7 Tips to Start Your Hong Kong Business with Low Capital
Hong Kong is a city that attracts entrepreneurs from all over the world. It is a business-friendly place that welcomes expats. Today, it has become one of the world’s top markets for innovation. With less than half the population of the world less than five hours away from you by flight, it is the most strategic place to open a company. You might think it is impossible to start a business in Hong Kong with low capital, but it is not. This article will tell you why Hong Kong is a preferred location for entrepreneurs and give you some tips to start your business with low capital in Hong Kong.
Start a Business in Hong Kong
Choosing the right location is as important as starting your business. This is why you need to choose wisely; look at your benefits from starting your business there. The most preferred location to start a business is Hong Kong. Let us see why entrepreneurs start Hong Kong businesses.
Why is Hong Kong a preferred location for new entrepreneurs?
You might think to yourself why start a small business in Hong Kong ? Well, Hong Kong is a primary auction that has access to the largest markets in the world. Since it is a free territory, it attracts huge foreign direct investment (FDI) in its market. The facilities provided there not only to locals but also to expats attract entrepreneurs from all over the world. With the right documents in hand, you can set up small business ideas in Hong Kong in an hour. Some factors that attract entrepreneurs there are the ease of business registration, fair legal system, solid system, and markets for all types of businesses.
Setting up a business in Hong Kong is also beneficial in other ways such as:
- Simple Tax system – Hong Kong has a simple and business-friendly tax system. Additionally, you don’t have to worry about offshore income or even tax on capital gains.
- Acts as a Gateway – Investors and entrepreneurs see Hong Kong as a route to the main market in China.
- Best infrastructure – With the world’s fifth busiest international airport, Hong Kong is a global hub with the best infrastructure.
- Global Finance – Hong Kong is in the top four financial hubs of the world. It is the best place in the world for entrepreneurs to seek capital.
- Freest economy – Since the start in 1995 on the Index of Economic Freedom, Hong Kong has ranked number one. Making Hong Kong the most liberalized economy. It has become the ideal place for starting and growing a company.
- Beautiful place to live – Hong Kong has more than 50 international high schools, low crime rates, high-quality healthcare, and amazing scenery. Also, more than 40% of the land in this city is protected country parks.
Business types which can start with low capital (Service business/consulting)
Starting a business does not always have to be heavy on your pocket. You can start a business in Hong Kong with low capital. These types of businesses fall under the service, education, brokerage, performance, or events category. Let us take a more detailed look at the types of low capital businesses:
- You can start a performance-based business. In this type of business, your customer will not pay for the quantity but the utility of the service/product.
- In a consultant business, you may need a computer and some tools. With the use of these tools, you can start to sell your services.
- Service businesses are dependent on the time and skill that you have to offer. You can make your skill available to your customers with low investment. All you will need is the tools that help you deliver your service.
- Event-based businesses may be a little more complicated than the others, but you can still start one with less investment. This includes ventures, concerts, and expos. In this type of business, you can sell your tickets before incurring the costs. This keeps the amount of investment low.
Tips to Start a Hong Kong Business with Low Capital
People think that starting a business is going to drain their pockets. You can start a business in Hong Kong with low capital. Here are some tips on starting a company with less money:
- Choose something that you are good at – Start with small business ideas in Hong Kong. You can create a successful business that is based on what you are good at without relying on outside sources. You do not have to hire experts or buy expensive equipment to start. Your expertise, skills, and knowledge is more than enough to get you going.
- If you can’t afford employees, then try hiring freelancers – If you do not have the money to hire employees, then you can hire freelancers. You can hire them on a project basis, weekly basis, or hourly basis. Doing so will mean that you will not have to hire full-time employees, and you will be paying them only for their work.
- Don’t spend money carelessly – When you start a business, there are many costs associated with it. If you notice carefully, there are some expenses that you can actively avoid. For example; it is not important for you to have fancy metallic business cards; you can get traditional ones. Both of them will get the job done, but you need to see which one is the better option for you. The early stages of your company are the most fragile, and it is important that you save money during this time. This can be the determining factor if your company succeeds or not.
- Avoid credit Debt – It is best to avoid collecting credit debt. When you start your company, do not buy everything on your credit card. Costs like computers, phones, furniture, and supplies can be financed through your company’s revenue. If you buy all at once, it will just be a burden on your business and affect your success rate.
- Use organic means to market your business – Spreading awareness about your brand, growing your brand, and gaining customers’ trust are all done through marketing. Instead of using the traditional ways and paying for marketing, you can use organic marketing. This is a process that involves driving traffic on your website, converting and generating leads without using paid adverts. This is a long-term strategy that spreads brand awareness. You will establish a customer base by spreading insightful and valuable information about your product or service through content.
- Attract customers early – It is essential that you validate your small business ideas in Hong Kong, no matter how confident you are about it. You need to get the approval that people want this product. But there is one problem with this method; many people will just say yes for the sake of it but will not hand over their money for it. A lot of them tend to agree to ideas, but the friction is noticeable. The best approach to this method is by having pre-sales. This is the best way for you to gain customers before building the final product or service.
- Look for VCs and angel investors to expand. – Expansion is necessary at one point in the business; you should bring in investors or venture capitalists. They will help fund your expansion at the cost of a part of your business. Always be ready to let go of a certain percentage of the business. This will help you grow and reach more customers as investors may sometimes act as mentors and introduce you to markets they operate in.
Ready to Start Your Small Business in Hong Kong?
You do not have to spend tons of money to open your company instead, start with small business ideas in Hong Kong. This will require low capital and will depend on your knowledge and skills. Keep in mind that you do not have to spend unnecessary money to impress people and save as much as you can as the company’s success can depend on it. If you need assistance in forming your Hong Kong company then our team at Startupr can help you.