DiligenceChina

Right now consultants are moving to Shanghai because “they don’t want to live in airports anymore”. Traveling from the East Coast to China more than a few times a quarter is simply too taxing and time consuming. (LA – China is like a bus ride. They don’t even have time to read a magazine.) It makes sense for consultants and freelancers to base themselves in China right now, because this is where the action is.

Before long, business owners and senior managers might come to the same conclusion for themselves.

If you are a small or medium sized operation and you plan on making China a big part of your business’ future, you might be better off tagging a trusted #2 to run your home office while YOU come over to China for a couple of years to get your operations up and running.

I know, it sounds a little crazy. If you plan on sourcing raw materials or selling 15% of your product in China, then clearly it doesn’t make sense. But if you think China is going to make up more than 25% of your sales revenue over the next 4 – 7 years, then you may want to consider some bold strategic options.

There are 3 big reasons for owners and senior people to consider delegating the home office and taking the lead position on your China set-up.

1) Your own skill set improves. You learn China from the inside. If you feel China is going to be a significant source of top-line growth for the rest of your career, you need to be deeply in touch with the culture.

2) There is no other way you’ll get set up. If your company is your baby, then the chances of your China op getting built right by remote control are pretty slim. Lots of owners try “shuttle project management’, and drive people in both office nuts. Unpack the bag, rent a nice villa or service apartment for 18 months, and do it right.

3) It’s A LOT easier to find good managers in Boston than in China. You are going to need 2 country heads – You, and someone else. The assumption is that you will find someone who can develop the China business while you stay home and watch over the HQ. The fact is, you probably already have people or know people who could do a very competent job of taking care of your home office. Finding competent, creative, experienced managers over here is a huge challenge that will require lots of time — and ultimately some big compromises.

It sounds like the tail is wagging the dog, and that may be true for some operations. But for owners of SMEs who see big opportunities in China, the answer may be to take a REAL plunge and set up the new China Office yourself.