The business-friendly environment and strategic position of Singapore make it a global hub for business. This also makes the city-state a good place to start a delivery business as Southeast Asia is set to become a major player in the e-commerce industry.
But setting up a delivery business in Singapore requires a lot of planning, especially with the pandemic continuing to affect the country. Due to this, entrepreneurs need to consider the following tips if they plan to start a delivery business in Singapore.
Create a Business Plan
Like all types of businesses, setting up a delivery business starts with a business plan. A business plan allows entrepreneurs to attract foreign investors who want to enter the market in Singapore. To increase the business’s appeal to investors, the business plan should include a description of the business, an organizational chart, financial projections, the services it offers, and an analysis of its market.
Analyzing the market allows entrepreneurs to know existing competitors in the market. The business should also have a list of services it will offer in the market. And its financial projections should consider the market’s current situation after the pandemic caused retail sales to go down.
The business plan should also include a marketing strategy that shows the business how it can connect with its clients. To ensure the proper implementation of the strategy, the business should have a separate department to handle its marketing activities. Working with an experienced and knowledgeable marketing agency is another option.
Prepare All the Assets Ahead of Time
Entrepreneurs should also prepare all the assets that the business needs when it starts operating. They should practice due diligence when acquiring these assets to avoid setting aside funds for assets that will remain unused for a long time.
These assets include a warehouse where the delivery business can store items before delivering them to individual clients. Setting up the office in the warehouse allows the business to reduce rental expenses. The business should also set aside a budget for an inventory system, tracking software, and mobile apps. Setting up a website will make it easier for the business to connect with its clients.
Entrepreneurs should look for reliable suppliers of used trucks in the city-state. The supplier should offer several vehicles that the business can choose from. The product lineup should include box-type, open deck, and canopy-style vehicles. This allows the business to choose the vehicles suitable for its needs.
Work on All the Licenses and Permits Required for the Business
Even if some businesses do not require a permit, it’s always a good idea to check with the authorities. This is particularly true if the delivery business will grow and diversify. Businesses should also register with the Accounting and Corporate Regulatory Authority (ACRA) unless they are exempted.
Delivery businesses that offer courier services should also get authorization from the Infocomm Media Development Authority (IMDA). They can apply for a license as a postal service operator or an express letter service provider. To get the authorization, the business should provide a three-year business plan and all supporting documents.
Businesses should also register all the vehicles they will use with the Land Transport Authority (LTA). Businesses should also get valid passes or work visas from Singapore’s Ministry of Manpower (MOM) if they plan to employ foreign workers.
It’s also necessary for the business to register with the customs authorities if its services involve export and import activities.
Get Business Insurance
Delivery businesses should also get business insurance since they handle their client’s products. Getting insured reduces the business’s liability in case something happens to the shipment. Insurance also increases the confidence level of potential clients of the business.
But businesses should make sure to get the right insurance to protect the products of their clients from accidents, theft, and other unforeseen events. It should also provide insurance for its workers to cover any liability if accidents happen while working.
Take Advantage of the Location of Singapore in Southeast Asia
Many businesses set up their regional headquarters in the city-state, demonstrating its strategic importance for these global companies. And with around 87 percent of the total population already vaccinated, Singapore will restart its economy soon. This will allow businesses to benefit from its strategic location. Starting a delivery business in Singapore allows entrepreneurs to benefit from the same strategic location and increase their chances of growing in the future.
Entrepreneurs should prepare when starting a delivery business in Singapore to get a head start once the economy recovers from the pandemic.