Today Kristina Coluccia shares with us her ebook about the biggest mistakes companies make in China.
Sum up The 10 biggest mistakes companies make in China by Kristina Coluccia
Another common mistake is to be involved too much or too little in the details. It’s quite natural for anyone who has gone through the rigors of launching a business to be somewhat obsessed with the details and to feel compelled to play a hands-on role. As your company becomes more established, it is important to spend more time working “on” the business instead of “in” the business.
On the other extreme, some people prefer to have as little involvement as possible. There is a large variety of excuses when it comes to China: it is too far, the time zones are difficult to manage, not fluent in Chinese, cannot understand Chinese financial reports, and have other more important projects.
Not knowing how to hire is also a common mistake. Hiring in China does not sit comfortably with a lot of foreign business professionals, most of whom start out on their own and regard employing staff as a necessary evil, rather than an opportunity for the business to grow in a way that they never envisaged. Cultural and language barriers can also be a deterrent.
Those who do not like numbers or feel intimidated by them may face serious difficulties when writing a budget or business plan. For this, you require a good Chief Financial Officer (CFO) in your headquarters, who can guide you in the budgeting and controlling process.
If you have been doing the figures yourself up to this point in China, it is time to hand over the books to an expert and concentrate on guiding your company in the right direction.
A good CFO in China could be the most important hire of all (and don’t forget you may even want to outsource the role to a team of experts) – not just a bean counter but a visionary who can interpret your figures, tell you where the business’s strengths and weaknesses lie and use the data to help you plan your future course.
Making market assumptions is as well a popular mistake. Most businesses launch with some idea of who their customers might be and who their competitors are but rarely do in-depth market research. They assume they know this information without carrying out thorough research.
When the time for growth arrives, it is crucial to know your Chinese customers in detail – right down to what they’re talking about on social media. Similarly, the more you know about your competitors in China, the more you will know about your own business and what makes it different.
Learning how to share control of the business is extremely important. Growth does not come from a spreadsheet; it comes from the whole culture of the company. You need your entire team to be aligned and energized towards the same goal as you, which means sharing a bit of the power.
Some people hate delegating; however, it is necessary. They may keep a tight hold of the reins during the launch but now it is time to let go. Empowering the team will likely encourage their creativity and productivity.
Failing to recognize the importance of branding and marketing is another popular mistake. They are essential for growth. From business cards to a website and beyond, the image that the business projects will have a major bearing on its chances of staying afloat in deeper waters. Be prepared in China to spend a significant part of the growth budget on marketing.
A notoriously tricky one for some entrepreneurs to swallow is the need to change their own personal image when entering a new market that has a different business approach due to cultural differences.
China is a unique country with its own culture and idiosyncrasies. From the food to the language and the entertainment activities, Chinese people are a fascinating society. As a business person, you should embrace the differences and be open to trying new things, such as karaoke singing or tasting culinary delicacies.
A lack of vision is a common obstacle to business growth in China. Without this, you will not get everyone pulling in the same direction, even if they want to. Take the time to set down your mission for the Chinese market, vision, and values, and involve your whole team in the process.
And finally, fear. Business owners are courageous. They must be. It takes courage and an appetite for risk to get any new venture off the ground. But everyone has their limit and sometimes it is the fear of sailing into shark-infested waters that hold entrepreneurs back from doing the things they know they need to do to grow.
You don’t have to do this alone. Help is at hand. Whatever sector you’re in, there are consultants, service providers, and headhunters – experts with experience in the Chinese market and the waters you’re moving into, who can advise you, share their experience, and give you the confidence you need. Do not be afraid to pay for them and use them.
Getting the proper help can save you headaches and money. This will allow you to overcome the fears that are obstructing your path to success.
This eBook intends to assist you in your China journey by empowering you with practical and beneficial information, which can be used in the different stages of your venture.
To receive this ebook contact Kristina Coluccia or ask their website. www.woodburnglobal.com