Starting A Business

Regional discussion and conditions reports for Asia. Please post partners requests and trip plans in the Asia Climbing Partners section.
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Jerry L

 
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Starting A Business

by Jerry L » Wed Dec 06, 2006 12:55 pm

I'm in the early stages of trying to start a guiding business in Asia. I'm looking for any tips that someone else might give to help me through the process. I'll have a partner based in China. I met with both my attorney and accountant for past buisnesses and they really don't have a clue. I thought I'd throw it out there and see what came up. Thanks.

Jerry

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icescrew

 
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A few thoughts

by icescrew » Sat Dec 09, 2006 6:28 pm

I am an attorney and climber and I have helped friends start outdoor businesses.

From a business standpoint, write a business plan. You will need to identify your market, customers, competition, and all of the steps you need to perform to be successful, make a budget, etc. Don't try to do it all yourself. Hire good people as soon as you can afford it.

From the marketing standpoint, build a strong web presence and get a good trademark. Publish some articles (even better, a book), get in the media, and give some talks on trips you have done or give free seminars.

From the liability standpoint, form an LLC, get insurance, have all of your clients sign a waiver, and be careful.

Good luck and have fun.

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Jerry L

 
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by Jerry L » Sat Dec 09, 2006 9:14 pm

Thanks Icescrew. Actually I was looking for information regarding operating a business in China. I've been self employed since 1989 (3 different businesses), but always in the states. I know absolutely nothing about starting a business abroad. I thought by posting on the Asia thread, I might connect with someone that's been through some of the hurdles and may lend some advice.

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cosmin

 
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by cosmin » Mon Dec 11, 2006 5:54 am

Hi Jerry,

Bob Keaty on this forum might be able to give some advice on the business side. John Otto has a guiding service with a Chinese partner (based in Chengdu).

From my point of view this is the deal: you won't get rich - the market, although there is not big enough to sustain several companies. You will need Chinese guides for your clients who will be most likely Chinese and guess what - there aren't many there an none of them with world certifications. Most likely self-styled guides. While that is OK one needs to be careful when employing a guide, because paper is cheap in China.

For your overseas clients - don't expect too many. Usually people travelling here need help with the logistics not with guiding, though for bigger objectives will have clients but wil also have to compete with established companies (like Dan Mazur's etc who have a China operations network set up).

As far as Rock guiding is concerned the main area is Yangshuo and its inflated with guide services of which only a couple are worth the dime but the customers can't tell the difference.

This is an overview - by no means do not be discouraged. I only wanted to give you a head's up. Drop me a line if you decide to move over here.
C

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BobK

 
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by BobK » Mon Dec 11, 2006 7:47 am

Jerry,

My two cents, since my name came up in this thread already.

Recommendations:

1. Come over and spend some time here learning about the people, places and the business environment. Everyone in Shanghai is into business and you will find loads of people to talk to about it. Join the American Chamber of Commerce for contacts.

2. Business here is not straightforward, nothing happens according to the book/law except when you have to pay taxes or fees. It can be a long apprenticeship in figuring out how things work and how you can best structure your business.

3. You will have to decide where you want incorporate your business and who will be the legal representative. This may not be as easy as it sounds.

4. You will need support in the form of local relationships. Chinese call it 'Guanxi' and you will use it to get things done as what you can do on your own is limited and the bureaucracy here can suck the life out of you.

Finally, are you sure this is what you want to do, or is just a dream, a way of escaping something else. The devil you know is often better than the one you don't.

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Jerry L

 
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by Jerry L » Mon Dec 11, 2006 11:43 am

Cosmin / Bob,

Thanks for your replies. I have a partner that is moving to China early next month. He was born there (years ago) and wants to return. We'll also be based out of Chengdu. I'm not looking to get rich from this venture - I'm retired now. As a matter of fact, we plan to put 100% of any profits back to the locals to help the needy there. We have several known adventurers that may help us with getting our name out there but we'll have to do the grunt work. It's things like Bob's #3 & #4 that concern me. I'm lost as to what is best to do. I hope to be there for a visit by early summer, but I don't plan to live there. This really isn't a dream, but something that fell into my lap, and it seems that I need to at least pursue it and see what comes up. Please keep any more comments/advice coming, becuase it is so much appreciated.

Would you know if there is an American Chamber of Commerce in Chengdu ?

Jerry


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