Starting a new business, your thoughts

[Amaro]

Ok so my wife wants to start a business here in Orlando. My brother somewhat brainwashed the idea into her that she could start a Chinese Tourism company here. For those of you living under a rock, Orlando has many many attractions, the big ones being Disney and Universal a long with a couple mile road full of restaurants, shopping and entertainment.

 

So you know, she brings up an idea, and all I can say OK. Every time she brings it up and I seem pessimistic, I think of all the other multi-billionaires in america, how much support did they have when they first came up with an idea. I don't want to be that guy that discourages but, OK, ill bite.

 

So obviously this is going to take a lot of money, research and time, and its going to be targeted to Chinese tourist with a website all in Mandarin, maybe Cantonese and Taiwanese at a later date.

 

Since she has no experience whatsoever in running a business and what needs to be done, I think this would take a huge bite out of my time as well, at least until the ball starts rolling.

 

Everything is still in the planning stages, but the exact scope of the business would be getting group discount tickets, deals and transportation to local attractions. I don't know how much of a profit this would be, or a good idea at all.

 

I mean if shes only going to be pulling in 20-50k a year on this, might as well get a real job and not even waste time on this. It sounds like too much effort if it does not net her 100k+. of course, Im not talking about making that money at first, I know business will be slow at first. The biggest thing is risking all that money and resources for a negative outcome.

[warpedbored]

In general Chinese make great entrepreneurs. They have a tenacity most Americans don't have. They aren't afraid to work long hours and tend to throw themselves into their work entirely. You probably won't get to see as much of her as you would like. On the other hand if you say no she could make your life a living hell. What comes to my mind off the top of my head is what does she have to offer that scores of other tourism businesses in the Orlando area don't have? I know there is no shortage of Chinese people in the area. Our founder PJ who started CFL is from around there.

[chilton747]

So what kind of expenditure would insurance be?

[b.c]

In general Chinese make great entrepreneurs. They have a tenacity most Americans don't have. They aren't afraid to work long hours and tend to throw themselves into their work entirely.

 

That sounds like a stereotype that has gotten a few hands slapped around here in the past.

 

I have to wholeheartidly disagree with it as well. I have done business with about 20 different companies in China and have had discussions with many more. In my experience, they are tenacious in the sense that they will do and say anything to get your business. They are just as tenacious at rationalizing and deflecting blame when things go wrong. I just came across this on another forum. This is very common:

 

5. Any advice on how to present the information better or more convincingly would be greatly appreciated. This is supposed to be my sales pitch, but it has room for improvement. Should I just lie outrageously like most of my local Chinese competition? If so, how to make it outrageous and believable at the same time? Or should I say, more engaging and confidence-inspiring.

 

They are typically just as tenacious at cutting important corners to add to their bottom line. This book is a must read for anyone doing business in China. It has been much like my experience as well.

 

As for their work ethic, I have met very few that work harder and longer than the typical american entrepreneur.

 

Amaro, last I knew, a lot of these tours of Chinese coming to the US primarily revolve around real estate/home buying. Many wealthy Chinese are eager to purchase homes in the US due to the deflated prices and to get money out of China. The most common destinations for these tours are CA and FL. So maybe check into how difficult it would be for her to get her Realtors license?

[b.c]

After giving this more thought, I think the real estate angle is what I would pursue, whether doing it in conjunction with your own tour(s) or trying to partner with existing tours, which might be more ideal.

 

There will probably be an abundant supply of cheap homes and condos in FL for some time and the interest/demand for these properties from the Chinese will probably keep growing as well.

 

Here is info on how to get real estate license in FL:

http://www.realestate-school.com/qualifications.shtml

 

Articles on Chinese home buying tours in the US:

http://www.google.com/#sclient=psy-ab&hl=en&source=hp&q=chinese+home+buying+tours&pbx=1&oq=chinese+home+buying+tours&aq=f&aqi=&aql=&gs_sm=e&gs_upl=2421l8309l0l8915l35l27l4l2l2l3l395l5738l0.15.6.5l32l0&bav=on.2,or.r_gc.r_pw.,cf.osb&fp=97418def9c3dce11&biw=1280&bih=808

[Mick]

Charles raised an excellent point about insurance. Whenever you move groups of people over long distance, there is always the risk of something unexpected happening. Anything from accidents associated with transportation (planes, buses, etc.), hotel fires, food poisoning, slips and falls, - the list is endless. I am sure insurance for liability is available, but it is going to be expensive. Also, the early costs associated with a venture like this are going to be fairly high. The primary cause of small business failure is lack of adequate start-up capitalization. I don't mean to throw a damper on anything here, but you need to be very aware of how much this is going to cost and how long it will be before you turn a profit.

[warpedbored]

In general Chinese make great entrepreneurs. They have a tenacity most Americans don't have. They aren't afraid to work long hours and tend to throw themselves into their work entirely.

 

That sounds like a stereotype that has gotten a few hands slapped around here in the past.

 

I have to wholeheartidly disagree with it as well. I have done business with about 20 different companies in China and have had discussions with many more. In my experience, they are tenacious in the sense that they will do and say anything to get your business. They are just as tenacious at rationalizing and deflecting blame when things go wrong. I just came across this on another forum. This is very common:

 

5. Any advice on how to present the information better or more convincingly would be greatly appreciated. This is supposed to be my sales pitch, but it has room for improvement. Should I just lie outrageously like most of my local Chinese competition? If so, how to make it outrageous and believable at the same time? Or should I say, more engaging and confidence-inspiring.

 

They are typically just as tenacious at cutting important corners to add to their bottom line. This book is a must read for anyone doing business in China. It has been much like my experience as well.

 

As for their work ethic, I have met very few that work harder and longer than the typical american entrepreneur.

 

Amaro, last I knew, a lot of these tours of Chinese coming to the US primarily revolve around real estate/home buying. Many wealthy Chinese are eager to purchase homes in the US due to the deflated prices and to get money out of China. The most common destinations for these tours are CA and FL. So maybe check into how difficult it would be for her to get her Realtors license?

I did say in general. I based this on my observations of the Chinese I personally know who have come to the US and started their own businesses. I admit that this is a very small sample of a population of over a billion people. I have also noticed that Chinese businesses here seem to be open longer hours and more holidays than similar American businesses. It is not unusual for example for a Chinese restaurant to be open at midnight or later.

[Amaro]

You all have brought up interesting points. To answer the insurance question, we wouldn't be moving anybody, just providing tickets and group deals. So we would have one central location where we work out of. We could recommend possible avenues of travel, but not actually provide it.

 

Also I have not considered the real estate business, I have always heard there was money in selling homes depending on the person. I could bring that idea up. There are many homes for sale here in central Florida, but I wonder how saturated the market is with realtors?

[knloregon]

"....but I wonder how saturated the market is with realtors?" Actually, Amaro, you and your SO are, I believe on to something big. (and so are a few other members sniffing around here) Both tourism, and selling real estate to mainland Chinese are, I believe about to take off. (both have been a subject of my opportunity studies for over a year).

 

Two of the biggest hurdles are considered for elimination. One, (as has been posted here recently) --- tourist visas. Any time you get a President of the United States to bring up your specific subject in the State Of The Union Address--- Obama specifically stated that he wanted to expedite tourist visas (for CHINA and Brazil) ---- you know its on a short list with at least, the Administration, and, I believe, Congress as well.

 

Secondly, Several in Congress have proposed a law that would grant permanent resident status to families investing 500 grand or more in residential real estate. This as got to be attractive to pols in very depressed markets (like Florida) ------------ and it goes directly to the above statement in quotes---- "....but I wonder how saturated the market is with realtors?" Not the issue > the issue is: how many of those realtors are fluent in Mandarin, Cantonese, and who are willing to really shake the cross-cultural bushes to get in on the ground floor?? (my experience is that realtors---with a few exceptions--- are NOT the most creative of sorts, and function in a rather limited set of assumptions, and networks.

 

But from the standpoint of opportunity with limited investment (and training) ----I see blue sky in tourism----if your SO affiliates as an associate with a well established PRC tourist company----they have GOT to be chomping at the bit, waiting for the visa reform, and desperate to line up agents on the ground in the US -----Particularly in exactly the place where you live. Like all opportunity, you need to be on the crest of the wave, so I encourage you both to take advantage of this in a timely manner---I'm certainly thinking hard about it myself.

[b.c]

"....but I wonder how saturated the market is with realtors?" Not the issue > the issue is: how many of those realtors are fluent in Mandarin, Cantonese, and who are willing to really shake the cross-cultural bushes to get in on the ground floor?? (my experience is that realtors---with a few exceptions--- are NOT the most creative of sorts, and function in a rather limited set of assumptions, and networks.

 

Totally agree with this. I wouldnt worry about the amount of realtors in FL. As Kim stated above, your SO will have a definite Unique Selling Proposition. I will take it a step further. Think of the primary demographic of the buyer...older, wealthy Chinese men. I think we all know enough about Chinese culture to know that a young pretty face will be a great asset. At the end of the day, her success will be based on how competent and effective she can be, but those things will be of tremendous value to getting her foot in the door.

 

Another opportunity down the road once more and more of them establish residence here is property management. I doubt that many of them will move here permanently. A lot of wealthy Chinese did exactly this with Shanghai apartments over the past 10 to 15 years. They bought them as an investment, a status symbol, and for a weekend getaway. But many put a mistress up in the apartment to look after it. They wont be possible for them to do here. I would imagine many would be willing to pay x amount per month to look after the property when away.

[Amaro]

Even more interesting details have been brought up. I need to talk with my wife about this, the only problem here is that I am involved in my own career and this is something she needs to figure out on her own. I am not sure how much time I could dedicate to her projects.

 

The first step is getting her enrolled in Realtor classes and getting spooled up with the local laws and what not. If she is not able to grasp the concept, I'm not sure how much I could help her. However, I would still need to see how interested she would be in trying to sell houses to mainland chinese and surrounding areas.

[knloregon]

Well, Amaro, while it wouldn't be her business exactly the second suggestion is tourism---and hooking up with an already established tourist agency in China that specializes in Disney/FLA/kid travel packages etc---got to be very easy for her to identify those on line, as well as just check them out on site as they pass through. ---then contact them directly in China. (I would by-pass local agencies, at first--if possible-- since that puts her lower on the totem pole to start). But the advantage here is that she can get paid to learn the business, and as Chinese tourism expands, she can then go out on her own---with both the knowledge, experience----and CONTACTS! (in PRC).

[Amaro]

Well, Amaro, while it wouldn't be her business exactly the second suggestion is tourism---and hooking up with an already established tourist agency in China that specializes in Disney/FLA/kid travel packages etc---got to be very easy for her to identify those on line, as well as just check them out on site as they pass through. ---then contact them directly in China. (I would by-pass local agencies, at first--if possible-- since that puts her lower on the totem pole to start). But the advantage here is that she can get paid to learn the business, and as Chinese tourism expands, she can then go out on her own---with both the knowledge, experience----and CONTACTS! (in PRC).

 

A quick search on the net and I found http://www.americaasia.com/Default.aspx?locale=en-US&RP=browse&catid=11 That could be an idea as well. Keep them coming!

[knloregon]

Excellent start. Instincts suggest to me this is a well established, mostly Japanese company, not that it doesn't offer opportunity --- but perhaps not 'blue sky'? This is where she needs her own research in Chinese (Baidu).

 

 

Also, b.c. suggests property management, and the more you think about it, the better it sounds. If she's not (immediately) up to get a real estate license, she most certainly can manage the property bought by expat (or absentee) Chinese. And she has an advantage in that she can communicate directly with the owner.

[david_dawei]

We are in Orlando too... my wife has a few ideas... maybe they can be consolidated and joined