Expats who either have their own startup or aspire to launch one find it beneficial to attend meetups, workshops and other activities run by those who have discovered success in the business world. Photo: IC

Like hundreds of other ambitious foreign entrepreneurs seeking to make their fortune in Beijing, Jairo Ortiz knows one of the best ways to get ahead in the cutthroat business world is to attend weekend activities for startup founders. The events provide a chance to network, socialize and learn from the expertise of their successful peers.

"There are always three purposes to attend meetings: to learn, share or pitch ideas," said Ortiz, 31, who runs local coffee business CoffeeMan. One of the first lessons Ortiz learned from Beijing's startup meetups was how to properly structure a business model. "I wanted to connect what I had in my mind with the market. You come up with an idea and think the market is ready, but it probably isn't. I realize you have to come up with something that's more realistic and relates to the market," said Ortiz, who has lived in Beijing since 2012.  

What b-schools won't teach you

Some of the meetups Ortiz regularly attends are organized by Startup Weekend, Chinaccelerator, Tech Hive and others. The meetings aim to help fine tune attendees' products with the local market and connect entrepreneurs with partners and investors.

"They invite successful entrepreneurs, mostly from tech companies, to inspire by talking about their experiences," Ortiz said, adding the purpose of attending meetups is to learn from business role models. "You learn about what people have made, what they are developing and different approaches to making a business successful in China."

Learning how to begin as a first-time entrepreneur can be "theoretical and bookish" at some point, said Ortiz, but there is no substitute for experience.

"You go [to meetups] for the experiences and to find out what these guys are up to and what is happening in the entrepreneur circle," he said, adding that much of his business has been driven by people within Beijing's expat entrepreneur community.

Currently, Ortiz and his partners are trying to give their products and brand greater exposure and find the right people for operations. Since attending meetups, Ortiz has sought to grow his imports and distribution of coffee by using social media and e-commerce solutions.

Many foreign entrepreneurs attending Beijing's startup meetups are from the tech industry, which has cemented its reputation as a lucrative sector for expats pursuing their business aspirations in China.

Michael Michelini, CEO and founder of social networking site socialagent.me, is a co-organizer of Startup Weekend in China, an organization that holds meetups and workshops to help tech startups in cities including Beijing, Shanghai and Chengdu, Sichuan Province.

Weekend events usually kick off on Friday night after people finish work, said Michelini, an American who has lived in China since 2007.

Participants gather on Friday night to recruit likeminded people for their team by sharing startup ideas. They start working as a team from Saturday. On Sunday, they try to woo investors who act as judges for five-minute business presentations in which products are outlined.

The weekend is designed to help people to experience working on a startup project, meet potential partners and find out if their ideas are viable.

Some ideas manage to attract the attention of investors, and most participants plan on continuing working with their team after the weekend.

Among the many barriers faced by China's expat entrepreneurs, especially those in the information technology industry, Michelini pointed out that winning market trust and adjusting to local customers' habits are difficult to tackle.

"Americans like to use a startup product, but Chinese customers don't trust brands they don't know. They want to use the famous brands' versions, so big brands can just copy startups' ideas," he said. 

Foreign and Chinese entrepreneurs meet at a workshop held by the China Better Business Bureau. The organization gives members a platform to network, share experiences and learn about the local market. Photo: Courtesy of China Better Business Bureau

Inside entrepreneurs' 'secret circle'

Although most startup meetups welcome budding entrepreneurs, there are more exclusive circles that are reserved for those who have made it.

Dominic Johnson-Hill, who founded local fashion brand Plastered T-Shirts in 2006, compared Entrepreneurs' Organization's (EO) Beijing chapter to the American TV drama series The Secret Circle.

"It's very similar. You meet people with big characters and big personalities. It's like they all have secret powers," said Johnson-Hill. "You can share your deepest problems and secrets. The meeting is based on trust. What you say in the meeting stays in the meeting."

The Briton describes it as a "support group" that gives expat entrepreneurs a sense of solace. "As the owner of a business in a foreign country, it's a lonely road. There are a lot of problems that you can't share with your staff or even your wife," he said.

With chapters in 40 countries, EO has more than 9,500 members worldwide. Founded in 2007, EO Beijing has 42 members whose median annual sales are $2.5 million as of May 22. The chapter only accepts people who own businesses that gross more than $1 million annually, or have privately raised funds of $2 million or publicly raised funds of $5 million. Members must also employ at least 10 full-time workers.

Members are divided into different groups, with each group meeting weekly to talk about both business and personal problems that can include finance, human resources management and even family or relationship issues. Other unofficial activities include group trips and social events.

Johnson-Hill turned to EO for support in 2011 when he had a problem with cash flow. After sharing his problem at a meeting, he realized that other members had all been through the same experience.

Their advice helped him bounce back faster than if he had tried to tackle the problem on his own, he said.

Learning to do business like a local

Edward Lehman, founder and managing director of Beijing-based firm Lehman, Lee & Xu, established the China Better Business Bureau (CBBB) in February under the aim of "protecting those wishing to do business in China" and "advancing marketplace trust."

Over his nearly three decades of practicing law in China, Lehman has consulted many foreign business owners trying to understand the Chinese marketplace.

One of the hottest topics at CBBB meetups is business registration. Lehman pointed out registration is an important first step entrepreneurs must take toward understanding Chinese law.

"Under the new company law, [the government] made it easier for companies to register their businesses and place of work. You have to have a place [to register a business] in China instead of working at home, like you can in America," he said.

Another key difference between the two countries' business environments is that a certain amount of capital is needed to register a business in China, which isn't required in the US.

Other topics of interest include property protection and dealing with employment matters. "[Business owners] think if they have registered in their home country it will apply here, but it doesn't. Many don't know they must register their Chinese name," Lehman said, noting it is easy for expat entrepreneurs to feel confused about paying their employees' welfare allowances and other benefits.

Johnson-Hill's biggest challenge at the beginning was getting people to buy his T-shirts followed by raising sufficient capital. "Now, the challenge is finding talented people [to employ]," he said.

"In China, people are increasingly understanding the Western way of doing business. The fact that foreigners are allowed to have their own businesses is a big step in China. I am lucky to do business here, where there is a growing economy and solid business revenue," he said.

For aspiring expat entrepreneurs considering launching a business in Beijing, Johnson-Hill's advice is to attend meetups and "get local."

"You need to continuously learn from the locals. Beating the competition requires out-learning the competition, so reach out and meet other entrepreneurs, Chinese and foreign," he said.

Tang Liyue and Zhu Xi contributed to this story