Getting a business off the ground is a lot of hard work. It takes months — probably even years — of careful planning, strategizing, outsourcing, and continuous studying of market trends. What’s even harder is if you take your startup abroad. Who in their right mind would do something as risky as that?
Well, apparently, there are a lot more courageous folks who are willing to take the risks of scaling their startup business on foreign soil. Let’s take TWG Tea, a famous luxury tea brand, as an example. Many people think that it had its beginnings in Europe, but it’s actually a Singapore brand that branched throughout the world. Another example is Breadtalk, a popular Japanese-inspired boutique bakery that started in Singapore 14 years ago. This bakery has been on a roll, establishing massive chains around the world.
If you think about it, while there are a lot of Singaporean brands and establishments that are making waves worldwide, there are also several advantages to bringing or starting a business in Singapore. Depending on the type of business you run, you probably won’t need to build a shop or an office or buy a truck for business use. You can just look for a space to lease and do the same thing vehicle-wise with truck leasing. And then there’s also the matter of taxes. Certain countries grant foreign businesses some tax breaks and exemptions.
Here are a few other indicators that you can consider when choosing a country to bring your business to.
5 Economic Indicators
1. Gross Domestic Product
A country’s gross domestic product, or GDP, is the final market value of all goods and services produced within the geographic boundaries of a country within a specific period, normally within a year. This is an important indicator because it represents the economic health of a nation.
2. Consumer Price Index
A consumer price index, or CPI, keeps track of the changes in prices of goods and services that households consume in a country. It is often used as an inflation gauge that affects the local currency which in turn indicates how expensive it will be for you to make an investment there.
3. PMI Manufacturing and Services
The PMI tells you how well businesses are doing in a country. It shows the health of a country’s manufacturing sector in a given time frame.
4. Employment Indicators
Among all the indicators, this one is probably the most important and the one you would want to keep a close eye on. This shows the employment rate in a country which directly affects all aspects of trade and commerce which in turn gives you an idea of whether a certain country is good or bad for your business.
5. Central Bank Minutes
A country’s central bank is responsible for directing its financial policies in a financial year. These policies are what will govern the country’s economy. Having an idea of what the policy is by reading the central bank minutes will help you make well-informed decisions regarding your business.
5 Reasons Why Singapore is a Great Place for Business
1. The connectivity brought about by its strategic location
Due to its location in the heart of Southeast Asia, Singapore is a strategic position for western and eastern companies to establish businesses in. It is in close proximity to India and China and is just across the Pacific from the U.S. It’s Changi International Airport flies people to and from 330 different locations worldwide. Its ports, deemed as one of the best in Asia, connects to 600 different ports in 123 countries.
2. The nurturing and business-friendly environment
Singapore is one of the most advanced and countries not just in Southeast Asia but in the whole world. It’s highly developed free-market economy has allowed startups to thrive and become successful with initiatives such as Startup SG.
3. The extensive trade agreements and tax structures
Another thing that makes SG one of the best places to bring your startup to is its extensive free trade agreements with at least 25 economies. These agreements are aimed at doing business and trade across borders easier between parties and minimizing tax barriers making it one of the most desirable places to incorporate a company.
4. The strong political environment making it safe for investors and businesses
Within Southeast Asia, Singapore enjoys the most stable political environment which gives foreign investors and business people greater confidence in bringing their business there. The political climate gives everyone a stronger sense of comfort and security which has benefited the country in the form of some of the best multinationals investing in the tiny city-state.
5. The highly competent local talents
Singapore’s workforce has consistently ranked high when it comes to productivity and general overall attitude. Highly-effective company policies, very favorable living conditions, and conducive work environments keep employees highly motivated. Their local workforce is the product of outstanding educational policies and continuous training programs.
When deciding whether to bring your business abroad, whether it’s Singapore or someplace else, make sure you study the places you are considering before pulling the trigger. While there are certain risks in business, there’s no need to be foolhardy. Give it plenty of thought before you decide.