The rules of starting and running a business in the 20th century have been rewritten. Digital services, online marketplaces and even social media platforms have enabled one to turn an idea into a business overnight – without requiring a physical store or a six-figure start-up capital.

Digitalisation is the great equaliser, levelling the playing field for new businesses. According to International Data Corporation, 91% of organisations in Asia have adopted digital-first strategies to transform themselves into digital businesses as it helps increase profit, revenue and operational efficiencies, reduce cost, and improve customer experience. Closer to home, the extension of the Start Digital initiative by the Singapore Government till 2025 shows the continued importance and push to start or run digital-first businesses.

So what exactly is a digital-first business and what are some ways to get started?

What is a digital-first business?

If the pandemic has taught us anything, it’s that digital-first businesses allow business owners to keep the lights on despite disruptions such as lockdowns and the halting of travel. A digital-first business is thus essentially one where operations and delivery of goods or services are carried out digitally. This includes the day-to-day business operations such as managing inventory to receiving and fulfilling orders.

While digital-first businesses can be set up for most industries, it is exceptionally suitable for those that are selling services or resources such as e-books and coaching (via webinars).

Why start a digital-first business?

Go-to-market globally from day one with minimal investment at maximum speed. You won’t get bogged down or bounded by long-term contracts such as physical office space rental and monthly utility bills. You are also spoilt for choice when sourcing for solutions to digitalise your operations. With the fast-growing number of digital solution providers from across the world, you have plenty of tried and tested options to plug and play (e.g. for payments, last mile delivery, HR and accounting). Some of these solution providers even offer free trials so you can experiment without heavy investment to find the best fit for your business needs.

Digital-first businesses tend to be easier and quicker to pivot your business strategy or offerings based on initial customer feedback. You can also use this test bed to gather insights if you’re undecided on making your side hustle a full-time job.

How do you get started?

Here are some key areas you can look into when setting up a digital-first business.

Step 1
It’s no surprise that you can start a digital-first business in Singapore, digitally! Incorporate your company online with the Accounting and Corporate Regulatory Authority (ACRA) within a day. If you have more complex business set-up needs beyond incorporation, you can also explore working with Corporate Secretaries such as HeySara and Singapore FOZL Group, most of whom take online appointments so you can also rely on their support digitally as well.

Step 2
Open a business bank account to separate your personal and business income – read more 這裡 on how you can take advantage of digital banks and apply for a business bank account. One of which you can consider is an ANEXT 商業帳戶 – it’s easy and free to apply with no annual fees or minimum balance to maintain. This also means you don’t have to fret about incurring costs before your business takes off! What’s more, there are also no fees for sending and receiving payments locally. Reap additional benefits when doing business with overseas buyers or customers with our free inward telegraphic transfers (excluding agent bank fees), plus transparent and competitive flat overseas telegraphic transfer fees.

Step 3
It is equally important to set up your customer-facing digital presence. Consider having a website as well as social media channels to be even more discoverable. You can also boost your presence with digital ads on the latter.

Step 4
If you’re selling physical goods, consider leveraging the different digital platforms according to its purpose. For example, besides being a channel for all company-related information, your website can double up as an e-commerce platform and you can run digital ads to drive traffic to it. Alternatively, you can explore free trials from e-commerce platforms such as Shopline or Shopify to set up an online store, or take advantage of subsidies from the Singapore Government to invest in your e-commerce build. You can also consider leveraging mature e-market places such as Lazada that has a larger captive audience to start selling your products to increase awareness as well. Depending on your business strategy, it’s a good idea to adopt one or all of the above.

These are just a few points to help you get started. As you’ve read, a digital-first business not only offers a lower barrier of entry to officiate your business idea, it also sets you up for a more sustainable business model in the long-term if you decide to pursue it. Are you ready to take the leap?