10 steps to starting a business in China
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E-mail Agencies, August 31, 2012
4. Develop a business plan.
A detailed five-year business plan is crucial, because once the government approves it, you will be able to operate only within its guidelines. If you start offering a product or service that is not in your business plan, the Chinese government can shut your business down. The same goes for where and how you operate.
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ZGC software park in Beijing [file photo] |
"Make sure your business plan is as broad as possible to allow the company to operate freely," says Collins. "U.S. companies expect to operate in a certain way here and they realize their business license may not allow them to do that."
While it needs to be broad, it should also be specific. Make sure you include your location, projected revenues, product or service description, expected number of employees and budget requirements in the plan.
It's also wise to tailor your plan to China's five-year plan.
"If you're making a high-tech piece of lawn equipment, and you just apply saying, 'I'm going to be making lawn equipment,' they're not going to look at you very favorably," says Harris. "But if you say I have this new, software-driven, high-tech piece of lawn equipment that's going to put 20 software engineers in China to work right away, then it's a different project."
To get that message across, of course, you'll need the right representative.
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