Opportunities

As I've gotten more involved with various enterprises with China, I'm innudated with requests to information/help with companies etc... So I want to share here the various segments of opportunities that I see are available for those of you who want to be involved in working with China as well.

Due the sheer population size in china the competition in any market is multiples of the volume that we see in the devleoped countries. So many people are constantly looking for their chance for advancement that almost any proven market is immediately flooded with new comers copying the business models etc... There's very little understanding of true business models/planning but never underestimate the ability of someone else to lower costs and copy your success from beginning to end. With a lack of IP protection, it's even more competitive than just sheer volume would lead to in the US. So causes every company to look for an edge that can't easily be copied, and having a foreign/US connection or partnership or customers is exactly that edge. I can't keep track of the amount of businesses who've approached me simply because they knew I was american about any connection I can provide for them in the US. Import /export is one of the obvious ones for the manufacturing industries since that's a major industry in China right now. I've been provided with so many sources of cheaply produced high quality goods of all materials ranging from plastic to bronze to stone to wood that's looking for buyers in the US. Unfortunately, my specialty is with high tech and investments. As much as I'm painfully aware of the opportunity here it's not something I can execute on.

The previous opportunity involves selling products from China outwards, and this next opportunity is the reverse about selling products to China. More accurately what China needs is raw materials. I've been asked to look for sources of raw iron, scrap steel, wood, concrete, almost any type of raw materials on the scales of tons. The buyer would be major State Enterprises that have the charter to pretty much build the infrastructure in China. If you've ever thought about the impact of a population of 1.3 billion on a country's natural resources you know exactly how big this market is if you have the ability to find the sources. There was one calculation that in order to house everyone even in the smallest and most minimal of housing, there's not enough sand in China today to make the concrete needed. Add the infrastructure needs on top of a manufacturing mainstay industry, you can see the raw materials buying is almost bottomless as individual sellers are concerned. So if you can find the selling sources, the buying sources needs to be connections directly with state enterprises. If you don't have those connections or can find them on your own, then let me know and I can hook up with my connections. And yes, this is definitely one of those scenarios that only those with the right connections will succeed.

The other one is in the financing, accounting, IPO area. I'm already engaged in this area personally but these are not projects that I can easily scale. When you work with one company on financing, accounting practices or an IPO on NASDAQ, you're pretty much booked with that company. If you keep track of chinese companies on the NASDAQ you can see a recent rush by major what used to be Chinese state enterprises like China Mobile, Sino Pec on NASDAQ. And how can forget the drama around the Baidu IPO that surprised even the Google IPO. In a country where currency conversion is still severly regulated, IPO on the NASDAQ gives the executive team liquidity in a freely convertible currency. That is a holy grail to any Chinese company and there's a flood of companies who want to attempt but either fail or have no idea about how to proceed. If you have the background in financing, account, IPOs, investment banking this is a very deep market with lucrative earning potentials. I will warn you that you better be prepared for the very real, very large cultural differences you'll encounter along the way. But I guarantee that once you've done the first one and experienced the growing pains, you will become one of those of the rare stature to name your price.

Related to this opportunity is simply training in accounting, financing and business planning practices. For a country transitioning from a state owned economy to market economy, actual profit driven business experience is very rare and very much needed. A lot of the smaller companies does not have the money to hire consultants directly, but would send people to training by the droves. You can do this either by setting up your own training program, model and company or become partners with an accredited university. Advantages to both of course, but you have decide based on your abilities to actually to make one of these options succeed.

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