The article "Buy A Business In Mexico -- Instead Of China -- And Have Far Fewer Headaches With A Lot More Money" talks about entrepreneurialism, it was created by Art Hamel.
I have always said when you buy and run a business -- a manufacturing business -- there are times when outsourcing is almost a guarantee -- as you can triple your profits wihtout tripling your overhead. And if you are going to outsource you have to get your head on straight about how other countries do businses.
And after 30 years of outsourcing, my favorite country to outsource to has always been -- hands down -- Mexico, and not China.Why? Well, first of all -- and that is not a knock of the Chinese people, but an observation of their overall business culture where they play by a completely different set of rules than we do in the U.S.
-- if you have a proprietary product, in China they're going to steal it within one hour and they’ll be manufacturing it themselves.Plus -- and that is just my personal oipnion from having dealt with outsourcing for over 20 years -- they're really hard to work with in China. I have never had any trouble working with the businesses and managers in Mexico.
But in China, you have to constnatly watch what's going on until the contract is signed.In fact, when I taught seminars, Asians in my class would consider me racist cause of what I was saying. I’d say it has nothing to do with race, and it's just the way the business culture is. Nothing right or wrong aobut it, it is what it is.
And if you insist on doing business there then you'd better learn how to negotiate, cause it's almost guaranteed they’re going to come up with something to get you to change the price -- no matter how fair or in their favor the number is.And I still tell peolpe that if you're going to go to China then after you sign the contract, make up four or five things (really outrageous things) that will happen as penalty if they change the price. And then come up with little nitpicikng ones. And when they hit you with the nitpicking things in the beginning, say, "I’m glad you want to open the door again on that negotiation cause as I looked at that last night, I fonud the following three or four things that we might want to change."And as soon as you come back and start doing that, they back off every time.But again, I always outsource to Mexico, cause it's ten times easier and you don't have to mess around with all these negotiating tricks and nonsense. But if you do decide to outsource anytihng to China, be careful and make sure you know what you're getting yourself into.Arthur B. Hamel has bought over 200 businesses in the past 50 years, and is a well-known author, consultant, investor, business owner, and dynamic lecturer who has shared the stage with such business gretas as Robert Allen of "No Money Down" fame.
For the past 20 years Art has taught thousands of people around the world -- even so-called "little guys" with no formal education or money -- how to quickly and easily buy large, multi-million dollar businesses with no credit, banks or prior business experience.
He has last week decided to share his unique business-buying secrets and tactics free of charge at: http://arthurhamel.Com
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