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.
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 without wasting your time, below are the top 10 small business opportunities in China.
Top 10 Small Business Investment Opportunities in China
- 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.
- 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.
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.
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.
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.
- Start a pharmaceutical company
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.
- 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?
- 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.
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.
- Direct marketing
It is informal and only requires good communication skills and connections. Direct marketing is one of the top 10 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.
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.