Starting a business in China while working there?

Well..

First off you need to know what you plan on doing. You need to map out a strategy. You just cannot say "I'll figure it out when I get there". It doesn't work that way.

Then, you need to come to China to see if your vision is achievable. Many people have come to China and failed. Like the people who tried to set up Home depot in China. bad move...guys. China is not into DIY. When you can just hire a worker to do it for you for pennies.

Then once you have assessed how your idea is going to work out, you will need to determine a target area and location. China is big. Don't think that you can make it in Beijing or Shanghai because that is "where it is at". It is where there are millions of people just like you. Consider smaller and more remote cities instead.

Once you know where you are going to live, then you must really work on your language skills, your social skills, and proof that you can work in China. Unless you are able to set up a financially viable WLFE, you will need to apply and be accepted as a Z-visa holder. You sure as heck need to work on your Chinese language skills. have you started taking any lessons yet?

Then, with all that ready, you can start working your business goal.

Many people are unable to do all of this. They want to jump right in. You can do that. However, it is very risky. make sure that you are ready to confront very aggressive Chinese. The Chinese work ethic makes Japan and LA look like kindergarten. Therefore, I suggest that you partner with an existing person in China who can hold your hand while you build your business.

good luck.

VANNROX wrote:

Well..

First off you need to know what you plan on doing. You need to map out a strategy. You just cannot say "I'll figure it out when I get there". It doesn't work that way.

Then, you need to come to China to see if your vision is achievable. Many people have come to China and failed. Like the people who tried to set up Home depot in China. bad move...guys. China is not into DIY. When you can just hire a worker to do it for you for pennies.

Then once you have assessed how your idea is going to work out, you will need to determine a target area and location. China is big. Don't think that you can make it in Beijing or Shanghai because that is "where it is at". It is where there are millions of people just like you. Consider smaller and more remote cities instead.

Once you know where you are going to live, then you must really work on your language skills, your social skills, and proof that you can work in China. Unless you are able to set up a financially viable WLFE, you will need to apply and be accepted as a Z-visa holder. You sure as heck need to work on your Chinese language skills. have you started taking any lessons yet?

Then, with all that ready, you can start working your business goal.

Many people are unable to do all of this. They want to jump right in. You can do that. However, it is very risky. make sure that you are ready to confront very aggressive Chinese. The Chinese work ethic makes Japan and LA look like kindergarten. Therefore, I suggest that you partner with an existing person in China who can hold your hand while you build your business.

good luck.

Hey Vannrox, thanks for your reply!  That's a lot of helpful info.  I agree, I can definitely see Home Depot not working in China lol.  I'm actually planning to go to the CIFF (China International Furniture Fair) in Shanghai in September, and my business is modern furniture design, so I am hoping I can get a bit of an icebreaker into what it would be like in China before packing up to live there permanently. 

The suggestion of other cities is interesting and I agree is worth considering.  I don't know about marketing to the local economy, but living in Guanzhou for example would be advantageous if I was mainly manufacturing there.  One of the reasons I have been considering moving is because it's so hard to keep tabs on how your products are doing and where exactly they are being made if you live on the other side of the world. 

I have been learning Mandarin on an app, but I admit it's totally inadequate compared to a real class and immersion. I think if I could figure out what kind of work I could do as a foreigner with 3D design skills, that would give me flexibility to grow a business that would be the most advantageous strategy.  I definitely wouldn't just arrive with my bags and try to start the business.  A WFOE is what I would try but like you said, having a Chinese partner I trusted to help guide me through the process would be critical.

Hey Lakerice,

It seems like you've got your act going on. I would suggest that you consider city about the size of Chongqing, or Chengdu, or Kuming. Go to some place where the furniture business is centered. Then go from there.

meet the people. make friends with the people. Take them out for dinner. make friends. Then start talking business. Do so with a local Chinese who can speak both English and Chinese.

Best of Luck.

VANNROX wrote:

Hey Lakerice,

It seems like you've got your act going on. I would suggest that you consider city about the size of Chongqing, or Chengdu, or Kuming. Go to some place where the furniture business is centered. Then go from there.

meet the people. make friends with the people. Take them out for dinner. make friends. Then start talking business. Do so with a local Chinese who can speak both English and Chinese.

Best of Luck.

Thanks Vannrox!  I appreciate the advice.  Last question, are there any popular sourcing companies or is it better to liaise personally with factories?