China is a country with a very healthy investment climate. Convenience and efficiency of administrative services, minimal government control, political stability, cheap labor resources and the general focus of the economy on development - all these aspects attract investors from all over the world to China. Russian businessmen also feel confident in the Chinese market, so active entrepreneurs are looking with interest at the opportunity to register a company in China and thus begin implementing a potentially profitable project.
How do Russian businesses make money in China?
In fact, Russian entrepreneurs have the right to open companies in China engaged in any type of activity. But it is precisely the freedom of choice and the wealth of opportunities that often force the chooser to look for an answer to the question: what is better?
The most common areas of business in China for Russians are:
- catering services for Russian and foreign tourists;
- consulting for enterprises working on export-import operations with Chinese suppliers and manufacturers;
- translation agency;
- Beauty Salons;
- fitness studios (see,);
- recruitment agencies.
All of the above services are highly valued in densely populated Chinese cities, where business life is in full swing, there are thousands of company representative offices and where active people from all over the world come.
But the choice of direction of activity depends not only on assessing the prospects of a particular business. Russian entrepreneurs need to understand that competition in China is very high; they can only win the trust of clients if they are offered a truly unique approach to solving certain household or industrial problems.
Therefore, when choosing which business to open in China, experts recommend starting exclusively from the product that a Russian entrepreneur can offer to the Chinese market.
How to register a company in China
Lack of knowledge of the Chinese language and the Chinese administrative system is the first possible complexity on the path of an entrepreneur who decided to officially open his business in China. If language problem no, then things will go faster, but if it does, then you will have to hire a translator or order registration services from a consulting company. By the way, there are plenty of such companies in every major Chinese city. And the cost of registration services is almost the same everywhere – about 500 US dollars.
Choosing a form of enterprise
The choice of organizational and legal form for a future enterprise is also best made after negotiations with a consultant, since each specific business scheme has its own implementation features in the Chinese legal field. Only a specialist with experience in organizing various business processes can help an entrepreneur choose the right one. legal form, which will provide maximum entrepreneurial freedom and will not be burdened with strict control from Chinese regulatory structures.
Today, a Russian entrepreneur can open in China:
- representation Russian company;
- joint Russian-Chinese venture (founders – Chinese and Russian entrepreneurs);
- enterprise with foreign capital.
Each of these organizational and legal forms has a number of features that affect the formation of the company’s ownership structure, the right to own and dispose of property in China, and determines the permissible types of activities and validity periods.
Thus, representative offices of Russian enterprises in China do not have the right to engage in business activities in the Chinese market. Their functions may include organizational and exhibition activities, assistance to company employees when visiting China, as well as providing other business processes (checking and sending cargo, processing documentation and establishing contacts with suppliers).
As for Russian-Chinese joint ventures, there are also a number of special requirements for them. In China, there are two types of joint ventures (JVs) with foreign companies or individuals: joint capital enterprises and cooperation companies.
The first form assumes that the investor only puts capital at the disposal of the Chinese side and has a number of powers to control the use of investments, and also has the right to receive profits. The second type of joint venture involves the joint work of Chinese and Russian entrepreneurs on one project.
Registration deadlines and required documents
It should be noted that the entire procedure for registering a company in China takes about three months. To successfully register, an entrepreneur must complete the following preparatory steps:
- form the initial staff (director, supervisor, legal representative);
- open a bank account (optional in China);
- rent commercial or industrial real estate;
- draw up a business plan or feasibility study for your project (see how to write);
- determine the size of the authorized capital (the minimum for activities in the service sector is about $75,000, for trade - from $200,000).
After successfully completing tasks preparatory stage You can start collecting documents. To register you will need:
- three sets of notarized copies statutory documents Russian parent company or identity documents individual(papers must be translated into Chinese);
- written recommendations from the bank in which the foreign investor has an account;
- certified copies of documents translated into Chinese for all required employees and for the investor;
- feasibility study;
- office space lease agreement.
All documents are submitted with an application drawn up on Chinese, according to which the founder agrees to open a company with foreign capital in China.
How much money do you need and how quickly can you expect to make a profit?
Obviously, the implementation of such an idea as opening a business in China will require serious financial costs.
Important! It is not necessary to contribute the entire authorized capital at once. An entrepreneur must contribute in the first three months after registration only 15% of the amount stated in the Charter of the enterprise; the remainder can be contributed within one or even two years after registration.
The total cost of registering a company is about $3,000. The cost of renting one square meter of office real estate (together with the cost utilities) – about 7 US dollars per month. Monthly rent for a two-room apartment is about $200. Average wage office worker in China – 700 US dollars.
The total monthly costs of living and maintaining an office in China will be at least 3,000 US dollars.
In order to quickly organize active commodity circulation, you will need to invest at least $20,000 in the business. The markup on goods and services in China is quite large and often amounts to 100%. Conventionally, if you invest $20,000 in a business every month, then your earnings will be the same. If you subtract the basic expenses, you are left with about $10,000 in profit.
In China, doing business like in Russia or Europe will not work. It has its own specifics, which is easy to guess if you know this country!
And there are enough features. Moreover, both positive and not so positive for foreign companies. The legislation of the Celestial Empire is such that the business model differs from the Western one. There is a list of industries in which the Chinese government either does not recommend opening a company or directly prohibits it. But taxation for foreign companies is very attractive. In general, regulatory authorities are very sensitive to business representatives from other countries, they will always listen and try to help. True, it is better not to go to court: filing a claim is very difficult, and even if you succeed, you are unlikely to receive a decision.
In addition to the peculiarities of legislation, there are also peculiarities of mentality. The Chinese are friendly towards foreigners, but local companions cannot be trusted one hundred percent. In addition, the inhabitants of the Middle Kingdom are good at copying any know-how, which may turn out to be unexpected for you.
All major foreign business is in Shanghai
Shanghai is considered the most international and most advanced city in China. It was this city that secured its status as the trade and financial center of the country. Related to this is the fact that most foreigners who decide to work in China choose Shanghai or its environs to live and work.
It is important that only in this city can one live comfortably knowing only English: a completely logical consequence of the fact that China has long and quite successfully pursued a policy of attracting foreigners to Shanghai, without particularly encouraging the opening of foreign legal entities in the administrative center of the state - Beijing. The legislation regulating the activities of foreign companies in this country is most liberal in Shanghai.
Hong Kong is in a special position
Hong Kong occupies a very special position in the Chinese economy. This city became part of the Middle Kingdom relatively recently, but de facto it is still another country with its own currency, laws and language. An “ordinary” Chinese cannot get to Hong Kong just like that: this requires a visa, which is not so easy to obtain.
“Hong Kong is much more developed than any Chinese city, and the standard of living there is many times higher,” says Leonid Sorokoumov , CEO Caravan Gifts Limited, representative of the China.Ru group of companies in Shanghai. In Hong Kong, English law actually applies, and entrepreneurial activity is actively encouraged (especially since the city does not produce anything). You can open a company here very quickly.
Hong Kong firms investing in China are considered foreign by Chinese authorities. Many foreigners seeking to enter the Chinese market open a company in Hong Kong as a springboard: it is simple, cheap and convenient.
“Taxation in Hong Kong is simple and straightforward: income tax is 17%, while in China it reaches 33%. However, tax in Hong Kong only needs to be paid if the registered company carries out some activities here and has a staff. Let's say, if a Hong Kong company simply buys a product in China and resells it to a Russian company, there is no need to pay tax," explains Sorokoumov.
When does it make sense to open a company in China?
First you need to decide what kind of company it will be: a joint venture or a company with 100% foreign capital. Of course, a form of trade representation is also possible, but in this case, any commercial activity in the country is prohibited, and you will also have to pay tax on expenses.
Today, China (and the country joined the WTO in 2001) is following the path of liberalization of legislation: the restrictions that previously existed for foreigners are gradually being lifted. However, in many industries there are prohibitions: if you are engaged in certain types of activities in the country, the company must be at least 50% owned by the Chinese. By the way, the list of industries where China officially encourages or prohibits the opening of legal entities is not a secret. You can watch it. A lot of information on this matter can be found on the state portal dedicated to investments in the economy of the Middle Kingdom (you can go to the portal by clicking here).
"For a foreigner ideal model“, of course, there will be a company with 100% foreign capital: this makes it possible to completely control the situation and conduct business according to Western standards, but in practice this is not always possible to achieve,” argues Leonid Sorokoumov from Caravan Gifts Limited.
"It is important to understand that many types of businesses in China - especially large ones state enterprises that an investor might want to invest in are different from the Western business model. - warns Neil MacDonald , partner law firm Lovells Hong Kong. — State-owned companies in China usually play a very important role for the population in a particular region. Therefore, the goal of such enterprises is not only to earn profits for shareholders, which is the usual goal of Western enterprises. They also provide stability in society: they provide jobs, provide their employees with housing, education, medical care, and so on."
Because of this, many China experts advise potential investors to weigh the “social risks”, especially if they are planning a major expansion of production.
Company registration procedure and its cost
The procedure for registering a company in China is quite standard, but not fast. The latter is due to the fact that commercial activities permission must be obtained from the Chamber of Commerce and the Ministry of Commerce, which, as a rule, are in no hurry. Therefore, it is most convenient to use the services of registrars.
“On average, they will cost 5-6 thousand dollars,” Sorokoumov shares his experience. “This does not include payments to the state (permits, documentation), which will average 1.5-2 thousand dollars. Outsourced accounting will cost approximately 150-200 dollars per month, audit - $500-600 per year. The entire registration procedure took me 10 months. Hong Kong prices and terms are an order of magnitude lower: annual expenses the cost of servicing the company is unlikely to exceed one and a half thousand dollars.”
In China, there are quite strict requirements for the authorized capital of a company being created. For example, for a trading organization, the lower limit is $140 thousand. At the same time, you can only trade those goods that are included in your documentation. This is monitored very strictly.
Basic taxes
In China, there are two main taxes for foreign trading companies: VAT (basic rate 17%, simplified rate 4%) and income tax (25-33%). Local governments may give certain benefits to an entrepreneur registering a company on its territory. Even within Shanghai, different district governments offer different tax incentives in an effort to attract foreign investors to their territory.
China recently adopted a new Labor Code, which sharply increased the employer's social benefits. Today, the owner of the company transfers 44% of the employee’s earnings to social services. Another 18% is given by the employee himself. Income tax (up to 45%) is paid at a progressive rate.
Chinese attitudes towards foreigners
The attitude of the Chinese towards foreigners is emphatically polite. “The goose that lays the golden eggs is not killed, but protected,” he jokes about this Igor Dyachenko , CEO of Taishi Global, with a long history of working with China. “They always try to help and support.” For example, if the investor himself, and not his local employee, goes to solve problems with customs, the likelihood of success will be higher than if the Chinese deal with them.
Features of the judicial system
The same can be said about the courts, although stereotypes that they are biased are not without merit. “The judicial system outside large cities (Beijing, Shanghai, Guangzhou) is poorly developed. It is difficult to file a claim in a Chinese court in a small town, or even a large regional center, and get a decision, especially for a foreign investor. In addition, the judicial system in China is very crowded associated with the Communist Party and the interests of the local government. Therefore, the concept of the court as an independent institution is not an immutable fact here," he said Neil MacDonald from Lovells Hong Kong.
Foreign companies in China are definitely given more attention than Chinese ones: checks are more scrupulous, and an annual audit is required. Typically, Russian businessmen use the services of Chinese auditing firms, although, for example, the Big Four have been working in the country for quite a long time.
Control over the company's activities is very important factor
Experts unanimously agree that foreign investors often make the mistake of investing in China without proper controls. Investors completely rely on the Chinese partner, entrusting him with business management. This model of investing in China is risky because the legal framework here is not very strong.
“I highly recommend that anyone thinking about investing in China not to miss out on micromanaging the project. It is necessary to have “your people” overseeing the project. I mean exactly those people whom you can trust one hundred percent and who can manage the project "Understand what is happening to him, check documents (including financial ones) and carry out constant monitoring," advises Neil MacDonald .
“The Chinese need to be strictly controlled, spend a lot of time on personal communication and human contact,” agrees Leonid Sorokoumov. “Contractual agreements often do not work: the Chinese often rely on “change of circumstances” and “fairness”, and sign the contract without reading. Moreover, any technology in this country is not protected, since the Chinese very quickly copy any know-how."
Indeed, in the Celestial Empire it is not uncommon for your employee to learn everything, and then leave and open his own company literally across the street, which is engaged in the same activities as you. It is impossible to legally prohibit such developments.
Despite all these risks, experts note the friendliness and openness of Chinese workers towards foreigners and talk about the urgent need to build good “human” relationships with them. “The main mistake that foreigners make in China is to treat the Chinese “from top to bottom” or according to the formula “money-product-money”,” sums up Igor Dyachenko from Taishi Global. — In other words, foreigners are primarily concerned about the low price and nothing else. As a result of this approach, they wonder why 'these Chinese' behave this way."
Today there is nothing difficult about registering a business in China. One of the disadvantages of such registration is that it takes a rather long time to make a decision on this issue (approximately one year) due to the significant bureaucratization of the PRC government. However, to simplify and speed up the registration procedure, you can turn to intermediary companies, whose services will cost you 5-6 thousand dollars, and including payment of various taxes and fees, you will have to spend about another 2 thousand dollars. It is much easier in this case (in financially) register your business, for example, in Hong Kong, than in Shanghai or Beijing, this circumstance also needs to be taken into account.
A large (even too large) initial authorized capital is also a disadvantage of registration in China. Thus, to open a trading company, you need to have approximately 140 thousand US dollars, of which the future owner pays 20 percent of the amount at the time of registration, and the remaining 80 percent will need to be paid within two years from the start of registration of the company (company).
Procedure for registering a company in China.
Submitting documents to register your company in China is a procedure consisting of several steps. First, you need to write an application and collect the necessary package of documents to submit to the competent authority. Then this package of documents must be approved, followed by registration of your company with the Administrative Office of Commerce and Industry of China. The next step should be to open an account in one of the banks in China. Next, you need to submit documents to the Office of Foreign Exchange Control of China for the purpose of checking them, and also obtain the code of your new company by submitting documents to the Tax Inspectorate of the People's Republic of China. The next step is to order a seal for the company, and ultimately you need to obtain permission, with which you will have the right to hire foreign and Chinese workers.
The type and type of your proposed activity will be a determining indicator of which government departments will need to submit a package of documents. The People's Bank of China will accept your documents for consideration if you open an insurance or financial company. And the Ministry of Foreign Trade will review the documents provided if you plan to open a transport or trading company. The Ministry of Communications of the People's Republic of China accepts documents for opening companies whose activities will be related to maritime transportation. And the Civil Aviation Authority will consider the documents necessary for registering the airline.
At the time of submitting your documents, you will be provided with a specific government official whose responsibilities will include monitoring the correct submission of your documents to all relevant authorities in China.
In addition to the above application for opening a company in China, the following documents will also be required: 1) the account status of your company (bank statement); 2) passport or other identification document of the founder of the company - a copy; 3) five photographs (usually in 6x6 format); 4) a document confirming the appointment of a director, signed by the founder of the company; 5) a lease agreement for premises for a company, as well as documents from the landlord: a document stating that the landlord legally owns the office and that he has a license to financial activities in China.
An additional package of documents may be needed if you plan to open a branch of a foreign company in China. Such documents include: firstly, an application for registration of a foreign company in China; secondly, the availability of funds in the bank of the parent company - statement; thirdly, complete information about employees who will subsequently work in China; and fourthly, contracts and agreements concluded by the parent company with all enterprises in China.
The defining moment for you may be the fact that business in China is quite profitable, despite the abundance of bureaucracy in the process of registering a company. This is facilitated by both the high demand for products and relatively cheap labor resources, with the help of which you can get a good profit in a fairly short period of activity of your company.
In addition, to open a company in China with only foreign capital, you will need only one founder, who can also serve as a director.
And finally, let's go back to the beginning. Even at the stage of planning your future business, you need to correctly assess various factors, which may affect the outcome of the case, is the city in which your further work is planned, and the type of activity you plan to engage in, and much more. All these carefully considered and planned points will significantly affect the further development of events related to the registration process, and possibly saving your finances.
Despite everything, the numbers show that China's economy is booming. Combined with ease of production and a growing number of paying buyers, the Asian country's financial stability makes it an attractive option for those looking to start a business in China.
If you take another look at the bureaucratic red tape surrounding opening a business as a foreigner, you will find that the region is not so friendly. According to the World Bank's 2018 rankings, China is ranked 78th in ease of doing business and 93rd in the speed and ease of starting a business in China. While these rankings have improved over the past few years, there are still many obstacles for foreign entrepreneurs looking to start a business in China.
Can you start a business in China on your own or do you need to hire a professional?
It is technically possible to start a business in China without any help. However, hiring a consultant or consulting company can greatly facilitate your preparation of documents and registration procedures, if you have the means to do so. Our specialists will help you decide on the structure of your business, prepare and submit documents, act as your representative if you are not in China, and go through all registration procedures.
What type of company should you register in China?
There are several ways to start a business in China, each with its own advantages and disadvantages. The three most common legal forms:
Representative office
A representative office is much easier to open than other types of companies. However, you will be limited in what you can do on behalf of the company. A representative office in China cannot manufacture products, sell them, or accept payments from Chinese customers. This option, as a rule, is logical only for offices that are not engaged in direct business, but conduct market research, search for potential clients and suppliers.
Joint venture
Joint ventures are the second most common type of business for foreigners working in China. Joint ventures have significantly fewer restrictions than a representative office. However, as with any joint venture, there are risks, compounded by the fact that your Chinese partner will have a majority stake in your business. You risk losing control of your brand and your business, and with Chinese intellectual property laws, if you plan to manufacture or sell an expensive product, you may not want to take the risk.
Wholly Foreign Owned Company (WOFE)
WOFE allows foreign entrepreneurs to own 100% of their Chinese enterprise, but it takes a long time to register. That being said, if you can successfully set up a WOFE in China, you will have almost the same rights as a Chinese business. To open WOFE you will need authorized capital, the size of which depends on the type of activity of the company and place of registration.
How does setting up a business in China work?
Our recommended first step in starting your Chinese business is to hire a qualified consultant or company that can take care of your company registration process. If you plan to do this yourself, then read below for a description of the process of opening WOFE.
1. Choose the type of activity and structure of your business
It is important to check your company's activity against the list of restricted industries to ensure you are choosing the right structure. You can also look at the directory of industries encouraged for foreign investment to know in advance what incentives and subsidies you are eligible for.
2. Prepare your documents.
The documents you will need include:
- Registration certificate, memorandum of association, certified by the Chinese embassy or consulate.
- Copies of each investor's passport certified by the Chinese embassy or consulate abroad.
- Certificates from the bank for each investor confirming his good reputation.
- Copies of passports of the director of the parent company, the legal representative of the Chinese company and the head of the Chinese company (if any).
- 6 photographs of 2*2 Chinese legal representative along with a brief resume.
- Authorized capital.
- Indication of industry, type of activity.
- 8 proposed Chinese names for a company in China.
- Chinese office address, including copies of leasing agreements, property title certificates, and landlord identification.
- Copies of the power of attorney.
If your WFOE will be involved in production, you will also need to provide:
- Purpose and intended investment.
- The structure of the enterprise and the number of employees.
- Land use permit.
- Environmental Assessment Report.
- Product characteristics.
- Volume of production.
- Detailed list of equipment used.
- Business plan.
- Environmental measures.
- Characteristics of common areas (availability of water, electricity).
3. Apply for approval
In China, your business must be approved by two separate organizations: the Ministry of Commerce and the State Administration of Industry and Commerce.
If your business falls into the “encouraged” sector, you will also need approval from the National Development and Reform Commission.
Your application may take up to 90 days to be reviewed and is subject to additional review, which may extend the time frame.
* The calculations use average data for Russia
Business with China means high profits and profitable cooperation. We have collected tips on how to organize a business at home, open a business without investment, and what main directions you should follow.
Just ten years ago, goods from China were no different high quality. They were produced from second-class raw materials and using outdated technologies, so such products were not in great demand. Today a lot has changed, so in Chinese trading platforms can be easily purchased quality products By affordable prices. In this article we will tell you where to start a business with China and how to make good money from it.
Just a few years ago, goods from China were associated with cheap, low-quality products. Today, more and more entrepreneurs are thinking about cooperation with China, and the Internet is full of questions in the spirit of “how to open a business with China” and “what is needed to cooperate with China.” Business with China is promising, shows constant growth and is striving to enter Russia. Why not take advantage of this?
Let's start answering the main question: how much money is needed to start. You can start a business with Chinese partners with... zero balance. Seriously! You can start a selling business Chinese goods without investment. The main thing is to have it with you step by step instructions launch own business for the sale of physical goods. She is the key to success.
Anyone who has a computer, Internet access, and the desire to learn all the nuances can start a business selling Chinese goods. of this business and start earning money. Interesting ideas Newbies, small entrepreneurs, and successful businessmen seeking to expand their business will find cooperation with China.
Dropshipping. How to open a dropshipping business with China
It is quite possible to open a business with China without investment. The name of this business is “dropshipping”. In English this word translates as “direct delivery”. The idea of a business is that an entrepreneur acts as an intermediary between a buyer and a seller. The scheme is simple: the entrepreneur orders the necessary goods on his own behalf and sends the goods to the buyer’s address. Thus, an entrepreneur can work without leaving home and without spending his money, working on a prepaid basis. All that an entrepreneur takes on is organizational issues. He will need to register on the site, communicate with the seller if necessary, track the delivery of the goods, etc.
Dropshipping has many advantages: the entrepreneur does not risk his own funds, does not need to hire employees and can cope with the volume of work alone. In addition, to operate effectively, it only needs a computer and the Internet.
The main disadvantage of this business model lies in external factors: firstly, parcels from China take quite a long time to be delivered; secondly, there is a risk of loss or delay at customs. Not every buyer agrees to wait that long. It should also be taken into account that the scheme is old and proven, that is, there is a high risk of encountering competition. Despite this, dropshipping remains a fairly profitable business, and the markup on goods ranges from 10% to 100%.
What do you need to start a dropshipping business?
Find suppliers. There are thousands of them on the Internet, but choosing suppliers is not so easy. Among all the variety, you still need to find the most reliable and suitable in terms of product quality and price, delivery conditions, assortment, etc. Most often, large online stores are chosen as suppliers, which have a huge assortment and sell it at wholesale prices. Now you can find online stores that are created specifically for dropshipping (Banggood.com, TinyDeal.com, DX.com, Tmart.com, BuySKU.com, LightInTheBox.com and others). It’s even easier to make money with such sites because they often provide partners with various bonuses. You should approach your choice of supplier responsibly, because you are responsible to your customers for the quality of the product and its delivery.
Contact suppliers. To do this, you need to send a letter to the support service indicating that you want to work with them through the dropshipping system. With a 95% chance you will receive a positive answer. The main thing you should pay attention to at this stage is a clear idea of what products you will offer customers and how you will advertise the product. You need to contact suppliers to ensure that they do not use their company logos when packaging your order. After all, it is advisable for the buyer not to know from whom the goods are actually purchased.
Select product. To decide on a direction, go to regular popular online stores and see what products are in demand. It is advisable not to work with electronics - they have much more problems with defects and returns. Therefore, an important criterion for choosing a product is the minimum probability of return. You can take a risk and offer customers something interesting and unusual. You can also make money on exclusivity.
Choosing an advertising method. You can create a group for your online store on social networks. After spending several thousand on actively promoting products through accounts, you will quickly find buyers. Don’t forget about free advertising options – post your products on bulletin boards and auctions. Today there are many online trading platforms: market.yandex.ru, tiu.ru, meshok.net and others.
We count income and expenses. The main cost is spent on promoting your online store. This takes into account the costs of promoting the group on social networks, paying for advertisements for placement in the top and other things. As mentioned earlier, you can do without any material costs at all. However, you must understand that the greater the investment in the business, the faster buyers will appear and the more you can earn.
How much can you earn from dropshipping?
This question is quite difficult. But not because an unpromising truth awaits you, but because it is impossible to name specific amounts. The amount of your income depends entirely on the quality of your work and the product you choose to sell. On the Internet you can read many stories about how entrepreneurs earn 1 million in net profit from dropshipping in a year and provide convincing evidence of this. Of course, these stories are not a guarantee that the same will happen for you. But this is a good guideline that will encourage you to start your own business.
You can increase your income from dropshipping thanks to one life hack - cashbacks. Everyone has heard at least once about the opportunity to get back some percentage of your purchases using special cashback services. Users actively use them, trying to get back their 50 rubles from a personal purchase. Just imagine how much money you can return if you have a turnover of thousands.
Landing. How to open a business with China through landing page
You can continue the idea of dropshipping, but refine it. And create not a simple online store on a social network, but an attractive, selling landing page. This is the name for one-page websites created to sell one product. The purpose of a landing page is to convert a site visitor to the status of a buyer and encourage them to take a targeted action (purchase a product). The main advantage of landing page is its high efficiency. If regular sites bring in 15% of sales from the total number of visits, then one-page sites can bring in 50%. Therefore, today this method of sales is very popular.
To open a business on a landing page, you should adhere to the following algorithm:
Select a product or service to sell through a landing page. How to choose what to sell? See what others are selling: this may give you an idea or convince you to move away from a niche that is already highly competitive. You can sell anything through landing pages. It is important that this is special offer. It is recommended to study the trends of foreign markets - often fashion for goods comes to us from abroad. If you get right with the trend and manage to occupy a niche, you can make good money.
Select a supplier. Everything is simple here: when you have decided on a product, study the suppliers’ offers. Choose profitable terms, not forgetting about the reliability of the supplier.
Develop a unique selling proposition. Here you need to form a clear understanding: what you are selling, to whom you are selling, why they should buy this product from you. Perfect option for landing - your offer must be unique. This does not mean that you need to sell the latest developments or the rarest goods. The unique selling proposition includes not only the product itself, but also the price, additional services, format of cooperation, etc. For example, you can offer record delivery times, original packaging, the most low price or a product that has no analogues on the market. The answer to the question “who is the product sold to?” necessary to set the price. You need to understand what target audience your product is designed for. Often the answer lies in the product you are trying to sell.
Develop a landing page. Creating a one-page website is a process that will determine 80% of your success. The right landing page is a sales tool in itself. There are two options for creating a landing page: turn to professionals and order a one-page website from them, or use a website builder to create a one-page website yourself. A professional landing page will be effective and optimized. Every little detail is important in a landing page, right down to the color scheme of the site and the placement of buttons on the page. Therefore, we recommend investing in professional development. The cost of a landing page ranges from 10,000 rubles and above. There are studios that ask for 50,000 rubles for their work, but this package usually includes not only the creation of a one-page website, but also assistance in its promotion. If you want to save money and feel empowered to create a landing page, you can use website builders. You can easily find such tools and, after spending 2-3 hours, make yourself a one-page website.
Test the site. The product has been selected, the one-page has been created - now it’s time to test various methods promotions to choose best option. The main sources of traffic are: social media, contextual advertising, search engine promotion, thematic and industry resources. We will not dwell on each of them. Let's just say that each of the tools needs to be tested to find the perfect formula for attracting your target audience.
Purchase goods. It’s not for nothing that this point is located almost at the end of the algorithm. Why is it recommended to purchase goods only after a test launch of the site? In order to avoid mistakes with choosing a product and creating a unique selling proposition. You will spend less money and effort on a test launch of the site than on purchasing a batch of goods. It is better to buy not too many goods for the first batch - unnecessary cash It’s better to invest in promotion than to spend it on a product that will be in stock.
Arrange delivery. You can use the services of Russian Post or private courier services. Delivery by Russian Post is cheaper, but the delivery time may slow down your business. Delivery by transport companies is more expensive. But you can include delivery costs in the price of the product or indicate it as an additional fee. payment for its clients.
Expand your business. When the landing page is set up and makes a profit, you can think about expanding your business. Today there are many business projects on the franchising market that have come out of the idea of a landing page.
A landing page business can pay for itself within the first month of operation. The average monthly profit is 65,000 rubles. For home business this is a good indicator.
Chinese equipment. How to make money purchasing Chinese equipment
The idea of buying Chinese equipment is a great idea for small businesses. When taking the first steps in business, an entrepreneur seeks to save on initial costs. In most cases, you can find special equipment and components at a competitive price only among Chinese suppliers. Today, no country in the world can boast of such reasonable prices for business equipment.
The Asian market is able to satisfy needs in any area. Many people note that Chinese equipment is not inferior in quality to European analogues, but at the same time costs several times less.
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It is also important that manufacturers provide comprehensive support. They offer supplies of materials for production, set up and adapt equipment, train personnel, provide warranties, maintenance, and, if necessary, even repair of supplied equipment. Such a service will be appreciated in any case, and even more so in a small business. But when choosing this direction, you should also prepare for certain difficulties of cooperation. This includes the language barrier and difficulties in delivery and customs clearance of large equipment. Also, when ordering equipment, you should always check whether it can be adjusted by factory specialists. Some companies do not provide such a service, which can cause difficulties for an entrepreneur.
What equipment is most often purchased from China? Manufacturing machines building materials, plastic products or packaging and containers. Analysts also have high hopes for 3D printers, which can be used to produce components, souvenirs, toys, jewelry and even clothing. Among Chinese products you can find a wide range of 3D printing equipment.
How to buy equipment in China?
The algorithm for doing business with China includes several steps:
Find a supplier search site (Made-in-China, Alibaba, etc.). Check the reliability of the supplier by studying its offer, reviews, and website. All data should be studied in detail: the year the company was founded, the presence of the necessary certificates, annual turnover, assortment, etc.
Select the most attractive companies and send a request asking for a commercial offer for the equipment you are interested in for business. Find out if they cooperate with partners from Russia. After this, you can contact the specified Russian partners and ask for confirmation of the reliability of the partners. Of course, it is not a fact that you will be given a complete resume of the supplier and provided with all the information, but still this point is worth keeping in mind.
Before purchasing equipment, you need to conduct a thorough analysis commercial offers and choose the most profitable one.
Negotiate with the supplier, agree on the price and configuration of equipment.
Agree on the contract and terms of transportation. The contract is usually concluded in two languages - English and Chinese. After signing the contract, you need to make a transaction passport, after which you can make an advance payment.
Pay for the order. All manufacturers require an advance payment of 30-50% of the order amount. The average production time for equipment is 30-40 days. The balance is paid upon provision of documents confirming the fact of shipment of the goods.
The most reliable method of payment is a revocable letter of credit. Thanks to it, the buyer can save money in the event of an unscrupulous supplier.
Before sending documents, you should ask the Chinese side to send copies of the documents to make sure they are correct.
Before deciding to buy equipment in China, you need to carefully think through and calculate everything. You should start this business only if the savings cover all delivery costs.
Export to China. How to make money by exporting to the Middle Kingdom?
Business with China can be built not only on the resale of Chinese goods. Because the Chinese market is not only huge volumes of cheap products, but also a promising sales market with a potential reach of more than 1 billion people. Therefore, both novice entrepreneurs and already established successful businessmen are interested in doing business with China. What can be supplied to the Chinese market? The most popular products in China are agricultural products, semi-finished products, raw materials for woodworking, chemical, food and light industries, chocolate and candies, pine nut. Moreover, the business of the Celestial Empire may be interested even in products that are considered unclaimed in Russia. For example, while domestic poultry farms are accustomed to throwing away chicken and duck feet, in China they are in great demand.
To arrange export deliveries to China, it is necessary to have a declaration, and in some cases a transportation document will be sufficient. The declaration is completed independently or with the help of a broker at customs. Some goods are allowed to be exported only with a specially confirmed permit and certificate.
Before exporting, you must go through the following stages:
Study the Chinese market and pricing procedures.
Find future buyers.
Prepare a contract for export and insurance of goods.
Overcome the customs registration procedure in Russia and customs clearance in China.
For effective cooperation with China, foreign trade participants advise carrying out a large preparatory work which includes:
visiting China to study the market;
delivery of goods to China, selection of warehouse and the best way sending goods;
preparation of demonstration material in Chinese for negotiations with potential clients;
provision of a small batch of products for sale.
All this requires large financial and time expenditures. But it is worth considering that the export of Russian goods to China is growing every year. The prospects for this direction are very high, and therefore you should consider this option to expand your business.
Checklist for starting a business in China
Business with China is a relevant direction for any entrepreneur. In almost every area, you can optimize costs if you make purchases in China. In addition, the resale of Chinese goods is great idea for home business, which proper organization and promotion will allow you to earn earnings several times higher than the average salary level. For small businesses, it will be beneficial to purchase Chinese equipment, and for larger companies, you can consider the promising option of supplying their products to China.
No matter how much business with China may seem like a cozy golden shore to which you just need to land, this is not entirely true.
In order for business from the Middle Kingdom to be profitable, you need to adhere to the following recommendations:
constantly explore the market in search of new business ideas with China;
stick to the selection of a specific product group without trying to cover the entire market;
carefully double-check suppliers;
enter into written agreements for the supply of products;
stipulate in advance the conditions for returning the goods in the event of receiving a defective batch.
The most important thing is that the business you are doing is in demand from consumers and is of interest to you as an entrepreneur. Then your success is guaranteed.
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