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Should I take a job at a new SME?

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danielb
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Should I take a job at a new SME?

Postby danielb » Tue, 24 Mar 2015 5:47 pm

Hi guys.

I'm presently working under E-Pass at a SME here in Singapore that has been in the country for over 15 years. However, for a variety of reasons, I have become dissatisfied with my present company and am mulling over a job offer at a SME that is about to open at International Plaza. This SME teaches conversational English. However, my research has revealed that the survival rate for new companies in Singapore is low, although it is probably higher than many other countries. I've put a link below that contains Parliamentary testimony by the Minister for Trade and Industry stating that between 70 to 80 percent of new businesses do not survive the first year.

I stand to make a bit more money at the new company and also sometimes I am concerned for my job security at my present company due to my perceptions of their finances and disagreements I have with management. Based on the information I've given, what do you all think is the best course of action?

Referenced link: http://www.mti.gov.sg/NewsRoom/Pages/Mi ... -SMEs.aspx
Last edited by danielb on Tue, 24 Mar 2015 5:57 pm, edited 1 time in total.
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sundaymorningstaple
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Re: Taking a Job at a New SME

Postby sundaymorningstaple » Tue, 24 Mar 2015 5:54 pm

Two old quotes:

Nothing ventured, nothing gained.

No balls, no blue chips.

You cannot win the lottery unless you buy a ticket.

It's all a gamble.

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Wd40
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Re: Should I take a job at a new SME?

Postby Wd40 » Tue, 24 Mar 2015 6:09 pm

The reason why there is high failure rate of businesses in Singapore is because it is very easy for any Tom, Dick or Harry to start a business. So there is very high competition and wafer thin margins, unless the SME is started by based on a brilliant idea.

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ecureilx
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Re: Should I take a job at a new SME?

Postby ecureilx » Tue, 24 Mar 2015 7:38 pm

Wd40 wrote:The reason why there is high failure rate of businesses in Singapore is because it is very easy for any Tom, Dick or Harry to start a business. So there is very high competition and wafer thin margins, unless the SME is started by based on a brilliant idea.


off track, but if you keep looking for a brilliant business to make a lot of money, with low investment, do let me know where that exists :D

If everybody waited for the big margin, they are going to be taken for a quick ride, like Lehman Brothers, or they will never do business !

that's what a very very very rich guy (yes, very very very rich) told me, when I told him I don't want to do any business for thin margins !

For that matter, a client I am working with makes maximum 5% margin, average of 3%, on some technology solution. I asked the guy how they can survive. His reply ? when he started, he made 2000 to 3000 $ a month, now he makes 200,000 to 300,000 $ a month, nett

PS, Singapore strongly encourages entrepreneurship, without which, for a start, most of the business won't exist.

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Wd40
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Re: Should I take a job at a new SME?

Postby Wd40 » Tue, 24 Mar 2015 10:25 pm

I notice that shops in Singapore come up and then shut down all of a sudden. I mean just go to a mall or a HDB neighborhood in a space of 1 year and you will notice some shops just disappear and new ones come in their place. It's very competitive out there because of low entry barriers. In other countries, its not so easy to start a business so the light hearted don't venture out. Those that do are really good at it and more likely to succeed.

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Re: Should I take a job at a new SME?

Postby Strong Eagle » Wed, 25 Mar 2015 6:41 am

Since you have an EP, you'd generally fall into a 'professional' category, with a higher rate of pay and more responsibilities.

If I were you, I would not even consider taking a job in a startup without a good sense of the business plan and financial projections. Businesses fail because they have insufficient capital to fund themselves until break even, they misjudge the market and the number of customers they will get at a given price, and they fail to take account of competition and changing consumer tastes.

If you are considering working for this startup, then you must know something about the business. From the business plan and pro forma financials:

a) Are the business owners skilled and experienced in the business, preferably with a prior track record, or are they jumping into something new? If new, watch out because they don't know the business.

b) Are the marketing and sales plans robust and realistic? You must know something of the market... are their projections in line with what you know? If not, run away.

c) Is the proposed pricing structure realistic? Is it in line with competitors? Does it present a value add above competitive offerings? If it's just more of the 'same ole, same ole' or too high priced, walk away.

d) Is the business location _right_ for the business and expected clientele? I know you said International Plaza, but if the office is on the top floor, at the end of the hallway, right next to the toilets, is that going to work?

e) How long do they think it will take to break even and start turning a profit? Is that realistic? Do they have enough money in the bank to pay all expenses, including your salary, rents, etc until break even?

f) Do the pro forma financials present a realistic projection of revenues and expenses? Are all expenses properly accounted for, or have they left out key items that make the pro formas useless? Do the income projections align with business plan projections and plans? If not, I'd say, "Buh-Bye!"

My S$0.02 - don't make the move unless you know what the company is about. And, if they won't tell you, all the more reason to move on... they are just trying to suck you into something that is not realistic. If they value your talent, they will share their plans and projections.


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