I call them Accidental Expats. They are the American business owners and senior managers who had never really considered setting up shop in China – not while the US market was big & active enough to support their growth strategies.

They’ve got nothing against China per se. They just used to consider it an unnecessary risk and huge inconvenience. But now, of course, times are changing. I’m already starting to hear from lots of Americans I haven’t spoken with in a while. When I first moved to Shanghai they had no idea why I was doing it. Now they want to know how they can do it.

What do you tell your American friends and colleagues when they put out feelers about setting up shop in China?

Remember – these are the guys who never really wanted to be here before – even during China’s previous booms. These are the head-down, show-me-the-numbers business owners and managers who aren’t easily impressed by big numbers and pie-in-the-sky stories of 1.3 billion customers. On the other hand, if you start out by telling them your funny stories about bureaucracy, corruption and HR travails, you’ll scare them off in a hurry. So what’s the middle-path for helping potential partners, investors or clients find their way into China?

They want to hear about process, safety, QC and regulations. These Accidental Expats want the facts about set-up and operation. It’s important to take a balanced approach – don’t scare them away, but don’t talk about how easy it is. Your value is in being able to provide solutions to problems that they don’t know they have yet.

There are two main guidelines when talking to newcomers to China

1) Be honest about what you want/need/expect. If it’s just a couple of old high-school friends shooting the breeze about life & business in China, then great. Have fun. But if you expect this conversation to turn into business or investment down the line – then you are advised to make this part of the discussion EARLY and OFTEN. New consultants and entrepreneurs often drop the ball here. One potential problem is being too subtle and clever – assuming that your value will be obvious and of course they eventually get around to talking about how much money they want to pay you or invest in your company. The reality is that this is not an organic conversation that will inevitably take place. In fact, it may not even occur to your hometown contact – until you plant the seed. Being TOO aggressive and sales-y is also bad – but it’s still better. Overseas inquiries start off friendly and simple, but can quickly escalate into full-blown research projects.

2) Goal-setting is their No.1 challenge – and your main value to them. US business owners are probably going to try to get very granular and specific way too early in the conversation. If you want to avoid difficulties later in the process, you are strongly advised to start the China conversation by making them come up with realistic goals – and a budget – for their China entry. Westerners will talk your ear off about profit splits and market plans – but if they don’t know how much money they have to invest in China or what they expect to get out their investment, then someone has a problem. Make sure it’s not yours. If your home-town connection is still in the ‘big-picture’ stages of his China plans, then the best thing you can do is persuade him to invest in 10 day trip over here. Don’t try to plan a China business for someone who has never set foot in Mainland China.

Remember – most inquiries will NOT result in business, so qualify early and don’t pin your hopes on a single email or phone call. Your first conversation should be 30 minutes or less. If you don’t plan on working for free, make sure you discuss your expectations at the end of the first conversation.