Understand First and Decide Second is one of my watchwords. Coming to grab the China opportunity is great if you commit to do it well. It means to think and plan more first.
Dan Harris posted Sound China Business Advice a couple of weeks ago and had me thinking.
He posed a question. Do you have the time and resources and commitment to do China well, or do you plan to just do it cheap?
For example, you can find a salesman through a vendor and have him work from home and send him money to his private bank account. He would have no China legal work contract with you. The whole relationship would be illegal under Chinese law. The kind of guy who would accept that kind of arrangement is not the kind of guy you want representing you and handling your affairs in China. He could also sue you in court if you crossed him. He could even block you from China for making the illegal hire.
You can hire like you do in the West, and think that it is ok. However, that easy feeling will not save you from a hire you will deeply regret.
The China Opportunity Can Pass Without Right Investement
Companies set up distributors in China and earn nothing while learning little. The distrutor teaches them littl and all the knowledge retains with them. You cna hnire someone of your own to mitigate this risk and get the same result. The wrong hire will seek to hold the information and not be open with you He will also work with your customers and against you.
These are just simple things, but companies often think it will not happen to them or that China does not deserve their respect somehow. They can often name an example of someone who has done it this way and seems to be OK. I urge remember in China: First Who and then What.
I think we should respect Chinese culture and legal system just as we hope they respect and seek to understand ours. Let’s not not lower our standard in China or assume their risks are just like us.