Today's little treatise is on why I have nothing to do for the next 2 months.
Starting a business in Singapore is no easy task. Especially for people of our age and means. We can't engage in any mass physical movement of merchandise, for example moving computers or other consumer goods. This takes up time that I do not have, and since I can't drive yet, I have no way of even transporting them. Also, sourcing for supply and finding a distribution channel would be a nightmare as you don't have that much capital, and not much time to sink into it. Unless you want to invest in a supplier, advertising, years of your life and a storefront now, you'll avoid this.
This limits our distribution channels to the internet. Even though you've heard much about the internet and about teenagers running international businesses from their laptops, it isn't the easiest thing to do. First, you'll have to set up a website and design it to make it look professional. I'm quite sure most of us can spot an amateur website from a professional one and decide not to trust it with our credit card details. Therefore, professional designing is needed and it isn't cheap. Or you could use sites like eBay. Creating whatever you're selling also requires time and money, and distribution through air mail isn't cheap or easy either. Besides the point, building things requires craftsmanship and tools and a place to build it, not something we all have.
This again limits our business to the easiest thing available, offering services over the internet. I have known people now who run services over the internet, and discussions of business plans invariably come back to this archetype. Whether it be services for tuition, repair, event planning or etc, the chief disadvantage of this archetype is that it is easy. Anything you can think of has already been done by others whom you'll have to compete with, and if you do find something novel, chances are someone will notice it and copy it. Constricting your market to just Singapore could be a smart move for specialization and convenience of the service, but lets face it, Singapore is a tiny market. Making money will be an uphill process involving years of brand creation. And years is what we do not have.
With all this in mind, there are a few solutions.
1. International market, high value stock, infrequent transactions.
An example would be a client asking you to build him a custom computer according to these specs. You'll source for the parts, put it together and air mail him the result. 3 figure profit, perhaps 5 times a month, and a site advertising your service and a middleman site like eBay could be used.
2. Local market, low value stock, bulk transactions.
Get a group of friends together, and spend time every week designing and making cheap items. These things could be like small gifts or cute items or arts and crafts. Can also range to high end crafts if you have the skills and tools. Advertise and distribute on the internet. By keeping supply cost low, and retail price high, you could pocket a reasonable profit. Beware of sweatshop conditions trying to fulfill demand though :D
3. Local market, high value services.
Offer a service that you have, such as photography or repair or event planning or troubleshooting skills. In other words, be a consultant. The only problem is that people won't take an 18 year old seriously, so portfolios are a must. Contacts in the field will make your job easier by introducing clients. Advertising would be mainly word of mouth and recommendations from other clients. Consider interning for someone already established in the field.
My analysis and solutions aren't perfect, but this is what I've thought of while eating dinner. With now till December loaded with Uni Apps and the HK trip and NS next year, I don't think I'll utilize any of these methods. But those who have the time or means, feel free to try and experiment and feedback. I'll like to see what happens.
