Encumbered Companies

- Challenges & Means

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 Preamble:  The following are common challenges faced by small enterprises, and suggested means to overcome them.  Said means are recommended not merely for their effectiveness, but for the fact that they can be administered for relatively little or even no cost.  In addition, results can be felt relatively quickly, usually within weeks (as opposed to months in some cases). 

 

SV highly recommends startups to consider the following means BEFORE taking out loans to fund 'off-the-shelf' recovery methods.

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The Best Resource Is

"Resourcefulness"

 

Means

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1. Lack of Distribution (market share).​​

   • Collaborating with 'connected' firms such as marketing/accounting/law/investor-relations firms

   • Tie-ups with resellers & 'pullers'

   • Invitation to business groups
      

2. Lack of Credibility.

   • Involving 'brand-name' advisors by offering 'advisory shares'​

   • Hiring of subject-matter experts on a retainer basis

   • Branding on social media via key-note speaking activities
      

3. Lack of Sales.

   • Bulk sales via corporate purchases​

   • Embedding of sales into template contracts

   • Promotional programmes such as joint-marketing campaigns, free-trials, 1st-year-free incentives
      

4. Cashflow Issues​

   • Invoice-financing/purchase-order financing

   • Internal fund-raising

   • External fund-raising via sale-of-shares

   • Ventures-debts

   • Negotiations with creditors

   • Introduction to investors such as Angels, Venture Capitalists and Private Equity
      

5. Hiring Issues (hiring, training, attrition etc)  ​

   • Employee stock options

   • Joining a 'mother ship' to provide better prospects for employees

   • Share-swaps with complementary businesses
      

6. Civil Wars (disagreements between shareholders, suspicion of fraud by management, non-accountability etc)

   • Mediation​

   • Shares buy-backs (call options)

   • Calling of internal audits

   • Compiling of breaches, suspicious transactions ("LOBSTER")
      

7. Governmental Audits (by ACRA, IRAS, PDPA etc).

   • Audit preparation

   • Remedy actions and controls

   • Updating of Info-tech systems, Policies and Operation-workflows
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8. Litigation.

   • Mediation​
      

9. Fund-raising Issues (Pitching, clearing of due diligence, justification of Valuation etc)

   • Lead investor

   • Execution Team
      

10. Foreign Companies.

    • Incorporation & bank accounts & escrow account services

    • Work-pass issues (Work Permit, Employment Pass, EntrePass etc)

    • "Nominee" structures (shareholder-ship, directorship etc)