5 Investment Mistakes to Avoid in Singapore
As much as there are key factors that make Singapore be an ideal place for formation of Company such as first-class infrastructure and friendly tax policies; there are key things that an investor should avoid if they are to realize business growth. The government has made the process of incorporation of a company to be easy; however, there are costly mistakes that investors should be aware of and be able to avoid.
Failure to put in place a proper investment plan
Before embarking on an investment journey, ensure that you have in place a clear investment plan that clearly defines your investment goals and objectives. You should set them with a specific time frame in place. Take into consideration the requirements for the formation of Company in Singapore, determine your investment horizon, asset allocation, and any other relevant information.
Failure to put a clear investment plan in place is likely to expose your business to hurdles that you may lack the know-how to handle. If you are not sure of what to include in your investment plan, then some professional advice from professional service providers that are well versed with the business environment in Singapore can greatly help.
Failure to carry out extensive research
Lack of proper research can easily make one commit too soon without having a clear understanding of what the investment they intend to get into entails. Before you begin with the process of incorporation of Company ensure that you have a clear understanding of what the business you intend to venture in entails and is well versed with all of the necessary details. Some of the fears that you might be having can be alleviated as you carry out in-depth research and seek advice regarding your investment plan.
Lack of proper understanding of Investments
According to a survey carried out by the Manulife survey, it reported that Singapore has the highest number of investors who are in debt. Instead of choosing to invest mindlessly, one should take time to study the markets and understand the risks that are associated with the investment they are considering engaging in. Failure to do that might lead to investing in a business that fails to yield the expected returns.
Spending too much at the infancy stage
Once you have successfully incorporated your Company and attained the necessary licenses, you should take time and watch out on how you spend your capital. When you spend a lot of money at the infancy stage, there are higher chances of plunging the Company into financial turmoil later. Even as you consult other financing bodies for funding, ensure that you protect your interests, and also maintain significant control over your business.
Avoid scaling too fast
The goal of every investor, once they are through with the formation of Company, is to realize growth. However, if you begin to realize growth sooner, one can be tempted to scale too fast, but you should take time before you engage in scaling quickly to avoid some costly mistakes that might arise with such moves. The process of scaling the business should be iterative and not quite fast.
