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- Jan 27, 2016
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Money makes the world go round not just once, but several times. Yes very true indeed: no money, no honey. Except an SME isn't blessed with a sizeable war chest, else life wouldn't be so darn thorny. Everything costs more than something these days- supplies, hiring the accountant, hell probably even your lawyer buddy back from the National Service days wants a piece of your ass simply for offering 5 minutes of legal advice. Coupled with soaring rental rates, increasingly expensive inventory and the taxman constantly breathing down your neck, it is surprising SMEs haven't been construed as "So Many (have) Exited".
When you are small, being supremely pessimistic might just see your business endure another day properly. But you say you want to achieve so much more; you want your baby to evolve into a juggernaut, to become the next Uber or Alibaba Group. Hey Peter Pan (or Daisy Duck or whatever your name is), dream those lofty ambitions when you are tucked in bed at night yeah? Until some angel investor comes knocking (more often than not and your grey matter knows it), time to stay really grounded in reality and start learning to be a world-champion penny pincher. Here's how:
1. Don't bite off more than you can chew
For starters, secure the minimal amount of resources needed to keep your business afloat. Do not rent more space than you need, do not purchase excessive quantities of stock. Any scaling up should be done with utmost care and thorough market research. Get ahead of yourself, you might just end up shedding enormous tears of grief when you get hounded by the landlord and a whole assortment of vendors for not being able to keep up with payment schedules.
2. Save, save and save some more
Not just for a rainy day, but also a possible massive thunderstorm. Anticipate dismal earnings associated with extremely lull trading periods, produce revenue forecasts and accumulate reserves to weather roller-coasters in consumer sentiment and seasonal influx of competitors. If you don't require a car to get to work, settle for public transport. If wholemeal bread, a hard boiled egg and plain water accounts for sufficient nourishment, so be it. An entire universe of enterprises have gone six feet under in their infancy stages because they were helmed by folks who didn't pursue serious money management strategies and splurged on senseless luxuries.
More at https://www.prolificcrap.com/single...e-harshly-unforgiving-SG-business-environment
When you are small, being supremely pessimistic might just see your business endure another day properly. But you say you want to achieve so much more; you want your baby to evolve into a juggernaut, to become the next Uber or Alibaba Group. Hey Peter Pan (or Daisy Duck or whatever your name is), dream those lofty ambitions when you are tucked in bed at night yeah? Until some angel investor comes knocking (more often than not and your grey matter knows it), time to stay really grounded in reality and start learning to be a world-champion penny pincher. Here's how:
1. Don't bite off more than you can chew
For starters, secure the minimal amount of resources needed to keep your business afloat. Do not rent more space than you need, do not purchase excessive quantities of stock. Any scaling up should be done with utmost care and thorough market research. Get ahead of yourself, you might just end up shedding enormous tears of grief when you get hounded by the landlord and a whole assortment of vendors for not being able to keep up with payment schedules.
2. Save, save and save some more
Not just for a rainy day, but also a possible massive thunderstorm. Anticipate dismal earnings associated with extremely lull trading periods, produce revenue forecasts and accumulate reserves to weather roller-coasters in consumer sentiment and seasonal influx of competitors. If you don't require a car to get to work, settle for public transport. If wholemeal bread, a hard boiled egg and plain water accounts for sufficient nourishment, so be it. An entire universe of enterprises have gone six feet under in their infancy stages because they were helmed by folks who didn't pursue serious money management strategies and splurged on senseless luxuries.
More at https://www.prolificcrap.com/single...e-harshly-unforgiving-SG-business-environment
