Every company begins with the foundational aspect of an idea. Sadly, not everyone with a transformative idea gets to build the idea into a successful company. There is always a lot to navigate, which could be tiring and nerve-racking, especially for inexperienced entrepreneurs.
While many people have managed to fumble through their idea with minimal guidance and make a business out of it, if you want to create a company that will stand the test of time and impacts this and future generations, you need to think beyond the idea.
This article gives tips on crafting an idea into a fully-fledged company.
1. Company Formation
Having an idea is not enough. You need to transform your idea into something concrete such as a company. The steps of company formation Singapore are pretty straightforward, as follows:
- Start by deciding on the legal personality of your company, whether you want it to be a private limited company, partnership, or limited liability company.
- The next step is understanding the requirements for registration, which include:
- Having at least one shareholder.
- Having at least one director who is a Singapore resident.
- Having a company secretary.
- Choosing a name requires you to follow the specifications of the law in Singapore. Generally, you should not use a reserved name, a name that is obscene or vulgar or infringes on any existing company’s trademark.
- After receiving approval from the Accounting and Corporate Regulatory Authority (ACRA) regarding the name, you can register by providing the Articles and Memorandum of Association, Identification Documents, address details, and share capital details.
- Finally, obtain all the licenses, permits, and tax registration from the Inland Revenue Authority of Singapore (IRAS).
2. Legal and Tax Compliance
Laws are paramount for any company. In fact, it is the law that gives companies a unique identity that distinguishes them from the shareholders and owners of the company. When transforming an idea into a company, you need to consider the legal and regulatory frameworks governing your business niche.
While the laws may vary across different jurisdictions and industries, some main focuses include labor, consumer protection, anti-trust or competition, tax, and corporate or company laws.
Aside from the laws surrounding the functioning of businesses, your company should also consider the laws on the environment. Environmental laws govern different elements of critical concern to any business, including what can be sold, how to dispose of waste, and how the company contributes to climate change.
Failure to handle legal and regulatory compliance well could result in fines, penalties, and a tarnished reputation from numerous lawsuits. These could cripple your company and keep you from fulfilling your idea.
3. Business Plan: Mission, Vision, and Core Objectives
Planning a company is central to its long-term prosperity and feasibility. You could have a groundbreaking idea. However, how you flesh out the idea could affect the possibility of your company succeeding through the hurdles it may encounter on the way. That is why you should structure an elaborate business plan from the get-go. A good business plan focuses on the company’s background, mission, vision, and core objectives.
When making a business plan, remember to create SMART objectives. These objectives must be Specific, Measurable, Attainable, Realistic, and Time-Bound. Such objectives will be easy to evaluate as time goes by and will also serve as your company’s ethos and guiding framework in the long run.
4. Strategic Planning
Strategic Planning involves the mindset behind an organization, especially in its immediate environment. Sometimes, the ideas you have are already in existence within your market. As such, the only distinguishing factor between you and your competitors in the market will be your strategy.
There are several tools you can use when engaging in strategic planning. First, a SWOT analysis can help you consider whether your organization can thrive amid all the existing factors in the market. To undertake a SWOT analysis, consider the Strengths, Weaknesses, Opportunities, and Threats your company may face.
Secondly, a PESTLE analysis can help you take strategic planning to the next level. In a PESTLE analysis, you consider the immediate physical environment of your company factoring in the Political, natural Environment, Social, Technological, Legal, and Economic elements around your business.
5. Investors and Funding
Once you have the business plan and strategic plan in place, you can start reaching out to investors interested in funding your company. Ideally, one way to look for investors is to launch an IPO and have the public buy shares in your company. However, this is not desirable when starting, as it exposes your company to numerous other regulatory challenges. Some options you can consider for a budding company include:
- Venture Capitalists
- Angel Investors
- Grants and Loans
Before selecting any of the mechanisms of funding your business highlighted above, always consider their pros and cons so that you settle on an option that will yield the highest benefit to your company with the least risk or cost.
6. Human Resources
A company is only as good as its people. When your company is starting out, you need the best team members who can buy into your vision and support your idea. When a company is just starting out, getting the best people in the industry can be challenging due to financial constraints. As such, you may end up having to do a lot of the tasks as the founder of the business.
However, when you add staff to your company, ensure that the people you contact have the skills and personalities compatible with your aims. As the founder, you are also responsible for creating a favorable work environment for your company to allow the staff to work effectively.
7. Branding and Marketing
Now that you have a stable team working on a good product, you should next think about getting more customers. This involves proper branding and marketing techniques. For a starting company, you want to create a good brand identity that will resonate with the customers and help you permeate the market.
The best way to do so is by sourcing the expertise of marketing consultants. The consultants will evaluate your company and give you industry and company-specific tips.
The guidelines above guide you in starting your business after structuring a feasible idea. Since the tips above are generic to all businesses, you need to consider the specifics that would apply to your company. Once you have done so, the chances of your company succeeding will be very high.