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Banking and Finance  » Go East, Young Entrepreneur, Go East! The Money Is There.

Go East, Young Entrepreneur, Go East! The Money Is There.

Though Asia and the Orient are considered to be West of North

America, they long ago acquired the descriptive term, The Far

East. Without going into a lot of deep research, my guess is

that since England, in it's colonial expansion centuries ago,

had many ships sailing to those areas, the concept of Far East

made sense. They got there by sailing around the tip of South

Africa, proceeding east from there. And by sail, that must have

indeed seemed a very far voyage eastward.

INVESTMENTS WESTWARD, NEW SOURCE OF PROJECT FUNDING

China is currently very big in the daily news and likely to

remain so. Its huge population, rapid economic growth and

burgeoning military presence all claim a lot of media attention.

Much of that media is specifically investment oriented and

billions of dollars are being invested there. That situation is

going to expand in the future.

But what about investments reversing direction?

POTENTIAL GOLD MINE FOR ENTREPRENEURS

Hong Kong, for instance, has been a major financial center for

over 100 years. And since China has regained control of it from

the British in 1997, its influence in the Far East has grown

still further. And lately, with the onset of the EU and other

countries destroying any form of bank secrecy, more billions of

dollars have been heading for Hong Kong and other Far East

financial centers. As well, Asian millionaires and billionaires,

which is a fast-growing segment, are choosing to place many of

their investments "offshore" (outside of China) for tax reasons,

much as their Western counterparts have been doing for the last

generation or two.

My point?

Virtually every Canadian and US entrpreneur is already

delivering his business plans to Angel Investors and Venture

Capitalists located in those two countries. And only about one

in 10,000 of those submissions is likely to be funded. Doesn't

it make entrepreneurial sense to look elsewhere, even if also

submitting to those sources? Don't creative entrepreneurs keep

their eyes open for unusual opportunities to benefit their

projects?

FINANCIAL SERVICES AND FINANCIAL CONSULTANTS

If you're a serious entrepreneur with a great package, a

question you must ask yourself is: What do I know about finding

funding? If you're honest with yourself, the answer will

probably be: "Next to nothng." Or: "Not any more than most other

entrepreneurs out there." With that sort of reality check,

shouldn't you also be looking for some help?

There are many financial services and consultants to be found on

the net. Beware, however, since many of them will make the most

fantastic promises, assure you that they can get you the

funding. They will also ask you for up front monies. If you

happen into any of those, run, do not walk, to the nearest exit.

Unless you're asking them to do you some specific service, such

as rewriting your executive summary or business plan, do NOT pay

out a any fees.

However, if you feel they are very good and want to meet with

them for further due diligence on their knowledge and contacts,

you will be responsible for their travel and living expenses

during the trip, including a per diem allowance to cover food

and transportation cost. If they're really good at what they do,

it's money well spent.

GOT ASIAN CONTACTS

If you are seeking Asian investors, you will need to find

consultants who have those specific connections. Doing business

with Asians is very different than doing the same business with

Canadians, Americans or Europeans. A good consultant will be

able to guide you in precisely what you need to know.

Procedures, attitudes, culture, all of these are important. How

you present yourself may be critical.

A TALE OF STUPIDITY AND ARROGANCE

Capital Funds Group works with just such an Asian investment

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group. One client asked to meet with them and offered a good

quality Executive Summary. Beyond that, they failed to ask a

single question about the investors, assuring us that "we've

done over a hundred presentations." Though I'd suggested he come

in a day earlier to locate himself in relation to the meeting

hotel, he had ignored that advice and arrived late the evening

before and had no chance to identify where he was in relation to

the meeting hotel.

As a result, on the day of the meeting, he

1. Showed up 45 minutes late

2. Was wearing mismatched pants and slacks, badly in need of a

pressing

3. Wore an open throated shirt with no tie

4. And defended all this vigourously, saying that he'd have had

no problem if the meeting had been in the Silicon Valley.

I tried, without success, to get through to him that the Asian

culture is very different, that his lateness upset a very tight

schedule on which the funder worked and that his lateness, his

dress and his attitude were an insult to the investor.

Needless to say, he was not offered an investment...and blamed

me!

CONCLUSION?

If you're seeking funding for a major project, you'll have to

expand your ideas of where those monies might be found. The Far

East is the new contender. Contact us to find out more.

About the author:

Mr. Barnes is President & General Manager of Capital Funds Group

Ltd., a Canadian based world wide consulting firm specializing

in Putting Companies and Money Together. They

also work with non-US companies to take them public rapidly and

inexpensively, then getting them funded. Visit our Web

Site

Email Him