Doing Business in China with Dan Paulson
A recent survey by Healthy Companies International states that three out of every four CEOs working in a Fortune 100 company today have spent at least two years in a senior leadership role. Larger companies understand the importance of having international experience, but it shouldn’t matter what size your business is. In today’s business world, and in the foreseeable future, we will require a better understanding of business from a global perspective. Some of the greatest opportunities for business today may exist outside country and it all starts by the relationships you keep.
In business, relationships are everything. Relationships are your most effective marketing tool. They open up networks. They allow you to connect with new ideas. You can get new business, from a referral, or you can increase your work with a client just through the relationships you keep.
In China, relationships are critical. Without good relationships, you may find it difficult to do business there. China is a country rich in culture and much of that culture is reflected in the way they do business. Your success in China depends on the relationships you build. Here are some things to consider:
Enter the market with a good strategy. Know what you want to achieve. Have a clear vision and an understanding of what you need to do to get there. Many opportunities exist in the world market. Seize these opportunities, but do so with a plan. If you don’t, it could be costly.
Know the connections you need. In China, government connections are just as important as business connections. Rules and regulations change often. Having a connection into different government entities can help you cut through the red tape and get your business going. Other countries have their own rules as well. Find the local resources to guide you. Additional relationships that are good to have are in market research, advertising, logistics, travel, health care and manufacturing. Find the resources necessary to build these connections. It may involve a few trips and several meetings, but it will be well worth it. Find someone who can guide you through the process to help you get the right connections faster.
Connect with other economic development centers. Be sure to check out the US Chamber of Commerce or other economic development groups. In addition, find the local chambers of commerce and seek to build relationships there. In larger cities such as Beijing, Shanghai, and Hong Kong, these Chambers can have a great deal of influence. They can also be another resource to help you start your growth oversees.
Be a capitalist. We can learn so much from other cultures on doing business, both the good and the bad. You want to be associated with reputable business partners so it is necessary to do your research. Have other trusted partners help you as well. Get someone who will look out for your best interests. In China, they are extremely capitalisitic. Poor relationships may help your connection make a buck, but could leave you out in the cold. We often fail to recognize cultural differences and interpret them correctly. Think win-win, but know what’s in your best interest as well as the interests of your client. Understand the cultural differences and how that relates to capitalism for you and for them.
Treat business like a marathon, not a sprint. Learn, learn, learn. Take cautious steps in the beginning. Try not to do too much too fast. The Chinese culture has been around for thousands of years.. It can be a difficult market to break in to. Pace yourself. Take the time to understand how and where to play. Know what you need to do to make in-roads to the market. Find those who can help you grow. Often these people are nationals. They understand the culture the best and can help you maneuver through the business challenges. Seek out loyal partners.
Bring value to your business relationships. In China, business partners, associates, and network connections all seek value in the relationship. Not too different from here, you need to be able to answer the question, “What’s in it for me?” Know what value you bring and use that to start building trust.
Following a few simple steps here can get you on your way to business expansion. Knowing the culture will make a tremendous difference in your success. Whether your expansion plans include China or another part of the world, be prepared to do business a little differently than you have in the past. It’s the little changes that can spell the difference between success and failure.
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