Posted by Jim Nelson on November 15, 2016
I want to start with a quote on starting a business in China from here in Quora that is worth thinking through.
John Lombard wrote
Setting up a business in China isn’t that difficult, it just requires patience and research. Or hiring someone else who knows how to do it. But what about after you’ve got that business set up? How are you going to do your best to ensure success?
First, I’d say that you should have a minimum 3–5 years experience actually working and doing business in China before you even think about starting your own company here. Without the fundamental knowledge of the cultural aspects, building relationships, etc., you’ll be almost guaranteed to fail.
Second, you need to have enough money to see yourself through the inevitable mistakes and failures. Budget in a significant buffer, because it’s virtually certain this is going to cost you quite a bit more than you expect.
Third, be aware that if you beat the odds, and become successful…the Chinese are going to copy you.
(If you do not have significant experience)…then don’t even try. Registering your business is nothing. Pretty much anyone can do it. But building up a business that has long-term potential for success? That’s an entirely different game.
Start a Business in China — Guidance
In starting a business in a new culture, the likelihood you can hit the mark the first try is not high, Be ready, emotionally, financially and practically to adjust and hit the mark. Never expect that things here will work like they do in your home culture. Even if you have lived here a long time, starting your first business will have surprises.
In my own start up, our initial thinking was we could break into the Chinese market. The Western companies in China, however, became our whole business which has been a good path, but it was not expected at the outset. You can also benefit from reading Market, Capital, Technology and People – Must Always Have.