Introduction
Start a business might seem like a big task, but with $20,000 and the right plan, you can make it happen! Singapore is one of the best places to start a business because it offers a lot of support, simple processes, and endless opportunities. Whether you’re a teenager with a creative idea, a young adult exploring something new, or an experienced professional ready for a fresh start, this guide will make it easy to understand how to build your own business.
We’ll walk you through simple steps like picking the right idea, registering your business, managing your money, and using smart tools to grow. No complicated words or confusing details—just clear and easy tips to help you turn your $20k into a successful business. Ready to begin? Let’s make your dream a reality!
Is It a Good Idea to Start a Business in Singapore?
Yes, start a business in Singapore is a fantastic idea! Whether you’re just starting out or already have experience, Singapore offers everything you need to succeed. Here’s why:
Easy to Start:
Singapore makes it simple to set up a business. The registration process is quick, and the rules are clear and easy to follow.
Government Support:
The government provides plenty of support for new businesses. You can get funding, grants, and tax benefits to help your business grow. Programs like the Startup SG Founder Grant are designed to help entrepreneurs.
Perfect Location:
Singapore is located right in the heart of Asia, making it easy to connect with other countries and expand your business.
Talented Workers:
Singapore has a highly skilled and educated workforce. This makes it easy to find great people to help you grow your business.
Technology-Friendly:
Singapore encourages businesses to use digital tools, making it easier to manage your work and reach more customers.
Safe and Stable:
Singapore has a strong economy and is a safe place to do business. This makes it a great choice for long-term success.
Whether you want to start an online store, offer services, or create a unique product, Singapore gives you all the tools and support to make it happen. It’s not just a good idea—it’s the best place to bring your business dreams to life!
How Easy Is It to Start a Business in Singapore?
Start a business in Singapore is super simple, even for beginners! The country is well-known for its easy rules, fast processes, and helpful support for people who want to turn their ideas into reality. Here’s why it’s so easy:
1. Quick Registration Process
You can register your business online through the ACRA BizFile+ portal in just a few hours. It’s easy to do, and it costs as little as SGD 115.
2. Flexible Business Options
You can pick the type of business structure that works best for you, like a sole proprietorship, partnership, or private limited company. Many people choose private limited companies because they’re trusted and offer better tax benefits.
3. No Stressful Paperwork
In Singapore, you don’t have to worry about complicated forms or long waiting times. Everything is straightforward and easy to follow.
4. Government Help and Grants
The Singapore government supports new businesses with helpful grants, such as:
- Startup SG Founder Grant: Financial support for first-time business owners.
- Productivity Solutions Grant (PSG): Helps you save money on digital tools.
- Enterprise Development Grant (EDG): Offers funding to improve and grow your business.
5. Simple Digital Tools
If you’re starting an online store, platforms like OrderZ and Shopify make it easy to set up and start selling quickly. Tools like POS systems help you handle payments and manage inventory smoothly.
6. Easy Banking Setup
Opening a business bank account is simple and fast in Singapore. Banks offer great services to help you manage your money and grow your business easily.
7. Low Taxes
Singapore has one of the lowest corporate tax rates in the world at just 17%. New businesses also get special tax breaks during their first few years.
8. Talented Workers
Finding skilled employees is easy because Singapore has a smart and talented workforce ready to help your business succeed.
Challenges to Start a Business in Singapore
Starting a business in Singapore is a great idea, but it does come with some challenges. Understanding these problems can help you be better prepared. Here are some of the things you might face when start a business in Singapore:
1. High Costs of Running a Business
In Singapore, things like renting office space and paying employee salaries can be expensive. If you’re just starting, it might be hard to keep up with these high costs.
2. Lots of Competition
Since Singapore is a popular place for businesses, there are many other companies offering similar products or services. This means it’s important to find ways to stand out from the competition. Offering something unique or having great customer service can help.
3. Expensive Workers
Singapore has lots of skilled workers, but hiring them can be costly. Smaller businesses might find it hard to pay as much as bigger companies. Also, if you plan to hire workers from other countries, there are strict rules and limits that you’ll need to follow.
4. Following Rules and Regulations
Running a business isn’t just about selling products—it also means following many rules. You’ll need to make sure your business pays taxes, files paperwork on time, and follows laws to avoid getting into trouble.
5. Limited Number of Customers
Singapore is a small country, so the number of people you can sell to is limited. This means you might have to look outside Singapore to find more customers, which could mean expanding your business to other countries.
6. Many Digital Competitors
With the growth of online shopping, many businesses are now competing on the internet. Staying ahead of digital trends and using the right tools can be tough, especially if you’re used to traditional ways of doing business.
7. Getting Money for Your Business
Although there are grants and support available, getting enough money to start or grow your business can be hard. Banks and investors often want to see that your business idea is strong and that you can make money.
8. Time Management Problems
When you’re starting a business, you will have a lot of different jobs to do. You might have to handle everything yourself, like running the business, talking to customers, and managing finances. This can be a lot to handle, especially if it’s your first time running a business.
Best Businesses to Start in Singapore Under $20k
Start a business in Singapore doesn’t need a lot of money. With $20,000 or less, you can start a successful business and grow it over time. Here are some simple and profitable business ideas you can explore:
1. Online Store
Set up a store online to sell products like clothes, accessories, or home items. Platforms like OrderZ or Shopify make it easy to build your website and start selling.
Cost: $5,000–$10,000
Why it works: Low costs and access to buyers all over the world.
2. Freelance Services
If you’re good at writing, designing, coding, or photography, you can start freelancing. All you need is a laptop and some tools to get started.
Cost: $2,000–$5,000
Why it works: Very little investment needed and high demand for skilled professionals.
3. Home-Based Food Business
If you love cooking or baking, you can sell homemade treats like cakes, snacks, or even meals. Just make sure you follow Singapore’s food safety rules.
Cost: $5,000–$8,000
Why it works: People in Singapore enjoy good, homemade food.
4. Tuition or Coaching
If you’re good at teaching a subject, music, or a skill like coding or drawing, you can start a tuition or coaching business. Classes can be held online or in person.
Cost: $1,000–$3,000
Why it works: Parents and students are always looking for good teachers.
5. Cleaning Services
Start a cleaning business for homes or offices. With busy lifestyles, many people are happy to pay for help keeping their spaces clean.
Cost: $5,000–$10,000
Why it works: High demand for cleaning and low equipment costs.
6. Pet Care Services
Start a pet grooming, pet sitting, or pet accessories business. Many Singaporeans love their pets and spend on their care.
Cost: $5,000–$8,000
Why it works: Growing pet ownership means more demand for pet-related services.
7. Dropshipping Business
Start an online store where you don’t need to stock products. When customers order, suppliers ship directly to them.
Cost: $2,000–$4,000
Why it works: No inventory needed, and it’s easy to start.
8. Event Planning
If you enjoy organizing, you can start planning small events like birthdays, corporate meetings, or weddings.
Cost: $8,000–$15,000
Why it works: Personalized events are always in demand.
9. Digital Marketing Services
Help other businesses grow online by managing social media, creating content, or improving their website visibility.
Cost: $3,000–$6,000
Why it works: Every business needs help with online marketing.
10. Fitness or Yoga Classes
If you’re certified, you can teach yoga or fitness classes either online or in rented spaces. Health-focused businesses are booming.
Cost: $5,000–$10,000
Why it works: People are prioritizing health and wellness.
Steps to Start a Business in Singapore
Start a business in Singapore is easy if you know the steps:
1. Think About Your Idea
Start by deciding what you want to do. Ask yourself:
- What will you sell? Is it a product or a service?
- Who will buy it? Think about the people who need it.
- How much money do you need? Plan how to spend and save.
A clear idea is like a map—it helps you stay on track.
2. Choose the Type of Business
Pick how you want your business to work:
- Sole Proprietorship: You work alone.
- Partnership: You team up with a friend or partner.
- Private Limited Company (Pte Ltd): A safe option for startups with better tax benefits.
Most new businesses choose a Private Limited Company because it’s safer and helps you grow faster.
3. Register Your Business
Next, register your business with ACRA (Accounting and Corporate Regulatory Authority). It’s quick and done online! Here’s what you need:
- A unique name for your business (make sure it’s not taken).
- A Singapore address for your business.
- At least one local director (a Singapore citizen, PR, or someone with an EntrePass).
- Details of who owns the business and a secretary.
Approval usually takes 1 to 3 days—super fast!
4. Open a Business Bank Account
After registering, open a special bank account just for your business. This is important because:
- It keeps your money organized.
- You can pay bills and get paid easily.
- Singapore banks like DBS, OCBC, and UOB are great choices for startups.
5. Get Licenses and Start Selling
Some businesses need special permissions:
- Food businesses need a license from the Singapore Food Agency.
- Online businesses must follow privacy rules.
- Once you’re ready, tell people about your business! Use social media, ads, or word-of-mouth to attract customers.
Conclusion
Starting your own business in Singapore with $20,000 is not just possible—it’s achievable with the right plan and tools. Singapore is one of the best places to start a business, thanks to its simple setup process, government support, and talented workforce.
If you’re thinking of starting an online business, using the right platform is key. OrderZ, an e-commerce website builder, is a great choice. It’s easy to use, affordable, and perfect for small businesses. With OrderZ, you can create a professional online store, manage your products, track orders, and reach more customers—all without needing technical skills.
Whether you want to sell products online, provide services, or turn your passion into a business. With careful planning, determination, and smart investments, your $20k can grow into a successful and profitable business.
Singapore is full of opportunities, and with support from platforms like OrderZ, your dream of owning a business is closer than ever. Take the first step today—turn your idea into reality and start your journey to success!
