram, Facebook and Twitter. What’s more? You can collaborate with other advertisers or influencers.

Image Credits: pixabay.com

As I spearhead a school, I have teamed up with an mommy influencer to market our program offerings. In exchange of a post, the influencer was given free classes to fully immerse her child in our school environment. Bartering in an exchange of goods or services without handing out any cash is a good way to maximize your marketing budget.

TRAVEL COSTS

Unless you are taking the public transportation route, traveling domestically or internationally can be hefty. Eliminate the travel costs that come with business conferences by using downloadable software such as Skype or FaceTime to allow you and your client to have face-to-face conversations from anywhere around the world.

Reducing your travel costs does not mean that you must eliminate it entirely. Meeting in person with a client can bring serious profits and can close major deals. Thus, you must save your travel funds for high-priority situations.

PRINTING COSTS

How does one begin to emphasis the price tag that comes with printing? For starters, most of my school expenses surround paper and ink. Not to mention, maintaining a machine can be a time consuming. Just calculate the amount of time you spend dealing with printer issues!

Printing costs add up in a snap. Eliminate as much paper as possible by going paperless when it comes to waivers, contracts, or memos. Use online signature apps to sign contracts. Alternatively, you may invest in one printer to cut back the printing of the entire office.

MANPOWER COSTS

Is it necessary to hire a full-time graphic designer when you can outsource positions for short-term roles? There are numerous platforms such as Fiverr and Upwork that can offer the right talent at reasonable rates. This also helps other talented individuals to grow their businesses.

Image Credits: pixabay.com

Furthermore, you can try designing posters or other artistic materials for free through websites such as PosterMyWall and Canva. You do not have to be as artistic as Bob Ross to execute the task! These websites are easy to use as they have ready templates available. Isn’t that amazing?

Sources: 1 & 2

The True Cost Of Workplace Conflicts

This month is filled with a roller coaster ride of emotions. Concluding my September was a big event that my branch held. This nationwide event stirred varying conflicts of different degrees. The highly stressful environment induced a simple misunderstanding, which became a whole ordeal among the team. You see, some people began taking sides. A week has passed before my boss noticed that something is wrong. He needed to resolve the problem immediately! Fortunately, his intervention worked out.

While business owners know that workplace conflicts affect productivity and employee morale, not many are aware that office drama can drain their funds. In 2008, the publishers of the Myers-Briggs Assessment and the Thomas-Kilmann Conflict Mode Instrument conducted a study on workplace conflict. Results showed that American employees spent nearly 3 hours per week in dealing with workplace conflicts. This is equivalent to approximately S$490 billion in paid hours or equivalent to 385 million working days. These crazy numbers pose an alert to people running the workplace.

Workplace conflict’s effects are not limited to time wasted. 25% of employees reported that they avoided conflicts by skipping work or by calling in sick. Equally alarming, nearly 10% reported that conflicts led to project failure. These negative behaviors translate to financial losses, especially felt by small businesses.

It is no secret that we spend our time comparing, gossiping, retaliating, and playing defense. These countless amounts of time is much rather spent on customer interactions and other productive activities. Navigating yourself around the whole drama is important. You do not want to lose some loyal customers just because two employees are tarnishing your organization’s image!

On that note, I have listed some practical ways to deal with workplace conflicts.

Image Credits: pixabay.com

1. Employers shall create a workplace environment that empowers employees to manage conflicts. Regardless of your employee’s role in the organization, HR officers must conduct behavioral questions that tests how one shall react during conflicts. For instance, an applicant may share about his or her previous experiences in dealing with workplace issues.

2. As a part of cultivating a conducive environment, you may encourage healthy dialogues or debates in small groups. Help your employees appreciate the value of differing perspectives and analyze each one.

3. As much as you want your employees to resolve their conflicts on their own, you must know where to draw the line. Do not expect that everyone can handle every problem on their own! Ensure that your employees can count on you when they have encountered inappropriate or illegal behaviors. You must be immediately notified when there are indications of physical violence, sexual harassment, theft, or substance abuse.

4. Remind your team that they shall focus on the unpleasant workplace behaviors and its consequences when trying to address a particular conflict. They must not take things personally. They are not there to assassinate someone else’s character. They are there to improve their team’s dynamics.

5. Provide ongoing training on conflict resolution and stress management. These types of training can lead to self-assessment and self-understanding of one’s conflict-management skills. Drills can help them identify the pros and cons of using a certain style.

6. As an employer, you must not put the workplace conflicts on top of your priority list. Actively listen to your employees and support them in every way possible. But, you do not have to automatically take ownership of their problems. Be able to discern whether an issue needs immediate action or not.

7. Say that one employee is consistently causing the workplace dramas. Furthermore, you do not see any improvements as time passes. Pull this employee aside and talk to him or her in a mature manner. Monitor his or her progress by talking to the team periodically. This can help prevent any future conflicts from spiraling out of control.

Image Credits: pixabay.com

As a leader, you must navigate around the issues with objective lenses. Know the truth of each sides and run through the possible interventions that you can offer. Every move counts!

Sources: 1, 2, & 3

Guide on Opening a Small Business in Singapore

Singapore has many aces down its sleeve as a business location in Asia and investors are turning their attention to this tropical global financial center. Getting started in Singapore does not mean that your new business needs to be a large corporation with many employees. You can open a small business in Singapore and enjoy all that the city has to offer in terms of business location, trading environment, and a diverse economy.

We are looking at the most important aspects to consider when starting a small company in Singapore and the taxation and incorporation must-do’s for first-time investors.

Starting a business in Singapore is easy

Singapore has a strategic location in Asia and many international companies operate their business from here. The World Bank ranked the city as one of the easiest places to do business in the world, an attribute that comes naturally to Singapore since the company incorporation requirements are very straightforward and investors are not burdened by overwhelming formalities.

The process of setting up a company in Singapore includes the following steps:

picking the right type of company and choosing the right name;
filing the company’s documents with the Accounting and Corporate Regulatory Authority of Singapore;
choosing your business location and hiring employees.

Small businesses in Singapore can take the form of a sole proprietorship, partnership or private limited liability company. Taxation requirements apply to all types of companies. Small businesses will need to pay the corporate income tax but a partial exemption applies for the first SGD 300,000 of chargeable income.

Asia is a market with many business opportunities for foreign investors. Top locations include Singapore but also Hong Kong. If you would like to know how to start a company in Hong Kong and how this is different from the process in Singapore, you can talk to a company formation expert. In case you would like to expand your business in Thailand and need to obtain a Thai long stay visa it is advisable to contact a team of local lawyers.

Small business ideas in Singapore

Singapore does not disappoint in terms of business and investment opportunities. The city has a diverse economy and skilled entrepreneurs will find it very easy to start their own business and quickly form their own client lists.

Some ideas for small businesses include event planning, food services (a fast food or even home-based bakeries), independent accountant or translator or business consultant for those who have already acquired experience and are ready to coach on others. Small companies in Singapore can provide a myriad of necessary services for day-to-day life. You could consider opening a company offering plumbing services in Singapore or opening a company that offers cleaning services, a laundry business or dry cleaners.

Starting a new business is a big step. Having the right business environment to set up a new company, in a city like Singapore, is just as important as the entrepreneurial drive itself. Young entrepreneurs and those who are just starting their small business can find out more about starting a business in Singapore by talking to a company incorporation expert.

How To Lure New Customers To Your Small Business

CURATE A DETAILED PROFILE OF YOUR AUDIENCE

Catching the attention of your potential customers is an easy task if you know exactly what you are searching for. So, begin by defining your target audience. Be as detailed as realistically possible. Include descriptors such as gender, occupation, NRIC number/FIN, hobbies, age group, and civil status.

Say you are selling Harry Potter merchandise to teens and other millennials. You noticed that they are immensely obsessed with social media platforms. Hence, you used Instagram and Snapchat to identify your potential customers.

Image Credits: pixabay.com

PROVIDE AN INVITING ATMOSPHERE

Charming your customers start as they enter your doorstep or website. Flashy signs may draw them in, but your accomodating gestures will make them stay. Send warm greetings and show new customers around your vicinity. This will make them feel appreciated and special.

This is certainly true if you are in the food business. Ushering your hangry customers with a friendly service can help them calm down. I cannot remember how many times this happened to me!

OFFER TEMPTING FREEBIES

Display an offer that new customers cannot resist by providing free trials. Fitness centers often distribute flyers that signify a week’s worth trial or a discounted package for first timers. This is a cost-effective way to get good reviews and honest testimonials.

There is nothing more powerful than giving your potential customers a good glimpse of what is to come!

LISTEN TO THEIR VALUABLE INSIGHTS

As you converse with your potential and existing customers, it is important to actively listen to their wants. Do not assume that you know their preferences! Many startups fail because they are selling products with a non-existent demand.

This is why you must encourage constructive feedback. These may be delivered thru social media platforms, focus group discussions, and online surveys. Take the appropriate actions to improve the operations of your small business.

LAUNCH A REFERRAL SYSTEM

My career path was carved when I became an administrative officer in a contemporary yoga studio. One of the studio’s promotions, which endured throughout year was the “Refer A Friend Campaign”. It encouraged the existing customers to invite their friends over to receive up to 20% discount on their next packages. The more people they refer, the higher the reward gets. You may launch the same campaign in your small business.

Remember that people love to be acknowledge. Use that to your advantage!

Image Credits: pixabay.com

New customers are the tools that enable your small business to flourish. If you want to attract more customers, you must consider these people in every step of your journey.

Debunking The 4 Myths About Small Business

Myths about small businesses are overflowing. Some people let the myths slide, while others adapt them perpetually to their lives. Doing so may hinder the attainment of success and full potential!

MYTH #1: SINGAPORE IS A TINY MARKET WHERE BUDDING BUSINESSES WILL NOT THRIVE.

Singapore is a relatively small market with a population of a little over 5 million people, when we speak in geographical terms. What others do not know is that private wealth concentration in the country is elevating by the day. Thriving local businesses were able to scale themselves to the neighboring Asian markets. Yes! You can scale a firm to the point where it becomes attractive to regional and global platforms.

Singapore offers one of the best business environments as its government give different grants to help Start-ups and SMEs (Small and Medium Enterprises). These grants aid in developing several dimensions of the firm’s growth such as human capital development and technology implementation. Some examples are the Productivity & Innovation Credit (PIC), Enhanced Training Support Scheme, and Market Readiness Assistance Grant (MRA). MRA is the specific grant designed for helping Singapore SMEs to accelerate their expansion overseas.

MYTH #2: INVESTING IN A SMALL BUSINESS IS PRIMARILY GAMBLING.

When you gamble, the house almost always wins. This is not the same with investment! As Wall Street investor Peter Lynch once highlighted: “An investment is simply a gamble in which you have managed to tilt the odds in your favour”.

The odds can turn to your advantage if you run the business in a “right” way. This entails the out pour of skills, talent, and hard work. Running a successful small business requires long periods of research, which continues after you have invested your money in it.

So, investing in a small business is not entirely gambling as various factors are controllable.

MYTH #3: YOU DO NOT NEED A WRITTEN BUSINESS PLAN.

To enter the workplace in an orderly fashion, the business owner must devise a detailed business plan. This said plan shall include the study on the target market, funding, organization dynamics, and revenue projections. A realistic and robust business plan is mandatory if you are seeking creditors or investors. Furthermore, a business plan helps to anticipate critical items such as revenue and cash flow.

Some ideas that seem great as a concept may not be great when you put it down on paper.

MYTH #4: YOU HAVE TO HIRE A FULL-TIME STAFF.

Employees are essential to get the ball rolling, but maintaining them is costly.

From wages to office space, having full-time employees can take a massive chunk of your small business’ budget. This is why you must consider the alternative options such as hiring interns or outsourcing from independent contractors. Do your research!

Image Credits: pixabay.com

Now that you know the difference between reality and fiction, you are ready to begin your journey. Keep on moving to the right track!

Sources: 1, 2, & 3

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