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Planning The Basics
If you're just setting out in business, you've probably already done a lot of research. However, we have lots of experience in helping to get young businesses off the ground, so we recommend you read the following sections
Writing a Business Plan
Choose a Business Structure
Marketing Your Business
Recruiting For Your Business
Writing a Business Plan
- Assess every aspect of your proposed business thoroughly and realistically
- Explain how your business will be operated, managed and funded. Learn more about funding in out 5 Steps to Raising Finance guide
- Describe the market in which your business will operate
- Identify and evaluate risks
- Provide credible profit and cash flow forecasts. Learn more about cash flow management in our Cash Management Guide
Choose a Business Structure
To ensure you set off on the right foot, you will need to investigate which of the following business structures most suits your operation:
- Sole proprietorship – if you're planning to run a business on your own, this is the most common way of starting out
- Partnership – if you intend to work with an outside party who is not an employee, you are required by law to establish a partnership
- Limited liability company – you must register this as a separate legal entity
Marketing Your Business
Firstly you should carry out some research into the following areas:
- Who are your potential customers?
- Where do they live?
- What are their lifestyles?
- What are their needs and desires?
- What are their habits and behaviours?
- From the above, what should you be doing from your target customers' perspective?
You will then be in a position to create a marketing campaign using the following helpful tips:
- Tailor your campaign messages and marketing media to specific segments of your customer base
- Consider different marketing media. Flyers, posters, tent-cards, press advertisements, TV and radio commercials all have their own pros and cons and will vary considerably in cost
- Direct mail is a relatively cheap way to start advertising your business. The first step is to choose a list of potential customers to target
- There is no off-the-shelf marketing campaign. You should assess and/or test various media until you find the most cost-effective marketing mix
- Decide how you will measure and track responses. This will provide your company with valuable feedback on the impact and cost-effectiveness of each campaign
- Carry out research before, during and after a campaign to help you build a complete picture
Recruiting For Your Business
You should be aware of the following recruitment customs in the Hong Kong market:
- The Labour Department offers a range of free recruitment and employment services
- Employers who wish to recruit staff should complete and return a vacancy order form by fax or mail
- When job seekers are interested in your job, the Job Centre will call you to introduce the job seekers and arrange interviews
- After concluding each interview, you must indicate the result on the introduction letter and return it to the Job Centre
- The Job Centre will continue to refer job seekers to you until the vacancy has been filled.
- Anyone employed under a continuous contract is entitled to no less than one rest day in each period of seven days
- There is no legal minimum wage in Hong Kong. Click here to download an example Employment Contract
Although you should seek expert legal advice, here are some issues to be aware of:
- An employer is legally liable to pay compensation in respect of:
- injuries sustained by employees as a result of an accident arising out of and in the course of employment
- occupational diseases suffered by employees
- injuries sustained by employees as a result of an accident arising out of and in the course of employment
- Employees who are injured while working outside Hong Kong are also covered if they are employed in Hong Kong by local employers
- As an employer, you must arrange for all employees aged between 18 and 65, who have been employed for 60 days or more, to join a registered Mandatory Provident Fund (MPF) scheme
- You must calculate each employee's income and amount of contribution for each contribution period, deduct the relevant mandatory contribution from the employee's income and pay the employer's contribution from your own funds
- The scheme also covers self-employed people
- Your MPF contributions are profits tax deductible, provided that the deduction does not exceed 15% of an employee's total pay
- You must provide each employee with a monthly pay record showing the employee's relevant income and the amount of contribution. However, if you are the employer of a casual employee participating in an industry scheme, you do not need to comply with this requirement
- Industry schemes are established for industries with high labour mobility, including the catering and construction industries. Employers in these industries are required to arrange for employees to participate in MPF schemes regardless of the duration of employment
- The Employment Ordinance governs all conditions of employment in Hong Kong
- In the event of a labour dispute, the Labour Department offers a conciliation service for the parties concerned to reach an amicable settlement
Disclaimer:
This section is intended as a general guide for reference only.
The information contained in this section should not be relied upon as a substitute for professional advice in individual cases. Future changes in legislation, tax levels and practice could affect the information in this site.
The information shown is based on data or information obtained from sources believed to be reliable but HSBC makes no representation and accepts no responsibility as to its accuracy or completeness and will not be hold liable for damages arising out of any person's reliance upon this information.
Information sourced from Inland Revenue Department, Labour Department, Trade and Industry Department and Productivity Council.
