Are
you interested in doing business in China? Do you want to start a
business in China? If yes, then below are the top 10+ best small
business opportunities in China.
Now before I proceed with the
list of business ideas; I feel you might want to know why China is the
next best place to open a business. China has carved a niche for itself
in the recent years with respect to national and economic issues; that
is why entrepreneurs and managers worldwide are roaring to have their
businesses there.
Almost every Fortune 500 company is well
established in China; from Apple, Microsoft, Oracle and Google, to
Nokia, HP and Facebook. With a population of over one billion and a fast
growing economy; China is definitely the next best place to situate and
open a business.
China is a unique country that has loads of
positives that support businesses in all stages of growth. China is the
country that has the largest population in the world; with a population
that is in excess of 1.35 Billion people. China is located in the
Eastern part of the Asian continent and with Beijing as its capital city
and seat of power. Other key municipalities in China are Shanghai (the
largest city in China), Tianjin and Chongqing and China also oversees
Taiwan, Hong Kong and Macau. In as much as China is the most populous
country in the world, China is also the world’s third largest country in
terms of land area.
The
economy of China is rated as the second largest and the fastest growing
in the world, as well as also the largest exporter and importer of
goods globally. Some of the positives you may get in China are; cheap
and reliable technology, cheap and highly productive workforce, fertile
land and good weather, etc. China is also the country that as the second
highest purchasing power parity when compared to the rest of the world.
China’s
economy is a diverse one in the sense that all key sectors in the
economy is truly in a thriving one. The Agric sector, the manufacturing
sector, the
technology sector, the
oil and gas sector, the
automobile industry, the
tourism sector,
the pharmaceutical industry, just name it, are not push over when
compared to that of top countries in the world. No doubt China is
considered as one of the best countries in the world to establish your
business, and little wonder almost all the Fortune 500 companies have
their presence in China.
Now if you are wondering how China has
been lifting its position in the world economy, then you should consider
studying the small businesses that are being promoted in the country.
Not normally placed on the headlines, these businesses enjoy a low
profile while generating enormous income.
So if you are in China or
you intend traveling to China to start your own business, then you
should consider some of the business opportunities that are thriving in
China.
Top 10+ Small Business Investment Opportunities in China
1. Sell industrial automation control products
In
the recent research done by Forbes China, its results have shown that
Shenzhen Inovance Technology Co. Ltd is the number one small business in
the country. The company, which was only established in 2003, already
enjoys its top position in all domestic companies and has an astounding
number of patents in its stem. So if you are pondering on engaging in a
small business, then marketing industrial automation control wares will
definitely be an easy sell.
2. Provide supplementary education
The next big thing when it comes to small businesses ideas in China has to do with education. Yes,
after-school private tutoring service is a good business opportunity in China.
Aside from the usual handling of small classes, most businesses also
offer online lessons which are of course, convenient and accessible to
more people, therefore making it an in-demand opportunity for business.
3. Supply health products
Times
and environmental situations have made people more health-conscious
than their past counterparts and this is probably because of the
emergence of new diseases and illnesses, which are indeed very alarming.
Venturing into a small health products business is a good way to go in
China.
Moreover, you should not just stop with herbal goods or
supplements when engaged in the health product retail business, you
should also be willing to expand into skin care products; as this has
also become a wide trend, not only in China but worldwide.
4. Ecological environment construction
Though
a business in the construction of ecological environment engineering
may sound like a big-scale company, it is nonetheless categorized as a
small scale business. This type of business
involves garden landscape engineering,
afforestation projects, seedling of plants and technology research on
ecology, to name a few. Not only is this a wise, practical choice for a
business, it is also eco-friendly.
5. Go for import and export trading
Small
businesses that involve trading usually generate successful results and
the reason is that it creates more business opportunities not just in
the domestic setting but also across the global. The fact that China is
considered as the largest exporter and importer of goods globally makes
it easier to build a profitable importing and exporting business. If you
have not made up your mind on the kind of business to do, then you
should consider starting your own importing and exporting business.
6. Start a pharmaceutical company
The
pharmaceutical industry is another key and highly profitable industry
in China. Although you would be required to go through some rigors to
acquire your license before you can be permitted to establish your own
pharmaceuticals production company, but the truth is that it is indeed a
money spinner simply because you would have access to cheap raw
materials and cheap labor.
Although it is undeniable that most
pharmaceutical companies are on a large scale, there are still
businesses which prefer to keep it on a minimum scale. Forbes China, in
fact, has included Hunan Er-Kang Pharmaceutical Co. Ltd as one of the
top 10 small businesses in China in its 2012 list, making the chemicals industry a good option when starting a small business.
7. Skincare companies are soaring high
In
China alone, there are already tons of small scale businesses health
and beauty industry; not to mention those that are specialized for the
health and beauty of women alone. To undertake a skincare business is a
good choice for prospective businessmen as people have become more
conscious of their appearance. So what better way to take advantage of
this opportunity than to set up a skincare business that will cater to
their superficial needs?
8. Small-scale food production
Food
production business is a safety business; not only in China but all
around the world. The food industry has always been a safe choice when
considering how to start your own business. Everyone loves and needs
food; and studies have already established the fact that people are less
likely to regret spending money when they shell it out on food. Such
facts lead to the truth that food business, even small scale ones; is
still a good investment.
9. Start an internet business
Not
everyone has internet access in China but almost everyone has to have
such access. This is the reason why going for a small-scale internet
business is a clever choice because it’s an easy and successful source
of income.
10. Direct marketing
It is informal and only requires good communication skills and connections. Direct marketing is one of the
top small business opportunities in China because it is easy and reliable. However, in this business, the result depends on your efforts and determination to succeed.
Small Business Investment Opportunities in China
11. Manufacturing of Household Commodities
China
is the number one destination when it comes to the mass production of
commodities. The production industry in China enjoys lots of positives
and that is the reason why goods that are produced in China are cheap
and can compete with same goods produced in other parts of the world. So
if you intend starting a business in China, then you should consider
starting your own household commodities manufacturing company. If your
commodities are of good qualities, then you can be rest assured to enjoy
a good market share not just in China but globally.
12. Online Shop or trading platform
China
remains one of the countries in the world that has advanced technology
and enabling environment for online stores to thrive. If you live in
China and are internet savvy, then you should consider starting your own
online shop or trading platform. The good thing about online shop or
trading platform is that you don’t need to have all the products listed
in your online shop on ground in your warehouse. You can go into
agreement with manufacturers and they can list their goods or services
in your online shop as long as you both agree on all terms and
conditions.
13. Mobile Phones and Accessories Business
Just
wondering what the world of mobile phones and accessories would have
been, if not for a country like China that has helped to crash the
prices of mobile phones in the market. It is obvious that you can get
cheaper mobile phones and accessories in China. This is one highly
profitable venture that anyone can start in China.
All you need to
do to make it big in this type of business is to look for partners
outside the shores of China that you can be supplying mobile phones and
accessories to. The global demands, for batteries, chargers, USB cords,
memory cards, battery banks, phone casing, et al are high and it is only
from China that you can get these items at a cheaper rate.
14. English Language School
English
is un-officially the official language in the world and since loads of
business men head to China to do business, it would only be wise as a
business person in China to understand English language. If you are
fluent in English language, then you should consider starting your own
evening English Classes for business people. It only requires small
capital to start and run this kind of business.
15. Haulage Business
If
you are interested in the transport sector, then you should consider
starting your own haulage business. China remains one the countries with
the highest volume of goods transported from one spot to another. You
can be rest assured to make good profits if you start this kind of
business in China.
16. Bags and Shoes Production
Another
highly profitable business you can establish in China is the production
of Bags and Shoes. The market for China made Bags and Shoes is indeed a
large one especially in developing countries. If you have the capital
required, then you should consider starting your own Bags and Shoes
Production Company.
17. Electronics and Gadgets Shop
China
is notable for the production of Electronics and Gadgets and anyone
that is in this line of business is sure of making profits as long as
you understand the market dynamics. If you start your own Electronic and
Gadgets Shop in China, you are certain of getting cheaper products
directly from the manufacturer.
18. Jewelry Production
Jewelry
production is yet another profitable venture that you may want to start
in China especially the production of gold or silver platted jewelry.
So, if you have the required capital, and are interested in Jewelry
production, then you should consider starting your Jewelry production
company.
No doubt there are loads of businesses that you can
establish in China, but the truth is that you must endeavor to continue
to be in the good books of the Government of China if indeed you want
your business to grow in China.
4 Challenges of Doing Business in China
- Language difference
- Cultural difference
- Finding Manufacturers that are technically capable of producing your quality standard
- Timing and loyalty
How to overcome the challenges of doing business in China
- Be Prepared:
– Read books about the Chinese, their business culture and attitudes.
This will help you understand your Chinese partners/associates.
- Have credible Chinese partners to help with your operations.
- Get an interpreter if possible
- Assess your suppliers or manufacturing outfit and be sure that they meet your standard
- Don’t put your trust on product samples. Have an inspector standing by to oversee your production process.
How to Do Business in China – Understanding the Chinese Culture
Before
stepping your foot in China to do business, it’s advisable you know and
understand how the Chinese culture works. By being knowledgeable of the
environment, as well as the values of the people in it, you will have a
greater chance of achieving success in business. China, just like any
other country, has its own norms and religion and though these two may
not be as essential to other nationalities, it is actually significant,
if not crucial, in the everyday lives of the Chinese so you must always
take note of this as it can actually make or break your business.
It
is a no-brainer that not only should you learn the traditions and
customs in China; you must also study how business works in China. There
are different business settings around the world and while some
countries adhere to firm and plain practices, Chinese businesses prefer
to be adaptable and flexible and these characters are found to be very
effective. Furthermore, studying the ways on how to do business in China
also mean actually being there; and being friends with people there.
Not only will you have to do away with complete foreign business
principles but you must also avoid planning on solely handling the
business; as a local influence will always be an essential factor.
You
should also consider looking for a Chinese partner, who will not just
be able to boast his nationality, but also his experience in both
business and management. Also, it is not enough that you get yourself a
Chinese business partner, you must also have local employees so that
they may somehow contribute to the economy; and it will surely look good
in the company’s profile.
How to Do Business in China – Dealing with the Government
An
important factor to consider when doing business in China is to strive
to be on the good books of the government. The Chinese government has a
very essential role in the business industry and foreign investments;
and that is why having the necessary paperwork and the important
authorization must always be prioritized to avoid the hustle bustle.
When it comes to these things, businessmen are always expected to know
that in China, no monkey business is tolerated; none at all.
And
while there are other countries that are always booming when it comes to
their business industries, you should not always expect the same case
in this beautiful Asian country. Though China is building its strong
reputation for being the “
next big thing” when it comes to
economy, it does not however guarantee fast money. As with almost every
business endeavor in this world, it takes time. Patience and
resourcefulness will be the most ideal traits you must possess when
considering starting a business in China.
However, you should not
be discouraged by this because though it will take time, doing business
in China will nonetheless be both fulfilling and fruitful. So
why wait now that you have known how to do business in China? How about actually engaging in that business?
In
conclusion, the list above is the top 10 small business opportunities
in China but bear it in mind that more opportunities exist with
explosive profit potential.