Financial Capacity

Found this issue interesting? Share on your social network!

There’s no point in beating around the bush. If you’re going to do business in China, you’re going to need to spend some serious money in a wide range of areas, especially in research, people and (especially) marketing. Your marketing budget alone can run into millions of dollars to promote your brand story and create the deep niche that will be so essential in standing out from the competition and attracting your target customers to your product or service.

The days are long gone when you could turn up in China and expect the red carpet to be rolled out for you. You’ll need deep pockets and a commitment to a long term strategy to help you stand out from the crowd and get the results you are looking for.

As you consider your budgeting requirements for your China business, I suggest you consider some or all of the following:

Long Term – don’t be forced to give up too early. You’ll need to plan for at least 3-5 years
Marketing-driven – don’t underestimate the cost of effective and targeted marketing in a large, crowded and noisy environment
Analytical – be disciplined, dispassionate and focused on the bottom line – don’t get distracted
Flexible – build flexibility into the budgeting to swiftly move and respond to market forces
Capital Intensive – ensure your capital reserves are sufficient to iron out the volatility
Stakeholder Commitment – especially for when the going gets tough

The good news is that success in China can be exciting, transformational and life-changing and will alter the way you view the world. Be bold, courageous and disciplined. Trust the process.

Found this issue interesting? Share on your social network!

Leave a Reply

Your email address will not be published. Required fields are marked *