How to set up a Consultancy business in Singapore
How to set up a Consultancy business in Singapore
Have you worked in a big MNC for the past few years? Looking to leave the big firm? Or do you have some skill sets that the common man does not and you are in demand by others to solve their problems? With your credentials and starting your own consultancy business could be one of the profitable business ideas to look at nowadays.
Singapore is moving towards more of a knowledge economy and someone with extra skill sets can easily monetize them and allow it to make good income for them.
So what are some of the pointers to look out for when you are looking to become a business consultant in Singapore.
1. Find out what are some of the more common forms of consultancy people with your skill sets provide | How to set up a consultancy business in Singapore
You may not be aware that your skill sets can be packaged in many different ways and rates and this is something that you should work out before opening your doors. You may be a taxation expert and be able to consult on many things such as tax planning before starting a business or maybe some form of structuring work that can be used to lower taxes post financial year end. You may not be aware of other forms of tax consulting that you may be able to perform, so always do research and find out what competitors can do. Google is your best friend when it comes to doing such research, use it to your fullest.
2. Find out what rates are charged for the consultants performing similar work | How to set up a consultancy business in Singapore
Some consulting firms doing more general work will post their rates, use those rates to make a quick comparison and find out more about how they can charge for that rate, maybe lesser work done or work is done in a different manner. There are always catches involved because end of the day, the cost for most people are about the same.
There are also other methods of doing research for rates but not very business ethical.
You could also invite friends in the same trade out for food and drinks and ask for help for similar trade kind of work. Some may be glad to share.
3. Set up a sole proprietorship or a private limited company (preferably) before taking on any contracts | How to set up a consultancy business in Singapore
Most businesses do start with sole proprietorship but if you are coming in to cover a big project that may cost a larger sum or working with a brand company, it is always advised to start off with a private limited company. Incorporating a private limited company may not be easy, you could consult Koh Management if you are require any help on this.
One of the main reasons for doing so is liabilities. If you are stuck in a big project and delay on certain deadlines and the firm decides to sue you, if you are behind a sole proprietorship, you might have the issues of losing your personal assets such as your house or car. This is something not all business owners would want to risk and this is a real threat. Owning a private limited firm limits you to the amount of capital you have injected into the company, so if you have a small capital, your risk exposure is very low. But of course there may be some minimums that some companies / the government might impose for you to get certain projects.
Also note that the separation of liabilities does not protect you if you decide to be a personal guarantor for the case for whatever reasons, so do watch out.
4. Set up a website and begin marketing / networking | How to set up a consultancy business in Singapore
The internet is your best friend right now, leads mostly come from the internet today and you may seem backwards if you do not have a website on your name card where everyone can visit and find out more about your background and yourself.
Use the opportunity of the website to tell others what you can squeeze into your flyers or name cards. Items such as your credentials, your education, your previous job roles and how this can help you to deliver good work to your clients. If you also do SEO for your business and rank well on google for certain consultancy phrases, your earning potential can be exponential. If you are looking for beautiful consultancy website development and SEO services, look for our sister company, SEO GEEK.
You should also meet up more with our founders or business owners to network your way around. The ones you meet may not be your prospective clients but in future they may become one or even better they may introduce you to their friends in need of your services and this is great because word of mouth marketing is always the most powerful form of marketing anyone can find and get.
5. Prepare yourself to go for the practising management consultant qualification | How to set up a consultancy business in Singapore
Even though there are no real requirements for consultants in Singapore to have special certifications, but having more is always better in this line.
One of such qualification would be the practicing management consultant (PMC) , find out more here http://www.sbacc.org.sg/become-a-pmc/benefits-of-becoming-a-pmc.html
Entry requirements are pretty strict but if you meet clients who are looking to get government funding, eg. SPRING , with the PMC qualification, the client can qualify for quite some grants which will make you a much more favorable choice as compared to someone who is not a PMC
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