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3 Things to Take Note of When Starting Your Own Business

Posted by U Ventures Pte. Ltd. on May 17, 2019 2:09:00 PM

 

Congratulations! You’ve gotten your business out of the concept stage and into the concrete stage, and you’re ready (more or less) to start serving your customers. But before you flip the sign on the door to say “We Are Open”, let me share three essential things you need to take note of for running your brand new business.

1. Bills need to be paid

Entrepreneurship is tough, both emotionally and very often financially as well. You need to get a clear break-down of what your financial liabilities are, be as crystal clear as you can. This will go a long way when you start planning how much you need to set aside while you pursue your new gig.

This is probably a good time to audit that life style of yours, whether you should still be having that bi-weekly $50 haircut or that once a month drinking session out with your buddies. Look into the essential expenses so that you can get the most out of what you have. You’ll realise that there are some things in life you can really do without. Be really honest with yourself, this audit is really meant for yourself and no one else, and not meant to impress your boss or anyone else. The results of this exercise really depend on how honest you are with yourself.

2. Your idea is probably not THAT special (stop KIDDING yourself).

You might think you have this really fantastic idea that no one else ever had, that it’s going to change the world or some particular industry. Truth is, it’s probably not that great and someone else somewhere most likely had a similar idea. Ideas are everywhere. If you don’t believe me, turn to the guy sitting next to you now and ask him for an idea that he thinks is going to change the world.

Your friends, classmates, relatives or whoever you share your idea with will more often than not tell you that your idea is pretty good. Don’t take their word for it, go and Google your thoughts and you’ll be surprised at what it tells you. I’ve met entrepreneurs who go on and on about how great their ideas are and want me to sign an NDA with them, but sadly, all it took was for me to Google to know how delusional these guys are.

3. Execution is EVERYTHING

While ideas need not be special, the magic lies in the ability to execute. Ever wondered how some entrepreneurs seem to be able to execute plans so well, but some just seem to have the knack to screw things up time and time again. As Benjamin Franklin said, “If you fail to plan, you plan to fail.”

This execution plan WILL change. No matter how well you plan it, it will definitely change. There is no use in having a perfect plan that you don’t act on. Once you have thought through the details, start executing and worry about the rest later on. Remember, entrepreneurship is about DOING, not just thinking.

I’ve shared these three things because having met and worked with all the entrepreneurs I have, I really want to see you succeed and to avoid all the pitfalls that are common among those starting a business. I and everyone at U Ventures would be happy to give you personalised advice for your own new business or startup. Feel free to shoot us a quick question here.

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So You Built a Business, What Next?

Posted by U Ventures Pte. Ltd. on Apr 30, 2019 4:49:00 PM

 

Entrepreneurship is all the buzz today. Everyone is thinking of the building the Uber of whatever and raising funds from VCs and all that stuff. The reality is that most either just think about it and for those who took action, 90% probably failed within a couple of years and most called it quits within the first 2 years.

As for those of us who survived and built a somewhat successful business in whichever industry that you are in. Have you thought about the next question? What’s next? What is going to happen now that my business is doing well, profitable and giving you the life you wanted and has achieved the goals that you set for yourself. What are my options?

1. Continue operating the business

This is the most obvious choice and very often the easiest decision to make. As per all easy decisions, they are usually not the best ones. Unless you have put in place a clear plan for growth, many businesses eventually run into a comfort zone and that is usually the first sign of trouble. As the saying goes, “The comfort zone is great, but nothing ever grows there.”

All businesses have a cycle, regardless of the industry you are in. Thinking that you can run a business without a long term growth plan will almost certainly result in the business reaching a point where without making any drastic changes, the business will fail. Don’t believe me? Take a look at Toys R Us, good example isn’t it?

2. Selling it away

This is one of the most common exit routes for many entrepreneurs. The equation is simple. You spent years building a successful business, an offer comes along to you to buy out your business and you sell it. The math sounds great, but the problem is most businesses are not structured to put themselves in a good position to be acquired.

Many SMEs do not put thought into this, they go about doing their business, and as long as the company is cash flow positive for the owners, they are happy with it. Notice I say “cash flow positive” and the word “profitable”? Most small businesses usually end up as a source of income and the owners usually become employees of the business itself.

Getting acquired does not happen by chance, it is purposeful and is usually done with a plan. Over the years, we have seen clients who were ill-prepared, losing hundreds of thousands and in some cases, millions when deals are pulled due to stupid reasons like not having proper financials in place. The first thing you have to do, is to make sure you are structured to put yourself in the best possible position to secure the best valuation possible. The next thing is to put yourself out into the market, speak to professionals and network with partners. Sounds a lot like a date, doesn’t it?  

3. Merging it with another business

Another common route taken by entrepreneurs is merging the business with an associate to create a bigger entity in order to gain more leverage with the objective of scaling the business to another level. Again, this is usually done with a plan and very often the existing directors will still stay on to take on senior management roles and continue with their existing roles.

In order to make this a possible plan, it is important to figure out internally the reasons for wanting to merge. In many cases, businesses merge due to some form of synergies that can be realised from the merger. In order to explore this option, it is important to audit your own strengths and weaknesses and also deep dive into the desired outcomes that you are seeking.

4. Professional management

This probably has more to do with succession planning than anything else. At this point, you probably have employees that are capable of managing the business or you are looking to hire professional managers for the business. By doing so, your objective is to eventually relinquish the management of the day to day operations of the business. This option could take some time as finding the right individual can sometimes be very time consuming, and in some cases, you require some luck as well.

If you find your business in this situation, and you find yourself considering one or more of these options, it might be a good idea to get some competent advice from a third person perspective. Talk to us at U Ventures to help you make the best decision for your business, today.

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Why should you care about Singapore’s economic outlook? Your financial structure, of course.

Posted by U Ventures Pte. Ltd. on Mar 29, 2019 5:55:41 PM


Nobody does business in a bubble.
And as businesses of every size and at every stage of their growth continue to grow, they’ll find themselves increasingly affected by the economic ecosystem they operate in.

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How To Choose A Good Accountant (Infographic)

Posted by U Ventures Pte. Ltd. on Mar 6, 2019 12:10:58 PM

A good accountant is much more than someone who just balances your books. To help you make that all-important choice, we offer you this infographic guide for choosing a good accountant in Singapore who will help you achieve your business goals.

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Discover The 3 Most Common Accounting Challenges That All Business Owners In Singapore Face And How To Overcome Them

Posted by U Ventures Pte. Ltd. on Mar 6, 2019 12:10:52 PM

Have you submitted your financial documents to IRAS yet?

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Want To Start Your Business in Singapore? 5 Key Areas You Must Get Right!

Posted by U Ventures Pte. Ltd. on Mar 6, 2019 12:09:12 PM

 

Setting up a business is a lot like building a house: you want to build it on a solid foundation (rock, as opposed to sand), and you want to use sturdy materials (brick, and not straw). When you set up your business the right way, you sidestep shaky ground and shady shortcuts—in short, you set up your business for long-term success and smooth sailing Year of Assessment after Year of Assessment.

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20 Ways Cloud Accounting Can Help Make Things Easier For Your Singapore Business (Plus 10 Ways Traditional Accounting Actually Makes Things Tougher)

Posted by U Ventures Pte. Ltd. on Mar 6, 2019 12:08:34 PM

When you’ve gotten used to doing something a certain way, learning a whole new way of doing things can be rather difficult—especially when you’ve been doing it for a very long time. But when that new way proves to make things better, and easier, in the long run, learning to make that switch might very well prove to be worth the effort.

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What a Relief! Here Are 15 Ways Businesses Can Benefit from Tax Relief in Singapore

Posted by U Ventures Pte. Ltd. on Mar 6, 2019 11:15:25 AM
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Taxes aren’t called a “burden” for nothing. Yet, there is some comfort in the knowledge that this undeniably apt appellation, often uttered as a plaintive cry for help by business owners, doesn’t fall on deaf ears. There is tax relief in Singapore to be had that can help lighten this burden, which a trusty accounting firm will be able to help you with as tax filing time rolls round.

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Bookkeeping Vs Accounting: What Do They Do for SME's in Singapore?

Posted by U Ventures Pte. Ltd. on Mar 6, 2019 11:15:12 AM

Let’s set the record straight: while they may seem similar at the outset, accounting and bookkeeping services in Singapore are actually two different things. As a business owner, knowing the difference between them can help you understand the key role played by each in growing your enterprise.

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How to Choose the Right Accounting Software for Your Business

Posted by U Ventures Pte. Ltd. on Mar 6, 2019 11:14:58 AM

Did you know that the Inland Revenue Authority of Singapore (IRAS) has 44 software owners and their products listed on their register? IRAS has this list to help you make sure that the software you use is able to meet their technical requirements—after all, better safe than sorry, right?

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