How U.S. Entrepreneurs Can Expand or Partner in Asia
The United States may not be a big enough marketplace particularly for the goal-oriented entrepreneurs, that is why they might be wanting to seek more significant opportunities in the vast continent of Asia. A great example is Netflix which intends to expand its operations from 50 countries to 200 including the small and big states like Vietnam and China.
However, Asia is the largest and most diverse continent with various cultural differences varying from one country to another. It is also one of the most wanted consumer markets for international businesses, but with the very heterogeneous businesses and market environments, choosing the countries or selecting individual regions can be quite daunting for any business. It typically requires extensive research and market assessment of the present conditions of firms and corporates looking to join the market. Here are a few techniques for US entrepreneurs looking to tap some growth opportunities in Asia.
Recognize that China is the largest
China is the biggest market in Asia with approximately 1.4 billion people. That means that China has more economic growth potential compared to other countries. Unlike before where US companies had to create a base in a westernized outpost in order to gain access to the China municipality, nowadays, it’s easier for the entrepreneurs to walk in directly and conduct their businesses directly with China.
You don’t have to set up a satellite office in Hong Kong or Singapore to tap China’s vast opportunities like it used to be before whereby, Singapore and Hongkong were the ideal gateways to entering China. These countries today have pitched their countries to most western investors and other multinational corporations as great places to find regional headquarters, thanks to their intellectual property protections, western-style corporate governance, and financial markets.
The success of China-based companies such as Alibaba are a fundamental suggestion that entrepreneurs don’t need the Singapore and Hongkong getaways to achieve. Some proper research about the areas of different markets is enough to get you started. The next step is to move directly to Shanghai or Beijing or whichever city you have found perfect for your entrepreneurial activities.
China is also working on being a corruption-free state. The country has worked on government corruption, and a good example is the five-star hotels in China’s popular cities which were predominantly occupied by most government officials which currently have been vacated and now have numerous vacancies which can as well be taken by global visitors. China is on a long journey to get to the western style, and until then, millions of opportunities are available for those US entrepreneurs willing to make a move early enough.
When partnering in Asia, make sure they’re US-trained entrepreneurs
Sometimes partnering with others could be the best options especially for Us startups intending to extend in Asia. You may need to either partner with a local company or hire a local entrepreneur. If the skills can be better managed by another company, then partnering make the most sense.
But if the startup needs direct involvement in that country, then hiring a manager is more sensible.
Singapore suggests that in most cases, the country manager or partner should be an individual who has been educated in the US, a person who understands the US entrepreneurial goals and can comfortably achieve them.
It is easier to communicate with such a person as they understand the demands of the jobs from a US perspective. Keep in mind that how business is done in Asia is not how it’s done in America. You don’t want to compromise your startup from the very beginning. Take time when choosing a partner and perform a thorough background check on their skills before handing them the mantle to go ahead.
There’s a particular shift in the capital flow as China is trying to grow its economy by increasing consumer spending and reducing government expenditure on investments such as roads, and bridges. Therefore, when foraying into the vast Asian market, it’s prudent to understand how the market is and how your country of choice operates.
Your business should focus on the available market opportunities. Most nations in Southeast Asia are growing economies. Countries such as Cambodia, Indonesia, Vietnam, Thailand, and the Philippines invite enormous opportunities for businesses in various sectors, thanks to economic growth and urbanization.
US entrepreneurs can learn a lot about Singapore—a well-developed and economically stable country. They can gain all the relevant information about Asia and borrow some entrepreneurial skills from them.
Assess the talent
One of the biggest benefits of expanding in Asia is the massive talent market available in which businesses can leverage to achieve various goals. Startups face big responsibilities of having to bring employees from their home country, train them the language, business practices, customs, and other costly responsibilities. In order to avoid this, make sure the country you have selected has enough talent to work in your field so that you will not have to go through the hustle of training the locals.
Picking the right set of professionals can go a long way towards getting your business the correct head start required in that particular market, since the individuals have a better understanding of the economy and the business ecosystem.
Get ready for tough competition
The good part about any business is competition. Lack of competition kills the industry and the economy as a whole. However, US companies intending to fill a specific gap they might have identified can succeed as long as there is a good market strategy. Another noteworthy point to keep in mind is that if you are facing stiff competition in your country, it also means that you will suffer even more competition in Asia than before.
This is because most Asian markets are characterized by unwavering competition. It is also vital that you localize your product or service when venturing into any country in Asia as every market has its own unique needs and demands depending on the state of the economy.