Food stalls in Singapore.
F&B can be a highly lucrative business in Singapore. But with its fickle nature resulting in high turnover rates for many eateries, it is also a tricky industry to navigate. Here are a few important tips for those planning to enter the business.
1) Spend money to make money
The very first thing to consider is, of course, capital. High rental rates are the chief reason many F&B outlets here shut down within just months of opening. In order to avoid this, carefully plan a long-term business budget. Items to factor into your budget include: rental, hiring and training staff, marketing and advertising, renovation, interior design, utilities, kitchen equipment, potential suppliers, product pricing, and a contractor.
Be sure to also have a contingency plan; it’s impossible to predict what might go wrong, and an exit strategy is especially important when you have to answer to investors and shareholders. At the same time, ensure you have sufficient reserves in place without cutting corners. While opting for more affordable methods of advertising (online instead of print) might be a smart move, compromising on the quality of your service and food is absolutely unacceptable.
2) R&R for F&B
Not rest and relaxation, but rules and regulations. There are plenty of these to follow in order to legitimise your business so you can get it up and running. If you are Singaporean, use your Singpass to register at the Accounting and Corporate Regulatory Authorities’ (ACRA) Bizfile portal (http://bit.ly/292QoBy). If you are not a Singaporean, you are required to apply for an EntrePass (http://bit.ly/292QEka) with the Ministry of Manpower (MOM), after which you will also need to obtain a SingPass before you can continue with your application.
There are also a number of licences you need: a Food Shop Licence, Basic Food Hygiene Course licence (from the WDA) and a licence to import food (from the AVA). You will also need a Liquor Licence if you intend to sell alcoholic drinks, or a Halal Licence if you want to certify your eatery as halal.
3) Right place, reap profits
Whether it’s a home, office, retail outlet or F&B establishment, location is one of the most important factors. No matter how good your food and service, a lousy location will most likely result in losses.
If you can afford it, hiring more than one agent to help you search for good locations is the most efficient way to find the right place for your eatery. You can also search for a place on CommercialGuru (http://bit.ly/29491o0), or, if you already have a specific location in mind, contact its landlord and discuss rental.
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