If you are considering launching a start-up business in Hong Kong there are some key steps that you need to consider before you begin.
Create a Business Plan
Firstly, you need to create a business plan which will help you define the objectives and strategies of the business. This is one of the fundamental processes that you should not skip, even if it sounds tempting. In some cases, such as when you are looking to raise funding for your start-up business then you will need a business plan as investors will want to see it.
One of the key aspects of a business plan is to determine who your customer base is and who your business will be targeting. If you are an entrepreneur based in Hong Kong and looking to launch a business in the province, you’ll need to establish whether your key customer base is also in Hong Kong or China or further afield overseas. Understanding your customers and how you will target them as a business is a key aspect of any business plan.
If you’re looking to target customers outside of Hong Kong one question that you’ll need to think about is whether you have any experience in these other markets. If you do not it might be a bit of an uphill battle to make your business work. This is where an angel investor can help. Many angel investors also provide some mentoring or bring a wide range of experiences (including dealing with exports and overseas markets) and this could pay dividends for your business. Not only will you get some financial investment, but also some additional experience that you can utilize to your advantage.
Open a Business Bank Account
The next step is to open a business bank account, there are many different accounts available and you should research your needs thoroughly. Consider whether you need a simple deposit account or if you need something more sophisticated, such as if you want to trade via ecommerce online
Register Your Business in Hong Kong
You should find a name for your business and check with the relevant authorities that it is unique and available. It is a good idea to check whether the domain name for your business is also available as if it is already taken this could prove to be a problem. You may want to decide whether to name your business in English or Chinese depending on where you see your primary customer base.
When you decide to set up your business officially, you’ll need to register it with the Companies Registry in Hong Kong. This will make your business official.
You will also need to consider whether you will need some specific licences or permits to operate your business in Hong Kong. You can check with the local government web sites in Hong Kong to find out what permits you need (if any) and apply accordingly.
If you have any employees working for you then you’ll also need to be aware that in Hong Kong it is mandatory to enroll your staff in a company pension. This is called the Mandatory Provident Fund.
Raising Finance for Your Start Up Business
At this stage you should also consider whether you need to raise finance for your start-up business project. You may be able to raise capital from the bank, friends or family or outside investors such as angel investors. Financing your project should be considered early in the planning stage as if you do not manage to secure finance your project may be over before you begin.
The Hong Kong Investment Network can help connect entrepreneurs in Hong Kong, China, Asia, Europe, North America and more, with angel investors looking to finance projects such as yours.