You cannot judge these unexpected cultural differences as right or wrong. If you do, you are falling into the trap of assuming that your culture is superior to others, and the mindset that “if they are not like me, then they are wrong.”

This is counterproductive and will also take away from experiences that you can enjoy and remember for the rest of your life.

The FITTskills curriculum covers the importance of cultural considerations in multiple courses. These courses are my personal favorites because it’s fascinating that we can be so different.

With respect and acceptance, we are in for a treat when we recognize how close we can become and how much we can learn from other cultures.

Above and beyond personal relationships and experiences, are the business implications of making snap judgements and being unprepared for cultural distinctions.

Learning about other cultures before attempting a business relationship can make all the difference between success and failure in that venture. The following three personal scenarios drive the point home about the value of doing research about the cultures you plan to do business with:

1. Taking notes doesn’t always show interest

Having been raised and cultured in Canada, I was taught to actively listen and show interest in what’s being said, especially if this communication is with your customer.

I developed a habit of walking into meetings with a note book and jotting down important points and action items. This behavior was always encouraged and positively reinforced.

During one of my meetings abroad, I was very surprised when the person asked: “I notice that every time we meet you bring your book and you take notes. Why?”

I explained the reason and emphasized the importance of the meeting, but he found it rather strange that I couldn’t retain the information in my head without the need to take notes. It was perceived as a weakness rather than a sign of interest and respect.

When we met again later, I made sure my hands were free and we both had a good laugh as we discussed cultural differences.

Not everyone in that culture was the same and it is possible that this might have been a one off, but the incident did open my eyes.

I realized that I can be doing something that I feel is clearly showing complete respect, no matter how small, and it can be perceived  differently by others.

Being aware and adapting is very valuable.

2. Leading with your best price may not be sound business

How would you feel if the first question you received during a negotiation meeting was “How much of a discount can you offer us?” You would probably blame yourself and conclude that you hadn’t articulated the true value of your solution.

When I lived this scenario, I was also thinking that if I am chosen solely based on price, I will eventually lose the business to someone else’s larger discount.

As I learned more about this culture, it was evident that the higher the discount percentage shown on your financial proposal, the higher your chances of winning.

The large discount reflects well on the decision maker’s negotiation skills and abilities.

This meant that you have to offer a much higher list price at the start, taking into account the discount levels you would have to offer through multiple negotiation rounds.

More often than not, the final round would involve a senior person who would ask for an additional discount, and it meant that you would get the business if you agreed. This way, you make them look influential and everyone is happy.

This culture dictated that you do not offer your best price from the start, or you will be at a huge disadvantage compared to those who did their research and were aware of this practice.

3. Getting down to direct business talk works in some markets, but…

One of my first business calls at IBM was to a U.S. customer who attended one of our events in New York. I started by introducing myself and then made the mistake of asking “How are you?”

He replied “I don’t know you, you don’t know me, what do you want?”

Clearly, I had to go through some adjustments to cater to the style of a busy New Yorker, nothing personal.

I jumped right into business and explained that I am following up on his requests from the IBM event he attended. His reply was very pleasant once he knew that I wasn’t wasting his time, and it was a courtesy follow up to something he expressed interest in. I learned a valuable lesson.

Another time, I tried this direct style face-to-face in an attempt to schedule a meeting in a high context culture. I went right into business and the “dry” conversation lasted less than five minutes.

I learned my lesson again; so I started my second attempt by complaining about the weather and three hours later, I had made a new friend and a business associate.

The moral of the stories are, it always pays off to learn about cultural differences, and if you encounter similar situations, be respectful and adaptable as long as common ethics and integrity are not jeopardized.

Have you been in a situation where you had to quickly adapt to a new culture? How do you find out about cultural differences before doing business in a new market?

The post 3 unexpected cultural differences that required adapting my business tactics appeared first on Trade Ready.

A manager at IBM once told me to think of relationships as bank accounts. You must deposit into them before you can make a withdrawal. This holds true not only in business, but also in any relationship.

Strong relationships are very important in business.

This is especially true in international business, where there needs to be so much trust and dependability because big things are happening across large distances.

Although the foundations upon which relationships are built are similar for domestic and international markets, building relationships internationally comes with its own challenges. Domestically, I can usually drive my car and go for a face-to-face meeting. I don’t really have this luxury when working internationally.

We’re thankful for technologies that enable us to continue quality long-distance communications via mediums like Skype, but it’s important to ensure the distance doesn’t prevent you from doing good business.

Your actions will need to speak louder than your words.

The following five considerations will help you build strong international business relationships with your global partners so you can maintain a healthy and well-deposited ‘bank account’.

1. Focus on building credibility with your global business partners

You’re credible if you’re honest, transparent and tell it like it is. This quality will naturally make its way to the products you represent.

I once had an issue with a cheap imitation of one of the brands I represent. The deal was almost sealed with the distributor, but we were hit with the news that a knock-off product from China that claimed to do what our product does was already on market shelves for a fraction of our price.

This news negatively affected our distributor’s willingness to continue negotiations with us, and the deal never materialized.

Our intention was never to hide any information; we just didn’t know. This also speaks to the importance of proper research on the foreign market in which you’re interested.

As a corrective action, and to maintain our credibility, we modified all our proposals to include the names of such knock-offs. We also now offer guidance on the differentiating factors and the benefits of representing only original products.

2. Set the right expectations so you can always follow-through

Nobody likes it when expectations aren’t met.

Whether it’s a deadline or a product specification, don’t assume there’s understanding; ensure that everyone’s on the same page.

I had a situation once with the display boxes that we ship with our products. They’re white in color. Why? Because they’re targeted for the international market, which comes with different languages and tastes. A blank canvas enabled the distributors to add their own name, logo and the language most suited for their local market.

However, at the time our website featured a display box that wasn’t white. It was one of the display boxes used as a sample, and it was printed with graphics and names. The distributor assumed that the box listed on the website is what they’d receive, but to their surprise when they received it, it wasn’t.

We fixed the situation  by sending them high-quality posters to use, and future shipments were no longer an issue. However, this led us to do a complete review of all our materials to ensure we always set proper expectations and follow through with them.

Our proposals now include the white display boxes, and we clearly state the added benefit for using that colour.

Learn from every transaction and use what you learn to perfect the next one.

3. Listen to your global customers and adapt your offerings accordingly

Everyone and every business has their motivations for being in relationships.

Listen to your global partners and learn their goals and what motivates them. Ensure that you align your offerings with their goals.

This is a simple sales concept, but you have to be able to answer their question, “What’s in it for me?”

For us at Canada Topp, listening and adapting our offerings resulted in redesigned packages with different colors and languages.

• We modified images, instructions and leaflet sizes. Many customers were also not reading the instructions, so we created fun videos which were easier to follow.
• We put all instructions on websites in different languages so they can be read online easily via computer or smart phone.

Don’t make the mistake of expecting that what’s working for you at home can be forced onto a foreign market. Listen and adapt.

Listen to your partners’ preferred communication style too. If you’re not getting prompt replies to your emails, they may prefer talking over the phone. I usually like to ask what works for them.

One of the distributors I work with prefers text chatting over Skype. It works for him, and I managed to adapt to his style. As a result, we have a more successful relationship.

4. Share any knowledge that will help your partnerships succeed

Knowledge is power.

The more you equip your distributors with knowledge, the more convinced they’ll be to continue working with you.

This point escapes some companies.

There ought to be two types of shared knowledge: One that’s relevant to the distributor, and another which is relevant to the customer. The distributor needs to learn both so they can run their business side and also learn how to position the product in the market.

At Canada Topp, we’ve developed two sets of information for every brand we represent.

We also offer our distributors access to a database which houses a lot of resources they can use to promote the products. We usually aim to recruit distributors who’ve been in business for at least seven years with knowledge of the industry so we minimize the learning curve, and we benefit from their existing experience.

Keep distributors informed with all relevant updates on your products so they’re always motivated to work with you.

5. It comes down to “Trust” for building long-term international business relationships

Trust is the result of behaving credibly, setting the right expectations, listening and adapting, and sharing knowledge.

Trust leads to successful business transactions which are repeated for many years. It’s the foundation for long, lasting and fruitful relationships.

Studies have shown that it costs seven times as much to acquire a new customer as it does to keep an existing one. With trust, you’re keeping the existing ones. And each of them will get you three more!

The question is: Can you afford not to make a serious effort to build relationships?

What’s your best advice for developing strong international business relationships?

The post 5 Considerations for building strong international business relationships appeared first on Trade Ready.

As the global village continues to get smaller, you need to be prepared to face differences between countries, markets, economies and human behaviours.

International trade will expose you to unique challenges, and you need to answer the following two questions if you want to succeed:

1) Am I interested in facing and handling these types of challenges?

2) Am I prepared to handle these challenges? If not, what is my plan to get prepared?

Are you ready for the challenges of global trade?

Let’s consider the following five challenges:

1) Before you dive into a foreign market, you need to do some research and learn about its economy, market trends, consumer behaviors, policies and trade agreements to help yourself plan.

Hopefully your research will reveal any barriers to entry, as well as whether or not they can be avoided. If they cannot be avoided, then you are definitely better off choosing a different market at an early stage before incurring any additional costs in research or other areas. Local distributors and agents can bring great value to your research, and can become your eyes and ears in a foreign market.

At Canada Topp Co., we recently hired a distributor in a foreign market to serve one of our brands. They discovered three elements which may negatively influence the product quality and acceptance:

a) The hot climate

b) Customers do not read the instructions

c) Customers’ hygiene habits

We quickly modified the instructions to include information useful for that specific climate, and the distributor created their own catalog in their native language with illustrations to make it easier for the consumer to learn how to use the products without having to do a lot of reading. This distributor was truly our eyes and ears in that market, which enabled us to take the necessary actions to succeed.

2) You need to learn about the culture, language, religion, body language and etiquette of the foreign market you are interested in pursuing.

Do a simple web search. You will be amazed at how much information is available for free and how much you can learn from it.

For example, if you are a punctual person, do not always expect the same from your customer in a foreign market. Expect delays in some countries, even if your meeting is scheduled and confirmed.

My first meeting in a foreign market was scheduled for 10a.m. I arrived 10 minutes early with a team of engineers only to learn that the CIO had left the office a few minutes before we arrived because of another meeting with his boss (which he forgot about). I was informed that this is normal and I am bound to face similar situations almost daily, so I better get used to it.

This isn’t applicable to every foreign culture, of course. Some cultures value punctuality, and it is considered disrespectful and indicative of a lack of interest if you are not on time for your meetings.

It is fair to add that some of the foreign customers I dealt with learned to adjust to my style of being punctual, and treated me with the same respect.

3) Be aware that in some countries, the business does not move forward unless you are willing to offer a bribe.

Prepare yourself to say no and walk away from the deal. Do not do something behind closed doors that you will regret afterward. You need to follow your company’s code of conduct, which probably prohibits such actions.

More importantly, you need to follow the laws of your own country. A Canadian businessman was recently sentenced to three years by an Ontario court for offering bribes to Air India officials and India’s then Minister of Civil Aviation.

Finally, if bribing someone was the reason you won the business, then you are easily replaced by someone else who is willing to offer more. Building a long and lasting relationship is fruitful, but it needs to be based on trust and an understanding of the value each party brings. This is especially important in international trade due to the cost and effort associated with foreign market entry.

For example, at my company we always seek long and lasting relationships with qualified distributors who can serve our global brands. In the event that we get a request for a one-time sale, we attempt to turn it into an exclusive contract, but if they are not qualified, the sale is refused.

This helps us to maintain the integrity of our brands, and it perpetuates a healthy relationship with our network of distributors. This also creates a distinguishing factor from the many cheap imitations you are more likely to encounter when you trade internationally.

4) You will face challenges with logistics (ie. shipping, customs or transportation).

Do not get frustrated; rather, put on your creative hat and shift gears into solution mode instead of blame mode. Too many people and processes are involved, so you just need to be positive and be prepared.

We face challenges when we travel on vacation for pleasure, so you can only imagine the added complexity of doing business across international borders. Once you have gone through the process multiple times, you will learn and become creative in forecasting trouble and planning for it.

At my company we learned to send the shipping documents to the buyer as well as to the clearing agents before the shipment is sent. The documents are then validated to ensure they are compliant with the customs of the receiving country. We take actions on any changes required before the products leave our warehouse. This saves time and cost for all parties involved, especially if you are trying to meet a campaign deadline. Any delays can be costly.

5) Similar to how you prepare for challenges, you also need to prepare for the good news of increased sales from your new foreign market.

There is additional demand that needs to be fulfilled, but in ways which are not necessarily similar to what you do at home. New packages, instructions in different languages, and product modifications are a few items to consider in order to satisfy the needs of your new customers. These items come at an added cost, which you must incorporate into your price while maintaining your competitiveness.

We sent samples of our products to a foreign market so they could test them in their labs as well as do market studies for consumer acceptance. The package design was refused at customs because it did not meet the needs of the conservative culture. As a result, we had to send loose samples without the packaging to proceed with the testing. Once it was approved, we designed a special package specifically for that market, which was welcomed by customs and by the end user.

This willingness to learn, adapt and take quick actions will help you succeed in international business.

There are big challenges, but even bigger opportunities

If you are in the field of international trade, you were probably nodding as you read through these challenges and were thinking of similar situations you have had to handle.

If you are about to start this exciting, global adventure, prepare to get creative when you inevitably encounter challenges. It will make you better, stronger and closer to achieving your goals!

What’s the biggest challenge you’ve encountered going from domestic to international business? How did you overcome it?

The post Five challenges you’ll need to overcome to succeed in international business appeared first on Trade Ready.

When we have goods and services ‘tour’ across international borders, we call it international trade.

There is an underlying similarity between tourism and international trade that brings out the explorer within us.

Sounds like fun already, doesn’t it?

Seeing your products on the shelves of a department store in a foreign country, or accepting a two year work assignment overseas are naturally pleasing experiences.

They satisfy our social nature of having others like and approve of what we do. The more lives we can positively affect by our products and services, the higher our satisfaction.

International trade sets the stage for greater satisfaction and higher profits which may be difficult to achieve if we elect to remain in our local markets. Challenging yes, but it also brings rewarding opportunities.

During the exchange of products and services across international borders, we showcase what we pride ourselves in whether it is quality, unique solutions, signature items or simply high manufacturing standards.

Your products and services tell a story

Countries tend to have signature items that are defined by elements these countries feel strongly and proudly about. For example, what items come to mind when Switzerland is mentioned? You will probably think of chocolate or watches, and you would be correct.

Have you thought about your country’s signature items? What about your company? What is your signature brand item and why? Are you ready to show it off to the world?

If you are an entrepreneur or an established business with international trade aspirations, think of yourself as an ambassador.

The products and services you export will tell stories about who you are and where you come from.

People in this field have a lot of passion for what they do and will capitalize on every chance to proudly announce it.

Get your basics right

International trade can be a very rewarding when the right steps are taken.

When I took my first Forum for International Trade Training (FITT) course called FITTskills Global Business Environment, we learned three important elements to consider when evaluating your company’s international trade readiness:

1) You have to have it going on at home. This means that you have an up and running business in your home country and you are doing well.

2) You have to have excess capacity, which means that you are able to satisfy any additional demand generated by international trade efforts.

3) You have to be committed with a lot of passion.

Connect and contribute to the global village

I heard from an Export Development of Canada (EDC) executive that “exporting is not a matter of if, it is rather a matter of when“. There is only so much expansion you can do in your local market before you realize the need to do more.

This focus on international trade has driven Trade Agreements like NAFTA and the recently signed Canada-Korea Free Trade Agreement (CKFTA). Others are still being put together, like the Comprehensive Economic and Trade Agreement (CETA) with Europe, which is to be finalized within the next couple of years. Such serious efforts between countries signify the importance of international trade and how it will shape the future.

International trade is a strong contributor to making our world a true global-village.

Once you make the decision to go international, the globe is the limit. If you are running a successful business in your home country, if you know you can handle additional demand, and if you have the resources and passion, then start exploring your options with international trade.

Start thinking about your target market, marketing to different cultures, shipping options, working with agents and distributors, and most importantly, how to get paid. You may also consider the option of contracting with an export trading company that can act as your export arm and get you to your desired markets.

Connecting with people who are in the field is very valuable, and social media is proving to be a very powerful tool. You can tap into global wisdom from the comfort of your office. Remember, these people—like you—have a lot of passion for what they do, and they enjoy meeting new people; they are natural tourists.

Clearly this is not for every business. Even if you think you are ready, ensure that you have an exit strategy in case things do not turn out as you envisioned.

No, this is not being pessimistic, it is being ready and prepared with the right expectations. If the tourist or explorer or ambassador within you is calling, start your engines and start your tour of our global village.

The post The global village is waiting for your products. How ready are you? appeared first on Trade Ready.