Starting an online business can be daunting, especially in today’s ever-evolving, ultra-competitive digital market. But compared to a traditional brick-and-mortar store, an online business offers greater flexibility, lower costs (with no office to maintain), and broader customer reach.

So where do you begin and what will you need to spend on? Here are the four stages of starting an online business and the associated costs for each stage.

The first step to get your online business going is to register with Singapore’s Accounting and Corporate Regulatory Authority (ACRA). You can do this online via BizFile, and you’ll need to pay $115 ($100 registration fee plus $15 business name application fee).

If you opt for a virtual address or want to incorporate your business, you can hire an agency to make the process easier. Agencies offer different packages, with prices ranging from a few hundred to a few thousand dollars.

You’ll then need to apply for the appropriate business licence, which might cost a few hundred dollars depending on your sector. Retail and food delivery businesses, for example, require specific licenses.

Next, you’ll need to find a way to fund your business start-up costs. Here are three common routes you could take:

• Bootstrapping: This involves using your own financial resources (such as your savings or other investments, for instance) to cover your costs. Since you’re funding your own business, all the profits go back to you.
• Investors: You can get outside help to raise funds — be it friends or family, an angel investor, a venture capital firm, an accelerator or incubator, or a corporate investor. Just make sure you have a clear idea of the type of returns your investor is looking at, as well as the timeline for these returns.
• Business loan: You can get a loan from banks or government agencies for your capital costs. Be sure to understand the terms of repayment and any related interest or charges.
• Government Grants: Startup SG connects local startups with a variety of funding sources depending on eligibility.

Once you’ve registered your business and your financing is in order, you can begin setting up your business. As an online business, you’ll need to invest in all things digital:

• Hardware: This can include a desktop or laptop, a mobile phone, a router, a printer, and an external storage device for backup.
• Broadband connection: A reliable internet connection is a must for online businesses. Singtel’s high-speed business fibre broadband subscriptions plans start from as low as $99 monthly.
• Domain name and hosting: Before you can get your website up, you’ll need your own business domain name and hosting. Singtel can help you get a customised domain name and secure hosting for your website with an annual cost of $29.96 for non.sg and $58.85 for .sg domains.
• Mobile plans: Communication is vital for any online business, and you’ll need a way to manage your business wherever you are. Singtel’s business mobile plans offer data, voice, and SMS bundles starting at $50 a month.
• Cybersecurity: With cyber threats increasing, securing your online business is key. The government’s Productivity Solutions Grant provides funding for small- and medium-sized businesses to adopt pre-approved cybersecurity solutions.
• Software: You’ll need apps and tools to help run your business and stay productive. Microsoft 365 Business is a complete package of email and Office apps along with cloud storage, collaboration tools, advanced security, and device management. For $7.20 a month the package includes up to 300 users and 1TB of cloud storage.

Your business is on a roll — great work! You’ll still need to pay for running costs though as you manage and grow your business. This might include salaries for any employees you hire, accounting, business insurance, digital marketing, and inventory, among others. 

Starting your own business venture is a big step. Ensuring you that right digital tools and solutions makes things a little easier. Especially if they help you focus on the activities that help you drive success.