Writing a Business Plan in Hong Kong for Set Up a Business
Writing a business plan in Hong Kong is a requirement if you intend to set up a business.
Not just in Hong Kong, but anywhere in the world too. No doubt writing a business plan can feel like a monumental challenge, especially when you’re not sure where to begin. Yet, this is a very crucial part of your initial business setup process and it must be done even before you attempt to register a company in Hong Kong.
Why Do I Need a Business Plan in Hong Kong?
You will need to start writing a business plan in Hong Kong for several reasons:
- It is an essential requirement that will help you start your business off in the right direction.
- It helps you analyse your current business environment.
- It clarifies your goals and what you want your business to achieve.
- It is used to evaluate and review your performance and goals.
The idea with writing your business plan in Hong Kong is that you want to keep it simple and easy to understand. It must be something which works for you, and at the same time, be something which is flexible enough to adapt and change according to the demands of the business environment.
What Should I Include When Writing a Business Plan in Hong Kong?
When writing your business plan in Hong Kong, you want to think about breaking it down into five stages. This makes the process much easier and you ensure that you don’t leave anything out in the process.
Here’s what you need to include when preparing to write your business plan:
- Part 1: Description – Here is where you will need to describe in great detail what the nature of your business is. Include the products or services you intend to offer (or both), what your unique selling proposition is, the nature of your business (support and distribution system), and who your target market is. You should also describe the industry that your business will be involved in, including the size of the industry, potential challenges in entering the market, the types of profit margins you can expect, what the regulations and legislation are, and what the current market and economy trends are like. It will also be helpful to you to conduct a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis to help you with a detailed description.
- Part 2: Your Target – This is where you get into even more detail about your target market. You should also include more details about who your competitors are and what your marketing strategy is. You should define your target audience based on demographics, such as age, gender, location, income and more. You will also need to include how big this target group is, what existing demand there is, and what your strategies are to conquering this market. As for outlining your marketing strategy, the 4Ps (product, pricing, promotion and place) approach might work best in this case.
- Part 3: The Operations – This section is where you begin describing your business’s organisational structure, including details of the management team. Ideally, you’d want to highlight what backgrounds and previous experience your key managers have. Include in your description what your approach to risk management will be, your quality control systems, who your suppliers are, what your contingency plans involve if your suppliers fail to deliver, and what your business production involves.
- Part 4: The Finances – Income, cash flow and balance are some of the core areas you need to focus on this segment. This is where you analyse how financially viable your business is, including projections for the next three years of your business. Key performance indicators are an element which must be included as well. Be as detailed as possible so you have a clear understanding of what your company’s financial situation looks like.
- Part 5: The Executive Summary – If you’re wondering why this is the fifth stage of writing a business plan since the executive summary appears first in your plan, there’s a reason for that. It is because this section can only be drafted once you have completed the four stages above. The executive summary is basically a concise snapshot of your overall plan, and that is why it is written last.
Writing a business plan in Hong Kong can be challenging, but without a doubt it is necessary for any successful business to thrive. One key tip to remember that a business plan is not something that is set in stone, and if it needs to be adapted and changed according to your business demands, it is perfectly okay to do so. A regular review of your plan is actually a good idea to ensure that it is still relevant towards helping you achieve your goals.
Need a Sample Business Plan?
If you would like to download a sample of what writing a business plan in Hong Kong looks like, click here. This sample was created through a collaborative effort between the Association of Chartered Certified Accountants (ACCA) Hong Kong and SUCCESS Trade and Industry Department Hong Kong. While it illustrates what a business plan in Hong Kong should look like as a guide for SMEs to refer to, do note that it does NOT guarantee or increase your chances of external funding. This guide is merely a template to serve as a guideline.