China is a new and emerging market; it pays to exert due diligence if you wish your business to flourish in its domain.
No such thing as Cinderella story in business especially if we talk about China. Overnight success simply does not happen here. The Chinese market has entirely different influencing factors than those from the West. Unplanned haste may just give you unnecessary setbacks. So learn well.
Due diligence definition
‘Due diligence’ is the effort you exert to confirm the given facts. It serves well in business if you care to practice this simple yet effective principle. As established, China is a new market, so there is no point of rushing decisions. Yeah I believe in the importance of grabbing opportunities, but it is also entirely different from jumping blindly. You must have done your assignment well of comprehensive market research. If your business is importing, then at least you have already have made some research on all the potential suppliers, otherwise you will be wasting a lot of time and resources. Another challenge of doing business in China is the language barrier. Communication is always at the risk of misinterpretation. So you must again apply the principle of “due diligence”, you could hire local professionals to help you out with the outsourcing.
Why would you consider doing it?
“Due diligence” helps you come up with better decisions. And better decisions apparently lead to a successful business venture. Many businesses neglected to practice it which led to their frustration or even demise. It could really cost so much money once a project goes crazy because of lack of planning. Aside from resources, it could also mean a huge setback on the schedule of the deliverables.
China offers great opportunities to succeed as long as you know how make things work. You just have to make careful planning for everything that you will undertake. When you have made your research well you will be given the right suppliers to work with. And good suppliers mean:
- Your partners can be trusted and you could be assured that gross business violations are farfetched.
- Your terms expressed in the contract are followed to its minute detail
- You will be assured of quality products
Things to consider
There are certain things to consider in choosing a good supplier:
- Make sure they are a legitimate business entity
- Make sure they are law abiding and regulations compliant
- Make sure they take social and environmental responsibility seriously
- Make sure of their integrity
- Make sure they are experienced enough
- Make sure you know the owners enough
- Make sure they have a competitive price
- Make sure they are capable of supplying your bulk requirement.
Doing business in China is not that easy but it is definitely doable as long as you do your part.