Finding the Right Business Location in Singapore
Singapore is now one of the world’s largest financial and business centers. Many foreign companies use it as a gateway to the massive Asian market. As a result, if you want to expand your business into the Asian market, Singapore will most likely be one of the best places to start. Whether you are a large Multi-National Corporation (MNC) or a new startup, Singapore will always be a top business destination.
Exploring and studying the best location for your business is part of good pre-research for your startup. But why so?
Why Your Business’s Location Is Important?
Your business location influences your income, expenses, and, in some cases, whether you’re operating legally. Even in an age when people can buy and sell via the internet and project teams can collaborate from different states and countries, your company’s success or failure is heavily influenced by its location.
So, if you’ve done your research and decided to set up a shop in Singapore, here are a few extra steps you can take to determine exactly where your startup should and can be located.
What Are the Key Considerations When Choosing a Business Location in Singapore?
Singapore provides entrepreneurs with a diverse range of location options based on their specific needs. Available locations include financial and business districts, suburban offices, industrial parks, and government-managed properties. Entrepreneurs can also set up a home office or lease a factory, retail, or commercial space. In addition, businesses in the food and beverage, manufacturing, private education, private healthcare, retail, and transportation and storage industries may be required to obtain government premise approvals.
Here are some key considerations while choosing your business location in Singapore:
Demographics
The extent to which you conduct research in this area can range from simple to complex, general to specific. When it comes to the location of your startup, you must consider not only the demographics of your target clientele but also the local demographics of the people who work, pass through, or shop at your proposed location.
There are sophisticated location analysis tools available to help you with this, such as traffic patterns and competitive analyses. These tools, of course, have a cost. However, it would be a worthwhile investment for your startup in the long run.
The Singapore government also assists startups in their search for a location. They can provide you with a comprehensive list of the types of traffic generated by the various locations based on the needs of your business.
When conducting demographic research, consider nearby establishments and the type of foot traffic they provide. Are these appropriate for your company? Do the surrounding businesses or the district itself attract your type of customer, and is it in a location where they would like to do business with you? Find out and look for a location that says “Yes” to all of those questions.
Locale’s History and Image
Singapore is well known for its thoughtful and well-planned urban planning. That being said, certain areas in Singapore have distinct personalities that reflect the businesses that occupy them. Therefore, districts have been established and are tailored to the companies that call them home.
Whether you need to be located in the heart of Singapore’s financial district in the Marina Bay Financial Centre or in a suburban office like those in Tampines, Jurong Lake District, and Paya Lebar, there are a variety of options to find a commercial ground that is suitable for your company’s requirements.
If your company is engaged in innovative and environmentally friendly industrial activities, you can obtain some government assistance. For example, Singapore has government bodies such as HDB and JTC Corporation that offer industrial land and space options to industrialists who contribute to high-value-added industrial activities in the city-state.
So, when deciding where to locate your business, consider the characteristics and style of your company and whether they match the various business districts in Singapore.
Competition
Aside from looking at your neighbors, you should also consider who your competition will be. If you haven’t decided on a location yet, consider your company’s future competitors. Look at where these businesses have established themselves. What can you learn from their locations, and would setting up a shop near them be a boon or a curse for your business? Contrary to popular belief, locating your business next to or across from the competition can be a good thing.
Many experts believe that locating near your competitors is the best option. Why? It is because the traffic they generate can be beneficial to your business. If you’re lucky, you might even be able to save money on marketing by piggybacking on their efforts. Of course, this is most applicable to shops and restaurants. It can, however, be applied to other businesses.
You may not need to spend money on location analysis if you can research your competitors and determine why they chose to locate there. Then you can decide whether those reasons match your criteria for a location. Because your competitors work in the same industry as you, their location criteria are likely to match yours.
Visibility
A well-researched and planned strategy must be used when selecting your location. This includes ensuring that your storefront is visible from major roads and landmarks and, in the case of Singapore, is easily accessible from a Mass Rail Transit (MRT) or Light Rail Transit (LRT) station. In addition, examine the map of Singapore’s train system to see if your list of potential locations is easily accessible to your target market.
Consider positioning your shop or kiosk near a popular restaurant or shopping mall. This will allow you to benefit from the consumer traffic generated by nearby establishments without having to pay exorbitant rental fees. Of course, consult the guidelines for this type of setup before you decide.
Operation Style
The appearance and feel of your business space are also important. First, you must decide what kind of business you are running with your startup. Will your operations be primarily formal, strictly business professional, or relaxed and casual? Next, your company’s location should reflect its image and style. Does your business blend in with the nearby landmarks, shops, and/or offices? Is it noticeable, or does it stand out like a sore thumb? For example, if you work in retail, do you want to open a traditional store, or will you operate from a kiosk or a booth? Will it be an indoor shop (like in a mall) or an outdoor shop?
Intellectual Property Rights Protection (IPRs)
Singapore recognizes the importance of intellectual property rights protection in supporting an innovation-driven economy. As a result, it has a comprehensive set of intellectual property legislation that is widely regarded as among the best in the world. Singapore has consistently been ranked in the World Economic Forum’s Top 5 countries for its IP protection strength.
How Can I Evaluate the Future Growth Potential of a Location?
Now that we know how to look for the perfect location to set up your business in Singapore. Let us also go through how to evaluate the growth potential for the future.
Buying a physical location for your company is a big step. Your location will serve as a physical representation of your company. So naturally, you want everything to be perfect after all of your hard work to get to this point. There are a few key factors to assess when selecting potential locations for your small business.
The Location
Let’s start with the location before we get to the building. First and foremost, is it safe? Nobody will want to visit your business if it is located in a high-crime area of town. Customers will almost certainly avoid you, and your own employees may feel unsafe. To learn more about crime rates in any area of interest, make a quick phone call to the local police department.
When you’ve determined that a location is safe, the next thing to consider is convenience. Is the structure visible from a main street? Is it near or in a high-traffic area? Is there any other reasonable business nearby that could generate some traffic? Next, locate a location that is as convenient as possible.
The Structure
Now that you know what you’re looking for in a location, let’s look at the structure itself. Begin with the appearance. Is it aligned with the image you want to project for your company? Remember that if this is your sole location, it will account for a large portion of what people think about your company. Next, inspect the building and ask numerous questions to determine its condition. If you need to make a lot of updates or changes before you can even move in, you should look elsewhere.
The Conditions
It can be challenging to say no when you’re confident you’ve found the ideal location for your company. Don’t let your enthusiasm get in the way of logic. Make sure to read through all of the terms of any agreement before signing it, whether you’re leasing or purchasing. Is the price reasonable? Are the terms acceptable? If that’s the case, make your move.
Now, we are sure selecting the right location for your business won’t be that tough, and it will benefit your business just the way you want your business to flourish.
Frequently Asked Questions: Right Business Location in Singapore
Are there any amenities or attractions in the area that could benefit my business?
Commercial property developers are increasingly allocating valuable floor space to amenities that they believe will distinguish their structures from otherwise similar structures. According to industry research, these enhancements tend to fall into one of four categories:
- Gyms and on-site training facilities are examples of fitness and health-related options.
- Game rooms, rooftop lounges, and socializing areas are examples of amenities that serve as distractions from daily routines.
- Workplaces that are adaptable and comfortable, such as open floor plans, noise control, or other technological infrastructure
- Outside, natural environments, such as green terraces or walking paths.
How can I ensure that my business will have good visibility and accessibility in a particular location?
The following are the factors that can ensure good Good visibility and accessibility in a particular location:
- Accessibility: Any location you consider should be simple to reach. Look for areas near one or more significant roads (in good condition) and easily accessible by public transportation, if available. If it makes sense for your brand, look into storefronts that are close to neighborhoods or high-rise apartments.
- Competitors: When researching a site, look for compatibility with nearby stores. The ideal location will have nearby stores with a similar target audience that sell complementary products or services to what you offer.
- Parking: Parking availability is critical for your business, except in major cities such as New York and Chicago. How many times have you decided to skip a store because there was no parking? The ratio of 3:1, or 3 square feet of parking space for 1 square foot of store, is a good guideline for retailers to follow.
What steps can I take to ensure the safety and security of my business in a new location?
Every workplace must ensure that it complies with all health and safety regulations. In addition, organizational safety and security processes can aid in the management and prevention of workplace injury, theft, and damage.
- Implement and Promote a Security System
- Examine All Exit and Entry Points
- Train all employees on a regular basis and foster a culture of safety and security.
- Workspace Security
How can I research online about the location?
Here are some general guidelines to keep in mind:
- Don’t rely solely on Internet resources.
- Before you log in, narrow down your research topic.
- Understand your subject directories and search engines.
- Keep a detailed record of the websites you visit and the services you use.
- Check all URLs you include in your paper twice.
How to check the crime rate of the location?
The crime rate of a location is publicly available data that can be accessed through the portal of the Singapore Police Force. Singapore boasts an impressively low crime rate which makes business more accessible and safer to conduct.
