How to Do Business in China- A Guide for NZ Businesses

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In recent years, China has successfully gained outstanding global economic appeal. Consequently, cross-border businesses are rapidly increasing in China more than any country. Thanks to its delightful business climate along with the abundant benefits that come with it, China offers a great platform for both local and international investors to explore the latest industrial trends, intelligence and insights.

The explosive business idea has been massively embraced in New Zealand. In hindsight, however, since everyone is rushing in to set up in China, stability and reliability is not assured. A well thought strategic plan to weather the risk factors is essential. Below is a four-step guide on how to do business in China for New Zealand investors;

1. Do your research

Embarking on cross-border business is certainly not business as usual. Given China’s cultural complexities, language barrier and most notably the changing business environments, it is imperative to establish the right presence. Before making any decisions on establishing partnerships, outsourcing products, importing and wholesale strategies, you best verify the details.Since the carrying out due diligence is an entirely delicate process, it is vitally important to seek professional advice.

2. Choose a location

China’s sheer size undoubtedly sparks interest to foreign investors. A word of caution however, there are significant divides in the regional economy that can impact your business. Finding a destination beyond the major issues such as labour quality, overall costs and geographic accessibility, discerning a place that conveniently suits your business venture is key to successfully doing business in China.

3. Play by the rules

As with any country, rules and regulations of various forms exist, aiming at protecting the healthy development of both local and international industries based in the region. It is critical to understand what documents are required for your specific category of venture. Since the regulatory environment is on constant change to keep up with the rapid evolution of business, having the experts on the lookout is highly recommended.

4. Business incubator services

Typically, business incubator services are value-added services that aid in overcoming the seemingly daunting endeavor of doing business in a foreign state. In this case, these services should save you the countless business trips that prove to be not only time consuming but also financially draining. With these services at your disposal, you can easily set up, do your due diligence on about anything from joint ventures, product development, import and wholesale strategies, all the way to tax management, in the comfort of your office.

With that covered, it is critically important to understand that external influences will strongly affect your business operations. Shaping your international brand by engaging with the right set of agents and representatives to cover your business dealing needs could trigger immense growth.

Our integrated global manufacturing company, Link Eight, strives to provide top notch services on China wholesale from NZ, product development in NZ, importing from China to NZ and numerous other services that makes doing business in China more convenient for you. Please visit us at www.linkeight.co.nz for further information, including a structured pricing guide.

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Valuable Advice for Expanding Your Business

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Taking your small business to the next level is a significant undertaking that could be quite complex. Basically, business expansion in form of pursuing larger markets or developing new products is a high risk but potentially high reward endeavour that requires well strategized approaches. Thus, the decision to broaden your business, as a CEO, bears the responsibility of getting vital directions and guidance beforehand.

Valuable advice for expanding your business

Typically, expanding operations is easier said than done. Establishing an idea into a fully-fledged company in locations like New Zealand has its unique challenges as well as frustrations. Here is some valuable advice for expanding your business with resource efficiency in mind.

1. Do your due diligence

The odds of business expansion success can be dramatically increased through the mindful use of due diligence. Systematic analysis of potential risks of expansion could ultimately result in successful avoidance of failure. Engaging the appropriate experts in the evaluation process is highly recommended for adequate due diligence.

2. Develop a solid business plan

The best and most logical way of conquering new markets is coming up with a game-plan. As it is easy to get lost without a road map, a strategic plan should set the course of the business. Well defined and reasonable targets play a key role in resource allocation therefore it is essential for financial management.

3. Diversify

Finding new avenues for growth by establishing new products and services could be an excellent growth strategy to increase overall sales as well as profit margins. Finding an attractive market base requires a business to consider exploring alternative approaches in product and service delivery.

4. Go global

Creating a strong international presence not only applies for sales but also for production quality. Offshore manufacturing through global integrated manufacturing networks offers a myriad of advantages among which cost effective, high quality production and timely delivery of products stand out. Countries like China are well savvy with vast mechanical and technical equipment plus a robust of software that is vital for product quality control and exploring possibilities of new products.

5. Focus on key tasks

Needless to say, a business is not a business if it is not up and running. This necessitates major focus on key tasks to keep the business afloat. However, most business ventures require equipment and software that might initially be more of a liability than asset offering little or no incentive at all to invest on that particular task. This not only delays business but also costs you time.

Rather than committing to unnecessary purchases, consider expanding globally for more integrated and speedy technology, low-cost production as well as quick progress with minimal investment.

Bottom line: One of the primary reasons as to why business expansion of any kind in New Zealand might not go beyond the planning process is simply because investors tend to overlook the benefits of acquiring global partners to minimize production expenses.

In an effort to gain resource efficiency thus competitive advantage, we offer business expansion strategies that are realistic and add value to your business. We focus on our clients’ global survival and thriving from offshore manufacturing NZ to lean manufacturing in China; whatever you need jump-start your business growth. At www.linkeight.co.nz if you are ready to grow, we are ready to help.

Finance Tips for Your New Business to Save Huge on Startup Fees

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We live in a highly competitive business market where struggling to survive is hard, but launching a new business is even harder. Starting a new company could be quite intimidating, especially if you have big plans but you do not have a lot of monetary resources.

In order to help you out, we have discovered 5 powerful finance tips for startups that could save you huge on your initial fees. These 5 tips could greatly optimize your startup finance and could help you get rolling faster than you’ve expected.

1. Understand the Value of Startups

First and foremost, you need to understand how startups are valued. As a first time entrepreneur, you need to be aware that your company’s value will not necessarily increase in time. Even though you have been putting a lot of worked hours and late nights into it, your company’s value will only increase as the level of risk goes down.

In order to manage your initial investment accordingly, you need to set realistic goals and stick to them. Do not over emphasize your future value of your business, as long as you do not know all the metrics on the market. Even if you would know all the metrics, there are still uncertain events that might happen and might obliterate your plans.

As a bottom line, in order to save huge on your startup fees, do not invest money and time thinking that they will come back to you later on. You can never have the certainty that your company will go well. Start small and grow with time.

2.Identify the Risks and Find Methods to Mitigate these Risks

Next on, it is important to identify the risks and threats specific to your business. The nature and intensity of risks can range from one startup to the other, and can usually be categorized into competitive, team and marketing risks.

The sooner you discover ways to mitigate these risks, the better will be for your company. Be creative and study the market in order to discover exactly what you can do to mitigate these potential risks.

3. Set Milestones and Seek to Reach them

When you start your company and you want to save on startup fees, it is useful to set the right milestones and find the best ways to reach them. Whatever your goals are, ensure that you set both short term and long term goals that are achievable.

4. Think of Going Global

Going global is definitely a great opportunity, but also a huge risk. That’s why it is imperative to find an offshore NZ contract manufacturing partner that can guide you along the way.

5. Contact Link Eight

There is no better way to start your business and gain the peace of mind that your finances are on good hands than to work with the best in global manufacturing. Link Eight offers integrated manufacturing services to help you source the highest quality metal engineered products from China.

Sourcing from China with Link Eight is one of the smartest things you can do to ensure the success of your company long term. Contact us here www.linkeight.co.nz and we will ensure the survival of your startup business.

Link Eight – Your Manufacturing Assistance in China

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Link Eight is a New Zealand owned company. Our head office is in Wellington but we have employees based in Shanghai, China and around New Zealand. This allows for effective communication between you and our suppliers, and makes NZ importing from China more efficient. We help you with the processes involved when doing business in China.

We aim to reduce your costs whilst minimizing the risks sometimes associated with global manufacturing. We work with you on your product development needs to find a supplier that can meet that need. We have a network of contacts in China following 15 years of experience to add to our 30 years industry experience in manufacturing. We can offer a world class manufacturing network for product sourcing of metal engineered products.

To assist New Zealand based companies doing business in China is our main goal and we offer three service areas:

1. Contract manufacturing of full product assemblies or metal engineered components

2. Off-the shelf industrial product sourcing

3. Factory assessment and consultation

Metal Engineered Products

We offer services in: CAD, prototyping and modelling, fabrication (light and heavy), parts (formed and pressed), CNC or manual cutting, tooling, machined components and casting. We can source large factories for mass production or smaller companies to offer you a lower minimum quantity requirement or those custom jobs. Initially we will establish product specifications with you, provide a quote and terms with an expected time-line.

With acceptance of a pilot sample we can progress your project to full production. It can take up to 12 months from initial ideas to eventual supply of product. However, once established re-ordering can happen within a matter of weeks! Pricing is by project – you pay the landed rate per unit price (no hidden taxes, costs, freight charges or biosecurity issues).

Industrial Product Sourcing

We have a network of factories to enable us to source products and supply quantities from as little as 50 units to millions. We make sure that the products are delivered on time and that the quality not only meets your expectations but exceeds them. We provide an existing sample or a product brief if your requirement is a new specification.

A sample (new or updated) is provided for your approval, and then your product is delivered on time in the requested quantity. Pre-made products can usually be supplied within 3 months. For a detailed breakdown of expected time-lines please visit our website http://www.linkeight.co.nz.

Factory Assessment and Consultation

We work with you to establish contacts with a factory that can provide the products you need sourcing. We can also assist with ongoing projects. With our team based in China we are best placed for handling difficult situations as they arise. We can assist with selecting factories, assessments of quality and general Chinese communications.

To assist with factory selection we provide: company information including a legal status report, a factory capability and qualification assessment. Once selected we then monitor production for quality. Our contract fees are broken depending on the services required on a project by project basis.

“Quality product, on time, at the right price consistently!”

Looking for manufacturing assistance in China? Link Eight can help! To manufacture in China with trusted experience and reliable quality contact www.linkeight.co.nz.