China Startup Hacks
Having a startup or your own business no matter the size, is challenging. That’s not a mind blowing statement. 25% of new business don’t make it past year one.
Starting and operating a startup in China as a foreigner (or no doubt in any country that is completely foreign to you) is extremely challenging. Yet, the opportunity outweighs the challenges (most days). China will become one of the world’s biggest overseas investors by 2020.
Comparison Startup pyramid: General Startup vs China Startup (my interpretation)
Here’s 10 super simple startup hacks I wish someone had given me before I packed my three suitcases, electric toothbrush and moved my life and startup to China (PS. don’t regret a thing, just sharing some of my learnings).
1. Build a network
One of the most valuable things you need to know. Like any place foreign to you, what will help you through is those you surround yourself with. China, particularly Shanghai is a bubble. And Guanxi is everything. Build out contacts, networks, resources that you can call on, and in turn, you can provide something back to. Planet Earth will keep turning.
2. Get WeChat — personally & professionally
Personally, get WeChat and join groups. Get your QR code on stickers, and stick it to the back of your phone. Makes scanning much easier.
Set up your official WeChat account for business asap. You’ll need a local for that. Someone you can trust. Oh, and accept, that generally, QR codes are a thing. Actually, they are the soil to everyones vegetable patch.
3. Hire a local
Not that simple, but start looking for talent before or as soon as you get here. Through networks, WeChat groups and sometimes, universities can help too. Having local talent makes a world of difference and can help break down barriers.
4. Don’t trust Google Translate
The amount of shops, documents (and serious ones at that) I initially held my phone up to with Google Translate to try and understand what was going on in Mandarin. Don’t do that. Call on someone (hence point 1’s importance) for help.
5. Get a good Lawyer
They will help you set up your company, properly. As a foreigner, it’s beneficial to set up a WFOE. Getting the set up of your company right from the outset will save a lot of time, money and hassle.
6. Marry an Accountant
Find a good one, that you trust enough to marry. Not literally, but you get my jam. Accountants here know the local laws are, and can help you. Shop around (refer point 1) as there aren’t many focussed on foreign startup businesses — again, networks, and going to networking events will help you meet the right people.
7. Get the right Visa, early
To save you back and forth, leaving and returning from China, get the right M or Z Visa you need to be able to stay and work legitimately in China. It helps. As does applying in your country of birth for the Visa.
8. Know your audience
Why are you bringing your startup to China? Have you validated it in this market? What do Chinese consumers want from your product/ service and are they actually going to engage with your brand? Learn before leaping.
9. Establish Chinese brand
On local channels, as soon as you can. Start to build brand presence in this market as you would any other. Finding some local KOL’s will help accelerate that process, but it can be costly. Do the research, talk to locals and be present with content. China has the ability to go viral in seconds to 1.35B people. Leverage that.
10. Be adaptable
You’re entering an entirely new market — new behaviours, somewhat very different to ours in the West. Be willing to adapt, learn, laugh, cry. As a startup, generally, you should be good at adapting to any circumstances. Listen to your audience.
And well, one final one for you (makes it 11, yes), which is relevant if you have a startup anywhere.
I recently had a chat with my investor, who had endless sugar supply in his office. I told him it was like Christmas for me, seeing that sugar supply, and that daily, I’ve been taking an extra two or three sachets from [insert popular coffee chain name here] for the team stash back at the office. I told him I felt homeless when I did that. His reaction was priceless — a grin from side to side on his face, and he said to me, “No, dude, you’re not homeless, you’re a startup”. It was a proud moment for him. And I. So there you have it, my final #startuphack for you. Stash sugar sachets from other places, don’t buy it.
