Running your own business, enterprise or branch offices means either you fail or you succeed. However, when you decide to set up a business without much information just for the sake of having one is not right. It is important that you should know the business inside and out, what business ideas are successful, the product you are going to sell and the taxation involved, etc. The locale where you are setting up your business also should be taken into consideration but that is not all. For instance, it is true that Singapore is a good place for foreign investors to set up international companies for many reasons not only limited to a favorable corporate tax, but then that does not guarantee that the business will succeed and we cannot also exactly tell whether it will fail.
There is an old saying that says among the new businesses, 70 percent of which fail in the 1st year. So it goes without saying that some businesses win and some lose. Of course, neither any expert can tell 100% that a legal business in Singapore will fail or succeed but by knowing what businesses are predictably going to flop at present will help you in any way to avoid such business operations. Below then is the list of 5 business ideas that are not encouraged when you set up a company in Singapore today.
1. A Private Gym
It is true that private gyms also succeed but only some of them and not definitely because of the company’s dedication, hard work and the quality time they give to their customers but because of the capital they put into their fitness centre such as the top California Fitness or Fitness First. The capital they actually have is more than what small African nations invest. Without high maintenance marketing and strong funding, it is quite impossible to reach the level of success they have attained.
The cost of the rent for the private gyms is the primary reason that they are not a good business idea in Singapore since you cannot definitely charge more from your clients only because your rent was raised by your landlord. They are not a business idea considered viable any more not only because of the high cost of rent but also because gyms are also part of the facilities offered for free in many condos now.
2. A Small Cafe
It is the University students’ typical business idea to open a small café. Actually, this idea is not exclusive to University students alone but hipsters, amateur chefs and food bloggers have this idea in mind as well. However, Singapore is already filled with so many cafes and food establishments that your small café would have lots of competition such as Settlers, Café Del Mar, Café Cartel, etc.
You have to also bear in mind that Singapore commercial property requires high rents. Not to mention the mentality that once business is making progress, the landlord raises the rent. Unless owning the rights and buying the property is something that is affordable to you, starting a small café is risky.
3. A Small Tuition Agency
Based on Singapore employment rate, the job of private tutors can earn them more money but starting a small tuition agency is a different story. In the years back then, a small tuition agency would work with schools to give enrichment classes at a decent amount. Teaching a second language and Maths brought good profit to the educational entity until 2007 and since then the profit has decreased. At present, many agencies offering such educational services are struggling since the fee for every student has plummeted to $2. Now, parents try to find MOE-qualified teachers for their children, thus agencies formed by ex- MOE teachers are more preferred than the older ones.
4. Interior Decorating
In Singapore, interior decorating is not really the type of business to set up especially that the Singapore renovations market already have a great number of contractors and designers and both offer Fittings, Furnishings, & Fitting (FF&E). As opined by a sales designer, one cannot survive only on interior decorating since FF&E is very subjective and most Singaporean residents will not consider paying the designer on matters regarding good taste. For instance, the cost for painting walls can be justified but the cost for the choice of color. Sales designers can offer both for just a single price.
5. A General Bookstore
Niche bookstores may be successfully run provided there are target demographics. Setting up a general bookstore requires a great deal of inventory that can only be handled by huge companies with advanced logistics. Thus, for smaller bookstores, inventory is daunting work.
It is possible to succeed in selling books on topics like politics and history or gardening. However, when you plan to run a general bookstore where all topics are available is not a very promising investment. Simply put, customers of niche bookstores after their search will probably leave the store with something but those of general bookstores perhaps only 1 customer out of 10 will make a purchase for every visit.