Expansion/General Advice

[alanc5]

Hello again )

I got an email the other day from a guy wanting to represent us in China. He loves the software and wants to translate it and offer regional services and support as well as the normal selling.

I quite like the idea but had no idea about what to do with it. How on earth would you know where to start about such a thing?

After stating my ignorance in such matters I asked him to put forward a baseline proposal that we could use for negotiations. It came back he was offering 30% of the company, and 30% on sales / His investment would be capital, marketing and company formation and mine would be the products.

Does this sound right?

Expansion into China never entered my head (well maybe for a few milliseconds) so this is a genuine opportunity as I dont have the means to make it happen myself. However, 30% of such a key market seems to be on the slim side, or maybe I'm being greedy?

Has anyone experience of issues like this? How on earth do you deal with these kinds of things? Business Link etc cant really advise one way or the other.

I've been thinking about trying to attract a real Managing Director who knows about business- I'm really just a coder. Does anyone know how I might do that?

I'm starting to realise that the weak link in this particular chain is me, if I could concentrate on what I know rather than possibly killing/severely hampering the future of this company, I might well be seeing that red Fezza sooner than I thought.

I need guidance. Any sites, places of interest that you can recommend?

[vex]

Have you tried the Dept of Trade, or what ever it is called now.

I think they have quite a good link with China, based on a project I have sort of been involved with.

>> Edited by vex on Wednesday 20th October 09:55

[AlexHancock]

Interesting product Alan. My only thought was that I know China has a reputation for ignoring licences and patents and very few companies have been successful in prosecuting ofenders. However, I noticed from your website the comments about Open Source. Can you supply him with just the text language files without all of the source? If not, I'd be tempted to negotiate a deal that gave me a large lump sum initially just in case it was the last I ever saw.

[simpo two]

I'm with Alex - you don't know this bloke from Adam. I can't give you any specific advice but keep your feet on the ground. Put Ferraris aside for a moment, and keep your eyes open to any chance that you can be shafted. Give nothing away that he can use until the loot's on the table.

Hope it works out though!

[dave brennand]

Alan,

Try speaking to The China Britain Trade Group.
www.cbbc.org/the_review/50th/2.html

I made a few visits to china with them yers ago and they seem to know their onioms.
On a personal note - be VERY carefull with our Chinese friends, they are smart and ruthless and most important - a bloody long way away if things go tits up.

Best of luck, hope it works out for you.

dave