Thinking bigger in business - how China does it
4 min read
Originally sent exclusively to The Letter subscribers on May 6. Want to be the first to get my personal newsletter in your inbox every Monday at 7am? Subscribe for free here.
I’m in China as I pen this little note. I’ve been buying products and catching up with our team out here and am absolutely buzzing with fantastic fresh ideas.
International travel does that for me, it ignites the fire within.
Today, my adventures took me from Shanghai on a “super duper” bullet-shaped fast train, which is a marvel of engineering, to visit another Chinese city, Yiwu (where our office is based).
China is one massive country, and some.
Whilst whizzing along on this 2-hour, 380-mile jaunt across the Chinese landscape, I thought I’d offer some tips on doing business internationally and thinking bigger.
Here I am at Guangzhou Baiyun International Airport.
Leaving politics aside, you simply can’t help but marvel at how China has become the world’s 2nd largest economy in just 40 short years.
They just go and do it. They solve problems.
Here’s a couple of examples
They give tax incentives to businesses to employ people in poorer areas, hence improving the area and jump-starting the local economy as a result.
Not just that, if you start a factory in a deprived area the Government pay the electric and rent too, just to get you going. Mind blowing stuff.
Make stuff in China and then export outside China? Well, you can help yourself to a 3% tax rebate off the total invoice value for the exports sent!
Just think about that. You make some stuff, you sell a million dollars’ worth of gear, and as a “thank you”, the Chinese Government gives you 30k back!
Running a trade show? The Local Government will cover 40% of the cost so you can win more business, bringing economic activity and growth back to the local area.
What a way to think bigger. That’s how you grow a country’s economy and some.
The data doesn’t lie, China is an economic behemoth.
In the UK, we seem to have an ever-increasing tax burden stamping out entrepreneurial flair.
I am trying my best to speak to the powers that be, emphasising that we too must think bigger and not be so short term.
It breaks my heart knowing that we could also be so much more entrepreneurial than we are. We have the people.
Back to us entrepreneurs, we’re all just trying to grow our own economies. After all, we are our own economy.
I feel many are often scared to venture outside their comfort zones. Fear holds them back.
What is fear? Simply put, it’s the unknown. Like the first steps of a toddler - after trial and error, you achieve mastery.
You’re running within a few short years. So, why do we stop trial and error?
It seems life experiences can make you think smaller and be more protective. Danger could lie here, if you want more, you need to be brave.
I remember when I first came to China; I was worried about buying the wrong stuff, then was worrying about how I’d get everything to the UK, what if I got robbed? I worried about sending huge sums of money to strangers overseas, and worried constantly about quality.
Today, all these worries have left me, they’ve disappeared, as I pile millions of pounds into Turkey, India and China every year.
Fear is soon diminished by doing.
I’m a dab hand at China now, I’m even considering setting up our own factory out here. Why not?
That’s thinking bigger.
Honestly in the “doing business in China example”, most problems and fears come from the lack of willingness to get on the plane, pick up the phone, going to have a look or just “doing the do”.
Low barrier action (what most people do) would be to think about doing something and then going along to their best mate Mr Google. Oh, he knows absolutely everything doesn’t he?
Real action is just putting in a little more effort, which hardly anyone does anymore.
In my case, I thought: “Who do I need to call and meet that could help me?”
“How quickly can I book a plane ticket and get over there?”
In business, when you peep round the curtain, you’ll realise that people aren’t smarter than you. The winners just think bigger and take more action.
Nowadays, taking action could be as simple as just booking a plane ticket, or heck, just picking up the phone.
Don’t think you’re going to get what you want by “sliding into someone’s DM’s”. What nonsense. And certainly, don’t think that Mr Google knows it all.
Put the effort in if you really want it - think bigger.
The results may surprise you.
To your continued success - see you next week,
PS. I’ll be sharing a lot more about my importing business and insights from China on stage at the Business Masterclass in September. If you fancy being in the room - get your tickets here.