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Tue, Mar 16, 2010
my paper
Homing in on your own business

By Koh Hui Theng

APPLE did it this way; so did homegrown cake-shop chain Bengawan Solo. They started out operating from home offices, paid zero rent and the rest is history.

As of the end of last year, 19,000 Housing Board flat owners were operating out of home offices. Most are information-technology and management consultancies, trading offices and design or advertising firms.

There's help available. The Home Office Scheme (HOS), created in 2003, allows budding entrepreneurs to conduct small-scale businesses from their homes.

Non-HDB residents who intend to hire staff or working partners need to register their businesses with the Urban Redevelopment Authority. They need to pay a non-refundable $20 administration fee for a licence, which is valid for five years.

A HDB spokesman told my paper: "Besides saving on office- space rental and enjoying lower start-up costs, HOS users also save on travelling time and expenses."

It was the cost savings that convinced Mr Paul Lim, 31, to open babywishes.com.sg in 2007. The baby-products online-store owner said: "I felt I had a good idea as the (e-shop) concept was still quite new in Singapore.

"It would have been tough maintaining the business as a brick-and-mortar model - the high overheads of having a physical shop space would have eaten into the profits but this (home business) is something that can make money."

All it took to set up shop was 10 minutes of his time - registering babywishes online as a partnership - and $10,000 of his savings.

"The entire process was quite easy. We (Mr Lim and a business partner) did some research and finished the necessary paperwork in 10 minutes," he said. The business has been in the black since day one, and he even got a bonus.

"I get to spend quality time with my son, Marc, now 2½ years old. I'm sure the Ministry of Community Development, Youth and Sports will be very happy with my fathering role," Mr Lim chuckled.

Mr Lim, however, cautioned that one still has to put in hard work when it comes to building contacts and sourcing for suppliers.

my paper did some research at HDB and Spring Singapore to help potential entrepreneurs.

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