Top Trade Leads

China’s booming population and fast-paced business industry makes it an appealing place for many businesses to start or expand. And despite the current economic slowdown, China is still a viable place where to start an import export business. Starting a business in any foreign country, however, can be complicated, but here are five basic tips to get you started if you are interested in starting a business in China.

Research

Doing your homework ahead of time and ensuring that you have all avenues covered can save you time, stress and valuable resources. American-owned businesses that are currently succeeding in China’s competitive market can be a great source of information. Research the current state of the industry and know your market well.

Pick a Great Location

Location is always integral to a business’s success and the same holds true for China as well. Take a tour of China, get to know China’s bigger cities like Guangzhou, Shanghai and Beijing. These cities are the major centers for government, businesses and industry. The major cities are not your only options; smaller cities set further inland can also provide ideal locations for a new business. Determine which area would provide the greatest demand for your product or service.

Develop a Detailed Business Plan

You will need to develop an exhaustive five-year plan down to the smallest detail included. The business plan will have to be approved by the Chinese government. After it is approved, you will have to operate solely within the guidelines found in your plan. If you deviate from your plan, you can be shut down. A good business plan will need to find a balance between broad enough to operate freely and specific enough to be approved by the Chinese government.

Determine How to Finance Your Business

The Chinese government requires new businesses to have a certain amount of available capital. Whether you choose to obtain a small business cash advance or unsecured business loans, you will need to have all financial aspects set in place before trying to establish a new business in China. A small business cash advance would work great if you already have established businesses elsewhere. Cash advances are given based on future credit card transactions rather than past credit history. However, there are high interest rates attached to cash advances and it can be much cheaper, both in short and long-term, to try and qualify for unsecured business loans. They typically have lower interest rates and do not require any collateral.

Find a Reputable Liaison

No matter how well financed you are and how well you have done your research, you will still need help navigating through China’s complicated business approval requirements. There are many organizations based in China and the US that can help you gather all necessary documents, complete all paperwork properly and tell you where each item needs to be documented.

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