Small Business Investment Opportunities in Hong Kong You Can Try in 2019
Hong Kong is a leading investment destination for companies and corporations keen on expanding their ventures and grow beyond their borders. It is also where most investors interested in lucrative small business investment are heading strongly considering. The city is not just a vibrant global financial hub, but also a significant port that opens up the entire Asian continent to the rest of the world.
The business environment is lively, with a plethora of international organizations and brands who not only take advantage of the purchasing power of the economy to profit but also taps into the favourable environment created by the government for foreigners to do business.
You will be excited to know that Hong Kong ranks very highly according to the World Bank’s Ease of Doing Business Index in Asia. And as such, it is a natural magnet to any serious investor keen on conquering not just the Asian markets, but the rest of the world. As such, it is no brainer that Hong Kong is currently ranked among the top destination for top business investment in the world.
Why Venture in Hong Kong?
Many are the good things going well for Hong Kong as a business destination. It is especially for setting up small businesses that have the potential to grow into global ventures. Its strategic location to Mainland China implies that whatever business you start could easily extend to the Chinese markets. You could also source for various items for trade quite easily from Mainland China.
Other than this, the business environment in Hong Kong is so good that irrespective of the venture you get into, if you have laid the structures right, then you will be assured of making excellent profits. It is also interesting to note that the process of company formation for those with small business investment ideas is relatively easy, and you could apply for incorporation and the relevant permits and get everything in under thirty minutes.
The policies and the taxes are also very friendly to the foreigners, and with great infrastructure the country enjoys, coupled with the robust social systems, Hong Kong is a destination to be embraced by any serious investor keen on having a taste of running a business in a world-class economy.
Small Business Investment Opportunities in Hong Kong
Hong Kong is a cradle of businesses, and there is always room for any investor with a sound business idea that will help a specific niche find various solutions to the problems bothering them. There are very many types of small business investment ideas you could implement in Hong Kong for maximum profitability. Here is a list of the top 20 small business investment opportunities in Hong Kong that will guarantee you the best returns:
1. Business Consultants Services
As a business and a financial centre, nearly every foreigner and foreign-owned business keen on the opening shop in the region will always make Hong Kong their first port of call for sound expert advice. And here is how you can come in as a business consultant. The majority of the entrepreneurs interested in starting businesses in Asia usually come to Hong Kong, but they are never aware of the procedures they need to take to have their companies duly registered and ready to transact.
You can help such investors and companies in handling the entire business registration process on their behalf. Your mandate will be to help them get their businesses registered, assist them with staff recruitment, rent office spaces for them, and probably help them with advertising their business.
2. Mobile Application Development
Technologically, Hong Kong is one of the most advanced cities in the world. Thus, it easy to understand why mobile application development is one the currently hot small business investment ideas you can implement. Mobile applications are the order of the day as business and corporations are striving to improve service delivery. With the increase in demand for these apps, this is a business idea bound to thrive for a very long time.
With the booming nature of the software industry, Hong Kong is just the right place to release a new revolutionary mobile app. If you have the skills to develop apps, you could do it on your own, then leverage on the software community and networks in Hong Kong to get it into the market. Alternatively, say that you are an entrepreneur with an idea for an app, but you lack the skills to code the app. You will still find excellent freelance programmers in Hong Kong. They will help you bring your mega idea into life and make a killing out of it.
3. Catering Services
Hong Kong is one of the best places to have a taste of the finest cuisines from the Asian continent. For an investor, however, this is a potent field, given that it is extremely popular. With the multicultural nature of the Hong Kong population, you will never go wrong by starting another food joint down the corner. You also have other choices like the catering service for the needs of a specific niche.
Remember, people from different cultures and regions around the world are present in Hong Kong. People of different backgrounds have different taste preference. If you want to join this lucrative industry in any shape or form, you will be required to acquire certain special permits and licenses and also pass a health and sanitary inspection before you can start offering catering services in Hong Kong.
4. Travel Agency
A travel agency is one of the small business investment ideas that so many investors are successfully implementing in Hong Kong. As you already know, HK is a top destination for people travelling for business and leisure. With a travel agency, your duty will be to help people arrange for tickets, hotel reservations, transportation, and sightseeing. You will also provide tours and guide services for clients who will have a need for such.
With millions of tourists visiting Hong Kong every single month, you will never run out of clients. However, for this, you will need to learn how to offer high-quality services. It is also encouraging to note that starting a travel agency in Hong Kong is relatively easy. This is because the requirements are rather low, and you will need a very small investment to get going.
5. Cleaning Services
Cleaning is a service of convenience that will always be in demand. And for a fast and busy city like Hong Kong, there is still a lot of money to be made in this sector. You can decide to start a janitorial service and help businesses, institutions, and corporations take care of their cleaning needs. Or, you can start laundry services to help the busy population ensure they don’t use dirty clothes. Either option has immense potential depending on the specific niche you will decide to zoom in. Some of the potentially lucrative cleaning niches you may consider include-: janitorial services for medical facilities, cleaning services for institutions of higher learning, janitorial services for hotels, laundry services for students etc. With a little research, you can uncover the most profitable niche to get into for maximum profitability.
6. Product Sourcing Agent
A product sourcing agent is a very good small business investment idea. Also, it is one that requires very minimal investment as far as setting up the business in Hong Kong is concerned. People from all walks of life troop to China every single day in search of cheap items in large quantities. It is normally not easy for people to buy products in large quantities in China. This is mainly due to the distances and the language barrier.
Again, it is never easy for many people to make trips to Hong Kong to source products. As a result, a good number of them often rely on the internet to get the products they want. Anyway, with the high level of scams by unethical people online, this no longer seems like a viable option.
Consequently, becoming a product sourcing agent in Hong Kong will always be an evergreen idea. To succeed with this idea, all you need is a user-friendly website and have a strong online presence. This way, people who need to source items from China and Hong Kong can easily find you.
For the perfect start, you may need to partner with e-commerce websites so that you can have a global presence. Doing this you can also do some form of internet marketing to get leads as fast as possible. Additionally, you must ensure that you are proficient in English. This is vital since the bulk of your clients will be communicating with you in English.
7. Real Estate Brokering
Real estate brokering is another brilliant idea you can consider when thinking about small business investment in Hong Kong. It is known to create the largest number of millionaires in the world, and as a broker in a hot market like Hong Kong, you are bound to make a lot of money if you get the things right from the beginning.
Other than the traditional duties of a realtor of facilitating the purchase and sale of properties, a real estate broker in Hong Kong has numerous way to establish a thriving business.
With the number of people relocating to Hong Kong increasing every single year, it implies that the demand for homes, offices, and other property will always be high. As a broker, it will be your duty to use your knowledge, expertise, and experience to provide relocation, leasing, and real estate sale and purchase services for both corporate clients and individuals. It is also worth noting that there are emerging trends in the real estate industry. These trends have brought a lot of flexibility and profitability for agents.
For examples, trends like Airbnb has completely revolutionized the B&B and the vacation rental niches. Thus, one of the hottest ideas you can implement right now for instant success is to start a home-sharing management company. In such company, you will be connecting homeowners with spaces to rent with those looking for places to stay or vacation rentals. It is a highly lucrative business model which requires nearly no investment since you don’t have to own any home. Talk to our business consultants if you need more information.
8. Tutoring Online
If you have a passion and a desire to teach, then you will get very good openings as an online tutor in Hong Kong. There are very many students seeking admission to the universities in the west who need assistance in polishing their grasp of the English language. Thus, you can help them apply and get accepted in their universities of choice.
Other than tutoring students on the English language alone, you can also offer tutoring services in other subjects. You don’t necessarily have to teach students interested in going for further studies abroad. You may decide to register the business as a sole proprietor, or you may open up a learning centre so that you take care of both online and offline clients.
It is nice to observe that the requirements for starting an online tutoring service are relatively low. So, as long as you have the skills, you can get going as soon as possible.
9. Technical or IT Support Services
If you have a tech or IT background, then starting a small business investment in technology or IT field would be your best bet. Everybody in Hong Kong owns and uses some kind of technology every day. These technologies are prone to breakdowns and will always require constant repair and maintenance. As an IT expert, there are so many services you can choose to offer, including-: software installation, virus removal, computer repair services, downloading software, cleaning desktops, configuring networks, and connecting devices amongst others.
However, if you are not skilled in IT, you can still start a technical or IT support service by opening a service centre. You could then hire expert IT professionals to do the work. Your duty then will be to manage the business and bring in clients as your employees do the work. It is a lucrative model if you can get the marketing right.
10. Digital Marketing Services
With the continued growth of the “all things internet” phenomenon, there are very good opportunities for digital marketing services in Hong Kong. It is a fact that every business desires to have some online presence. And, there is always very stiff competition to grab the tech-savvy online users. Businesses are therefore turning to digital marketing experts to help them get customers, leads and sales from the internet.
Hong Kong, in particular, has a high demand for niche skillsets in digital advertising, and with minimum investment requirements, it is one of the small business investment options worth considering. You don’t have to be a guru in all aspects of digital marketing, but you can set up a business dealing with the service you are most proficient in and which you can guarantee the best returns for your clients. You can choose to offer social media marketing, search engine optimization, content marketing, and pay per click advertising amongst others.
11. Call Center Agencies
Another brilliant small investment idea for Hong Kong would be to set up a call centre agency. This is a very cheap business for those looking for ventures that require small investments in Hong Kong. There are thousands of companies in Europe and the United States that outsource their customer care representative. This way. it is cheap for them to have the representative in those countries that have actual employees working on the call centres in America or Europe.
Besides, there is a lot of skilled professionals who can offer excellent services to your clients. The beauty of a business like this is that you can start small with just a small team of representatives. After that, you can grow the team slowly as you continue to get more clients. However, you must ensure that you invest in dedicated telephone lines, quality headphones, and your employees must also have excellent English speaking skills.
12. Consulting Services
The diversity that exists in Hong Kong implies that there are always people who need various consulting services. And, if you are an expert in any field, you could set up as a consultant or start consulting services in your industry. With such services, it is your expertise and experience that will be needed to advise other businesses and clients on the endeavours they are interested in pursuing.
This is why it is considered as a small business investment, where you only need the proper licenses and permits to start working. Of course, you will require an office, and some advertising budget to have the initial clients come through the door. However, the capital requirement for such is not as enormous when compared to starting other businesses.
13. Software as a Service Platform
Hong Kong is indeed a global tech hub, with very robust software development activities. Software as a service platform is designed to help software developers, business owners, and corporations lower their costs associated with developing, running and maintaining their software. In traditional software and application development, it is usually very costly to run and operate development environments, not to mention the risks that such platforms typically face.
With a SaaS, you avail to software and application developers a safe and secure platform where they can develop, test, optimize and run their applications. You won’t need to worry about the security and the costs associated with traditional software development platforms.
With so many SaaS applications, all you need is a good vendor in Hong Kong. That will get you ready to start offering a SaaS platform to developers and business. Be warned, however, that this is not the kind of business you would wish to venture into if you don’t’ have a solid technical background in software development.
14. Education Center in Hong Kong
Learning is a universal need, and irrespective of where you are, you can always expect that there will be people with educational needs you can satisfy as an educator. In Hong Kong, education is generally viewed as a lucrative venture and one whose entry requirements are not so demanding. Thus, giving it a space in the list of small business investment options in Hong Kong.
Currently, there is a plethora of vocational centres, academic institutions, nurseries and kindergartens being operated by individuals as well as foreign institutions. Others include primary and secondary schools, business schools, IT & computer education centres, fine arts schools, language schools, tuition schools, and adult learning centres.
This gives you a subtle indication at just the various types of education enters you can open in Hong Kong. However, you should know that the Hong Kong authorities are cautious with the quality of education in their institutions, and there are various types of special licenses and requirements you will be required to have before you can go ahead and operate such institutions.
15. F&B Cafés and Restaurants
Just like catering services, you can never go wrong by starting an F&B café and restaurant in Hong Kong. The city is the home to millions of people who are always in a hurry to catch up with their various businesses. Consequently, the city dwellers don’t have time to prepare meals and eat at home.
They turn to cafes and restaurants for most of their meals, and with the culinary diversity that exists in the city, you can be sure that you will always have patrons coming through the doors of your restaurant. Since this is a somewhat sensitive industry owing to health concerns, ensure to get all the necessary permits and comply with every requirement demanded by the authorities if you don’t want to get into unnecessary trouble.
16. Fitness Center
There are numerous fitness centres in Hong Kong, but there is always room for an investor keen setting up a new one. This is simply because, like every other major city, there will always be a good number of people keen on keeping fit. It is one of the most reliable ways to stay strong and healthy amidst the many lifestyle challenges bothering the modern population. And with very many types of fitness centres you can start, you can be sure of success if you set up things right, invest in the right equipment, trainers, and have a solid marketing plan for your services.
To increase your odds of being successful with a fitness centre in Hong Kong, it is advisable to consider a specific niche and market your centre as a niche fitness centre. On the startup costs, you don’t have to worry about spending a lot of money in purchasing the necessary equipment. This is mainly because nearly everything you will ever need has their manufacturer in China and China and Hong Kong are next-door neighbours. This is why the cost of setting up such a venture will be very low.
17. Online E-commerce Store
E-commerce is the future of online selling. The uniqueness of Hong Kong’s attributes makes a small business investment in e-commerce a no brainer. The region has so many things needed by the rest of the world, and through e-commerce, you can access markets beyond the borders.
The beauty of e-commerce is that it is a very low-cost business you could start anywhere in the world. And if you are a major producer of nearly everything like Hong Kong, then you don’t have any reason to be left behind.
You can start by tapping into the existing e-commerce giant platforms like Amazon or eBay. It is for you to start selling things online from Hong Kong. On the other hand, you could develop your e-commerce sites using affordable applications such as Shopify and start selling in a matter of days.
You must, however, ensure to secure fast shipping services so that your buyers don’t wait for a long time before getting their merchandise. This may lead to lots of negative feedback on your store and such will not be good for the prosperity of your business.
18. New Retail
New Retail is a relatively newer concept, and it is modelling after the incredibly popular e-commerce business format. This model aims at connecting offline retailers to online users and offline users to online retailers. In other words, it seeks to increase the number of traditional businesses migrating to the internet.
It is estimated that close 82% of businesses in China are still offline. It means that they are still stuck with the traditional methods of brick and mortar businesses. This has greatly limited their potential, given the immense growth of online e-commerce. With new retail, centres are set up in neighbourhoods so that the retailers in those specific places have a chance to have their merchandise access online markets.
19. Employment Agency Services
Starting a new employment agency in Hong Kong is one of new small business investment ideas that savvy investors are currently implementing for maximum profitability in the city. The influx of new businesses in Hong Kong every year implies that new job opportunities are being created. And since it is more expensive to bring in foreign workers when you can find qualified and relatively affordable labour among the locals, it makes sense to hire citizens than foreigners.
Besides, Hong Kong has a highly educated and experienced workforce in whatever field you may be interested in. However, it is not a walk in the park for a foreigner to just jet in and to start recruiting employees. This is where you come in with your employment agency services to help businesses and investors find the right candidates to work in their businesses.
The role of the employment agencies is to source for potential candidates, conduct interviews and evaluations and help in hiring candidates according to the desires of their clients – the businesses. Those who wish to relocate to live and work in Hong Kong need employment agency services.
A good number of the global workforce want to move in Hong Kong. Since they are foreigners, their best bet to find jobs is to use the services of employment agencies. This is why it is such a lucrative venture to consider in New York.
20. Event Planner Services
The status of Hong Kong implies that the city is never short of events taking place on any given day. The nature of the events could be wide and varied and may include both business-related and social events. Either way, competent event organizers are always in demand. The event owners require convenience and reliability in hosting successful events.
Whether it is tradeshows, exhibitions, travels, event productions or seminars and meetings, careful planning is always necessary. If you have what it take to make the hosts have successful events, then you will always be in business in Hong Kong.
You don’t need a lot to have an event planning company up and running. The regulatory requirements are easy to meet, and you won’t have to purchase your equipment. You can always rent them at a fee and return them once the event is over.
However, you must be ready to have an excellent marketing plan and prepare it to over-deliver in your services. Since, if you don’t, you will lose clients and you will compel to close shop.
Engage Hong Kong Corporate Service Provider for Assistance
You will find it easier to start the business if you work with a reliable corporate service provider. Depending on the industry you want to join, there are rules and regulations you will have to comply with. These rules will be confusing to you if you are a foreigner.
You may also not be conversant with the business incorporation procedures in Hong Kong. Then, you may end up spending a lot of time and resources in trying to figure out the process. You may not have concrete facts on the type of businesses you want. Then, you may need some help with business research.
At 3E Accounting, we specialize in helping investors, and foreign corporations set up successful businesses in Hong Kong. We have all the information you may need about a particular industry. And we will also offer you the advice and guidance you need for successful incorporation.
Our team of lawyers will see to it that you comply with every relevant regulation in that industry. Our accountants, together with the attorneys will help in securing all the necessary documentation. They ensure that the application for incorporation and the relevant paperwork will submit to the authority.
They will also help you open the relevant corporate bank accounts. And finally, our tax experts will help you with tax optimization for your business. So you can stay in compliance and you don’t lose a lot of revenue in Hong Kong.
Contact us today, and let us help you simplify the process of business incorporation in Hong Kong. The above is just a look at some of the few small business investment opportunities available in Hong Kong. We will be willing to explore others that are equally profitable, but not mentioned above. Call us today for a free consultation.