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| How to Start Business (China) |
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[ 2008/8/18 9:22:00 | By: apingsence ] |
How to Start Business (China)
By Peter Peng
These days I am always thinking and doing research online about the question: how to start business in China. Although there are still a lot of things that need further thinking and researching, to this day, I would like to write down what I have got and classify them through writing.
Starting business in China is called Chuangye. Chuangye in China has following several essential steps in my opinion:
1. to find market.
2. to find money.
3. to form the corporation.
4. to make profit ( as soon as possible).
1. Although many many people think for Chuangye money is the most important thing---if you don’t have money, you cannot start your own business---I don’t think so. In my opinion, to find market is the right prime thing that needs doing firstly. I think if you have market in your mind, you will have money in your hand. I will talk about how to find money later. Then here, there’s a question: how to find a market?
To begin with you should have your own ideas and plans and this is just Chuangye’s fundamental: it’s essential and important. And then you should do some market research, because you should find where your market is and where your customers are and how you enter this market and how you establish relationships with customers, and finally you should know whether your ideas and plans are viable.
In a word, knowing market means everything.
By the way, I want to say producing ideas and plans is not an easy thing. And in China very few people think about it positively, not to say do experiment on it. Most people in China believe in opportunities. They prepare for opportunities and waite for opportunities. I think maybe we can create opportunities positively. Why not? We have our own brains!
2. I never mean to underestimate the significance of money.
Finding money probably will be a hard process. Maybe you will pay a lot for it. There are many channels as following as far as I know:
a. You can gather money from your parents, brother and sisters, friends and classmates. Chinese care about Guanxi (relationship). You can make use of your own existing guanxi to gather money. But usually very few people can get enough money in this way.
b. You can borrow money from banks. Maybe you need to mortgage or loan. It depends. But I should say in China borrowing money from banks is not an easy thing unless you have guanxi.
c. I think the best way-cum-the most challenging way is to get risk capital or any kind of investment. And this is just what most young entrepreneurs are doing. It’s said that there is about 5000 billion US dollars idle money that is seeking for good projects in the world . If you have a good project, it’s needless to worry about money. As far as I know there are risk captalist companies in almost all such the Chinese big cities as Shanghai, Guanghzhou and Beijing. Usually, in order to attract risk capital people will wirte some business plans or do some feasiblity reports. So it’s useful to know how to write a good business plan and do a feasiblity report.
3. Compared with the above two steps ,the process of incorporating is not a too hard thing. As far as I know you should find a place in the first place. And then you can go to relevant govermental bodies to do relevant integral works such as registering in Industry & Commerce Bureau and tax registering.
In America, the process is a little bit different. But I think their study about incorporating has been quite professional. We may take it as reference. Known from bplans.com, “if you’ve decided to create a corporation, you’re facing a list of important -- but manageable -- tasks. Here’s what you must do:
1. Choose an available business name that complies with your state’s corporation rules.
2. Appoint the initial directors of your corporation.
3. File formal paperwork, usually called “articles of incorporation,“ and pay a filing fee that ranges from $100 to $800, depending on the state where you incorporate.
4. Create corporate “bylaws,“ which lay out the operating rules for your corporation.
5. Hold the first meeting of the board of directors.
6. Issue stock certificates to the initial owners (shareholders) of the corporation.
7. Obtain licenses and permits that may be required for your business.” ①
4. Last, but not least, you should make profit as soon as possible after incorporating. Otherwise, you will go bankrupt when you still dream to become a millionaire. It’s very fast to burn money in a company, many previous cases have told us. So you should work even much harder than before and be more careful and cautious. You should try your best to put your business plan into practice---find the market, enter the market, hold the market and expand the market. You should creat your own competitiveness and know where your enemies are. You should realize that no competitiveness means no profit. You should always be sane and do contingency measures quickly.
In a word, make profit as soon as possible no matter which kind of methods.
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| Re:How to Start Business (China) |
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[ 2008/8/23 0:36:36 | By: zhujian ] |
 Hi,Ap,you told me that you were becoming more and more fat.Not only in body,you are fatter in mind.You are no longer the concentrative War3 player in 7# USTB.Best Regards and waiting for your going home. |
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