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The main problem with being an entrepreneur lies in the fact that many of us started out alone, which means there's no one to point us in the right direction or prevent us from making common mistakes.

Here's what I’ve learnt from my own experience and hope that it can be a helpful tool for those who took the brave step to strike it out on their own:

1. You Will Run Short Of Cash

You might have saved enough to start out on your own, or have a business that requires a low start-up capital (internet business). However, do you know that many successful businesses eventually run out of cash at some point in their business?

In managing a small business, cash flow management is one of the most critical aspects of keeping your business in operation.

A business can be profitable but be in negative cash flow.

This means that you have a lot of receivables that are not coming in fast enough to cover your current cost.

While you can certainly use profits to fund business expansion, you still need cash for operational needs, such as paying salaries and running the daily operations.

This is why a profitable company can still go bankrupt!

While many companies tend to turn to bank loans once they feel that they need extra cash, I've learnt that there's a smarter way to do this – invoice financing.

Invoice financing is a great way for companies, especially SMEs to raise money for their business. It is the process of selling your invoices to financial institutions at a discount for immediate cash, and one of the best way to improve a businesses' cash flow.

Invoice financing is a great way for companies, especially SMEs to raise money for their business. It is the process of selling your invoices to financial institutions at a discount for immediate cash, and one of the best way to improve a businesses' cash flow.

You can read a case study here of how an SME, Acepro Security Consultancy Pte Ltd, used this technique to scale up their business successfully in just 4 years.

You can read a case study here of how an SME, Acepro Security Consultancy Pte Ltd, used this technique to scale up their business successfully in just 4 years.

2. The Hardest Time May Not Be The Starting Years

Contrary to popular belief, the hardest time for business growth is not in the starting years.

A survey done by DP Information Group found that many SMEs in Singapore mostly register growth in the first 3 years of operations so be prepared for your business to plateau after the initial years.

The question then turns to – “What can I do to step up growth?”

There are a myriad of ways, but one key problem will pop up next – more money is needed for expansion.

For this, you can look out for grants and subsidies provided by the government for SMEs that can help defray the costs of such expansion.

You'll find that there are many types of subsidies available for different aspects of your business marketing, technology implementation and manpower training. Use these wisely to power your business forward.

3. Never Be Afraid To Ask For Help

It can be a little scary to ask for help when you are a business owner.

You'll find that as a business owner, you feel it responsible to provide only answers instead of asking questions.

This is not true at all! It is often through speaking with people who are or have been in the same situation where creative solutions can be illuminated.

Informally, it'd be great for you as a business owner to participate actively in the SME community and to meet other people who might be in the same shoes as you.

Look out for events to attend on the websites of the organizations listed above, or you can seek out SME events on meetup.com.

You'd find that networking will become a very important part of growing your business, not just with an expansion of business contacts but also sharing of knowledge amongst people with similar experience.

4. What Works Here Might Not Work Elsewhere

When your business growth hits a plateau, you might think about expanding your business overseas.

There's a wealth of opportunity to be sought after in Asia, especially with the population growth in nearby China, India and Indonesia.

However, you need to know that what has worked in Singapore may not necessarily work in other countries.

There's a very common misconception that Asia is “one community” with similar tastes and trends. This assumption can prove to be a fatal mistake for any businessman.

Every country has its own set of challenges and there's a need to understand the local demographics so that you can localize your business to work effectively in other countries.

You'll need to spend a substantial amount of time understanding the local culture.

For instance, food delivery service might be a success in Singapore but may not work out in Indonesia due to the sheer size of the country. The cost might be too expensive for the local population as well.

For expansion overseas, you can seek out the Market Readiness Assistance Grant provided by IE Singapore to help you.

The grant reimburses you for up to 70% of eligible third-party costs for activities such as overseas market set-up, identification of business partners and overseas market promotion.

You might want to check out the successful story of how IE Singapore helped local casual dining Pastamania expand overseas.

Running your own business is never an easy enterprise, and I hope that these 4 points can provide some helpful lessons for SMEs in Singapore.