Clipper comes in from London to find management a bit hairy

Like many backpackers, Paul Gerrard first stopped off in Hong Kong on the London to Australia route, never intending to stay.

It was 1993 and the British hairdresser decided to pause here briefly to earn some money. His scissor skills soon enabled him to swap Chungking Mansions for a small studio flat, which doubled as a one-man salon. The phone wouldn't stop ringing and he couldn't take calls and cut hair at the same time, so he hired an assistant - and then another.

Booked solid, he found he was working all hours. 'There was no real decision, there was no time, I just did it,' is how he describes hiring his first stylist. Fears that 1997 would see his expatriate clients dwindle proved groundless. They kept coming, so he took a bigger leap of faith. He switched from a sole proprietorship to a limited company, with himself as an employee and put the business on a proper footing with more staff. External funding was not needed and to help cash flow during expansion, Mr Gerrard did not pay himself.

Going from cutting hair to hiring several people was a big jump. 'I had no training except in hairdressing. I just did it,' he said. Now, seven years on, Paul Gerrard Hair and Beauty in Pottinger Street, Central employs 12 staff catering to both sexes and has expanded to two floors with a beauty salon.

Hairdressing in Hong Kong is about as tough as it gets. Competition is stiff in both the local and expatriate markets. Although he employs both western and local stylists, most of Mr Gerrard's business comes from the smaller expatriate pool. The market split comes down to clients wanting to be confident of being understood, he believes.

'It's a language thing. To do good hairdressing you must be able to communicate.' The drawback is that expatriate turnover is high. Unlike cities such as Sydney or London, where crimpers build up a loyal following, here they come and go every week, he said. 'So you can't let your guard down, you need to attract new clients all the time. You need to keep up to date, read hair magazines and go to hair shows in the UK and Australia.'