Here are some facts which must be known before establishing a business set up in China:
- In China, the family name precedes the given name, which is occasionally followed by the second name or the western equivalent of a first name. Some Chinese will switch the order of their names when they are dealing with foreigners. In addition, married women rarely take their husband’s family name.
- Chinese usually conduct business over lunch and dinner, and deals are often concluded over a meal. Entertaining is a critical part of Chinese business culture.
- You have more than one option for a local presence – WOFE, Contractual Joint Venture, Equity Joint Venture, Representative Office, or a local representation by a third party.
- Carefully define your business scope – Scope must be defined so as to be permitted and encouraged by China National Development and Reform Commission.
- Select the right location for operations.
- Confirm the minimum registered Capital – based on the judgement of your business scope and operation scale.
- Integrate commercial clauses in the Articles of Association to maximize profit repatriation – The AOA is to be submitted to local government agencies for approval and filling during business license registration.
- Fully understand employer’s responsibilities and liabilities – China issued the new Law of Labour in 2007 which specifies issues on employment contract, redundancy, etc. You also need to be aware of the mandatory employee welfare and benefits so as to include such costs in the budget.
- Conduct thorough due diligence and credit check on your joint venture partners – Your partners may not be what they claim to be. Chinese have a business culture to show their wealth and status and look financially viable but live on bank loans and personal debts.
- Develop a comprehensive local employee management system – A sound and robust employee management system will encourage the engagement and commitment of local staff and avoid potential risks.
- Never give a Chinese person a clock as a gift. It denotes to attend someone’s funeral.
- Business cards printed in both Chinese and English should be presented and received with respect in accordance with Chinese custom at all business occasions.
- Courtesy and good manners are appreciated by the Chinese and are fundamental in any business discussions and negotiations. Patience is great asset in dealing with these people.
- Make friends first, do business later – You may have to take several trips before getting the contracts signed.
- Don’t take their saying “YES” literally to mean affirmative – They have a habit to say yes to show that they are paying attention to you. In such a context, the word “yes” does not mean that they agree with what you say or that they agree with your terms.
- Superstitions and Numbers: The number 4 rhymes with ‘death’ or ‘failure,’ number 14 rhymes with ‘sure to fail’, ‘sure to die’, so avoid these numbers. The number 3 rhymes with ‘growth’ and welcomed to business people, and number 8 rhymes with ‘prosperity.’ Number 168 reads in Chinese to sound like ‘forever prosperous’ a definite crowd pleaser.
- Food and beverages, Travel and transport, IT and telecommunications, Minerals and energy, Environmental protection, Building construction products and services are few of the major industry sector currently experiencing rapid growth.
- According to the Chinese Company Law, every business entity must deposit a certain amount of money equivalent to its registered capital reported to the registration authority into a specified bank account. This capital injection has to be audited by a certified public accountant and the money in this account can only be used for the company’s business activities.
- The minimum amount of registered capital required for a JV or a WFOE starts from USD100,000 while for companies in some specific industries, this minimum registered capital requirement can be much higher.
- Do your “due diligence,” well.
- Check the reliability of the data on your partner or customer from independent sources.
- Be careful, you can lose a lot of money if you make a great deal with the wrong partner.
- In addition to creating proforma balance sheets, spend some time at the beginning of a project to create scenarios of what you will do if things go wrong. Try to anticipate possible problem areas. If you can’t find any, hire somebody who knows well about the potential problems to help you.
- Create a strategy to deal with potential problems. Have an escape strategy for each stage of your project, even though you do not plan to use it.
- Chinese have a high regard for rank and seniority. The Chinese will be impressed by and are usually more attentive to senior representatives of foreign firms. Ranking your company can help to impress the Chinese, especially if you are the biggest or the oldest.
- If you are dealing directly with a customer in China, make sure you receive cash for full payment first or use a letter of credit (L/C) to receive payment.
- Be careful – as Chinese insist that your senior executive travel to China immediately to sign the contract with them in person and request money prior to the trip to pay for a reception in your honour, and/or, once in China, they request money or goods to “grease the wheels” with local officials.
– They insist to pay you later
– Their telephone numbers are always busy or never answered during business hours.
– They have no English speaking staff although they claim they have been in the import/export business for years.
In today’s connected world, where customers research purchases online and seek recommendations from friends and family, it is in the best interest of most small businesses to have a vibrant and interactive social media presence.
What other points do you have to add to the list? Please leave your viewpoints in the comments.
Successful people are those who are highly focused because focus is the key to success. They are the ones who do not deviate from their goal plans and they know what is important to them and what not. Highly focused people are not different people but they do things differently. It is this difference in their working style and pattern which keeps them focused and hence helps them produce results. They live in present situations and don’t worry on the future outcomes. They enjoy their work and love to do it. They don’t do things which can have negative impact on their work. They develop certain habits and follow them on regular basis. They are thoughtful people who judge every act on their priority lists. They just cut off the unimportant ones. They know where to say no. Here are certain things they don’t’ do or avoid because they know these acts will kill their productive time and will deviate them from their success path. Here is the list of such things:
- They don’t jump to peep into their e-mails and social networks as a very first job:
Highly focused people don’t check their e-mails and social networks as a very first job. They know better how to focus on their work and start working the real work as a kick start. We have a fresh mind and positive waves in the start of the day. By checking e-mails you are working for the other’s problems and not your own work. While checking e-mails and social networks too, they just utilize these tools towards their goals achievements and leave the rest. They don’t indulge in unnecessary matters. They just do their real work first which is the first step towards producing results.
- They don’t make silly excuses:
Highly focused people don’t make silly excuses not to work. They are a dreamer, a doer and a believer of their work. They know well how they can concentrate on their work and produce results. They know time is short and they have to produce results in the given time. They know well making excuses is easy, but they know the fact well that it will distract them from their way to success. They just make reasons why not to work. They manage their work activities well in their time and keep on improving until they are well enough.
- They don’t waste a single minute of time:
Highly focused people don’t waste their single minute of time. They know how to best utilize their time and they even know how to fully utilize the gaps of time they are idle or waiting on. They know time is money and they have to perform in the given time. They don’t excuse, “I don’t have the time,” because they know that the people who succeed also have the same amount of time in a day. They know life is a race and if they do not perform there are thousands of people who are utilizing the same time to conquer their dreams and they will go ahead.
- They don’t live in their comfort zones and let lack of resources stop them:
Highly focused people don’t live in their comfort zones. They know how to live with constrains and with limited resources. They know better that the person they want to become can only be achieved living outside their comfort zones. They invent techniques using their creativity to reach their goals with the limited resources they have.
- They don’t involve themselves in the matters that don’t concern them:
Highly focused people don’t involve themselves in the business or people that don’t concern them. They don’t poke their nose in other’s work neither they like other’s poking their nose in their work. They are concentrated towards their goals and how to achieve them.
- They don’t compare themselves to others:
Highly focused people don’t compare themselves to others. They learn from every positive attribute they find in others. They are content with what they have and keep an eye on other’s achievements to learn the positive insights from them. They try to learn from the predecessor and even from the successor. They are always busy improving themselves that they hardly find time to compare with others. They know comparing to others is never reasonable because everyone is different and have different capacities and capabilities. They are always their self – motivator.
- They don’t allow negative thoughts in their minds:
Highly focused people don’t allow negative thoughts override them, neither are they moved by the negative feedbacks and critics. They only take it as an opportunity to improve and learn. They are focused and optimistic people. They are the believers and do trust on their work and aim to make positive impact in the world. They believe in themselves.
- They don’t multitask:
Highly focused people focus on one task at a time and don’t indulge in multitasks. There are some people who indulge in multitasking and keep doing different works almost near to complete 95% – 98% completeness and are not able to finish their tasks and produce results. They just wait to make it perfect. But there is nothing perfect as such. Even in a perfect work, as many times you go through, you can find some place for improvements. So keep this in mind, and go complete your task with full dedication to increase your productivity before you leap on to another.
- They don’t gossip and make meetings standing up:
They don’t indulge themselves in unnecessary talks. They don’t feel the need to talk critics and look down about others as they are themselves busy in achieving their own goals and don’t indulge in backbiting talks of others as they consider it as their productive time killer. They make meetings standing up so that they don’t waste their time in unnecessary talks.
- They don’t procrastinate: Highly focused people don’t procrastinate. They know well what is to be done now and what later. They are mindful and have clear vision and live in the present situation. They just work on their priority basis. They don’t peep out of their minds over the unnecessary jobs. They focus on their goals and work to accomplish them. They know better that a good plan executed today is far better than the great plan executed someday.
- They don’t entertain distractions: They limit themselves to their tasks on hand and do not entertain distractions. They are highly focused to produce the end results. They keep themselves far from e-mail, social media and chat alerts. They also keep themselves far from people who make them distract from their work. They know very well that such distractions can cause effect on their work quality and hence deteriorate it. They manage their activities well within their productive time.
- They don’t judge people and make comparisons and seek validations from others:
Highly focused people believe in their work and themselves. They know if they themselves don’t believe in their work why should others bother about it. They work for themselves first then for others. They work for their own self-growth and they are focused on their own work. They know that everyone has a story which has made them and every story is different. They don’t compare themselves with others except with the person they were yesterday. They present their work in the best possible way and can prove it to be right. Here I would like to quote few words of Mr. Ratan Tata, who says, “I don’t believe in taking the right decisions, I take decisions first, then make them right.” That’s the spirit with which they work.
- They don’t allow disorganization:
Highly focused people don’t allow disorganization in their lives. They know well that there should be a place for everything and everything should be in it’s place. It saves a lot of time and you can get instant access in the time of needs. It also helps them to boost their productivity, otherwise a lot of time is wasted to procure the items when they are needed, which have an adverse effect on our productivity as well as generates stress.
- They don’t fear to take risk:
Highly focused people are never afraid to take risks. They just do what they ought to do and just do their tasks. They don’t let fear dominate their lives and worry about the results. They know if they don’t do it now, it cannot be done. Who has seen tomorrow? They take chances and grab every opportunity which comes their way. They know better how to grab every possible opportunity, they come across. They don’t bother to change their profession, to dare any challenge, or to go for some new project. They take risks to succeed and experience from the failures. They don’t want to regret on not taking risks in the end.
- They don’t dwell on the past:
Highly focused people don’t dwell on the past. They learn lessons and take experiences from their past and live in the present. They let go the things which happened in the past because their desire to success is always greater than their fear of failure. They learn from their mistakes and keep going on.
- They don’t act randomly but prudently:
Highly focused people don’t act randomly but prudently. They judge before doing and take time to act with prudence. They stick to their goals and keep pushing themselves towards it. Even when they feel low they go back and think why they started and it gives them a boost and increases their motivation level towards their goals. They are of the thinking “when other’s can, why can’t I?”
- They don’t have unrealistic expectations:
Highly focused people don’t have unrealistic expectations. They are patient people and do work for themselves. They know there are no shortcuts to success. They work with full concentration and focus to produce results, they are realistic and they know well life is not easy. They know well how to dance in the rain. They know unrealistic expectations are only the source of stress and frustration. They don’t panic when the outcomes don’t go as planned, rather sit back calmly and monitor where they lacked the focus and what went wrong.
- They don’t say yes to everything:
Highly focused people don’t say yes to everything. They know well where to say no and where to cut off, they do that politely. They know that they can’t please everyone, they focus on their own priorities and they don’t bother about others if they did not give value additions towards achievement of their goals. They know that they can’t judge others and what they think about them. Those who bother don’t need any attention and to others it doesn’t matters. Research conducted at the University of California in San Francisco shows that the more difficulty that you have saying no, the more likely you are to experience stress, burnout, and even depression. “No” is a powerful word that you should not be afraid to wield. Saying no to a new commitment honours your existing commitments and gives you the opportunity to successfully fulfill them.
- They don’t look backwards and quit:
Highly focused people don’t look backwards on the way they have started. They only move forward. They know that the road to success is not that easy and it required lot of efforts, hard work, and continuous dedicated efforts to achieve anything worthwhile. Highly focused people are tough people who never quit. They know that failure is an unavoidable part of their growth process and they have to work harder and smarter when the time demands and they keep an eye on their goals and investigate where they lacked in order to get succeed. They are hard determined people whose will power can shake for a while but they never allow themselves to quit because they know they have to succeed in any way possible. They investigate the root cause and what was the reason they couldn’t make it, they learn from their failures and again try to succeed till they actually get success.
- They don’t blindly accept what they read on the internet as truth without thinking about it:
Highly focused people don’t blindly accept what they read on the internet as truth without thinking about it. They make their own judgement based on their so far accumulated knowledge and look at the source and relevance of any material on their work and lives. They just take the relevant excerpts and leave the rest.
That’s all I added up to this list of 20 things highly focused people don’t do. Do you have any other? Please leave a comment.