Starting a business may be a daunting task- especially if you were to do it for the first time. There are so many things to take into consideration- business type, location, customer base, startup capital and so on. However, all these factors are merely steps to overtake once you realize the potential your business has in the current market.
Malaysia is currently an entrepreneur’s dream when it comes to starting up a business. With its large and ethnically diverse population, it is nothing short of easy for everyone to have a suitable customer base. In order to start your business, it is every successful entrepreneur’s first tip to draw up a business plan. Fortunately, here at S&F Consulting, we’ve come up with the perfect guideline for you to use as a checklist in order for you to have a good idea of what the process will entail for you. If you have any further enquiries don’t hesitate to contact us at S & F Consulting- the best part is that advise is completely free of charge.
Steps to starting up a business in Malaysia
Drafting your business plan
The first step to any successful business is to draft out a plan. Consider the following factors as you design your business:
- The potential market for your product- what is your target demographic? How powerful are your competitors?
- What is the selling price of your product? How much of a startup capital will you require?
- What is your business timeline? Do you have a set goal in terms of profit made within a time frame?
Selecting your business body
The next step is to decide on what form your business will follow, in Malaysia, according to the Companies Commission (SSM), each business type has its own set of rules. They are as follows:
- A limited liability company (Sdn Bhd)
- A sole proprietorship
- A partnership
Considering your budget
At this stage, you need to consider your budget when it comes to starting your business. As Malaysian law requires only RM2 as a start up capital, it is very much at your discretion to as to how much you choose to invest into your business. If you lack large funds at this point you may even opt to take on a bank loan. You might also want to create a prospective timeline of potential profits and business goals.
Reservation of your business name
After the above considerations have been made, you can now move on to choosing and reserving your business name. It is best to think carefully at this point, as you need to decide on a name that truly reflects your business’s purpose as well as one that is unique and one that will attract your customer base.
Registration of business address
The next step is to secure your business location and to register said location with the SSM. Like the name of your business, its physical space is also one that is of extreme importance when attracting your potential customer base. For example, setting up a bookstore and coffee lounge along a loud and busy road would detract many customers as opposed to setting one up in a quieter street.
Registration of business license
Now that you have your business location sorted out, you can now proceed to the SSM to officially register your business, this process will require a registration fee to be made as well as the submission of some documents. (I.e. your business details, your details, filing proof for licenses, business summary, business address etc.)
At this point, if you do not already have one, it is best to set up a business bank account
Creating your website (optional but highly recommended)
At this point you may opt to create a company website, while this is completely optional, it is highly recommended as this will be the cheapest and most effective way to communicate with your customers as well as to build your brand.
Advertising (post registration)
Congratulations! Now that you have your business up and running, you have to effectively advertise it to your target demographic in order to maximize profits. You may do this via physical advertisements or you may opt to do this online via social media channels. In most cases its best to do both at the beginning.
While the process may look tough and complex, with our aid, here at S & F Consulting, you’ll have your own business up and running in Malaysia in no time at all. If you’re still on the fence about this, simply contact us as we provide free advice on how to setup a business in Malaysia!