Deciding to start a Business In China is a move in the right direction.
The country has a large population, making consumers available. It is also trading with countries all over the world.
This means that China has a ready market. China is also determined to open up its growing economy to all players, both local and foreigners.
Given the swollen, growing economy and ready market,
it is no wonder that very many people want to start a business in this country.
But how do you Start a Business In China? Well, here are the 7 main steps to follow:
Do your research well
The government of China is allied to its businesses so tightly. So, it is good that you know what the Chinese government wants first as this will go a long way to helping you construct a business plan.
China has a clear guideline on what kind of businesses it wants to be set in its territory. Precisely, it doesn’t want businesses that pollute the environment.
High-tech businesses are what China wants. It wants businesses which will create a lot of good jobs for its people. Also, do research about the industry you are interested in.
Talk to business people who have already done great in the industry and ask them how they succeeded. You also need to ask them how they had failed.
Pick the right location To Start a Business In China
Now that you already know what kind of business you want to start In China, the next step is to find a good location.
For your business to be successful, you have to set it at the right location.
The first step to finding a location is to explore the big cities. The major business centers are Guangzhou, Beijing, and Shanghai.
What will dictate the location is the nature of the business you want to start.
Consider logistic needs, transport costs, and government restrictions. You must have an office so that you get a lease, which acts as proof to register the business.
Choose the entity status
To start a Business In China, you will have to know the type of your business entity.
Consider a business entity’s pros and cons before settling for it. You can have a partnership or a joint venture.
You can also have a wholly foreign-owned or sole proprietorship business.
Prepare a business plan
The next step of starting a Business In China is to have a detailed 5-year business plan.
This is because you will the government will require a business plan to approve your business. The business plan provides the guidelines under which you will operate your business.
You must stick to offering services or products as per your business plan. Otherwise, the government might shut down your business.
Find a good bank
You will need a bank to transact business and to keep your money before start a Business In China.
You will also need a bank to request loans from.
This will make it easy and effortless to keep track of the money.
Hire a manager
Find someone who can run your business impeccably.
He or she must be a very smart business person who can run your business according to how you want it. A trusted manager will be able to help you hire other people.
Ensure that you are having a contract for everyone you hire. An employee manual is also very important.
Without these two, you might not be able to fire an employee even if they become unproductive and, or destructive.
When it comes to hiring employees, it is advisable that you reach out to headhunting agencies and human resource consultants in China.
If you are a foreigner, you should consider working with Chinese employees who had schooled in your country.
This will you develop a quick and great relationship with your staff.
Register and protect your trademark
Intellectual property theft has become very common in China and other counties.
You need to protect it by registering your trademark.
Taking these steps will help you avoid any possible intellectual property violation.
Well, you are all set up now. Congratulations! But you need to manage your expectations.
Things are likely to move slowly at first. Also, avoid jumping into every business deal.