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Obtaining a Company’s Financial Statements in Singapore

Obtaining a Company’s Financial Statements in Singapore

Why are financial statements vital information for investors?

A company’s financial statements give a good picture of a business’s economic accomplishments and a scope of what to expect in the future of their standing within their industry. 

“A company’s financial conditions are of major concern to investors and creditors. As sources of finance for your company operations, investors and creditors rely on financial reports to gauge conditions for both the safety and profitability of their investments,” says Way, investment writer for chron.com

Financial statements provide critical indicators of success for investors or creditors considering entering into a partnership with the companies in question. 

What information should investors focus on?

A business’ financial statement is akin to a school report card. It lists pertinent information on how well or poorly a company is doing. But when scrutinizing a financial statement, it’s essential to pay special attention to the following details:

Sales

All earnings made by the company you’re investigating will be the most crucial piece of information you consider. Sales data lets your know whether a company is in growth or decline, making it essential to determine its worth as an investor.  

To determine if the business in question sees an upward trend, “—you need to add up the data in each of the past four quarters, as well as the same quarter in the previous period, to calculate the change,” says Matt Krantz of USA Today

Debt load

A company’s ability to cover expenses and meet payroll during slow periods is just one reason investors should look at a company’s debt load. But most importantly, if a business were to go out of business, equity holders will be left behind as debt holders get preference for getting their money back on leftover balances. 

Examine said company’s income statement and balance sheet to determine if there’s ample cash flow to cover a company’s debt payments and to identify any other potential problems a company may face in the future. 

Trends in Cash flow

For an investor, seeing leftover cash in the bank on a financial statement is encouraging. It is a good sign that, should unexpected obstacles arise, the business is covered on the financial end. It’s also reassuring to see that if a fresh new earning opportunity were to come up, this business has ample funds to jump right in and boost its cash flow tenfold. 

“Cash is money in hand, not the result of accounting measurements and judgment calls, as is the case with earnings and net income. When a company’s net income is much higher than cash flow, investors want to be aware and find out why,” adds Krantz. 

Customer Acquisition Cost

Customer acquisition cost describes how much money it takes to onboard a brand new customer. This number can vary greatly depending on whether the business you’re inquiring about is a newcomer to the scene versus a seasoned player. New companies tend to have more new customers, while established companies tend to balance new and repeat customers more. 

A method for figuring out customer acquisition cost is to divide the amount spent on marketing by their number of new customers. This is a critical component of a promising investment venture, as a company whose product may seem profitable in production may be a hard sell out in the market. 

Dennis Najjar of The Balance Small Business mentions, “This problem can occur with super-niche areas where it’s hard to spread the word about your product or in hyper-competitive areas where advertising competition is fierce.” 

How do you obtain statements in Singapore?

Under the Companies Act, all businesses and branches of foreign companies based in Singapore must report their financial statements prepared according to Singapore Financial Reporting Standards. 

Each financial statement includes the following information:

  • Report of Directors and Statement by Directors
  • Independent Auditor’s Report (if applicable)
  • Statement of Comprehensive Income (Profit and Loss statement)
  • Statement of Financial Position (Balance sheet)
  • Cash Flow Statement
  • Statement of Shareholder’s Equity
  • Corresponding Notes to Financial Statements

These statements can be found on the Accounting and Regulatory Authority (ACRA) website at www.acra.gov.sg

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5 Customer Retention Strategies For Start-Up Growth

There’s a specific excitement felt by businesses seasoned or new when it comes to the acquisition of new customers. Oftentimes this “new customer smell” is so  alluring that business owners forget that not only is it cheaper on average to market to a loyal customer, it also results in greater ROI with Bellycard’s customer loyalty survey reporting, “almost 30% of SMBs estimated that 71-90% of their customers visited more than once last year.”

With the rising costs of marketing for acquisition, start-up business owners should begin prioritizing the following fail-safe customer retention strategies to secure customer loyalty — the real key to business growth in 2021 and beyond.

Customer Loyalty Programs

One of the most tried and true ways of achieving customer retention is through the use of customer loyalty programs. Having a loyalty program honors your customers that have stuck around by providing special discounts, exclusive offers, or even gifts.

Loyalty programs are a form of positive reinforcement that rewards your customers the more they shop from or engage with your brand. They’re also a small reminder that you care enough about them that you’d like to repay them for their continued support.

 

Referrals or “Evangelism”

If you’re looking for a clever way to get your loyal customers involved in the marketing process, referral programs are an excellent way to knock out your two customer retention and new customer acquisition birds with one stone.

The strategy involves offering an incentive for both your customer and the friend they invite to shop from you, typically with an exclusive discount. Take the MeUndies model, for example. An increasingly popular underwear brand, much of its growth has relied on its referral program offering returning customers $20 off their next purchase, and 20% for their friend.

 

Customer Feedback Loop

According to SuperOffice, there seems to be a gap between the 80% of companies who believe they’re delivering exceptional customer service as opposed to the 8% of customers who would agree.

An important behind-the-scenes tactic for improving customer retention rates is to actively listen to your customer feedback. Surveys are the most concrete way of opening this line of communication with your pool of customers. With surveys, you can obtain a wealth of information including data on customer behavior, or get transparent suggestions as to what shoppers are seeking in their customer experience.

Pair this with targeted emails reassuring your customers that you’re taking their constructive criticism to heart. This will help you build a solid foundation of trust.

Keep it Convenient

It’s a no-brainer to mention that keeping your customer experience as convenient as possible will keep customer loyalty at a high. This plays into obtaining that sacred data from your feedback loop.

If you can streamline your checkout processes to make the final purchase as smooth as possible, customers are going to keep coming back if only for the simplicity of the transaction. Yes, it matters that much! Many companies have turned to the mobile sphere for this, offering easy checkout right in the palm of their hands.

As counter-intuitive as it may seem, finding a way for your customers to get in and out in a flash is the way to go.

Outreach Personalization

A symptom of the email marketing craze is that customers tend to see business emails as spam as opposed to anything that offers value. However, personalizing those outreaches offers an opportunity to insert audience-appropriate personality, as well as content that coincides with their preferences and purchase history.

Econsultancy research data points to an overall higher impact ROI with these specially personalized emails, as a matter of fact.

Emails aren’t the only way to achieve this though, another effective method of personalized outreach can mean communicating with your customer base on social media channels they frequent.

Loyal customers are a sure-fire way to experience growth within your business, and keep the cash flowing so your business can stay afloat without worry. These customer retention strategies are just another fancy way of saying that you need to build trust and relationships with your customer base to truly be successful. After all, a rockstar is nothing without his fans, and that analogy rings true for businesses everywhere.

If you want to get an edge on the most state-of-the-art CRM software, or additional customer loyalty marketing strategies to make customer retention your top priority starting now, visit us over at Jenfi to see if you qualify for the funding you need!

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4 Tips for Better Small Business Networking

Love it or hate it, networking is a key attribute of successful business owners. Building the right relationships can open doors for future customers, employee hires, investors, partners, and more. However, unless you’re a natural born seller, many people do find the networking to be stressful. Learn how to boost your small business networking confidence today with these tips.

Find your own authentic story

People are captivated by stories, especially ones that are genuine and personal. Rather than saying boasting a laundry list of your accomplishments, go for story telling. These are usually the most memorable and allows you to build strong rapport with others. You should have a few personal go-to stories on hand, especially ones about your early days starting the business and the inspiration behind your idea.

Go alone

It may seem counterintuitive but having familiar faces in a networking environment stops you from moving out of your comfort zone. When you are alone, your survival instincts kick in and forces you to mingle with others. You’ll end up meeting significantly more people this way.

Help others without asking for anything in return

Most people go to networking events with the intention of finding people that can help them. Instead, go with the attitude of how can help others. Look for mutual interest and see what knowledge or resources you can offer. This allows you to have meaningful dialogue and leaves a favourable impression to those who interact with you, setting the foundation for a meaningful relationship. After all, who can forget someone that treats them well?

Follow up regularly

The initial legwork of meeting new people helps open many doors and opportunities. However, these contacts quickly go cold if you do not seek to nurture these newfounded relationships. Work on following up immediately after the event and set reminders to periodically check in on key contacts to maintain relationships. This will give you the confidence to reach out when you really need help on something.

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Bacon ipsum dolor amet prosciutto cupim strip steak boudin. Drumstick shoulder alcatra porchetta. Bacon shoulder short loin drumstick. Rump landjaeger pork loin, brisket pork sausage leberkas spare ribs beef ribs tri-tip pastrami alcatra prosciutto buffalo.

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How to Choose a Domain Name for Your Business

Choosing the right domain name for your business is extremely important as this is the online identity that customers will associate your business with, which may differ from your company’s brand name. With over 100,000 new domain names registered daily, knowing the right strategy requires careful planning. Below are some things to consider.

KISS

The age-old adage of KISS (“Keep it simple stupid”) is ever more important when it comes to domain names. Pick a domain name that is easy to spell, one that even someone who is not familiar with your brand can remember easily. Your website domain should be easy enough that a 10 year old would be able to spell it out for you.

Pro tip: Start by searching for domain names with the least number of characters. While most domain names with 4 or less letters are taken, there are still a small handful of 5 or 6 letter domains. Avoid domain names with hyphens as they are more complicated.

Use .com unless there’s an absolutely good reason not to

Despite the growing number of new domain extensions, the gold standard for domain name extension remains .com for good reason (think of the last time you went to a website of a major brand that did not use this extension). Always go for this unless there is a strong legitimate reason not to. Remember that if the .com is taken, using a different extension will make it harder for your visitors to find you as they may accidentally type in your domain but with the .com extension, ending up on that site instead!

Pro tip: If your business will only be based in Singapore and focusing on Singapore based customers, you can also consider using .com.sg extension as it may improve your search engine ranking and visibility in Singapore in certain cases. Note that you will need to be a Singapore based company registered in ACRA in order to be able to do this. You can always get both .com and .com.sg if they are available to ensure you have secured the most important extensions for yourself.

Social handles

A common oversight is not researching whether the domain name you choose has the same handle available in the relevant social media channels that you will be using. The reason this is important is that this allows you to maintain a singular name in order to communicate with your visitors and customers, regardless of channel. Don’t overlook this as the last thing you want to do is spend money registering the domain names only to find out that you cannot get any of the social media handles.

Move fast

Lastly, it is important to move quickly when you find a domain name available as it is first come first serve. If someone else has taken a domain name you like, you may want to enlist the help of a broker or domain registrar to help facilitate a deal. However, it may be much more expensive.

With these tips, you are ready to choose a domain name for your business.

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Bacon ipsum dolor amet prosciutto cupim strip steak boudin. Drumstick shoulder alcatra porchetta. Bacon shoulder short loin drumstick. Rump landjaeger pork loin, brisket pork sausage leberkas spare ribs beef ribs tri-tip pastrami alcatra prosciutto buffalo.

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Do I Need a Legal Entity for My Business?

It is getting harder and harder these days to obtain adequate capital as a small business owner. Only half of SMEs were even eligible for financing last year.

In most cases, the lack of cash flow and low annual sales volume lead to automatic disqualification for the small business loan applicant.

If your business generates less than $300,000 in revenue and you have less than a $100,000 cash balance, you may need to seek alternative financing options as your likelihood of obtaining business credit is low.

Click here for the original story from the Singapore Business Review.

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Bacon ipsum dolor amet prosciutto cupim strip steak boudin. Drumstick shoulder alcatra porchetta. Bacon shoulder short loin drumstick. Rump landjaeger pork loin, brisket pork sausage leberkas spare ribs beef ribs tri-tip pastrami alcatra prosciutto buffalo.

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