A Chinese Virtual Office: The Quick and Easy way to Start Expanding Into China

A Chinese Virtual Office: The Quick and Easy way to Start Expanding Into China

By NYBC Business Associate Marc Jarret, June 21st 2014

http://uk.linkedin.com/in/marcjarrett

As anyone who has ever tried expanding into China can testify, the process of so doing can be fraught with difficulties: over and above the cultural and linguistical challenges, there are a raft of potential obstacles which include compliance with Government policies and labor laws, as well the obligations associated with insurance, leasing of offices and hiring of staff.

This having been said, the potential of this vast and fast growing market are simply too big to ignore: China is the world's fastest-growing major economy, with growth rates averaging 9.8% over the past 30 years and it could become the world's largest economy sometime as early as 2020.

If your Business transcends the national boundaries of your domestic market, China should therefore be at the top of your list of countries to target as part of your globalization efforts. Understandably though, the difficulties associated with entering China often act as a barrier for taking the first tentative steps into this enormous market.

However, there is a way to circumvent these obstacles - instead of committing yourself to the costs and headaches associated with opening an office in China, you can easily create the impression to potential Chinese customers or partners that you are already operational there by creating a virtual one instead.

Reading an English language only website and calling an overseas number remains a practical and psychological barrier for people in most countries, including China. It is therefore important that prospects can contact you in Chinese and by means of a domestic telephone number, as opposed to an international one.

Inbound calls to your Chinese number must be answered in Mandarin or Cantonese, depending on which region of China the caller is located. Call center agents that answer such calls must be trained so that they have at least a basic understanding of your particular product or service. They should then make available to you such leads in English. Any follow-up activity should of course be conducted in the caller's native language.

Your new Chinese number can then easily be added to the 'contact us' section of your website which thanks to the global architecture of the World Wide Web all potential customers located in China will be able to see. Even better, you can create a Chinese section of your website and there are a wide range of translation companies who will only be too happy to help you in this process.

If you elect to have a Chinese standalone version of your website, then work with a company that can help you get listed on Baidu, China's answer to Google. Doing so will greatly improve the chances of being found by potential Chinese customers who are actively seeking out your particular goods or services.

By establishing a virtual Chinese office, you will be able to capitalize on the opportunities on the afforded by this colossal market at a fraction of the costs and risks associated with setting up a real one.

Why small businesses fail big

and how to succeed against the odds

Malko Ebers, June 11th 2014

A high school student had sent me an email asking me why so many small businesses fail? A very good question. Entrepreneurs start the venture of being in business with passion, energy and ideas so how come that the average lifespan of a business is just a couple of years and that after 18 months according to Forbes 8 out of 10 entrepreneurs have given up? The Coca Cola, Ford and Walt Disney type of companies are the exception to the rule, companies that have adapted, mastered crises and have established cultures and values that have endured individuals and their corporate functions.

Based on my experience as a business consultant and dealing with entrepreneurs from all industries and walks of life I see three main reasons why small businesses fail so often.

1. Failure is normal in business and small businesses are no exception. Like in evolution adaption to changing circumstances is crucial. A now much bigger global marketplace requires constant adaption and innovation and a very high attention and commitment level. The learning curve is steep in many industries and small business owners often don't have the time, attention and resource commitment necessary to survive the toughest initial growth phase. As a small business owner you typically can't compete based on price, so your product/service has to focus on a niche, it has to be remarkable and add value. Even then small businesses often lack the capital to bring a good business model to scale so they don't get taken over or priced out by the competition.

2. Know thyself was written over the oracle of Delfi in Greece - applied to business this means know your resources, core competences and who your customers are. It takes time to build a network and reputation and a lot of small business owners don't have the necessary support structures and patience to build a referral network of loyal customers. It sounds simple but the longer you stay in the game the higher the likelihood of success, you will gain experience and grow your referral network.

3. A small business owner can't sufficiently diversify and spread the risk, especially financial risk and therefore even good business models can easily run out of cash. The business owner is basically the business in the initial startup phase, the face of the company representing the brand so any healthcare issues for example, financial burden unrelated to the business to 'life happening to us' directly affects the business without having a team and governance structure to buffer external shocks. 

Other issues that are common are late payments of your clients, as a small business you typically depend disproportionately on timely payment by a few important customers. Also as a small business owner you work often too much in your business (wearing all hats yourself) instead of on the business (strategy, client relationships).

Being in business and bringing something new to the world, giving birth to an idea and adding value to other people's lives, solving problems is something beautiful. Despite all challenges entrepreneurship is part of the university of life, it teaches us something new every day. You will make mistakes but each mistake is an opportunity to learn to 'know thyself' and what you bring to the world. My advise would be to answer the why question, to surround yourself with a team and people you enjoy working with and to focus on solving problems you can be passionate about. That way no minute will be wasted and you will plant the seed for further growth.