Being based in Hong Kong, the question begins with “Why do you want to start your own business?” But it should have been added a timeline such as “Why do you want to start your own business during some point in your life?” With this question, you would derive all other questions as a checklist to evaluate whether you are up and ready for a new journey in your career and/or life.
- What major skills do you have (after working for years in Hong Kong or elsewhere in the world such as Mainland China, or other western countries)? Where is your area of expertise? Are you able to do it better or much better than an average person in your field of work or industry?
- Where is your passion? If you can align your passion with the business you are going to start, that gives you the bases heading into halfway of your success.
- How much can you afford to spend? How much time can be consumed from you? The first assumption is that you should know and prepare ahead that any business including your new business may probably fail. The question is then how much capital do you need for a start (such as in the first 6 months or 12 months)? Rent can be very expensive in Hong Kong, when your office space is locally in HK.
- Are you really set to be an entrepreneur? The role requires you to do someone in full time, and be responsible for even other people’s careers or lives.
You should make your business in Hong Kong an official one by going through company incorporation. A quick checklist for your company formation would include deciding a company type (i.e. limited company, sole proprietorship, partnership, etc), make up your mind about a new business name, provide the names and proof of addresses of all shareholders and directors, appoint a company secretary, open a bank account, and more. The benefits of officially and legally registering your company with Hong Kong Companies Registry include:
- Most probably you will need one or two co-founders to work together in your HK startup company. You and your co-founders (i.e. business partners) must deal with the financial side of things. Making a business legal and official do help.
- In some point your startup will have to grow. The growth requires more capital and sometimes a lot more capital. This may not be some cash you and your co-founders can afford upfront. An investor or angel investor may be required to put in the capital. Only when you have a registered company, the investors will be able to give you the required funds.
So it is not only about a valid business idea. The idea should be a trigger. It gets you to think more about whether you should begin a new journey with a startup. But it is not the end game in business.