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Q: Starting up a business in China - will it always end in tears?
Seems to me that a lot of foreigners have hit the news for angering local competitors and then nasty crap happens to them. Is this always the case? If you're a foreigner and want to run a succesfull business in China are you just doomed from the start? It seems like the authorities, the police and the law will always take the other side if something hits the fan.
10 years 39 weeks ago in Business & Jobs - China
depends who your customers are. If they are in another country no problem however if you want to make money from locals you are wasting your time . but good luck anyway
99Silva:
wow a guy who's never been to China all of a sudden knows all the answers 
WonHungLo:
How'd he get the Chinese wife, something that you'll never have on a wumao wage. 
philbravery:
please bring back temp silva we started to like that one
I guess wu mao just was not enough!
so the peanut eater came back
Some foreign nationals do have successful businesses in China but you have to be very, very diligent at the planning stage. You must fully understand the risks that you face and have strong contingency in place when faced with these. Business planning in any country is vitally important. In China, it reaches new dimensions in terms of importance. That is the best advice I can give. Plan, plan, plan.
Thanks. I may get into something someday as there's a lot of opportunities here though it just seems like a damn risky affair.
it could also depend on the size of your business. And do you have a trust-worthy local business partner?
Not always. I read the story of a guy who opened up a business here in China. A foreigner who opened up a school. In the paper that he wrote he said that 95% off startup businesses in China fail. You won't see a profit in the first year and I believe you won't see a profit up until the third year if you can last that long. In the article the guy states that most startup businesses don't even last a year.
If you're producing something that needs to remain secret give up - IP law exists here but basically it isn't upheld. You can download anything in China. Also if there's any conflict with workers or business partners you've lost - the law is not on your side. There are also a lot of "hidden" costs because nothing gets done without lining the right pockets. If those don't seem like obstructions then, just maybe, you'll be successful.
xinyuren:
Exactly. Without rule a law, it's the wild wild west here. If there was a single factor that most prevents China from joining the rest of the developed world, it is the lack of rule of law.
I do know a few persons (foreigners) who have started different types of business in China, and are quite successfully. And not only English schools, but bars, restaurants, etc. Funny do, those who fail had a local partner, those fully own y foreigners following regulations are doing pretty good.
One of the situations that you will face will be, if you are successfull, will be someone openning a similar business next to yours within one year. And within 5 years, the whole block will be doing whatever you are doing.
