Job Discussion Forums

[Shi Yuan Di]

I�m really fed up with working for ESL factories masquerading as schools, so have decided to open my own.

I�m English and my soon to be wife is Chinese. We will be in partnership with another Laowai/Chinese couple.

Just to avoid unnecessary debate, please take it on oath that I�m more than qualified to run a school and my business will be a 5-star offering; raising the standards, rather than exploiting them. My love for China and all things Chinese (ALL things except for lies � unless they�re the purest of white ones) is absolute, and my future wife and I plan to spend the best part of our life together here.

So, will we be allowed to live happily ever after?

Have any of you attempted this? I�d really value any practical advice you have regarding:

* setting up a foreign/Chinese company
* obtaining a school license
* me teaching in the school as an investor (we won�t be able to get a foreign experts license for at least a year)

I�d like to do this without �crossing any palms with silver� and getting a lot of hassle from the government and police... Can I?

All comments gratefully received (and genuine help paid for if necessary).

Many thanks

[Sinobear]

I can put you in touch with an ambitious Chinese national here who is my assistant during the day, and runs his own training centre evenings and weekends. PM me if you wish to talk with him (his English is excellent and he really wants to learn the Western approach to teaching as well as the business/politics of running a school).


Good luck!

[Roger]

If you are tired of working for others you will get tired of being responsible for finding enough work for others.
Plus you will have to deal with those Chinese patients that think they are calling the shots and you must be their dancing monkey!

Advice?
Setting up ANY FOREIGN-OWNED BUSINESS is, first of all, onerous. Youmust invest a minimum of half a million yuan. If you are partners with your Chinese wife, you can lower it to RMB 30'000 (suggestion courtesy of Peter Bol and his wife in Shenzhen).

Then you will have to do battle with the bureaucratic dragons - obtaining an EDUCATIONAL licence! Education? In China??? Why on Earth does a foreigner want to meddle in the moral depths of Chinese culture?

The PSB will have to vet you as well.

Good luck!

Maybe you get into some cooperative relationship with an established education entity such as BC!

[Shi Yuan Di]

Thanks for the advice.
You�re absolutely right, I don�t want to be anyone�s dancing monkey (except for the wife of course), which is why a relationship with another school/business is not Plan A. It�s certainly an alternative option, but I�m wary of losing control so I�ll keep it �in the family� if possible.
Not looking forward to my battles with the bureaucrats and don�t want to be paying anyone off (unless it�s a ONE OFF payment to the right person).
Thanks again.
***********************
Any foreigners out there, who have actually gone through this process?

[Ludwig]

Dreamer.

[latefordinner]

Let's be a little supportive. Lots of luck, and let us know how it goes, warts and all. Hey, if in 3 years you need competent FEs, you can start calling some of us...

[Shi Yuan Di]

[Roger]

Come to think of it... there isn't a great need for more training centres or language drill mills, unless they are combined with other educational objectives. How about joining forces with a vocational school or a hotel and tourism management school?

The main reason for Chinese to acquire excellent English skills is for them to study abroad; by offering the Chinese to bring professional know-how, skills and technology to China you can possibly kill two flies with one pebble.
The language section would prepare them for the purpose of enrolling as fulltime vocational students. And the vocational part of your school would offer training and schooling that the Chinese system doesn't provide in sufficient numbers. Hospitality professionals is one of those.

[william wallace]

Nothing to say.

[2 over lee]

You will be paying a healthy amount to the education bureau, I think it would be better to operate your own classes under the protective umbrella of another�s licence. That is, you just hire some classrooms off another school and then you�re, �legal�, or not too open a target for the gouls at the PSB or education bureau.

From what I know a lot of Chinese night schools operate in this fashion.

[burnsie]

Good luck. This will be the most exciting and frustrating of times for you and your wife.

I came here about a year ago and set up a recruitment/technology company (not a teacher agency) in Beijing. It certainly is a difficult thing to do in China. China can be unforgiving place when it comes to businesses.

Not sure if you are in Beijing. If you are then it's going to be very difficult. There are 2,000 training/schools here which is a very satuated market.

In regards to setting up a foreign company - WHY? As Rodger pointed out the cost is very high - around $150,000US. Also I don't think you can set up a foreign owned business in education, I think you need a joint venture to do that. If you trust your wife (which I am sure you do!) register a Chinese company under her name.

Also to set up a foreign company you need a 'registering agent'. This is by law in China. The agents cost around $1200-$1500US to register your company (in Beijing). Check out www.speedbusiness.com.cn . I wrote alot of their website material so I studied the business formation requirements.

I also agree with 2 over lee, it might be best to use another educational company's license to get things up and running.

Also regarding the 'crossing of palms with silver', sometimes this is necessary. This is usually the only way things are done in China. Make sure whomever this is able to work for your advantage.

Also for the business model I would try and research the other schools in your city or area and determine a point of difference with their offering and what the customers want. You really need to sit down and work on the business plan and how you are going to approach the market.

Remember, 'the only failure is actually giving up'.

Hope this helps.

[cj750]

I know a few cases where success has been had in the formation of a school but none have made money..In Dalian, a school owner told me that he had opened a school over a year ago and up until that time he had not drawn a paycheck or paid his rent..his landlord was also his partner...he was across froma primary and middle school in the section of the city that also has I-55 (the upscale cafe)..his ads included "fulll coverage bus" posters..
Another was in Jilin, the PSB invited them selves to the table on that one but with the corruption also came protection and even though many goverment regulations were not met, this school was and still is able to operate. No money made yet though..except for the PSB...they are rakin it in.
The only advice I got from a school owner (given when I was thinking about joining an investment in a school) is "if you ever invest in a school or a cafe, I will kick your a$$.
So far, I have not invested in a school..only rented property and sub leased to foreigners and this has worked out nicely...good luck with the process and please post your results.

[Shi Yuan Di]

Thanks to all of you, for your helpful comments. I've spread my net far and wide and until now have gained so little advice, that I was beginning to feel a bit lonely and isolated

I'm off to play football very soon, so I'll reply properly later, but for now...

I have a fantastic niche and a fantastic location. I know exactly what it'll cost to break even and with my existing student base, I will do so immediately. It's a very small but somewhat luxurious school and the key is making sure it's working to capacity morning, afternoon and evening. Weekends are no problem for even the worst of schools, but Mon-Fri day time is really tough. That's where my particular niche has a big advantage. I�ll tell you all a bit more about that later and if successful I will gladly pass on my business plan to some of you, if you�re interested in trying it for yourself. Please bear with me on this, you will later understand why I can�t give too much detail away at this stage, until we�re cleared and open for business.

Everything really hinges on my being allowed to teach and work in my own school. Officially, as a foreigner I cannot work for entities which are not permitted to employ ALIENS; even after marriage with a Chinese citizen (and half alien kids to support!). I sympathise with this, given the huge number of Chinese people looking for decent work. It�s naive of me to believe that I�ll be treated differently because of my unique offering and genuine love for China. I know I�ve got to follow their rules, however draconian or just plain stupid they may appear.

I�d really like to say thanks again, just feeling your interest and support has given me a big lift this morning. Now I�m off to score a bucket load of goals and be really friendly, charming and witty, around more potential future customers

[burnsie]

Sounds great. Passion is everything in business! Just remember when things get low remember your early passion and why you are doing this. It's very important.

The other thing about a foreign company is they are really good for bringing in things to China and exporting things (or money) out of China. Besides this there is no other need for starting a foreign company in China.

So if you are taking money or goods out of the country then it's worth it, otherwise it's not worth setting up one.

Look forward to your other posts.

[limits601]

Hello there

I currently have a degree in Computer Science from Lakehead University in Thunder Bay Ontario Canada. I received it in April 2004. Im currently in Jiaxing teaching english at a private school. If you need any help in the technology area, i can offer you my services for free to help get you on your feet. Good luck on your venture :+)