Both cash flow and profit are essential to all businesses, regardless of size. Even though most people use them synonymously, they are entirely different entities. Business owners need to understand the difference between both metrics to optimize their business’s financial health and performance.
Before investors invest money into a startup, they study the company’s cash flow and profit to determine if it is a sound long-term investment or a place they can make passive income in the short term. These metrics also guide business owners when they make critical business decisions.
What Is Cash Flow?
Cash flow is the movement of cash in and out of a business at any time. For a business to operate optimally, it needs to spend money. These expenses usually include running costs, taxes, inventory purchases, employee wages, rent, office lease payments, loan repayments, and so on. Businesses are built to make money, so cash is expected to come in if the company runs as expected.
When a business receives more money than it spends, that is positive cash flow. If it spends more than it receives, that is negative cash flow. Cash flow management is needed for small businesses to survive. If not, they will spend their way into bankruptcy. There are three types of cash flow;
1. Operating Cash Flow
This is the net cash inflow from everyday business activities. This metric should stay positive to keep a small business growing.
2. Investing Cash Flow
This is the net cash flow generated from a business’s investment activities. This usually includes property investments, vehicle purchases, asset sales, and stock market investments. Cash outflow should be positive for a small business that actively invests revenue back into the business.
3. Financing Cash Flow
This is the cash flow between a business, its creditors, investors, and owners. It is used to offset debts, pay royalties, and dividends.
What Is Profit?
Profit is the cash that remains after a business has deducted its expenses from its total revenue. The profits of a small business are usually given to the business owner and shareholders or put back into the company. A business’s tax is calculated based on its profits, not revenue.
Similar to cash flow, profits can either be positive or negative. If negative, the company is losing money by spending more overall than they make. If positive, then it is making more than it spends. There are three types of profits:
1. Gross Profit
This is the profit a business realizes after deducting the cost of producing the goods sold to generate its revenue.
2. Operating Profit
This is the profit a business gets from its regular operations. Money spent on tax, loan repayments, rent, and income from areas outside the core business is not accounted for here.
3. Net Profit
This is all the profit realized after all the expenses have been subtracted from all the income.
Endnote
Cash flow is different from profit because cash flow does not give a clear picture of the overall financial health of a business. However, it is necessary to provide cash that would be spent on day-to-day operations, wages, and so on. On the other hand, profit is the primary goal of a business. It is not always represented by cash.
An increase in asset and property value also counts as profit. It is hard to say which of the two is more important because every business has different circumstances. Regardless, small businesses must maintain healthy cash flow to keep them running and ensure they make a profit to stay operational long-term.
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You have been saving for a long period of time and you decided to try out stock investing but you just know some basics about stock trading. The first step before picking a stock to invest in is research.
Researching a company to understand its business operations is a good start. This is critical because if you do not know how a company generates money, it is difficult to track the performance of your investment.
There are a number of questions to answer before you put faith in a company and here are three of them:
Do the company’s profits generally grow over time?
If the answer is yes, then this is a good sign that the company is doing something right. Companies that show positive earnings growth tend to have financial and operational stability. You should regularly check the company’s financials to examine whether the growth in revenue and earnings are positive or negative.
It’s a challenge to look for very specific data, interpret it, and then come to a conclusion. Imagine yourself trying to deal with financial reports, digging out for more information, trying to find trustworthy and accurate sources, and deciding if the data is valid or not.
What is the company’s relative strength in its peer group?
When investing, the industry a company operates in can be a crucial screener. The initial point to start would be to look at how an industry is represented in the market and what growth potential is likely in that space.
What is its share in the market? Is there a competitive advantage that allows to company to stand out?
To make a fair comparison, list up the players (competitors) of the same size (market capitalization) and compare their profitability and stock performances over a period to figure out how they stack up next to each other.
Price-Earnings (P/E) Ratio
P/E is the ratio of valuing a company that measures its current market capitalization relative to its trailing earnings. In short, this valuation metric shows how well a price of a stock reflects the earnings of the company.
When conducting fundamental analysis and value investment strategies, the P/ E ratio is one of the metrics that show whether a stock is overvalued or undervalued by the market. The rate is a key indicator to compare companies in the same industry. A company with a lower P/E ratio is not valued as highly as one with a higher P/E ratio in the market. As a conscious investor, it is your task to determine whether the stock deserves a lower valuation or whether the market is undervaluing it- which could make it a good stock pick.
Conclusion
Whether you are a beginner or a senior in stock investment and company research, EquityRT Financial Market Analysis and Research platform addresses the need for information and analysis that investors seek for.
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New technology, including devices such as smart TVs, has opened a world of possibilities. Do you want to embrace new opportunities for the betterment of your business? Then you’ll have to keep up with the latest ways to advertise—including automatic content recognition, or ACR for short. So, what does automatic content recognition mean? And how can it be an advantage for your business advertising? Read on to learn more.
Why Use Smart TVs?
Most homeowners these days have upgraded their TVs, especially in the age of content streaming. In the year from 2018 to 2019 alone, ownership of smart TVs went up about 10 percent. With more and more smart TVs in homes, this makes automatic content recognition great for reaching many consumers.
What Is Automatic Content Recognition?
If you’ve never heard the term automatic content recognition before, you’re not alone. While it’s been around for some time, widespread awareness is just beginning.
Automatic content recognition is built into many smart TVs. While it’s not in all of them, more and more ACR-enabled smart TVs are being put out on the market. Most smart TVs, including from popular brands such as Samsung and Vizio, are likely to be ACR enabled.
Two types of automatic content recognition are used to track and provide the data advertisers want. They are broken into audio-based and visual-based ACR. These two categories are also known as acoustic and video fingerprinting.
Audio-based ACR and visual-based ACR essentially provide a way to see and hear what an individual is playing on their smart TV.
The audio signal can come from a tune, song, or frequency, while a video signal can be short clips or stills.
How Does ACR Work?
The process starts when an audio and/or visual signal is captured by the smart TV. This signal is just a snippet instead of a whole program. Once the signal is captured, it’s time to find its match. This is achieved through a wide reference library, which includes existing content snippets from all sorts of television programs, movies, and ads. Once a match is made, the content is identified and recognized.
This isn’t limited to live TV viewing either. ACR also works with on-demand viewing, video games, and devices plugged into an ACR-enabled smart TV, such as a Blu-ray player.
What Data Is Gathered Through ACR?
ACR shows a lot of helpful information to advertisers.
To start, it can determine on what platform an ad was played, such as live TV, video on demand, or a connected device.
Another type of information gained through ACR is the demographic of the viewer, including their IP addresses, email addresses, and/or street addresses.
This data can show the viewing habits of the smart TV’s owner, such as the times they watch their devices, how much or how little they channel surf, the type of content they watch, if they view ads and/or content in their entirety or skip or don’t finish viewing, or how long they typically watch a smart TV for.
As you can see, ACR data gives a good picture of individual smart TV viewers. So how can you use that to your business’s advantage?
How Can Businesses Use ACR Data to Find the Right People?
Automatic content recognition is another evolution of the targeted-based approach to advertising that has become very popular in recent years. The data gathered is very helpful for targeting specific groups.
The improved targeting of ACR takes into consideration things like viewing timeframes and the media watched. This is one of the ways it helps you target very specific groups.
ACR allows for frequency optimization, which ensures ads are shown at the best times and rates. Your business’s ads will reach as many viewers as possible.
Another way ACR allows your business’s ads to be viewed by more specific—and ideally targeted—groups is through reach control. Do you want to reach different people this time? The control allows you to skip households you’ve already targeted. Or are you interested in getting your ads across to loyal customers? Reach control helps with that too.
ACR data also helps measure viewership and ad performance. This includes measuring the overlap between who saw the ad while watching live TV versus streaming. It can also target ads to viewers when they’re on other devices, such as a laptop or smartphone, instead of their smart TV.
ACR data can even make sure an individual only sees the ads a certain number of times a week. That way, they’re aware of your business but not so oversaturated with ads that they refuse to consider you because they’re annoyed.
You can also work the data you’ve received from ACR into your actual ad campaigns—yet another targeting method.
Put simply, by taking advantage of this technology, ads for your business will be seen by the type of people who would buy what you’re selling.
Why Should a Business Owner Trust ACR’s Effectiveness?
The proof of ACR’s success in advertising doesn’t lie. Businesses have found that, in addition to driving up online traffic, ACR also brings new customers in-store or on location.
Technology is ever-evolving at a faster and faster rate. Sometimes, advertisers can tell when certain developments are no more than a passing trend. However, many advertising and marketing agencies have reshaped their approaches based on the success of ACR.
By using the helpful data received by ACR, marketers for your business can make better, more informed decisions about TV advertisements. It’s proved to be precise and accurate. So why not try it and see how well your business’ ads can reach the right people? Turn to us at Digital Marketing Group. We’ll devise the perfect strategy so you can start reaping the benefits of ACR.
We make it our mission to keep up with the latest developments in technology and digital media. This includes automatic content recognition, the metaverse, and so much more. When you work with us to market your business, you can trust you’re getting a head start. We’ll help you reach an audience you may not have known was possible. Find more information about Digital Marketing Group on our website.
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Few countries can claim to be as business-friendly as Singapore, especially when it comes to tech startups. With the city-state having almost nonexistent corruption, high political stability, and world-leading innovation ecosystem, startups could hardly find a better country to base their operations.
That said, there are still plenty of things startup founders need to consider when setting up a business in Singapore. Here are just 6 of the decisions you’ll need to make that will directly impact your startup’s success in the country.
1. Your Business Structure
When locating your enterprise in Singapore, one of the first things to consider is the company structure you want to adopt. The Singapore Economic Development Board (EDB) offers guidelines for foreign investors opening a company in Singapore.
Startups generally have the following options for their corporate structure:
Sole proprietorship
Partnership
Limited partnership
Limited liability partnership
Public or private company
Variable capital company
Each of these business types carries its own funding structures, requirements, and liabilities. You may want to explore the website of the Singapore Accounting and Corporate Regulatory Authority (ACRA) to learn more about the nature of these different business structures, including the licensing requirements of each.
2. Extent of Presence in Singapore
If you do not want your startup to be headquartered in Singapore, you do have other options, including setting up a local office. While this may keep your startup from enjoying a full range of benefits from locating in Singapore, it can be a good way to test the local market.
Another option is to set up a representative office. This will allow your startup to have a presence in Singapore, with the drawback of being unable to solicit business or raise funds.
If you are already established elsewhere, there is an option to transfer your foreign-based startup’s registration to Singapore in an increasingly popular process called “inward re-domiciliation”. This effectively turns your foreign startup into a Singapore-based entity. There are some caveats, but notably, inward re-domiciliation does not affect the obligations, liabilities, or property rights of foreign startups.
3. Visa and Residency Options for Staff
If you are planning to locate non-Singaporean employees in the country, you will want to consider the visa and residency options available to them.
Singapore offers special visas and passes to foreign investors, entrepreneurs, and technical experts that are intended to encourage their entry into the country. Exceptional tech experts and entrepreneurs with a proven track record may apply for the EntrePass, a special pass specifically intended to attract the world’s best minds in tech by offering them simplified access as well as support and funding.
Entrepreneurs and qualified tech experts also have the option to apply for Singapore Permanent Residence (PR) under the Global Investor Programme, popularly known as the Tech.Pass visa programme. Other experienced professionals may apply for a Personalised Employment Pass (PEP).
For other staff members, there are generally two basic options. Skilled foreign workers may qualify for the Employment Pass. Semi-skilled foreign workers such as domestic helpers may obtain a Work Permit.
4. Which Government Incentives to Use
The Singaporean government is widely considered to be remarkably hands-off when it comes to businesses. But that is not exactly true. The Economic Development Board and other Singaporean government organizations offer a wide range of incentives for businesses. Most of these incentives are aimed at businesses engaged in industries deemed strategic for the country’s long-term growth.
Thankfully, virtually all startups qualify for some kind of government incentive. For example, qualified tech startups may be able to benefit from the Tech@SG programme as well as the Tech.Pass visa programme. Most startups may also benefit from grants and incentives related to carbon emissions reduction, the use of domestic financial services, and the application of emerging technologies.
There may be some trade-offs when opting in for some incentives, so it’s important to discuss matters with a qualified legal expert before committing to any specific government grant or scheme.
5. Legal and Tax Compliance
The country has a rather reasonable corporate income tax rate, which is fixed at 17% for all Singapore-based companies, including tax residents, non-tax residents, and components of foreign businesses that are based in Singapore.
It’s worth noting that startups are eligible for various tax exemptions, including ones that may be based primarily in other countries. For this reason, it’s important to hire qualified legal corporate tax and law experts when you build your startup in Singapore. While the professional fees may add up, you may be losing out so much more if you do not apply for the different tax exemptions available to startups.
6. Your Singapore Team
The business culture in Singapore, while exceedingly vibrant and accommodating, is still fundamentally rooted in Asian values. Westerners often assume, because Singapore is a successful and wealthy English-speaking capitalist society, that all locals share common Western values such as individualism. This is definitely not the case.
Sticking with such assumptions often set up foreign startup founders for failure, as they may find it difficult to make headway in Singapore if they maintain a west-facing attitude. Growing a startup or any other venture in Singapore successfully often means doing away with all your assumptions about the country.
If you’re going to be doing business within Singapore, it’s important to hire people who can navigate the ins and outs of the country’s culture. This means that you will want to consider hiring locals or expats who have experience handling business matters in Singapore. This is especially important for sales teams and administrators, as they will be facing locals regularly.
By being deliberate with your business structure, hiring decisions, incentive choices, and legal compliance, you will not only maximise your startup’s odds of success in Singapore. And by succeeding in Singapore, you’ll also give your startup a fair shot at achieving a truly global presence as well.
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Choosing the right bank to help manage your finances can be difficult. With so many local and national bank chains, the options from which to choose can be seemingly endless. However, with just a few simple steps, you can be much closer to choosing the right bank for you.
Step 1: Decide What Account Type(s) You Need
The first thing you should decide is what type of accounts you need. Perhaps you simply need a checking account for depositing your paychecks or a savings account to start building your emergency fund. If this is the case, then you can be sure almost any bank you choose will meet your needs.
However, if you are looking for more advanced options such as credit card lines, personal loans and wealth management, you will find your pool of options begins to get smaller.
Step 2: Find Banks Local to You
While online banking largely eliminates the need to regularly visit the bank in person, it may still be important to visit the bank directly on certain occasions, and depending on where you are located, certain chains may be more or less available. For example, if located in Massachusetts, Kevin Cohee OneUnited Bank could be a great option, but if you are in North Carolina, Well’s Fargo may be more readily accessible.
It is important to note that it is possible to maintain accounts without a local branch, so if you do not care to have a face-to-face option, then finding local banks may not be a priority for you.
Step 3: Consider the Benefits
Depending on the accounts you choose to open, you may enjoy any number of complimentary benefits. Two of the most popular benefits to look for in choosing a bank are access to a mobile app and not having to pay an annual fee.
Large chains such as PNC or Kevin Cohee OneUnited Bank will offer instant access to all your banking needs, but smaller, local banks may not. In addition, many banks may charge an annual fee to bank with them or may charge a fee for low balances or over-drafting your account. Look for banks that take measures to help you avoid these fees with features such as offering free, customizable account alerts.
At the end of the day, there is no perfect bank, and there is not just one bank that will work for you. So consider these steps to help you make an informed decision, but know that you can always change banks if you find the bank you initially choose ends up not being right for you.
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Small Business Guide: Is Cash Flow Different From Profit?
/in Managing Your Finances/by StrategyDrivenBefore investors invest money into a startup, they study the company’s cash flow and profit to determine if it is a sound long-term investment or a place they can make passive income in the short term. These metrics also guide business owners when they make critical business decisions.
What Is Cash Flow?
Cash flow is the movement of cash in and out of a business at any time. For a business to operate optimally, it needs to spend money. These expenses usually include running costs, taxes, inventory purchases, employee wages, rent, office lease payments, loan repayments, and so on. Businesses are built to make money, so cash is expected to come in if the company runs as expected.
When a business receives more money than it spends, that is positive cash flow. If it spends more than it receives, that is negative cash flow. Cash flow management is needed for small businesses to survive. If not, they will spend their way into bankruptcy. There are three types of cash flow;
1. Operating Cash Flow
This is the net cash inflow from everyday business activities. This metric should stay positive to keep a small business growing.
2. Investing Cash Flow
This is the net cash flow generated from a business’s investment activities. This usually includes property investments, vehicle purchases, asset sales, and stock market investments. Cash outflow should be positive for a small business that actively invests revenue back into the business.
3. Financing Cash Flow
This is the cash flow between a business, its creditors, investors, and owners. It is used to offset debts, pay royalties, and dividends.
What Is Profit?
Profit is the cash that remains after a business has deducted its expenses from its total revenue. The profits of a small business are usually given to the business owner and shareholders or put back into the company. A business’s tax is calculated based on its profits, not revenue.
Similar to cash flow, profits can either be positive or negative. If negative, the company is losing money by spending more overall than they make. If positive, then it is making more than it spends. There are three types of profits:
1. Gross Profit
This is the profit a business realizes after deducting the cost of producing the goods sold to generate its revenue.
2. Operating Profit
This is the profit a business gets from its regular operations. Money spent on tax, loan repayments, rent, and income from areas outside the core business is not accounted for here.
3. Net Profit
This is all the profit realized after all the expenses have been subtracted from all the income.
Endnote
Cash flow is different from profit because cash flow does not give a clear picture of the overall financial health of a business. However, it is necessary to provide cash that would be spent on day-to-day operations, wages, and so on. On the other hand, profit is the primary goal of a business. It is not always represented by cash.
An increase in asset and property value also counts as profit. It is hard to say which of the two is more important because every business has different circumstances. Regardless, small businesses must maintain healthy cash flow to keep them running and ensure they make a profit to stay operational long-term.
How to Pick Stocks For Beginner Investors
/in Practices for Professionals/by StrategyDrivenResearching a company to understand its business operations is a good start. This is critical because if you do not know how a company generates money, it is difficult to track the performance of your investment.
There are a number of questions to answer before you put faith in a company and here are three of them:
Do the company’s profits generally grow over time?
If the answer is yes, then this is a good sign that the company is doing something right. Companies that show positive earnings growth tend to have financial and operational stability. You should regularly check the company’s financials to examine whether the growth in revenue and earnings are positive or negative.
It’s a challenge to look for very specific data, interpret it, and then come to a conclusion. Imagine yourself trying to deal with financial reports, digging out for more information, trying to find trustworthy and accurate sources, and deciding if the data is valid or not.
What is the company’s relative strength in its peer group?
When investing, the industry a company operates in can be a crucial screener. The initial point to start would be to look at how an industry is represented in the market and what growth potential is likely in that space.
What is its share in the market? Is there a competitive advantage that allows to company to stand out?
To make a fair comparison, list up the players (competitors) of the same size (market capitalization) and compare their profitability and stock performances over a period to figure out how they stack up next to each other.
Price-Earnings (P/E) Ratio
P/E is the ratio of valuing a company that measures its current market capitalization relative to its trailing earnings. In short, this valuation metric shows how well a price of a stock reflects the earnings of the company.
When conducting fundamental analysis and value investment strategies, the P/ E ratio is one of the metrics that show whether a stock is overvalued or undervalued by the market. The rate is a key indicator to compare companies in the same industry. A company with a lower P/E ratio is not valued as highly as one with a higher P/E ratio in the market. As a conscious investor, it is your task to determine whether the stock deserves a lower valuation or whether the market is undervaluing it- which could make it a good stock pick.
Conclusion
Whether you are a beginner or a senior in stock investment and company research, EquityRT Financial Market Analysis and Research platform addresses the need for information and analysis that investors seek for.
How Does a Smart TV Get Ads to the Right People
/in Online Marketing and Website Development/by StrategyDrivenWhy Use Smart TVs?
Most homeowners these days have upgraded their TVs, especially in the age of content streaming. In the year from 2018 to 2019 alone, ownership of smart TVs went up about 10 percent. With more and more smart TVs in homes, this makes automatic content recognition great for reaching many consumers.
What Is Automatic Content Recognition?
If you’ve never heard the term automatic content recognition before, you’re not alone. While it’s been around for some time, widespread awareness is just beginning.
Automatic content recognition is built into many smart TVs. While it’s not in all of them, more and more ACR-enabled smart TVs are being put out on the market. Most smart TVs, including from popular brands such as Samsung and Vizio, are likely to be ACR enabled.
Two types of automatic content recognition are used to track and provide the data advertisers want. They are broken into audio-based and visual-based ACR. These two categories are also known as acoustic and video fingerprinting.
Audio-based ACR and visual-based ACR essentially provide a way to see and hear what an individual is playing on their smart TV.
The audio signal can come from a tune, song, or frequency, while a video signal can be short clips or stills.
How Does ACR Work?
The process starts when an audio and/or visual signal is captured by the smart TV. This signal is just a snippet instead of a whole program. Once the signal is captured, it’s time to find its match. This is achieved through a wide reference library, which includes existing content snippets from all sorts of television programs, movies, and ads. Once a match is made, the content is identified and recognized.
This isn’t limited to live TV viewing either. ACR also works with on-demand viewing, video games, and devices plugged into an ACR-enabled smart TV, such as a Blu-ray player.
What Data Is Gathered Through ACR?
ACR shows a lot of helpful information to advertisers.
To start, it can determine on what platform an ad was played, such as live TV, video on demand, or a connected device.
Another type of information gained through ACR is the demographic of the viewer, including their IP addresses, email addresses, and/or street addresses.
This data can show the viewing habits of the smart TV’s owner, such as the times they watch their devices, how much or how little they channel surf, the type of content they watch, if they view ads and/or content in their entirety or skip or don’t finish viewing, or how long they typically watch a smart TV for.
As you can see, ACR data gives a good picture of individual smart TV viewers. So how can you use that to your business’s advantage?
How Can Businesses Use ACR Data to Find the Right People?
Automatic content recognition is another evolution of the targeted-based approach to advertising that has become very popular in recent years. The data gathered is very helpful for targeting specific groups.
The improved targeting of ACR takes into consideration things like viewing timeframes and the media watched. This is one of the ways it helps you target very specific groups.
ACR allows for frequency optimization, which ensures ads are shown at the best times and rates. Your business’s ads will reach as many viewers as possible.
Another way ACR allows your business’s ads to be viewed by more specific—and ideally targeted—groups is through reach control. Do you want to reach different people this time? The control allows you to skip households you’ve already targeted. Or are you interested in getting your ads across to loyal customers? Reach control helps with that too.
ACR data also helps measure viewership and ad performance. This includes measuring the overlap between who saw the ad while watching live TV versus streaming. It can also target ads to viewers when they’re on other devices, such as a laptop or smartphone, instead of their smart TV.
ACR data can even make sure an individual only sees the ads a certain number of times a week. That way, they’re aware of your business but not so oversaturated with ads that they refuse to consider you because they’re annoyed.
You can also work the data you’ve received from ACR into your actual ad campaigns—yet another targeting method.
Put simply, by taking advantage of this technology, ads for your business will be seen by the type of people who would buy what you’re selling.
Why Should a Business Owner Trust ACR’s Effectiveness?
The proof of ACR’s success in advertising doesn’t lie. Businesses have found that, in addition to driving up online traffic, ACR also brings new customers in-store or on location.
Technology is ever-evolving at a faster and faster rate. Sometimes, advertisers can tell when certain developments are no more than a passing trend. However, many advertising and marketing agencies have reshaped their approaches based on the success of ACR.
By using the helpful data received by ACR, marketers for your business can make better, more informed decisions about TV advertisements. It’s proved to be precise and accurate. So why not try it and see how well your business’ ads can reach the right people? Turn to us at Digital Marketing Group. We’ll devise the perfect strategy so you can start reaping the benefits of ACR.
We make it our mission to keep up with the latest developments in technology and digital media. This includes automatic content recognition, the metaverse, and so much more. When you work with us to market your business, you can trust you’re getting a head start. We’ll help you reach an audience you may not have known was possible. Find more information about Digital Marketing Group on our website.
6 Decisions That Could Impact the Success of Your Startup in Singapore
/in Starting Your Business/by StrategyDrivenThat said, there are still plenty of things startup founders need to consider when setting up a business in Singapore. Here are just 6 of the decisions you’ll need to make that will directly impact your startup’s success in the country.
1. Your Business Structure
When locating your enterprise in Singapore, one of the first things to consider is the company structure you want to adopt. The Singapore Economic Development Board (EDB) offers guidelines for foreign investors opening a company in Singapore.
Startups generally have the following options for their corporate structure:
Each of these business types carries its own funding structures, requirements, and liabilities. You may want to explore the website of the Singapore Accounting and Corporate Regulatory Authority (ACRA) to learn more about the nature of these different business structures, including the licensing requirements of each.
2. Extent of Presence in Singapore
If you do not want your startup to be headquartered in Singapore, you do have other options, including setting up a local office. While this may keep your startup from enjoying a full range of benefits from locating in Singapore, it can be a good way to test the local market.
Another option is to set up a representative office. This will allow your startup to have a presence in Singapore, with the drawback of being unable to solicit business or raise funds.
If you are already established elsewhere, there is an option to transfer your foreign-based startup’s registration to Singapore in an increasingly popular process called “inward re-domiciliation”. This effectively turns your foreign startup into a Singapore-based entity. There are some caveats, but notably, inward re-domiciliation does not affect the obligations, liabilities, or property rights of foreign startups.
3. Visa and Residency Options for Staff
If you are planning to locate non-Singaporean employees in the country, you will want to consider the visa and residency options available to them.
Singapore offers special visas and passes to foreign investors, entrepreneurs, and technical experts that are intended to encourage their entry into the country. Exceptional tech experts and entrepreneurs with a proven track record may apply for the EntrePass, a special pass specifically intended to attract the world’s best minds in tech by offering them simplified access as well as support and funding.
Entrepreneurs and qualified tech experts also have the option to apply for Singapore Permanent Residence (PR) under the Global Investor Programme, popularly known as the Tech.Pass visa programme. Other experienced professionals may apply for a Personalised Employment Pass (PEP).
For other staff members, there are generally two basic options. Skilled foreign workers may qualify for the Employment Pass. Semi-skilled foreign workers such as domestic helpers may obtain a Work Permit.
4. Which Government Incentives to Use
The Singaporean government is widely considered to be remarkably hands-off when it comes to businesses. But that is not exactly true. The Economic Development Board and other Singaporean government organizations offer a wide range of incentives for businesses. Most of these incentives are aimed at businesses engaged in industries deemed strategic for the country’s long-term growth.
Thankfully, virtually all startups qualify for some kind of government incentive. For example, qualified tech startups may be able to benefit from the Tech@SG programme as well as the Tech.Pass visa programme. Most startups may also benefit from grants and incentives related to carbon emissions reduction, the use of domestic financial services, and the application of emerging technologies.
There may be some trade-offs when opting in for some incentives, so it’s important to discuss matters with a qualified legal expert before committing to any specific government grant or scheme.
5. Legal and Tax Compliance
The country has a rather reasonable corporate income tax rate, which is fixed at 17% for all Singapore-based companies, including tax residents, non-tax residents, and components of foreign businesses that are based in Singapore.
It’s worth noting that startups are eligible for various tax exemptions, including ones that may be based primarily in other countries. For this reason, it’s important to hire qualified legal corporate tax and law experts when you build your startup in Singapore. While the professional fees may add up, you may be losing out so much more if you do not apply for the different tax exemptions available to startups.
6. Your Singapore Team
The business culture in Singapore, while exceedingly vibrant and accommodating, is still fundamentally rooted in Asian values. Westerners often assume, because Singapore is a successful and wealthy English-speaking capitalist society, that all locals share common Western values such as individualism. This is definitely not the case.
Sticking with such assumptions often set up foreign startup founders for failure, as they may find it difficult to make headway in Singapore if they maintain a west-facing attitude. Growing a startup or any other venture in Singapore successfully often means doing away with all your assumptions about the country.
If you’re going to be doing business within Singapore, it’s important to hire people who can navigate the ins and outs of the country’s culture. This means that you will want to consider hiring locals or expats who have experience handling business matters in Singapore. This is especially important for sales teams and administrators, as they will be facing locals regularly.
By being deliberate with your business structure, hiring decisions, incentive choices, and legal compliance, you will not only maximise your startup’s odds of success in Singapore. And by succeeding in Singapore, you’ll also give your startup a fair shot at achieving a truly global presence as well.
Choosing the Right Bank
/in Managing Your Finances/by StrategyDrivenStep 1: Decide What Account Type(s) You Need
The first thing you should decide is what type of accounts you need. Perhaps you simply need a checking account for depositing your paychecks or a savings account to start building your emergency fund. If this is the case, then you can be sure almost any bank you choose will meet your needs.
However, if you are looking for more advanced options such as credit card lines, personal loans and wealth management, you will find your pool of options begins to get smaller.
Step 2: Find Banks Local to You
While online banking largely eliminates the need to regularly visit the bank in person, it may still be important to visit the bank directly on certain occasions, and depending on where you are located, certain chains may be more or less available. For example, if located in Massachusetts, Kevin Cohee OneUnited Bank could be a great option, but if you are in North Carolina, Well’s Fargo may be more readily accessible.
It is important to note that it is possible to maintain accounts without a local branch, so if you do not care to have a face-to-face option, then finding local banks may not be a priority for you.
Step 3: Consider the Benefits
Depending on the accounts you choose to open, you may enjoy any number of complimentary benefits. Two of the most popular benefits to look for in choosing a bank are access to a mobile app and not having to pay an annual fee.
Large chains such as PNC or Kevin Cohee OneUnited Bank will offer instant access to all your banking needs, but smaller, local banks may not. In addition, many banks may charge an annual fee to bank with them or may charge a fee for low balances or over-drafting your account. Look for banks that take measures to help you avoid these fees with features such as offering free, customizable account alerts.
At the end of the day, there is no perfect bank, and there is not just one bank that will work for you. So consider these steps to help you make an informed decision, but know that you can always change banks if you find the bank you initially choose ends up not being right for you.