Distribution channels for US products in Shanghai

Re: [spiers] Distribution channels for US products in Shanghai


In a message dated 9/19/05 1:59:21 PM, lim_0202@yahoo.com writes:

<< However, do you think Venture Capitals a more
realistic way to go? If yes, can you please brief me
on the rule of thumb of revenue requirement and how to
gather this kind of private capitals?>>

I think only along the lines of "get customers first"... there is NEVER a
shortage of capital, only a shortage of customers. He who says he needs money
is
fooling himself. Anyone looking for money has not bothered looking for
customers. On the other hand, if you have customers, people will be begging you
to
borrow from them. You will do so only if you can make lots more money by
borrowing. So, happily, we need never speak to Venture Capitalists.

As an aside, with unfunded pension liability as crisis # 1 in USA, when the
crunch comes you'll want a real business, not something based on bogus
economics because it will fail in the crunch. This is so clear to some people,
that
they are using it to their advantage. I know of a husband and wife team who
have been buying multi-unit housing all through the real estate boom. He buys
the buildings, and fixes them up, and gets them reappraised at a higher rate,
and uses the "equity" to borrow more money to buy more buildings. She is the
broker taking 100% of the commissions. His business is completely maxed out,
and he keeps it that way. When the real estate market crashes, his corporation
will simply go bankrupt and the pensions and bankers holding title to his
"investments" will take possession of all that now-overvalued property too. He
walks away. In the meantime his wife's brokerage has made millions on the
commissions on his transactions over the years. They sail off into the sunset
as
pensioners are told the kitty is empty. This is essentially what the venture
capitalists did during the dotcom boom, so it is not a new idea.

The world can be a wicked place, and that is good to know.

John

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