Starting a consulting company in China can be an exciting and rewarding enterprise that offers relative freedom and flexibility, as you’re able to change the scope of your business, expand into new areas or narrow down your services to a specific niche all with relative ease. However, there are typical questions that need to be answered before you can set off on your consulting project.

First and foremost – find the niche

As flexible and free as the consulting industry may be, the very idea presupposes a higher than average level of expertise in the field that you plan to consult in. That is to say, creating a consulting service based on a skill or experience that you do not possess will prove unnecessarily complicated. Luckily, being in China offers a wide range of opportunities and if you apply the right amount of diligence and patience, you are sure to find something that fits you. Below are just a few general ideas to consider.

1) Professional consulting
This presupposes opening a business that relies heavily on your professional experience and expertise. Example areas can be financial, legal, HR or medical consulting. The scarce market of foreign consultant companies in China makes virtually any field open to newcomers.

2) Playing the Western card
At the same time, if you find yourself devoid of any particular skill or believe that the knowledge you have will not be in demand in China, you can always play the Western card. Examples of these companies are all around you with the majority definite lying in the education industry.

3) Training consultants
This could refer to offering any types of training services from one-to-one tutoring to corporate training. For example, as the option of opening an educational establishment in China is only open to Chinese nationals, a lot of foreigners see consultancy as a loophole to actually take their teaching aspirations to a new level.

4) Education/placement consultants 
This can be a perfect opportunity for those who have connections to Western universities. These companies provide advice and practical help for Chinese students interested in entering American, British or other foreign universities.

5) China experts
Not all consultant services are limited to the local market. You can just as well give advice to foreigners on specific China-issues. If you have lived and worked in China for a long time and have been attentive to the environment around you, you will have definitely gained some knowledge about the Chinese mentality, psychology, and their way of doing business, all of which may present valuable information to those considering entering the Chinese market. Your services will then be focused on “bridging the differences” between your client and China.

6) Recruitment consultants
Not to be mistaken with professional HR consulting companies, foreign recruitment companies focus on simply looking for employees within the expat community and suggesting candidates to Chinese companies in need of Western employees. A lot of Chinese companies have trouble with recruiting foreigners simply because they have very limited knowledge of Western qualifications, certifications and degrees. Thus, they tend to fall into traps, hire under-qualified people or be at a loss as to where to look for potential workers. Here is where you come in. Recruitment consultants can guide Chinese companies through the labyrinths of Western recruitment requirements and use their well-developed network to search for suitable candidates.

Being Adventurous

In addition to the above-mentioned “obvious” consulting areas, there is also a deep pool of consulting areas for more adventurous people.

1) Dating consultants
These companies often specialize in matching “mixed” couples and also give advice to people on both sides about looking for companions in China and the West, often covering cultural, educational and psychological issues as well as helping people find their most suitable match.

2) Lifestyle consultants
This is a relatively new area, specializing in introducing Chinese nationals to Western lifestyles. Potential clients are mostly those interested in immigrating to a Western country and the advice given will focus on learning about the culture, traditions, history, habits, and lifestyle peculiarities of a specific western country. This enables potential immigrants to minimize culture shock and adapt quicker to unknown environments.

3) Fashion consultants
The name speaks for itself. These companies help women (and often men) to adopt clothing styles deemed respectful and modern in the West. Companies of this type can also expand into personal shoppers. In addition to helping clients choose interesting clothing items, they are also in charge of procuring them from Hong Kong, Europe or the US.

4) Wellness consultants
The beauty and fitness market in China is booming. However, with more and more fitness centers, spas and diet crazes appearing, it is becoming more confusing to find the right fitness program, diet, or beauty treatment that works best for the individual consumer. This type of business would be ideal for a partnership between people knowledgeable in both Asian and Western wellness techniques. This powerful combination could attract locals and expats alike and offer a comprehensive guide to the wellness industry in China

Who are my target customers?

Another principal question that you’ll need to answer is who your consulting company will target as potential customers. The most general division would be: are you targeting local residents or expats, or is your business scope large enough to cover both? Answering this question at an early stage is crucial, since marketing strategies, promotional materials, and practically everything related to getting your consulting business going will have to be customized for the target group you choose. Needless to say, marketing strategies aimed at Westerners will differ radically from those used to attract local customers. If your resources are limited, it is probably a better idea to focus on just one group and really apply all the resources you have.

At the same time, if you are entering into a highly specialized industry (such as financial consulting, or multi-language translation services) where you believe that both types of clients would be interested in your services and you possess the resources necessary to follow up both options, then there is virtually nothing standing in your way. However, the idea of different marketing strategies should be stressed.

Marketing to China

While selling your services to fellow expats is a matter of connections and experience, selling services to China is a whole different story. Having worked in the industry for over 5 years, I can say with confidence that doing it on your own is practically impossible and you will definitely require local help. At the same time, you can use the time to learn from your employees about selling to China and this may help you implement your own ideas within the framework of Chinese marketing principals. The mistake a great number of people make is thinking that being a foreigner is enough to gain credibility in the eyes of a Chinese consumer and that using advanced Western marketing tricks makes you more apt at attracting customers. The truth is we have to acknowledge the fact that we have a different mentality and no matter how advanced your advertising techniques may be, what may seem obvious or clear to you may be met with suspicion and awe by a local client. The key is being able to put all your knowledge aside for a while, take out a notebook and a pencil and get ready to learn from scratch.

Taking the risk

One of the biggest concerns of a beginner is the risk involved in setting up a consultancy company in China.  After all, there is a possibility that you will fail, run out of resources, be squashed by competition or simply be misunderstood. If any of these issues seem like strong possibilities, try your idea out by working as a freelance consultant first. Start within your own circle by spreading information about your area of expertise. Provided you have a rather extended network of contacts, you will find that word-of-mouth advertising is quite effective in China. Giving your idea a test drive can help you gain confidence, develop a client base and also learn about the potential pitfalls of your business.

ABGlory Education
Tel: +8610-51664548 
QQ: 121396990 / 948926572
Email: studyinchina@abglory.com
www.abglory.com
Address: Room 1103, Floor 11, Building 11, Jianwai SOHO
No. 39 East 3rd Road, Chaoyang District Beijing 100022
ICEF Certified Agent Qualification No: 0576