Tips On Starting A Small Business In Malaysia
Wanting to get your business off on the right foot but you are absolutely clueless as to how it should be done? Below is some consideration you will need to factor in before starting your business. Hopefully, it helps!
Do you have a business plan?
By putting down all your thoughts, be it a realistic or unrealistic business plan (regardless of whether it is a short-term or long-term business plan):
- You will get a rough idea (i.e. able to visualize) of where your business is heading to within the foreseeable future;
- You can determine if (in the foreseeable future) your business is sustainable with your current plan and subsequently;
- You will get an indication of what ideas need to be changed/ amended/ scrapped for you to launch your business.
Here are some of the factors you can consider when drafting a business plan:
- Does your business require you to have any special set of skills?
- Where are you getting your initial fund for your business?
- How much do you need to sustain yourself on a short-term/ long-term basis?
- What is your business idea?
- Have you done the appropriate market research?
- What is your marketing strategy like?
Have you planned out your finances?
Let’s face it: unless you have an excess of money in which you can afford to work at a loss, you would want to have a healthy cash flow at the end of each month, as:
- You are actually paying yourself for all the hard work and hours you poured into your business; and
- You have spare cash to utilize should any emergencies arise.
Therefore, it is always prudent to make sure your expenses, i.e. your initial setup and the cost of maintaining your business, are well within your means/ budget.
Some expenses that you have to consider (not an exhaustive list):
- Internet service providers;
- Cost of hiring employees (if you need the extra manpower to assist you in the business);
- Rental of the location/ cost of purchasing the location;
- Managing cost.
As always, plan!
Have you chosen a business name?
Make sure your name is unique, not obnoxious, and differs from that of your competitors, as:
- It will leave an imprint (be it good or bad) on the general market as a whole.;
- It will affect your brand name, marketing strategy, and brand identity.
While it is at times hard to come up with, a good name will carry your business a long way, even if you are not the one handling the bulk of its operation.
Have you found a suitable location?
Your business location is crucial to any business that requires a physical premise, as a bad business location could potentially kill off the business even before the business can even take off.
For example, you would not want to set up a grocery store that is miles away from any civilization (you get the point).
This means you will have to scout the location where you intend to plant your premise/ branches and research on it before committing to having your premise located there. Therefore, do consider some of the points below when you are scouting for your location:
- Flow of traffic
- Ease of access/ finding
- The convenience of facilities and available amenities
Do you know the laws?
The laws in Malaysia make it very clear that “ignorance of the law is no excuse”. Simply put, what you do not know will kill you!
In a business context, not only do you have a multitude of laws and regulations you have to comply with before you can start your business, you will also have laws that you need to contend with whilst remaining in operation and even when you plan to cease your business.
Therefore (we cannot emphasize this more), KNOW your law, or else you could potentially land yourself in hot soup.
Have you checked whether you can apply for a business grant?
Below are some examples of available grants that the Malaysian government has provided to assist with small businesses. Do check them out:
- Bioeconomy Transformation Programme by Malaysian Biotechnology Corporation;
- Business Growth Funds by Malaysian Technology Development Corporation Sdn Bhd;
- Cradle Investment Program Catalyst, Cradle Investment Programme 300, and Cradle Seed Ventures Fund 1 by Cradle Fund Sdn Bhd;
- Creative Industry Development Fund by Suruhanjaya CommunicAsia dan Multimedia Malaysia.
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.
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