Things to Know Before Starting a Business in Asia as an American

As more and more multinational companies are shifting their bases to Asia, it makes sense to understand the start-up scene in the continent, business etiquettes, and the cultural environment. Here, we outline the 4 things that an American entrepreneur must know before commencing a business in the Asian markets.

The Business Environment

The start-up culture in Asia is pretty much similar to North America. The entrepreneurs are either too conservative, focusing on tried and trusted tactics or too creative, experimenting with different business models and latest technologies, or something in between. However, when it comes to business culture, in particular, there are quite a few critical differences.

Most Americans see people they interact with as strangers, or family, with mates, colleagues and professional contacts in between. Asians, on the other hand, don’t see people along the same spectrum. You are either ‘friends and family’ or a ‘stranger’; there is no in-between. This means 3 things:

First, Asians (especially in Japan and China) like to do business with people they are friends with. Second, it takes quite a few meetings before you’re considered worthy of being regarded as a friend who they can trust to do business with. And lastly, Asians are very true-hearted and faithful to their friends and family. Once a friend, always a friend!

The Best Thing About Starting a Business in Asia

The differences between Asia and America, as discussed above, allow business owners certain advantages. But only those truly succeed who are diligent and determined. After all, it takes a lot of patience and persistence to learn the local language, adapt to the cultural norms, and understand the complex regulatory environment. Most importantly, the perks of having established connections with exceptionally faithful business compatriots only come to those who are willing to invest their soul into a relationship for the long term. Trying to cash on opportunities without putting in your time and energy won’t help here.

Challenges of Starting a Business in Asia

The most common problems which American entrepreneurs face while conducting business in Asian countries are:

• Navigating the legal and regulatory landscape (including visa regulations)
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• Learning the nuances of language
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• Adapting to local culture and norms
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• Attracting, recruiting and managing local talent

Businesses That Tend to Succeed in the Asian Markets

The following companies are likely to fare best in Asia:

• B2B companies
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• Companies that sell to the American market either by employing the local workforce or by manufacturing from Asia.
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• Companies that act as a medium to connect people or assets in the United States to those in the Asian continent.

On the flip side, companies that serve the Asian consumer markets find it difficult to get off the ground. However, companies that develop mobile game applications are an exception here.

Final Thoughts

Whether you’re moving in order to cut operational expenses and plans to continue catering to the American consumer market or expand your horizons in the Asian market, these 4 tips will help:

• Spend some considerable time forming valuable bonds with potential stakeholders before making up your mind to do business with them. Sometimes even strong relationships and verbal agreements are not enough. Get a written contract in place.
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• Use money transfer operators like Ria Money Transfer to transfer funds to where you are setting up business. This allows you to save money on expensive bank transfer fees.
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• In Asia, employees don’t value remote work options, flexible work schedules, and other perks that are often appreciated by American employees. So, you need to offer them money in order to attract and manage an efficient team.
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• In situations where miscommunications are emerging with local staff, and you’re at your wit’s end, micro-managing might seem like a bit too much but can prove to be the most straightforward remedy. Over-communication is not so over!

About the Author

Joyce Shang is a contributing writer at Sparkwebs LLC, a Digital and Content Marketing Agency. When she’s not writing, she loves to travel, dance and read books.