When a manager prepared already business project according Chinese values and principals, the main his task is to attract effectively investment from China without involvement of significant resources in this process. Usually, such process will take from one week till one month, this website belong to how to get investment from Chinese VC, PE and business angels in China.
First of all, it is important to understand for a manager, what kind of investors will be attracted for the business project, what will be the main planned steps and accents. Moreover, he needs to accept investment attraction as an approach, process or a way, which should be passed according the quotation of Confucius “A man can make the Way great, but the Way cannot make a man great.”
Secondly, when a foreign manager has a task to find investment, he needs to know, that investors are possible to divide on three groups. The first group is formed by those investors, who purchase whole project. Investors, who participate in share holding, form the second group. Direct investors, who are interested only in profit, refer to the third group. Knowledge about the mentioned groups of investors allows choosing a tool, with help of which investors could sell quickly or redirect business in necessary and interesting direction for them.
Thirdly, it is important to have a plan of organizational steps in investment attraction. To be exact, it is significant to have well-developed plan of participation in business conferences, exhibitions in China; created visualization of project realization; plan of work with information, plan of market development. In addition, manager should create clear strategy, in order to build partnership connections for searching of Chinese investor. In general, plans will help to avoid unexpected situations and obstacles on the way to investment. The parallel could be made with sport, that goal-oriented planning allows sportsmen to achieve high results. The main reason of their fails is absence of plan in majority of cases.
Fourthly, vision and experience in project-management is positive factor; however, this is insufficient condition for getting of investment. The most important factor of investment attraction is goal-oriented persistent work in this direction. If manager’s experience was not connected with Chinese investment, that means, that it is necessary again to build new strategy taking into consideration all possibilities of business development, Chinese mentality and way of thinking.
Fifthly, it is important to demonstrate possibilities of international market participation as well, in order to attract attention of Chinese investors. There is the next typical structure, how to do this. It is necessary to find a holding company in Hong Kong, which will become a bridge in building of connections and work with European and American companies. This is possible due to English law, which has power there till 2047. In such way, foreign project could be presented to Chinese investor as international. Not local, international format of the company business will be advantage and a step to successful join enterprise with China.
To conclude, the first steps of manager should be developing of detailed plans of searching investors; searching of individual tools for each kind of investors; goal-oriented persistent work in investment attraction and building of general strategy oriented on Chinese and international market.
*
Be the first to comment.