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A MavenTM Whitepaper
The Ultimate Guide to Doing Business in Europe
Page 1 of 25© MavenTM, 2015
Contents
Introduction.................................................................................................................. 2
10 top tips for doing business in Europe................................................................... 3
United Kingdom & Ireland........................................................................................... 4
Introduction ............................................................................................................................................. 4
Doing business in the UK........................................................................................................................ 4
Meetings in the UK.................................................................................................................................. 6
Republic of Ireland .................................................................................................................................. 7
Germany....................................................................................................................... 8
Introduction ............................................................................................................................................. 8
Doing business in Germany.................................................................................................................... 8
Meetings in Germany.............................................................................................................................. 9
France......................................................................................................................... 11
Introduction ........................................................................................................................................... 11
France is Europe’s second largest economy and the fifth largest in the world...................................... 11
Doing business in France...................................................................................................................... 11
Meetings in France................................................................................................................................ 12
Nordics ....................................................................................................................... 14
Introduction ........................................................................................................................................... 14
Doing business in the Nordics............................................................................................................... 14
Meetings in the Nordics......................................................................................................................... 14
Benelux....................................................................................................................... 16
Introduction ........................................................................................................................................... 16
Belgium................................................................................................................................................. 16
The Netherlands ................................................................................................................................... 17
Luxembourg .......................................................................................................................................... 18
Switzerland................................................................................................................. 19
Introduction ........................................................................................................................................... 19
Doing Business in Switzerland.............................................................................................................. 19
Meetings in Switzerland ........................................................................................................................ 20
Italy ............................................................................................................................. 21
Introduction ........................................................................................................................................... 21
Doing Business in Italy.......................................................................................................................... 21
Meetings in Italy .................................................................................................................................... 22
Spain........................................................................................................................... 24
Introduction ........................................................................................................................................... 24
Doing Business in Spain ....................................................................................................................... 24
Meetings in Spain.................................................................................................................................. 25
How MavenTM can help............................................................................................. 26
The Ultimate Guide to Doing Business in Europe
Page 2 of 25© MavenTM, 2015
Introduction
Conducting business outside of your own country for the first time can be tricky as it is easy to fall foul of
things you take for granted at home – such as local business practices, culture and legal requirements.
Despite the world apparently shrinking and the ever voracious global demand for US movies, TV and
products, countries still hold on to their differences. Europe is a relatively small land mass with massive
cultural differences across countries which can be confusing to other Europeans so they can be baffling
to those outside of Europe.
The aim of this guide is to provide a summary of the main features of doing business in the key European
Markets for US companies looking at some of these for the first time. They are not designed to be
comprehensive, but to give an understanding of some of the broad differences in culture and approach so
you don’t get caught by surprise.
We always recommend you take professional advice as legislation does change.
The information contained in this guide is taken from a mixture of third party information and firsthand
experience.
The Ultimate Guide to Doing Business in Europe
Page 3 of 25© MavenTM, 2015
10 top tips for doing business in Europe
1) Europe and the European Union are not the same. Not all countries are members of the EU but
many of these want to be.
2) Not all EU countries use the Euro – the UK and countries in Scandinavia are obvious examples.
3) Although there is a common approach to taxation, tax rates in each country do vary.
4) Not everyone speaks English! While English is widely spoken and understood in many countries
you must not assume that everyone you deal with either understands English or will appreciate
you speaking it to sell them something. The acceptance of English varies by country, industry
(technology professionals use English widely) and type of customer – B2B customers and
younger (under 30) consumers are more likely to understand English than older consumers –
BUT DO NOT ASSUME ENGLISH IS OK
5) Translation is important. Automated translation is not acceptable and will be treated as a joke.
Some countries have regional differences so be very careful that you are using translation that is
appropriate to the area you are targeting – this can be a real issue in Germany with more formal
German being used in the key business areas. To be successful you must invest in professional
translation.
6) Public holidays are very important in Europe and do vary by country. Many people take off extra
time around them so make sure you know your contact’s plans.
7) Christmas and summer are very important. Very little business is done in Europe from Mid-End
December and into early January. Summer also varies based on school holidays. France
famously shuts down in August (although that is changing slightly). Some countries may have
their summer holidays earlier June/July and others, such as the UK, seem to favor August. The
summer vacation typically lasts 2 weeks.
8) Daylight Saving Time. Like the US, Europe will bring clocks forward 1 hour for the summer and 1
hour back for the winter. While Europe generally moves as one on this, the date may not be the
same as the US. Europe trend to start DST on the last Sunday in March and end it on the last
Sunday in October. Many a transatlantic phone call / video meeting has been missed because of
this. Use sites such as http://www.timeanddate.com/time/dst/2016.html to check up.
9) The EU has legislation governing use of cookies and opt-in/opt-out consent on websites. There
are some variations across countries. Online privacy is regarded very seriously in many countries
so it is harder to find personal details than it is in the US.
10) It is very difficult (practically impossible) in many EU countries to purchase email lists and consent
for marketing emails is very strict in some markets. You cannot just use the methods you use at
home.
The Ultimate Guide to Doing Business in Europe
Page 4 of 25© MavenTM, 2015
United Kingdom & Ireland
Introduction
Although it may change depending on the industry and age of the main contacts, British
business does tend to be conservative and risk-averse. They will take time to assess
potential new suppliers.
The market is very competitive because of its size and also because of the English
language. You could, therefore, find difficulties in getting hold of the right people because
they are overwhelmed with people trying to sell to them.
You may find the terms UK, Great Britain and British Isles used interchangeably. But it is important to
understand the subtle differences.
The British Isles is the name given to the islands that make up UK and the Republic of Ireland (Irish
Republic) and the many smaller islands that are part of these countries. The name British Isles tends not
to be used in the Irish Republic.
United Kingdom – or to give its full name - “The United Kingdom of Great Britain and Northern Ireland” is
the name for all the countries in the British Isles apart from the Republic of Ireland. People in Northern
Ireland refer to the rest of the UK as GB or Great Britain.
People in Northern Ireland may relate to Ireland or GB – depending on political allegiance.
Great Britain is the collective name for England, Scotland and Wales.
Of all the countries in the UK, Scotland has the most autonomy with a strong independence movement.
Do not refer to Scots people as English. (Some may laugh it off, but others could be offended).
The Republic of Ireland is an independent country but does have close links to the UK.
The UK uses the Pound (known as sterling and abbreviated to GBP), while the Republic of Ireland uses
the Euro.
Doing business in the UK
People will be interested in who introduced you as this all helps to validate your credentials.
You will experience different levels of formality across Great Britain generally becoming less formal
as you go northwards from London and the South of England. To be safe it is recommended that you
assume that any interaction with new customers will be formal until this is demonstrated not to be the
case.
It is generally frowned upon if you are late for meetings. Try to aim to be at the meeting 15 or 20
minutes early to make allowances for any possible travel delays and disruption. If this is the first time
in this location, this is particularly important especially during the rush hour periods (generally
speaking assume this is before 10 am or after 4:00pm).
Business dress tends to be more formal in Britain than in, for example, North America. This does
vary between industries with finance companies, for example, being more formal than media
companies. Assume smart business dress to be safe.
Before any meeting begins, greet everyone in the room with a handshake and hand over business
cards. Take a moment to look at any cards. This not only looks polite, but may help you understand
names that may be unfamiliar to you.
The Ultimate Guide to Doing Business in Europe
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Generally speaking meetings will be friendly but will quickly get down to business. There may be
some polite conversation at the beginning (For example, they may ask you how your trip was). As the
relationship develops you will probably see more small talk and a friendlier manner appearing.
Mind your language – the formality of British business usually means that swear words are not
acceptable.
Most British people will have a sense of humor and you will often find it displayed during meetings. It
is probably more likely to use sarcasm or irony than you may be used to so watch out for it.
Humor can vary from region to region.
British people do not regard exaggeration or self-promotion as a positive trait. If anything they favor
the exact opposite – self-deprecation. It is still not uncommon for British people to talk down their
achievements although this is less likely based on age and type of industry.
As in the US, Networking is very important and can be helpful in getting in front of decision makers.
As a rule, British people will prefer quantity over quality with their network. For those senior business
people who attended the most exclusive private schools (confusingly referred to as Public Schools)
and leading universities such as Oxford or Cambridge, friends and contacts from these institutions
are a key part of their networks. This is sometimes referred to as “The old school tie”.
British business people expect to deal with those of similar rank – if you get a chance to pitch to a
CEO of a prospect, then it is expected that your CEO will be part of that meeting.
NOTE: Job titles in Britain (and Europe in General) tend to mean different than they do in the US.
E.g. a Director in a US corporate would probably equate to a Manager in many British companies,
while a VP may equate with a Director in Britain. In short, don’t assume a similar job title equates to
similar responsibilities.
British business contacts may seem a bit reserved at first and so it may seem to take a long time to
really get to know and understand them. You may need several meetings and calls before they feel
comfortable with you.
Typically, British people tend to be diplomatic and avoid confrontation – this may lead them to not be
open and direct with you for fear of insulting or upsetting you. On the downside this does mean that
you may find it difficult to determine their true feelings.
Companies in Britain will get approaches from potential new suppliers all the time. You are likely to
find gatekeepers whose job is to prevent you from speaking to the person you need to. These
gatekeepers will get tougher the more important their boss is. If this is the case spend time identifying
someone with credibility to work from inside to bypass these gatekeepers.
If you manage to get past the gatekeeper, your message needs to be direct, specific and somehow
relevant. Ideally related to a previous meeting or other form of contact. Indeed this approach will help
you get past the gatekeeper in the first place.
If you have to work via an internal champion make sure you give them plenty of ammunition to
present your case and protect their reputations.
British businesses – especially those that are long established or in traditional industries tend to be
more hierarchical organizations than you may be used to, so may well find yourself meeting with a
series of decision makers at different times.
Purchasing decisions will probably have to go through formal approval processes. There are usually
clearly defined sign off limits linked to each tier of the company hierarchy and/or job role. You need
to understand these sign off levels and may be asked to change pricing or structure a deal to be
under someone’s sign off limit.
The Ultimate Guide to Doing Business in Europe
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For significant deals, at some stage you will probably have to present to a group, committee or a
board. The Board of Directors is the ultimate decision-making unit in many companies. Formal
approval of the board is required for many high profile or high value decisions and this can delay
ultimate final decisions. It is important to understand when & if the board will be involved and how
long approval might take. Find out how often the board meets – bear in mind there may be a delay
during the summer and Christmas holiday periods.
Meetings in the UK
Research who you are presenting to in the organization and check whether they have decision-
making authority.
If you are presenting to a large group of people you will witness different agendas at work. Your
internal champion should hopefully be enthusiastic towards your proposition and if you have been
successful in the preliminary communications before the meeting, business leaders will also probably
be supportive – otherwise you wouldn’t have got this meeting.
The people who are likely to get in the way are those who will experience the full impact of
implementing the new product or service and can see the difficulties they could face. Such people
could be lower in the hierarchy than those who are broadly supportive, but can still have the influence
to stop any deal as they work at the detail level that their bosses cannot.
Before the meeting, work with your internal contacts to try and identify if any of these people will be
present and what their issues could be (lack of staff, impact on other systems, problems with existing
suppliers etc.) Be sure to make sure your presenting team contains the people best suited to answer
these concerns and provide concrete reassurance and solutions.
Also make sure beforehand that the people with decision making authority will be present. If not, then
provide material to help others make the case to them.
Depending on the make-up of the customer’s team, you may need to show excellent negotiating
skills. It is important to be flexible as “this is the deal take it or leave it” or “this is the normal
arrangement with our other customers, so what is the issue?” approaches are not likely to be well
received. You may also be asked to use their standard contract and not yours so be prepared to be
flexible!
Don’t use a generic presentation – tailor it to focus on the value you can bring to the customer and to
any individuals. It should not do any harm to massage the ego – but don’t go overboard.
Get to the point quickly – they probably don’t need the corporate pitch (unless you have been
specifically asked to include it for a key stakeholder). Remember key decision makers could be called
out of the meeting at any time so you will miss your chance to impress.
Talking at length about your personal biography will typically not be appreciated unless it is has some
relevance to the customer. Even then, keep it short.
Don’t rely on US Statistics or references if possible. If this is unavoidable put them into context to
help make them relevant. They will not have the same weight as they would pitching to a US
company.
Do not quote pricing in US Dollars unless you have been specifically asked to do so. If not, assume
British Pounds and make sure all your pricing has been converted to a fixed price for the purposes of
negotiation
Show you understand the customer’s issues – do not assume the commercial or competitive
landscape is the same as back home. If you have a friendly local, or company insider, run through
the main points as you prepare the presentation.
The Ultimate Guide to Doing Business in Europe
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If you do not have a local presence, make a special effort to show how you can support the customer
who may be nervous about committing to a provider based so far away and in another time zone.
George Bernard Shaw is reported to have said that “England and America are two countries divided
by a common language”. Words are used differently and spelt differently. The tolerance for US
spelling will vary between age groups and industry. Some people take grave offence and others will
not care. Making the effort not to use US spellings will prove how serious you are to the UK market.
US Sporting analogies will not have the recognition, and therefore impact, that they would in the US.
In general sport does not necessarily have the universal appeal in a UK business context.
If you are demoing the product, keep it short, unless there is a lot of interest from the attendees. Try
to tailor the content so it is directly relevant to the customer.
Republic of Ireland
While the Irish Republic shares many traits with the UK there are a few subtle differences.
Irish businesses meetings tend to be more relaxed.
There will be more small talk and general chat before the business starts.
Meetings may appear to be unstructured as they may not always have a formal agenda.
Meetings will probably run until a conclusion is reached rather than a time (unless unavoidable).
If you have Irish people on your team, it is not uncommon for the customer to find some kind of
personal connection – e.g. from same part of country, being related (however distantly), shared
sporting interest and, most likely, identifying shared business contacts.
Do not underestimate this relaxed approach. Irish business people have been successful globally
and will be professional in making any decisions.
The Ultimate Guide to Doing Business in Europe
Page 8 of 25© MavenTM, 2015
Germany
Introduction
Germany is Europe's largest economy and one of the leading countries in the European
Union.
It is a mature market, with plenty of scope for overseas companies to be successful, but
only if they have a strong offering and understand the unique challenges of the market.
As one of the world’s leading exporters, Germany has an international outlook, and English is widely
spoken, but its businesses have a very different approach to their UK or US counterparts, so approach
this market with an open mind and no preconceptions.
Doing business in Germany
Germans like to approach business in an orderly manner with an emphasis on clarity, method and
procedure and will respond to rational arguments.
German business culture can tend towards being conservative. While this may make initial
approaches difficult, it does mean that once you are doing business with them they are unlikely to
suddenly change suppliers.
The German market is risk-averse.
Germany is not known as an early adopter market and it is important that you can provide evidence
that your offering is proven in other markets and with other customers
In Germany, facts and proof must be available to back up any claims you make about your product or
services. German purchasers have an expectation for reliability. You must provide evidence to make
them comfortable about the reliability of your company and/or offering.
Punctuality is highly valued. Being late is generally unacceptable. You must also be punctual in any
follow up actions, payments and promised deliveries.
Germans can be regarded as price-sensitive, but this does not necessarily mean they just want low
cost. They are looking for value for money – so it also relies on you showing how you can show you
meet their required levels of things such as quality, certification and after-sales support
German contracts tend to be very detailed so your standard contracts may not be acceptable.
Agreeing this may seem like hard work but it will remove ambiguity and correctly set expectation for
all sides.
There are a lot of industry-specific regulations, standards and practices in Germany and it is not
uncommon for them to be more stringent than those in other countries. It is important that you
research these properly before doing business there in case you need to change your product to be
compliant with these or can make a decision that is not worth entering the market at all.
Compliance with any rules and regulations is taken very seriously and all German customers and
partners in Germany will expect you to also take them seriously.
Germans have become used to high levels of service so it is crucial that you do all you can to prove
you are committed to the German market for the long term. Simple ways you can do this is to have a
German version of your website and all sales collateral, as well as people capable of continuing the
engagement with the customer in German. To do business in Germany, you need to have a German
phone number that must be displayed on calls – you cannot call to prospects from “private numbers”.
The Ultimate Guide to Doing Business in Europe
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Germany is very strong on data protection and personal privacy. This is illustrated by its strict
approach to marketing email. Unsolicited marketing emails are illegal as they are seen as an invasion
of privacy. All emails – including the first one – need prior consent. Double opt-in can be used to
provide clarity. If considering email marketing in Germany use local experts who can guide you.
It is not uncommon for people to refuse to supply email addresses when asked in a phone
conversation and some may ask you to send them a physical letter.
There are various legal requirements relating to the information that needs to be shown on websites
aimed at the German market. The key one is the need for an impressum – a section on the website
that provides contact numbers and other details and these should be local. Take professional advice
to make sure you comply.
Germans love detail. In other counties you may be used to providing only summary or overview
information until further into the sales cycle, but in Germany providing detailed documentation in
advance (for example when setting up a meeting) helps provide reassurance and is seen as
important. It will also give your contact more ammunition to get others to agree to meet you.
While many professionals in Germany are on LinkedIn, many more are on Xing – a German based
professional social network (www.xing.com/en). Add Xing to your Social Marketing efforts in
Germany.
Academic qualifications and titles are highly respected in Germany. If someone is shown with a title
make sure you address then with that title – particularly on the first interaction with them.
Trade fairs are still important in Germany and these remain a good source of business introductions.
Translation can be a real issue. The nature of the German language results in many choices for
translation and there are subtle variations in language throughout Germany, becoming more formal
as you go closer to centers of business. Professional, in country, translation is vital. If possible, use a
translator in the same region as your main customers and/or markets.
When translating documents and websites (and even technology products), remember German can
take up to 30% more space than English so it may not neatly work with existing designs.
Meetings in Germany
Do not assume that all Germans speak good English. Many business people have a better grasp of
English than consumers, but will not always wish to or feel comfortable with conducting a business
meeting in English. Check this in advance.
Germans don’t like to waste time and tend to only agree to meetings with a well-defined purpose that
they feel they can see value in. As a result it can seem a lot of effort to get that first meeting, but on
the positive side, a meeting typically means that the prospect is seriously interested in what you have
to offer.
Meetings in Germany start and finish promptly on schedule and will follow an agenda. This agenda
must be circulated to all attendees in advance. If the customer is setting the agenda, ask for a copy
beforehand. Also confirm what they expect out of the meeting and who the other attendees will be.
It is acceptable to ask your contact who else will be involved in the decision making process and
when they will become involved.
German business tends to be co-operative largely as a result of internal structures and practices.
Therefore during any negotiations they will strive to reach an outcome that meets the needs of all
involved.
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German businesses – especially larger ones – place an emphasis on consensus so there may be
attendees representing other departments and groups that you may not expect. Before the meeting
try and identify their likely needs and expectations so you can make sure you have the right people
on your side to address any issues these people may have.
If not represented at any meetings, you should expect to encounter the works council during
negotiations, particularly if you are selling technology. They exist in every company and have a legal
right to participate in various areas of the business. They are there to ensure worker’s rights are not
compromised – especially in areas such as security and privacy. Make sure you address any
concerns they may have and try to emphasize benefits to staff and address any fears about privacy.
Germans are keen to get down to business so there is generally little time for small talk.
Make sure any presentations are factual and direct. Use clear and logical language.
Do not assume you can reuse a presentation that has worked in other countries, without tailoring it to
suit the German way of doing business.
Your prospect’s key aim will be to understand how your offering can solve the business problem they
are facing. Ask questions as you go along to make sure you understand their position and be
prepared to go “off script” to go into relevant detail as required.
Use these meetings to see if your customer feels that your product or service needs to be changed in
some way to work in the German market. Don’t take “this will not work in Germany” as a final position
but ask what you need to do to make it work.
Germans are direct, and they will expect you to be the same. Don’t be afraid to ask questions before
and during the meeting. They expect it.
In Germany, it is essential that you back up any claims with facts. Any evidence you give will be
checked. Having only US-based evidence (such as market data) will not necessarily be accepted as
having the same value as it would in the US, although it may be possible to present it to prove your
reliability and reputation.
If you don’t know the answer to a query, admit it and promise to get back with a response quickly. To
do otherwise could damage your credibility and in a risk-adverse culture this could raise some
concerns.
If you are selling a product bring samples so the customers can see for themselves and judge the
quality. If you are selling technology either do a live demo during the meeting (check this is possible
and/or appropriate) or offer access to online demos. Try and get time to set up the demo before the
meeting starts.
Time towards the end of a meeting will be spent on defining and agreeing next steps. If there are
target dates agreed it is essential that you meet them within the deadline.
Use this part of the meeting to see how far along the process you now are and what you need to get
them to the next stage.
Don’t forget to follow-up. An email no later than 2 working days later detailing agreed next steps.
The Ultimate Guide to Doing Business in Europe
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France
Introduction
France is Europe’s second largest economy and the fifth largest in the world.
It has a strong and distinctive culture and it influences the way business is conducted.
France is very different to English-speaking markets and seen as very much the opposite of US business
culture.
Don’t forget that France is a large country and it would be a mistake to assume that culture and business
is the same across the country. The culture around Paris could be more formal than in other regions.
Doing business in France
Sales cycles can be longer than normal as French companies tend to favor extensive due diligence
when assessing new suppliers. As an overseas company, especially if you are new to the market, this
process can take some time.
To succeed you must bring something new and distinctive to the market as companies are not likely
to change supplier of something they already source from someone else.
French people tend to keep their personal and professional lives separate. A business relationship
does not equal a friendship. It is not acceptable or appropriate to ask your contact about their family
as is common in countries such as US or UK. Asking about their business and plans is a suitable
alternative.
Relationship-building is crucial in French business; it takes time and regular personal contact to build
up confidence and trust. It is important to build trust with the customer based on your company, its
offerings and how you keep your promises.
You should always address French businesspeople as Monsieur or Madame (followed by their
surname) unless and until told otherwise. This may take some time, if it happens at all, because it will
be several months of regular contact before you can expect to be on first name terms (but do not
assume this will happen).
French organizations are typically organized with a hierarchical, top-down management structure.
The hierarchies are clearly defined with leaders at each level with clear responsibilities.
Work through the structure, building relationships as you go. Make sure you understand the level of
authority and sign off at each level to help focus your efforts at identifying and working with contacts
at the level with appropriate sign off.
Techniques that work in other markets may not work in France. E.g. The French are not very
receptive to being prospected and cold calling is less acceptable and therefore less likely to be
successful. Do not call before 10:00am or between midday and 2:00pm.
Having the right personal contacts is essential to doing business in France. An introduction from a
valued contact is more likely to be successful than unsolicited calling.
Many of France’s senior business people are graduates of the Grandes Écoles – France’s equivalent
to the Ivy League colleges. Such contacts are very valuable as they carry a lot of credibility and value.
If looking for a local consultant or partner, try and find one with this background as it will significantly
help your chances of success.
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French business people attach a lot of importance to networking with colleagues and as an outsider
this will present some difficulties, so it is important to work with a well-connected local partner.
If you are planning to work in the French market for the long term make sure you recruit a fluent
French speaker or find a strong local partner. This will be well received by your customers.
As your business in France grows you should seriously consider employing staff in country. This will
further enhance your reputation as it shows a firm commitment to the market.
Holidays – both public and private are very important and it is worth considering these when planning
a business trip. Avoid May if possible as there are a number of public holidays then and people often
take private holidays around these dates.
All employees are legally entitled to 25 days leave a year with August a popular month for private
holidays. Avoid August for business activity.
French reference sites are very important if you are selling to large organizations. If you don’t have
any in France, try and find a reference of similar size in the same industry.
Before purchase, companies will need proof of your track record of delivering similar work –
preferably in France.
French companies will look favorably if you can show Innovation, a focus on Research &
Development and an entrepreneurial approach. Companies that are flexible and can offer custom
solutions will also be well prepared.
Do not compete on price alone as it could be seen as an overseas company undermining the market
and French companies. A good price as part of an overall package with a strong product offering will
be seen as very attractive and acceptable as you are proving value for money.
Meetings in France
You should be on time for business meetings in France, but do not expect your customer contacts to
be as punctual!
Meetings in France are typically longer than in other countries as they are often unstructured with
several stakeholders all requiring that all their points are dealt with appropriately before they can
move to the best stage. As a result it is likely that meetings will run over the allotted time.
When scheduling meetings, allocate more time rather than less and do not be tempted to squeeze
lots of meetings in one day.
Your first meeting in France might not be directly be about your product or service, but could be about
general industry issues or the prospects specific challenges.
French people like to start talking business quickly, so do not be surprised if there is no small talk.
As physical appearance is very important in France your body language and dress style will be
noticed by your customers.
You may find yourself involved in lively discussions during meetings as the French are used to
handling different opinions and so your audience will not be shy in challenging you and expect you to
respond. This firs with the French tradition of rhetoric and debate. Look on this as a business rite of
passage!
Provide proof points. Just quoting a reference customer name will not be very well received, you need
to show how you helped that business achieve real improvements. Back up all claims you make with
proven facts – avoid vague claims.
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Make sure that all your customer facing staff can clearly and consistently explain your value
proposition and USPs.
Your presentation could generate lots of questions, but alternatively you could find that the audience
is very quiet. This does not necessarily mean that they are disengaged but they are carefully
considering your content. Do not take silence as an indication of no interest.
Make sure you clarify where you are in the process before the end of the meeting. Come prepared
with key questions you need answered.
If your meeting starts mid or late morning, there will be a good chance that your customer will suggest
going for lunch. If this is the case, accept the invitation as it will extend the meeting and is still part of
the overall presentation and pitch. Lunch is still business, even if wine is served. There is no set
etiquette for who pays.
In Paris you could be invited to breakfast meetings but these are less common outside of Paris.
While it may be possible to conduct some meetings in English do not assume this. The French are
proud of their language and there is much legislation to protect it. If you are not a fluent French
speaker, being seen to attempt the language will be well received.
Ask in advance, if the meeting will be conducted in French or English. If it is in French make sure you
have fluent French speakers in your party. It is vital that all marketing materials and presentation
slides should be professionally translated. Canadian French is typically not acceptable in the long
term but should be acceptable for meetings. They will appreciate the gesture of speaking in French.
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Nordics
Introduction
The Nordic region consist of Sweden, Denmark, Norway and Finland.
Although autonomous countries with different languages and currencies,
they are often treated as one bloc for business planning.
Finland, Denmark and Sweden are members of the EU, but only Finland
uses the Euro. Norway is not an EU member but it tends to shape its
legislation to match the EU.
The Nordic countries are affluent and very open to innovation and technology. Many technology
companies have tested new products in the region because it is so open to new technology, so this is a
very fertile market for technology companies. Business Conditions in the Nordic countries are among the
best in the world.
All countries have close similarities in demand, consumption patterns and business cultures. Nordic
customers are known for their reliability, so if you form a partnership with a local company, it will probably
last for several years.
Doing business in the Nordics
English is widely spoken – particularly in a B2B context but if dealing with consumers, local language
should be used. The Danish, Norwegian and Swedish languages are similar enough to allow people
to communicate with people in the other countries using their own language. Swedish is also one of
the official languages in Finland. However, for a long-term business relationship it is key that you
plan for local language capability.
Nordic business people make a clear separation between personal and professional relations. Nordic
people put rules before relations and are not really interested in getting to know you on a personal
level. However, do not confuse a personal coldness with a lack of interest in working with you.
Nordic people prefer to get straight to the point so pre-meeting small talk is unlikely. Therefore it is
important that you are direct and honest in all communications as your customers will be to you.
In the Nordic business world, Trust, honesty and commitment are valued and key to building long-
term relationships.
The market in this region (particularly in Sweden) are willing to pay premium prices for premium
products, but they need proof of quality in your brand and products. Reflect this quality in your
marketing materials.
Make sure you follow-up meetings swiftly and do everything you committed to at the time. Although
the four countries are broadly similar, they do have their own distinct cultures. Make sure you
research and understand these differences in detail before entering the markets. Work with any local
partners to help in this understanding.
Nordic culture places great emphasis on structure, planning and being focused on goals. Therefore
make sure you are well prepared and have a structured approach to doing business.
Meetings in the Nordics
Typical business meetings in the Nordics are very structured. To help them be successful, try and
agree a clear agenda in advance.
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Let the buyer set the pace of the meeting – do not try and drive it yourself.
Norwegians do not like ostentatiousness.
Do your preparation before every meeting and always agree, and keep to an agenda.
Listen carefully to what the customer has to say and ask questions. Always agree next steps before
the end of the meeting.
It is important to show that you have listened carefully to the customer challenges and issues and
clearly show how you can solve these problems. Use soft selling techniques and do not over promise.
Always use facts and figures to back up your proposition. Nordic people make decisions based on
facts – not “gut feeling”.
Interrupting during a presentation is considered rude so your audience will wait until you have finished
to ask questions. It is important to stick to the script and be able to back up anything you say. In the
Nordics informal business dress is very common across all industry sectors, so it will be difficult to tell
who is senior in the room based on what they are wearing. Bear in mind that the worst dressed
person in the room could be the CEO!
Equality is a common thread throughout Nordic society and is reflected in the business environment
where there are no stringent hierarchies. Everyone is treated equally regardless of their position.
Summer vacations are important in this region and not much business is conducted during July &
August so avoid planning trips at this time.
Countries in this region also enjoy very generous maternity and paternity leave of up to 12 months in
many cases, so if you hear that one of your contacts, or their partner, is expecting a child, try and find
out (as subtly as possible) if and when they will be taking their leave as they may be out of the picture
for some time.
Make sure your marketing communications are up to date, consistent and high quality. During
contract negotiations, your customer will typically tell you what they expect from you and your offering
so prepare to be very specific.
Do not commit to the unachievable and be prepared to say “No” when appropriate - no-one will be
offended. Nordic people like to get straight to the point. They will openly offer feedback during
negotiations.
Business gifts are not common so in order to avoid embarrassment only offer inexpensive gifts. Food
for the meeting is acceptable.
Nordic businesses prefer written contracts. These are considered binding. It would be considered
unprofessional or even dishonest if the terms of the contract are not completely fulfilled. So, during
negotiations do not agree to anything unless you are absolutely certain it can be delivered.
Consensus is a very important concept in Nordic business so expect a consultative approach to
negotiation which includes everyone’s opinions and leads to an open debate of ideas.
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Benelux
Introduction
Benelux is a grouping of the neighboring countries of Belgium, the Netherlands and
Luxembourg. They are three very separate countries with distinctive cultural and
regional differences but together make up a small but prosperous and stable market.
The Benelux grouping pre-dates the European Union.
English is widely spoken in business circles, so it is easier for overseas countries to sell into these
countries – at least initially.
Companies in the Benelux region tend to make quick decisions and follow up quickly. As a result you
will have to be prepared to respond quickly to any interest.
Companies in The Netherlands and Belgium are very open to being approached by international
companies and will be willing to meet to discuss possible partnerships or sales.
Benelux is a competitive market so to be successful you must really focus on your USPs. Don’t focus
on “me-too” features. –There are seven official languages across the three countries but do not panic
– English has become the de-facto language of business but do not assume this. Check in advance.
Belgium
Belgium is a federal country with three different regions: Flanders in the north, Wallonia in
the south and Brussels-Capital-Region. Belgium has three official languages: Dutch
(spoken in Flanders) French (spoken in Wallonia) and German (spoken mostly in the East).
Much of Brussels is French speaking, but as the home of the European Union and many
other bodies that widely use English, English has become common in a business context.
Ask about the people you will meet and what language they speak to prevent inadvertently offending
someone. For example, someone from Flanders may not appreciate being addressed in French. To avoid
any issues, speak English and have a translator if necessary (if you have discovered this is needed
beforehand). Make sure you translate any marketing materials that you leave behind.
Business culture varies across the region. Take your cue from your hosts as to the formality and
style of the meeting.
Third-party introductions are not as important in Belgium as they are in other European countries they
can still help open doors.
Business culture does vary across the various regions of Belgium: In Flanders, businesses usually
have flat organizational structures that are based on consensus. However, Walloon businesses tend
to have more formal hierarchical structures with top-down leadership. They place a lot of importance
to rules, procedures, job titles and rank.
Address Flemish and German speakers, as ‘Mr’, ‘Mrs’, ‘Ms’ or ‘Miss’ followed by their surname.
Address French-speaking Belgians, as ‘Monsieur’, ‘Madame’, or ‘Mademoiselle’ by their surname.
In Belgium, the first meeting tends to be less focused on business and more focused on getting to
know each other and developing trust before developing the business relationship.
Make sure you are punctual for meetings in Belgium. Call ahead if you are delayed or think you will
be.
Belgians have a reputation for compromise and negotiation.
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The Belgian style lends itself more to subtlety rather than directness.
Being well dressed for business meetings will make a good impression with your hosts.
In meetings, Belgians will look favorably on a ‘storytelling’ approach with clear facts and figures rather
than a traditional slide driven presentation.
The use of high-quality graphics and marketing material with well-presented detail will appreciated
and help build your credibility. Make sure your materials are of the highest-possible quality.
The Netherlands
The Netherlands has almost 60% of the population of the Benelux region and according to
EU statistics almost 90% of the population speak English. You will therefore find that
English is acceptable in a B2B context but you will need to have local language when
dealing with consumers.
Sometimes The Netherlands is referred to as Holland and some people think these are interchangeable
terms. However Holland is the name of just one region of The Netherlands that happens to include major
cities such as Amsterdam and The Hague. Some people, (especially those from outside the region) may
be offended if you call the country Holland. Always refer to it as The Netherlands.
You may be surprised at the directness of the Dutch people. They tend to give straight ‘yes’ and ‘no’
answers and can appear confrontational in negotiations and initial contact.
This directness can work in your favor as you will quickly know if they are interested. Similarly, if they
are not interested you will also be told quickly during the meeting.
Your first meeting with a Dutch customer will probably involve just one or two people.
Getting this first meeting may be difficult unless you can demonstrate there is a clear purpose to it
and what you have to offer is of use to them. The Dutch do not like to waste time and prefer to plan
their time well.
The Dutch business approach is to gain consensus internally so you may find having to wait a long
time to receive any follow up. Do not use meetings just for general market research. You could
damage your relationship with your customer unless you can show that they will gain something from
the meeting.
Dutch people prefer to have a clear objective for all meetings in advance so agree an agenda in
advance.
The Dutch like to quickly get down to business in meetings so there will be very little small talk at the
start of a meeting.
Do not use PowerPoint unless you are talking to a large group because it limits the discussion.
Discussion is valued in Dutch culture. During the presentation expect people to openly give their
opinions.
Dutch people regard lateness as a symptom of unreliability so make sure you are on time for
meetings. Call ahead if you are going to be late.
Avoid emotional arguments and unsubstantiated claims as the Dutch are mainly interested in facts.
Make sure you can support any claim you make with verifiable data.
Your audience will react favorably if you can provide proof that your offering can save them money.
Always focus on what you can do for the customer.
You will be taken at your word and expected to deliver on your promises within the agreed timeframe.
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Luxembourg
Luxembourg is a small country with a population of under 600,000 who generally protect
their privacy. French and German are the two official languages but most of the population
speak Luxembourgish. English is spoken by 66% of the population so is acceptable in
most business contexts.
Luxembourg is favored by financial service firms and those that provide supporting services as a strong
place to do business.
Personal relationships are important in business but can take time to develop but business and
private lives are kept separate.
Luxembourg society is very hierarchical so those that have attained rank and position expect to be
shown appropriate respect.
Be Patient! Impatience may prevent you being successful.
Although they can be direct, people in Luxembourg typically show tact and diplomacy communicating
with you and would therefore expect you to do the same.
Punctuality in business meetings is important in Luxembourg. Your customer will be on time so you
must also be on time.
Business culture is to get down to business very quickly. As a result, meetings tend to be brief, with
little small talk.
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Switzerland
Introduction
One of the world’s most competitive economies, Switzerland is home to several Fortune
50 companies, major multinationals and prominent NGOs.
Switzerland as a reputation for being open to doing business with overseas companies. It
has also proven to be a good market for new technologies.
Switzerland has four official languages - German, French, Italian and Romansch. English will be widely
understood in most business circles.
Doing Business in Switzerland
Swiss business people are typically persuaded by details, facts and figures. Make sure you provide
plenty of factual information to back up your claims.
Try and avoid overt sales or marketing based messaging and focus on technical detail to help your
audience evaluate your offering and come to an informed decision.
You will be expected to deliver on any promises you make.
Business culture can be seen as conservative and it may seem difficult to make progress as
decisions may take some time. This is because Swiss companies tend to think in the medium and
long term and will be looking for a long lasting relationship with you. They tend not to drop suppliers
for short term gain.
Punctuality is very important in Switzerland and you will be expected to be on time for both business
and social appointments. Ideally try and arrive 5 minutes early – even earlier will impress. Being late
will cause offence so ring ahead if you are held up.
When first addressing someone, use their professional title such as Dr. Only use their first name if
invited to.
- In German-speaking Switzerland, address men as Herr for a man and women as Frau.
- In French-speaking areas, use Monsieur and Madame.
- In Italian-speaking areas, use Signore and Signora.
Generally speaking, Switzerland is seen as an early adopter market with a focus on innovation. As a
result, Swiss companies are willing to try new products or services if they are confident they can
deliver real value to them.
Cost is not really an issue in Switzerland with customers unlikely to focus on price. Value for money
and a clear and unambiguous statement of what will be delivered are of more importance.
You will be expected to at least meet and ideally exceed the terms of your agreement and continually
deliver.
Negotiations are seen as being between companies rather than between people. This gives you the
flexibility to involve other people in the discussions without causing an issue with your customer.
Although likely to be early adopters, Swiss companies tend to be risk-averse. This means they will
spend a lot of time and effort checking out your business and how you operate. Expect a lot of
communication with them before a deal is finalized.
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Many business customers will want to visit your facilities or offices as part of a risk assessment or full
due diligence process.
They could also request to talk to existing customers and they will appreciate it if you can help make
this happen as they will see it as proof of your openness in business.
Meetings in Switzerland
Some aspects of business culture could vary, based on region. Swiss-Germans will typically be direct
and want to get down to business immediately, but Swiss-French or Swiss-Italians will probably start
the meeting with small talk.
Unlike many other European countries, the Swiss still expect to exchange business cards, so don’t
forget them.
Swiss society places a great deal of importance on rank and seniority and this is reflected in
business. So in large meetings introduce your team in order of rank, starting with the most senior
member of your team.
Detailed documentation including full product specifications are seen as important. When setting up a
meeting, offer to supply documentation in advance. Your customer may appreciate translated
materials but check whether this is needed and if so, which language.
During the presentation, be ready to answer a lot of questions in detail. Listen to what your customer
needs and tailor accordingly – avoid just jumping in with a general sales pitch.
Make sure that any claims are specific (how much, how many etc.) and backed up with data.
Try to schedule meetings in at least one or two weeks in advance.
An agenda is important and meetings will strictly follow this. As a result agendas are prepared and
sent to all participants in advance.
Use clear, direct and logical language and get into the detail quickly. Start with giving a brief overview
of your presentation before you begin.
In advance of the meeting provide the names, titles and responsibilities of all people in your team so
your customer understands exactly who they will be meeting with.
The Ultimate Guide to Doing Business in Europe
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Italy
Introduction
Italy is a strong manufacturing economy with a reputation for design. Italian firms are
always looking for ways to become more efficient and grow to help maintain their place in
global markets. If you have a strong offering that can do this, backed up with good
customer service, then you have a good chance of being successful.
You are less likely to find fluent English speakers in business but this should not be regarded as a
problem. Surveys have shown that only about a third of the population are confident to have a
conversation in English.
Business in Italy can be quite formal.
Doing Business in Italy
Do not use first names with someone you have never met before. These are used once the
relationship is more established. Use formal greetings such as ‘Buongiorno’ (good day) or ‘salve’,
followed by either Signor for a man or Signora for a woman followed by their surname. Do not use
Ciao as this is seen as informal and is more suitable when just using someone’s first name.
Personal, third party introductions are very important to doing business in Italy.
Italians prefer to meet you face-to-face contact rather than phone calls or email. Try as spend as
much time as possible meeting in person as it will make it easier to build relationships.
As they are known as a stylish people, Italians will pay attention to how you are dressed and also how
you conduct yourself.
Unlike other countries a lot of emphasis in the negotiations will be on you as a person rather than
purely on your offering.
Keep to you word. If you promise to do something but do not deliver on this, you could damage the
business relationship in some way. Working hours in Italy can vary depending on the specific industry
and where they are based.
There are 12 standard public holidays in Italy. As in other countries, people often take extra holiday
around these to create an extended break. Check with your contacts before you try and organize
travel.
August is the main time for holidays and many offices will be closed for at least two weeks. Try and
avoid arranging meetings during the summer period.
Italy is unique among larger countries in having an economy largely made up of SMEs. Many of
these are still family owned and so they are likely to have built up good working relationships over a
number of years with their existing suppliers. As a result you need to have a strong argument if you
are going to replace their existing suppliers.
You will need to be able to demonstrate success with strong customer references – ideally in Italy or
other parts of Europe.
Italians may need persuading about your ability to provide quality customer support given the
distances and time zone differences involved.
It is important to build trust between you and the customer. You will need to invest time in making
this happen by regularly communicating with them. This helps them fell that you represent a reliable
The Ultimate Guide to Doing Business in Europe
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and stable organization. When planning to target the Italian market, bear in mind that networking is
very important. Try and build contacts with people who may be in a position to influence potential
customers.
Meetings in Italy
You are expected to prepare a proper presentation for your meeting to demonstrate your
professionalism. Not to do so will go down very badly.
You will be expected to “put on a show” with high quality supporting materials.
Don’t start with a hard sell. Show you have done your homework and understand the company and
how your products or services can explicitly address the issues they face.
Typically your first meeting will be with a mid-level person who probably doesn’t have authority to
make a decision. Their role is to report back to their managers.
There is likely to be a second meeting at this level and then it will be discussed internally. It is
therefore important you impress your contact and give them all the information they need to
accurately represent you at these internal discussions.
Don’t expect meetings to result in any decision as the main purpose is to provide a forum where
everyone can have their say. Italians enjoy talking and debating an issue at length. These
discussions may therefore be diverted into other areas and can go on for some time.
Be warned. The more Italians in the room, the longer the meeting is likely to be.
Italians enjoy robust debate and it is common to interrupt someone when speaking. This
demonstrates that everyone is interested and paying attention. Therefore make sure you plan your
presentation to have the most important information towards the beginning. You may not get to the
end! Aim for a presentation of between 15 and 20 minutes.
Ask in advance who will be present at the meeting, their role and any specific agendas or interests
you need to be aware of. E.g. If someone will be there who likes to ask detailed, technical questions,
having a technical resource on your side can shorten the selling process and add detail to the
discussions.
Being able to have a technical discussion will add credibility to your offering, invite more detailed
feedback from the customer and help you drill down to the details of what the customer is looking for.
Because of the variation in levels of spoken English (especially amongst older people) try to have an
Italian company representative or partner present. If this is not possible, you may want to consider an
interpreter although this may not be necessary. Check with your contact in advance.
If the meeting is conducted in English, speak in short, simple sentences and avoid jargon or slang.
Also check regularly they have understood what you have said. Ask in advance if they would like
copies of slides in Italian as well as English. This will help them follow the presentation.
Setting an agenda in advance will mean that both sides know what to expect. However, some may
see the agenda as a starting point and not necessarily a strict timeline. If you front-load your
presentation with the important facts, prepare back-up slides to help explain complex of difficult
subjects. You will be expected to drive the meeting but to do it in a way that encourages full
interaction and participation.
Don’t rush to close the deal too quickly as this process may take some time. Before you leave make
sure you have agreed next steps with timescales and ideally agreed dates for the next meeting. Don’t
rely on the customer to do this.
The Ultimate Guide to Doing Business in Europe
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Try to ensure you have translated marketing materials and invoices.
People will like to feel a connection with the people they are dealing with. If you are selling something
intangible like software, rather than something they can touch and feel, this is even more important.
The Ultimate Guide to Doing Business in Europe
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Spain
Introduction
Strong economic, historic and cultural ties make Spain a gateway both to North Africa and
Latin America so success with Spanish companies could open up these markets.
Customer care is very important, so strong account management activities, well as
personal contacts, and regular face-to-face meetings are all critical.
The market is typically much more focused on price rather than quality. As price will almost always be a
deciding factor, make sure you have a strong business case. Buyers may ask for the price before they
have gone into the details of the product. High quality (and therefore higher priced) B2B products are
difficult to sell unless you are demonstrate and prove a good ROI.
Doing Business in Spain
Culturally, personal relationships are very important for conducting business, and can be very useful
in introducing you to the right people.
Regularly catching up in person is very important but this does not mean you have to have formal
meetings. Informal meetings such as over coffee for a brief chat should be enough to maintain these
relationships.
Spanish companies tend to have a hierarchical management structure, so position is important. You
should bring someone at a similar level to those you will be meeting.
Having a local partner or internal company contact is very important to help you to get to the decision
maker. These can be difficult to reach in person as there may be several layers of gatekeeper in the
way.
Do not assume that an e-mail will be seen by the appropriate people.
Business lunches are common but are not likely to be a feature of your interactions until the
relationship is established or you are towards the end of a negotiation.
When invited to a business lunch, the customer will play host and suggest a time and place. Lunch is
unlikely to start before 2:00pm so keep the rest of the afternoon free.
Dinner is also late typically starting around 10:00pm and even later in the South of the country.
Spain is made up of 17 very distinctive, autonomous regions and the population tends to be very
proud of their region. Your host may therefore be keen to show you something special, or typical of
their region. It would be considered rude to decline this.
Traditional working hours are 9:00am to 2:00pm and then from approximately 4:00pm to 7:00pm or
even later. While normal 9-5 business hours are becoming more popular – especially with larger
multi-nationals – you will still find a number of Spanish businesses still keeping with the traditional
work day.
Peak summer holiday time is August. People are increasingly taking holidays in July and September
but assume no one will be available in August.
In the summer months, banks, public bodies and private sector companies may work half-days
(8:00am – 2:00pm) because of the heat.
Spanish companies – especially smaller, private ones are not always keen to share financial
information such as turnover etc. If you need this information, for example when looking for a
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potential distributor, ask tactfully and avoid what many see as the aggressive and very American
approach of sending out detailed pre-qualification questionnaires asking for detailed financials,
references etc.
Although the use and quality of spoken English in business has improved in recent years, Spanish
language capability is essential in building long-term relationships. You are less likely to find
widespread use of English amongst older people and in family-owned companies.
Note: In addition to Spanish, some regions have specific languages and in those regions with strong
regional identities it will be used as an official language alongside Spanish. In these regions you may
see signage or hear people speaking in these languages so don’t get confused thinking you longer
understand Spanish!
Meetings in Spain
A typical first meeting should last around an hour at the most and consist of a short PowerPoint
presentation by both parties. This will then be followed by a general discussion to see if there are any
possible grounds for doing business.
Do not expect key decisions to be made at this first meeting. Once the personal connection has been
made, you can expect any negotiations to comprise the exchange of proposals until agreement is
reached.
Before the first meeting, check whether English is acceptable or if you need a translator.
Attempting to communicate in Spanish will be appreciated. There are some differences in the
Spanish spoken in Spain and that spoken in Latin America. These have been likened to the
differences between American English and British English so they should not prevent you from being
understood - particularly if you avoid slang.
There are no formal rules regarding dress code. It is best to dress conservatively for the first meeting
then match the customer’s dress code in subsequent meetings.
At the start of the meeting, the customer may try and find some common link between everyone
present but as a rule they prefer to get down to business quickly.
The Ultimate Guide to Doing Business in Europe
Page 26 of 25© MavenTM, 2015
How MavenTM can help
Confused? Hopefully this guide has not confused you but given you an insight in how business in
conducted in the diverse continent of Europe.
However, for a new entrant into the European market, the variations in language, culture, business
approach, currency and legislation can provide a minefield of potential traps. Partnering with a reliable
partner that understands this environment, will accelerate your business.
MavenTM has built a reputation as a provider of flexible, cost effective and creative solutions for B2B
Technology companies looking to generate leads, nurture contacts and grow in various international
markets.
Utilizing a range of state of the art tools, we combine traditional calling with social, content and digital
marketing techniques to create a unique package designed to exceed your targets.
Based in Ireland, an acknowledged center of technology and language skills, MavenTM can support all
main European languages and manage campaigns across many countries.
We have particular expertise in helping US companies succeed in Europe.
If you are planning to develop sales in Europe, get in touch today.
Tel:
US: 866-861-4622
Ireland: +353 59 910 1500
Email: sales@maventm.com
Web: www.maventm.com
Follow us:

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The ultimate guide to how to do business in europe

  • 2. The Ultimate Guide to Doing Business in Europe Page 1 of 25© MavenTM, 2015 Contents Introduction.................................................................................................................. 2 10 top tips for doing business in Europe................................................................... 3 United Kingdom & Ireland........................................................................................... 4 Introduction ............................................................................................................................................. 4 Doing business in the UK........................................................................................................................ 4 Meetings in the UK.................................................................................................................................. 6 Republic of Ireland .................................................................................................................................. 7 Germany....................................................................................................................... 8 Introduction ............................................................................................................................................. 8 Doing business in Germany.................................................................................................................... 8 Meetings in Germany.............................................................................................................................. 9 France......................................................................................................................... 11 Introduction ........................................................................................................................................... 11 France is Europe’s second largest economy and the fifth largest in the world...................................... 11 Doing business in France...................................................................................................................... 11 Meetings in France................................................................................................................................ 12 Nordics ....................................................................................................................... 14 Introduction ........................................................................................................................................... 14 Doing business in the Nordics............................................................................................................... 14 Meetings in the Nordics......................................................................................................................... 14 Benelux....................................................................................................................... 16 Introduction ........................................................................................................................................... 16 Belgium................................................................................................................................................. 16 The Netherlands ................................................................................................................................... 17 Luxembourg .......................................................................................................................................... 18 Switzerland................................................................................................................. 19 Introduction ........................................................................................................................................... 19 Doing Business in Switzerland.............................................................................................................. 19 Meetings in Switzerland ........................................................................................................................ 20 Italy ............................................................................................................................. 21 Introduction ........................................................................................................................................... 21 Doing Business in Italy.......................................................................................................................... 21 Meetings in Italy .................................................................................................................................... 22 Spain........................................................................................................................... 24 Introduction ........................................................................................................................................... 24 Doing Business in Spain ....................................................................................................................... 24 Meetings in Spain.................................................................................................................................. 25 How MavenTM can help............................................................................................. 26
  • 3. The Ultimate Guide to Doing Business in Europe Page 2 of 25© MavenTM, 2015 Introduction Conducting business outside of your own country for the first time can be tricky as it is easy to fall foul of things you take for granted at home – such as local business practices, culture and legal requirements. Despite the world apparently shrinking and the ever voracious global demand for US movies, TV and products, countries still hold on to their differences. Europe is a relatively small land mass with massive cultural differences across countries which can be confusing to other Europeans so they can be baffling to those outside of Europe. The aim of this guide is to provide a summary of the main features of doing business in the key European Markets for US companies looking at some of these for the first time. They are not designed to be comprehensive, but to give an understanding of some of the broad differences in culture and approach so you don’t get caught by surprise. We always recommend you take professional advice as legislation does change. The information contained in this guide is taken from a mixture of third party information and firsthand experience.
  • 4. The Ultimate Guide to Doing Business in Europe Page 3 of 25© MavenTM, 2015 10 top tips for doing business in Europe 1) Europe and the European Union are not the same. Not all countries are members of the EU but many of these want to be. 2) Not all EU countries use the Euro – the UK and countries in Scandinavia are obvious examples. 3) Although there is a common approach to taxation, tax rates in each country do vary. 4) Not everyone speaks English! While English is widely spoken and understood in many countries you must not assume that everyone you deal with either understands English or will appreciate you speaking it to sell them something. The acceptance of English varies by country, industry (technology professionals use English widely) and type of customer – B2B customers and younger (under 30) consumers are more likely to understand English than older consumers – BUT DO NOT ASSUME ENGLISH IS OK 5) Translation is important. Automated translation is not acceptable and will be treated as a joke. Some countries have regional differences so be very careful that you are using translation that is appropriate to the area you are targeting – this can be a real issue in Germany with more formal German being used in the key business areas. To be successful you must invest in professional translation. 6) Public holidays are very important in Europe and do vary by country. Many people take off extra time around them so make sure you know your contact’s plans. 7) Christmas and summer are very important. Very little business is done in Europe from Mid-End December and into early January. Summer also varies based on school holidays. France famously shuts down in August (although that is changing slightly). Some countries may have their summer holidays earlier June/July and others, such as the UK, seem to favor August. The summer vacation typically lasts 2 weeks. 8) Daylight Saving Time. Like the US, Europe will bring clocks forward 1 hour for the summer and 1 hour back for the winter. While Europe generally moves as one on this, the date may not be the same as the US. Europe trend to start DST on the last Sunday in March and end it on the last Sunday in October. Many a transatlantic phone call / video meeting has been missed because of this. Use sites such as http://www.timeanddate.com/time/dst/2016.html to check up. 9) The EU has legislation governing use of cookies and opt-in/opt-out consent on websites. There are some variations across countries. Online privacy is regarded very seriously in many countries so it is harder to find personal details than it is in the US. 10) It is very difficult (practically impossible) in many EU countries to purchase email lists and consent for marketing emails is very strict in some markets. You cannot just use the methods you use at home.
  • 5. The Ultimate Guide to Doing Business in Europe Page 4 of 25© MavenTM, 2015 United Kingdom & Ireland Introduction Although it may change depending on the industry and age of the main contacts, British business does tend to be conservative and risk-averse. They will take time to assess potential new suppliers. The market is very competitive because of its size and also because of the English language. You could, therefore, find difficulties in getting hold of the right people because they are overwhelmed with people trying to sell to them. You may find the terms UK, Great Britain and British Isles used interchangeably. But it is important to understand the subtle differences. The British Isles is the name given to the islands that make up UK and the Republic of Ireland (Irish Republic) and the many smaller islands that are part of these countries. The name British Isles tends not to be used in the Irish Republic. United Kingdom – or to give its full name - “The United Kingdom of Great Britain and Northern Ireland” is the name for all the countries in the British Isles apart from the Republic of Ireland. People in Northern Ireland refer to the rest of the UK as GB or Great Britain. People in Northern Ireland may relate to Ireland or GB – depending on political allegiance. Great Britain is the collective name for England, Scotland and Wales. Of all the countries in the UK, Scotland has the most autonomy with a strong independence movement. Do not refer to Scots people as English. (Some may laugh it off, but others could be offended). The Republic of Ireland is an independent country but does have close links to the UK. The UK uses the Pound (known as sterling and abbreviated to GBP), while the Republic of Ireland uses the Euro. Doing business in the UK People will be interested in who introduced you as this all helps to validate your credentials. You will experience different levels of formality across Great Britain generally becoming less formal as you go northwards from London and the South of England. To be safe it is recommended that you assume that any interaction with new customers will be formal until this is demonstrated not to be the case. It is generally frowned upon if you are late for meetings. Try to aim to be at the meeting 15 or 20 minutes early to make allowances for any possible travel delays and disruption. If this is the first time in this location, this is particularly important especially during the rush hour periods (generally speaking assume this is before 10 am or after 4:00pm). Business dress tends to be more formal in Britain than in, for example, North America. This does vary between industries with finance companies, for example, being more formal than media companies. Assume smart business dress to be safe. Before any meeting begins, greet everyone in the room with a handshake and hand over business cards. Take a moment to look at any cards. This not only looks polite, but may help you understand names that may be unfamiliar to you.
  • 6. The Ultimate Guide to Doing Business in Europe Page 5 of 25© MavenTM, 2015 Generally speaking meetings will be friendly but will quickly get down to business. There may be some polite conversation at the beginning (For example, they may ask you how your trip was). As the relationship develops you will probably see more small talk and a friendlier manner appearing. Mind your language – the formality of British business usually means that swear words are not acceptable. Most British people will have a sense of humor and you will often find it displayed during meetings. It is probably more likely to use sarcasm or irony than you may be used to so watch out for it. Humor can vary from region to region. British people do not regard exaggeration or self-promotion as a positive trait. If anything they favor the exact opposite – self-deprecation. It is still not uncommon for British people to talk down their achievements although this is less likely based on age and type of industry. As in the US, Networking is very important and can be helpful in getting in front of decision makers. As a rule, British people will prefer quantity over quality with their network. For those senior business people who attended the most exclusive private schools (confusingly referred to as Public Schools) and leading universities such as Oxford or Cambridge, friends and contacts from these institutions are a key part of their networks. This is sometimes referred to as “The old school tie”. British business people expect to deal with those of similar rank – if you get a chance to pitch to a CEO of a prospect, then it is expected that your CEO will be part of that meeting. NOTE: Job titles in Britain (and Europe in General) tend to mean different than they do in the US. E.g. a Director in a US corporate would probably equate to a Manager in many British companies, while a VP may equate with a Director in Britain. In short, don’t assume a similar job title equates to similar responsibilities. British business contacts may seem a bit reserved at first and so it may seem to take a long time to really get to know and understand them. You may need several meetings and calls before they feel comfortable with you. Typically, British people tend to be diplomatic and avoid confrontation – this may lead them to not be open and direct with you for fear of insulting or upsetting you. On the downside this does mean that you may find it difficult to determine their true feelings. Companies in Britain will get approaches from potential new suppliers all the time. You are likely to find gatekeepers whose job is to prevent you from speaking to the person you need to. These gatekeepers will get tougher the more important their boss is. If this is the case spend time identifying someone with credibility to work from inside to bypass these gatekeepers. If you manage to get past the gatekeeper, your message needs to be direct, specific and somehow relevant. Ideally related to a previous meeting or other form of contact. Indeed this approach will help you get past the gatekeeper in the first place. If you have to work via an internal champion make sure you give them plenty of ammunition to present your case and protect their reputations. British businesses – especially those that are long established or in traditional industries tend to be more hierarchical organizations than you may be used to, so may well find yourself meeting with a series of decision makers at different times. Purchasing decisions will probably have to go through formal approval processes. There are usually clearly defined sign off limits linked to each tier of the company hierarchy and/or job role. You need to understand these sign off levels and may be asked to change pricing or structure a deal to be under someone’s sign off limit.
  • 7. The Ultimate Guide to Doing Business in Europe Page 6 of 25© MavenTM, 2015 For significant deals, at some stage you will probably have to present to a group, committee or a board. The Board of Directors is the ultimate decision-making unit in many companies. Formal approval of the board is required for many high profile or high value decisions and this can delay ultimate final decisions. It is important to understand when & if the board will be involved and how long approval might take. Find out how often the board meets – bear in mind there may be a delay during the summer and Christmas holiday periods. Meetings in the UK Research who you are presenting to in the organization and check whether they have decision- making authority. If you are presenting to a large group of people you will witness different agendas at work. Your internal champion should hopefully be enthusiastic towards your proposition and if you have been successful in the preliminary communications before the meeting, business leaders will also probably be supportive – otherwise you wouldn’t have got this meeting. The people who are likely to get in the way are those who will experience the full impact of implementing the new product or service and can see the difficulties they could face. Such people could be lower in the hierarchy than those who are broadly supportive, but can still have the influence to stop any deal as they work at the detail level that their bosses cannot. Before the meeting, work with your internal contacts to try and identify if any of these people will be present and what their issues could be (lack of staff, impact on other systems, problems with existing suppliers etc.) Be sure to make sure your presenting team contains the people best suited to answer these concerns and provide concrete reassurance and solutions. Also make sure beforehand that the people with decision making authority will be present. If not, then provide material to help others make the case to them. Depending on the make-up of the customer’s team, you may need to show excellent negotiating skills. It is important to be flexible as “this is the deal take it or leave it” or “this is the normal arrangement with our other customers, so what is the issue?” approaches are not likely to be well received. You may also be asked to use their standard contract and not yours so be prepared to be flexible! Don’t use a generic presentation – tailor it to focus on the value you can bring to the customer and to any individuals. It should not do any harm to massage the ego – but don’t go overboard. Get to the point quickly – they probably don’t need the corporate pitch (unless you have been specifically asked to include it for a key stakeholder). Remember key decision makers could be called out of the meeting at any time so you will miss your chance to impress. Talking at length about your personal biography will typically not be appreciated unless it is has some relevance to the customer. Even then, keep it short. Don’t rely on US Statistics or references if possible. If this is unavoidable put them into context to help make them relevant. They will not have the same weight as they would pitching to a US company. Do not quote pricing in US Dollars unless you have been specifically asked to do so. If not, assume British Pounds and make sure all your pricing has been converted to a fixed price for the purposes of negotiation Show you understand the customer’s issues – do not assume the commercial or competitive landscape is the same as back home. If you have a friendly local, or company insider, run through the main points as you prepare the presentation.
  • 8. The Ultimate Guide to Doing Business in Europe Page 7 of 25© MavenTM, 2015 If you do not have a local presence, make a special effort to show how you can support the customer who may be nervous about committing to a provider based so far away and in another time zone. George Bernard Shaw is reported to have said that “England and America are two countries divided by a common language”. Words are used differently and spelt differently. The tolerance for US spelling will vary between age groups and industry. Some people take grave offence and others will not care. Making the effort not to use US spellings will prove how serious you are to the UK market. US Sporting analogies will not have the recognition, and therefore impact, that they would in the US. In general sport does not necessarily have the universal appeal in a UK business context. If you are demoing the product, keep it short, unless there is a lot of interest from the attendees. Try to tailor the content so it is directly relevant to the customer. Republic of Ireland While the Irish Republic shares many traits with the UK there are a few subtle differences. Irish businesses meetings tend to be more relaxed. There will be more small talk and general chat before the business starts. Meetings may appear to be unstructured as they may not always have a formal agenda. Meetings will probably run until a conclusion is reached rather than a time (unless unavoidable). If you have Irish people on your team, it is not uncommon for the customer to find some kind of personal connection – e.g. from same part of country, being related (however distantly), shared sporting interest and, most likely, identifying shared business contacts. Do not underestimate this relaxed approach. Irish business people have been successful globally and will be professional in making any decisions.
  • 9. The Ultimate Guide to Doing Business in Europe Page 8 of 25© MavenTM, 2015 Germany Introduction Germany is Europe's largest economy and one of the leading countries in the European Union. It is a mature market, with plenty of scope for overseas companies to be successful, but only if they have a strong offering and understand the unique challenges of the market. As one of the world’s leading exporters, Germany has an international outlook, and English is widely spoken, but its businesses have a very different approach to their UK or US counterparts, so approach this market with an open mind and no preconceptions. Doing business in Germany Germans like to approach business in an orderly manner with an emphasis on clarity, method and procedure and will respond to rational arguments. German business culture can tend towards being conservative. While this may make initial approaches difficult, it does mean that once you are doing business with them they are unlikely to suddenly change suppliers. The German market is risk-averse. Germany is not known as an early adopter market and it is important that you can provide evidence that your offering is proven in other markets and with other customers In Germany, facts and proof must be available to back up any claims you make about your product or services. German purchasers have an expectation for reliability. You must provide evidence to make them comfortable about the reliability of your company and/or offering. Punctuality is highly valued. Being late is generally unacceptable. You must also be punctual in any follow up actions, payments and promised deliveries. Germans can be regarded as price-sensitive, but this does not necessarily mean they just want low cost. They are looking for value for money – so it also relies on you showing how you can show you meet their required levels of things such as quality, certification and after-sales support German contracts tend to be very detailed so your standard contracts may not be acceptable. Agreeing this may seem like hard work but it will remove ambiguity and correctly set expectation for all sides. There are a lot of industry-specific regulations, standards and practices in Germany and it is not uncommon for them to be more stringent than those in other countries. It is important that you research these properly before doing business there in case you need to change your product to be compliant with these or can make a decision that is not worth entering the market at all. Compliance with any rules and regulations is taken very seriously and all German customers and partners in Germany will expect you to also take them seriously. Germans have become used to high levels of service so it is crucial that you do all you can to prove you are committed to the German market for the long term. Simple ways you can do this is to have a German version of your website and all sales collateral, as well as people capable of continuing the engagement with the customer in German. To do business in Germany, you need to have a German phone number that must be displayed on calls – you cannot call to prospects from “private numbers”.
  • 10. The Ultimate Guide to Doing Business in Europe Page 9 of 25© MavenTM, 2015 Germany is very strong on data protection and personal privacy. This is illustrated by its strict approach to marketing email. Unsolicited marketing emails are illegal as they are seen as an invasion of privacy. All emails – including the first one – need prior consent. Double opt-in can be used to provide clarity. If considering email marketing in Germany use local experts who can guide you. It is not uncommon for people to refuse to supply email addresses when asked in a phone conversation and some may ask you to send them a physical letter. There are various legal requirements relating to the information that needs to be shown on websites aimed at the German market. The key one is the need for an impressum – a section on the website that provides contact numbers and other details and these should be local. Take professional advice to make sure you comply. Germans love detail. In other counties you may be used to providing only summary or overview information until further into the sales cycle, but in Germany providing detailed documentation in advance (for example when setting up a meeting) helps provide reassurance and is seen as important. It will also give your contact more ammunition to get others to agree to meet you. While many professionals in Germany are on LinkedIn, many more are on Xing – a German based professional social network (www.xing.com/en). Add Xing to your Social Marketing efforts in Germany. Academic qualifications and titles are highly respected in Germany. If someone is shown with a title make sure you address then with that title – particularly on the first interaction with them. Trade fairs are still important in Germany and these remain a good source of business introductions. Translation can be a real issue. The nature of the German language results in many choices for translation and there are subtle variations in language throughout Germany, becoming more formal as you go closer to centers of business. Professional, in country, translation is vital. If possible, use a translator in the same region as your main customers and/or markets. When translating documents and websites (and even technology products), remember German can take up to 30% more space than English so it may not neatly work with existing designs. Meetings in Germany Do not assume that all Germans speak good English. Many business people have a better grasp of English than consumers, but will not always wish to or feel comfortable with conducting a business meeting in English. Check this in advance. Germans don’t like to waste time and tend to only agree to meetings with a well-defined purpose that they feel they can see value in. As a result it can seem a lot of effort to get that first meeting, but on the positive side, a meeting typically means that the prospect is seriously interested in what you have to offer. Meetings in Germany start and finish promptly on schedule and will follow an agenda. This agenda must be circulated to all attendees in advance. If the customer is setting the agenda, ask for a copy beforehand. Also confirm what they expect out of the meeting and who the other attendees will be. It is acceptable to ask your contact who else will be involved in the decision making process and when they will become involved. German business tends to be co-operative largely as a result of internal structures and practices. Therefore during any negotiations they will strive to reach an outcome that meets the needs of all involved.
  • 11. The Ultimate Guide to Doing Business in Europe Page 10 of 25© MavenTM, 2015 German businesses – especially larger ones – place an emphasis on consensus so there may be attendees representing other departments and groups that you may not expect. Before the meeting try and identify their likely needs and expectations so you can make sure you have the right people on your side to address any issues these people may have. If not represented at any meetings, you should expect to encounter the works council during negotiations, particularly if you are selling technology. They exist in every company and have a legal right to participate in various areas of the business. They are there to ensure worker’s rights are not compromised – especially in areas such as security and privacy. Make sure you address any concerns they may have and try to emphasize benefits to staff and address any fears about privacy. Germans are keen to get down to business so there is generally little time for small talk. Make sure any presentations are factual and direct. Use clear and logical language. Do not assume you can reuse a presentation that has worked in other countries, without tailoring it to suit the German way of doing business. Your prospect’s key aim will be to understand how your offering can solve the business problem they are facing. Ask questions as you go along to make sure you understand their position and be prepared to go “off script” to go into relevant detail as required. Use these meetings to see if your customer feels that your product or service needs to be changed in some way to work in the German market. Don’t take “this will not work in Germany” as a final position but ask what you need to do to make it work. Germans are direct, and they will expect you to be the same. Don’t be afraid to ask questions before and during the meeting. They expect it. In Germany, it is essential that you back up any claims with facts. Any evidence you give will be checked. Having only US-based evidence (such as market data) will not necessarily be accepted as having the same value as it would in the US, although it may be possible to present it to prove your reliability and reputation. If you don’t know the answer to a query, admit it and promise to get back with a response quickly. To do otherwise could damage your credibility and in a risk-adverse culture this could raise some concerns. If you are selling a product bring samples so the customers can see for themselves and judge the quality. If you are selling technology either do a live demo during the meeting (check this is possible and/or appropriate) or offer access to online demos. Try and get time to set up the demo before the meeting starts. Time towards the end of a meeting will be spent on defining and agreeing next steps. If there are target dates agreed it is essential that you meet them within the deadline. Use this part of the meeting to see how far along the process you now are and what you need to get them to the next stage. Don’t forget to follow-up. An email no later than 2 working days later detailing agreed next steps.
  • 12. The Ultimate Guide to Doing Business in Europe Page 11 of 25© MavenTM, 2015 France Introduction France is Europe’s second largest economy and the fifth largest in the world. It has a strong and distinctive culture and it influences the way business is conducted. France is very different to English-speaking markets and seen as very much the opposite of US business culture. Don’t forget that France is a large country and it would be a mistake to assume that culture and business is the same across the country. The culture around Paris could be more formal than in other regions. Doing business in France Sales cycles can be longer than normal as French companies tend to favor extensive due diligence when assessing new suppliers. As an overseas company, especially if you are new to the market, this process can take some time. To succeed you must bring something new and distinctive to the market as companies are not likely to change supplier of something they already source from someone else. French people tend to keep their personal and professional lives separate. A business relationship does not equal a friendship. It is not acceptable or appropriate to ask your contact about their family as is common in countries such as US or UK. Asking about their business and plans is a suitable alternative. Relationship-building is crucial in French business; it takes time and regular personal contact to build up confidence and trust. It is important to build trust with the customer based on your company, its offerings and how you keep your promises. You should always address French businesspeople as Monsieur or Madame (followed by their surname) unless and until told otherwise. This may take some time, if it happens at all, because it will be several months of regular contact before you can expect to be on first name terms (but do not assume this will happen). French organizations are typically organized with a hierarchical, top-down management structure. The hierarchies are clearly defined with leaders at each level with clear responsibilities. Work through the structure, building relationships as you go. Make sure you understand the level of authority and sign off at each level to help focus your efforts at identifying and working with contacts at the level with appropriate sign off. Techniques that work in other markets may not work in France. E.g. The French are not very receptive to being prospected and cold calling is less acceptable and therefore less likely to be successful. Do not call before 10:00am or between midday and 2:00pm. Having the right personal contacts is essential to doing business in France. An introduction from a valued contact is more likely to be successful than unsolicited calling. Many of France’s senior business people are graduates of the Grandes Écoles – France’s equivalent to the Ivy League colleges. Such contacts are very valuable as they carry a lot of credibility and value. If looking for a local consultant or partner, try and find one with this background as it will significantly help your chances of success.
  • 13. The Ultimate Guide to Doing Business in Europe Page 12 of 25© MavenTM, 2015 French business people attach a lot of importance to networking with colleagues and as an outsider this will present some difficulties, so it is important to work with a well-connected local partner. If you are planning to work in the French market for the long term make sure you recruit a fluent French speaker or find a strong local partner. This will be well received by your customers. As your business in France grows you should seriously consider employing staff in country. This will further enhance your reputation as it shows a firm commitment to the market. Holidays – both public and private are very important and it is worth considering these when planning a business trip. Avoid May if possible as there are a number of public holidays then and people often take private holidays around these dates. All employees are legally entitled to 25 days leave a year with August a popular month for private holidays. Avoid August for business activity. French reference sites are very important if you are selling to large organizations. If you don’t have any in France, try and find a reference of similar size in the same industry. Before purchase, companies will need proof of your track record of delivering similar work – preferably in France. French companies will look favorably if you can show Innovation, a focus on Research & Development and an entrepreneurial approach. Companies that are flexible and can offer custom solutions will also be well prepared. Do not compete on price alone as it could be seen as an overseas company undermining the market and French companies. A good price as part of an overall package with a strong product offering will be seen as very attractive and acceptable as you are proving value for money. Meetings in France You should be on time for business meetings in France, but do not expect your customer contacts to be as punctual! Meetings in France are typically longer than in other countries as they are often unstructured with several stakeholders all requiring that all their points are dealt with appropriately before they can move to the best stage. As a result it is likely that meetings will run over the allotted time. When scheduling meetings, allocate more time rather than less and do not be tempted to squeeze lots of meetings in one day. Your first meeting in France might not be directly be about your product or service, but could be about general industry issues or the prospects specific challenges. French people like to start talking business quickly, so do not be surprised if there is no small talk. As physical appearance is very important in France your body language and dress style will be noticed by your customers. You may find yourself involved in lively discussions during meetings as the French are used to handling different opinions and so your audience will not be shy in challenging you and expect you to respond. This firs with the French tradition of rhetoric and debate. Look on this as a business rite of passage! Provide proof points. Just quoting a reference customer name will not be very well received, you need to show how you helped that business achieve real improvements. Back up all claims you make with proven facts – avoid vague claims.
  • 14. The Ultimate Guide to Doing Business in Europe Page 13 of 25© MavenTM, 2015 Make sure that all your customer facing staff can clearly and consistently explain your value proposition and USPs. Your presentation could generate lots of questions, but alternatively you could find that the audience is very quiet. This does not necessarily mean that they are disengaged but they are carefully considering your content. Do not take silence as an indication of no interest. Make sure you clarify where you are in the process before the end of the meeting. Come prepared with key questions you need answered. If your meeting starts mid or late morning, there will be a good chance that your customer will suggest going for lunch. If this is the case, accept the invitation as it will extend the meeting and is still part of the overall presentation and pitch. Lunch is still business, even if wine is served. There is no set etiquette for who pays. In Paris you could be invited to breakfast meetings but these are less common outside of Paris. While it may be possible to conduct some meetings in English do not assume this. The French are proud of their language and there is much legislation to protect it. If you are not a fluent French speaker, being seen to attempt the language will be well received. Ask in advance, if the meeting will be conducted in French or English. If it is in French make sure you have fluent French speakers in your party. It is vital that all marketing materials and presentation slides should be professionally translated. Canadian French is typically not acceptable in the long term but should be acceptable for meetings. They will appreciate the gesture of speaking in French.
  • 15. The Ultimate Guide to Doing Business in Europe Page 14 of 25© MavenTM, 2015 Nordics Introduction The Nordic region consist of Sweden, Denmark, Norway and Finland. Although autonomous countries with different languages and currencies, they are often treated as one bloc for business planning. Finland, Denmark and Sweden are members of the EU, but only Finland uses the Euro. Norway is not an EU member but it tends to shape its legislation to match the EU. The Nordic countries are affluent and very open to innovation and technology. Many technology companies have tested new products in the region because it is so open to new technology, so this is a very fertile market for technology companies. Business Conditions in the Nordic countries are among the best in the world. All countries have close similarities in demand, consumption patterns and business cultures. Nordic customers are known for their reliability, so if you form a partnership with a local company, it will probably last for several years. Doing business in the Nordics English is widely spoken – particularly in a B2B context but if dealing with consumers, local language should be used. The Danish, Norwegian and Swedish languages are similar enough to allow people to communicate with people in the other countries using their own language. Swedish is also one of the official languages in Finland. However, for a long-term business relationship it is key that you plan for local language capability. Nordic business people make a clear separation between personal and professional relations. Nordic people put rules before relations and are not really interested in getting to know you on a personal level. However, do not confuse a personal coldness with a lack of interest in working with you. Nordic people prefer to get straight to the point so pre-meeting small talk is unlikely. Therefore it is important that you are direct and honest in all communications as your customers will be to you. In the Nordic business world, Trust, honesty and commitment are valued and key to building long- term relationships. The market in this region (particularly in Sweden) are willing to pay premium prices for premium products, but they need proof of quality in your brand and products. Reflect this quality in your marketing materials. Make sure you follow-up meetings swiftly and do everything you committed to at the time. Although the four countries are broadly similar, they do have their own distinct cultures. Make sure you research and understand these differences in detail before entering the markets. Work with any local partners to help in this understanding. Nordic culture places great emphasis on structure, planning and being focused on goals. Therefore make sure you are well prepared and have a structured approach to doing business. Meetings in the Nordics Typical business meetings in the Nordics are very structured. To help them be successful, try and agree a clear agenda in advance.
  • 16. The Ultimate Guide to Doing Business in Europe Page 15 of 25© MavenTM, 2015 Let the buyer set the pace of the meeting – do not try and drive it yourself. Norwegians do not like ostentatiousness. Do your preparation before every meeting and always agree, and keep to an agenda. Listen carefully to what the customer has to say and ask questions. Always agree next steps before the end of the meeting. It is important to show that you have listened carefully to the customer challenges and issues and clearly show how you can solve these problems. Use soft selling techniques and do not over promise. Always use facts and figures to back up your proposition. Nordic people make decisions based on facts – not “gut feeling”. Interrupting during a presentation is considered rude so your audience will wait until you have finished to ask questions. It is important to stick to the script and be able to back up anything you say. In the Nordics informal business dress is very common across all industry sectors, so it will be difficult to tell who is senior in the room based on what they are wearing. Bear in mind that the worst dressed person in the room could be the CEO! Equality is a common thread throughout Nordic society and is reflected in the business environment where there are no stringent hierarchies. Everyone is treated equally regardless of their position. Summer vacations are important in this region and not much business is conducted during July & August so avoid planning trips at this time. Countries in this region also enjoy very generous maternity and paternity leave of up to 12 months in many cases, so if you hear that one of your contacts, or their partner, is expecting a child, try and find out (as subtly as possible) if and when they will be taking their leave as they may be out of the picture for some time. Make sure your marketing communications are up to date, consistent and high quality. During contract negotiations, your customer will typically tell you what they expect from you and your offering so prepare to be very specific. Do not commit to the unachievable and be prepared to say “No” when appropriate - no-one will be offended. Nordic people like to get straight to the point. They will openly offer feedback during negotiations. Business gifts are not common so in order to avoid embarrassment only offer inexpensive gifts. Food for the meeting is acceptable. Nordic businesses prefer written contracts. These are considered binding. It would be considered unprofessional or even dishonest if the terms of the contract are not completely fulfilled. So, during negotiations do not agree to anything unless you are absolutely certain it can be delivered. Consensus is a very important concept in Nordic business so expect a consultative approach to negotiation which includes everyone’s opinions and leads to an open debate of ideas.
  • 17. The Ultimate Guide to Doing Business in Europe Page 16 of 25© MavenTM, 2015 Benelux Introduction Benelux is a grouping of the neighboring countries of Belgium, the Netherlands and Luxembourg. They are three very separate countries with distinctive cultural and regional differences but together make up a small but prosperous and stable market. The Benelux grouping pre-dates the European Union. English is widely spoken in business circles, so it is easier for overseas countries to sell into these countries – at least initially. Companies in the Benelux region tend to make quick decisions and follow up quickly. As a result you will have to be prepared to respond quickly to any interest. Companies in The Netherlands and Belgium are very open to being approached by international companies and will be willing to meet to discuss possible partnerships or sales. Benelux is a competitive market so to be successful you must really focus on your USPs. Don’t focus on “me-too” features. –There are seven official languages across the three countries but do not panic – English has become the de-facto language of business but do not assume this. Check in advance. Belgium Belgium is a federal country with three different regions: Flanders in the north, Wallonia in the south and Brussels-Capital-Region. Belgium has three official languages: Dutch (spoken in Flanders) French (spoken in Wallonia) and German (spoken mostly in the East). Much of Brussels is French speaking, but as the home of the European Union and many other bodies that widely use English, English has become common in a business context. Ask about the people you will meet and what language they speak to prevent inadvertently offending someone. For example, someone from Flanders may not appreciate being addressed in French. To avoid any issues, speak English and have a translator if necessary (if you have discovered this is needed beforehand). Make sure you translate any marketing materials that you leave behind. Business culture varies across the region. Take your cue from your hosts as to the formality and style of the meeting. Third-party introductions are not as important in Belgium as they are in other European countries they can still help open doors. Business culture does vary across the various regions of Belgium: In Flanders, businesses usually have flat organizational structures that are based on consensus. However, Walloon businesses tend to have more formal hierarchical structures with top-down leadership. They place a lot of importance to rules, procedures, job titles and rank. Address Flemish and German speakers, as ‘Mr’, ‘Mrs’, ‘Ms’ or ‘Miss’ followed by their surname. Address French-speaking Belgians, as ‘Monsieur’, ‘Madame’, or ‘Mademoiselle’ by their surname. In Belgium, the first meeting tends to be less focused on business and more focused on getting to know each other and developing trust before developing the business relationship. Make sure you are punctual for meetings in Belgium. Call ahead if you are delayed or think you will be. Belgians have a reputation for compromise and negotiation.
  • 18. The Ultimate Guide to Doing Business in Europe Page 17 of 25© MavenTM, 2015 The Belgian style lends itself more to subtlety rather than directness. Being well dressed for business meetings will make a good impression with your hosts. In meetings, Belgians will look favorably on a ‘storytelling’ approach with clear facts and figures rather than a traditional slide driven presentation. The use of high-quality graphics and marketing material with well-presented detail will appreciated and help build your credibility. Make sure your materials are of the highest-possible quality. The Netherlands The Netherlands has almost 60% of the population of the Benelux region and according to EU statistics almost 90% of the population speak English. You will therefore find that English is acceptable in a B2B context but you will need to have local language when dealing with consumers. Sometimes The Netherlands is referred to as Holland and some people think these are interchangeable terms. However Holland is the name of just one region of The Netherlands that happens to include major cities such as Amsterdam and The Hague. Some people, (especially those from outside the region) may be offended if you call the country Holland. Always refer to it as The Netherlands. You may be surprised at the directness of the Dutch people. They tend to give straight ‘yes’ and ‘no’ answers and can appear confrontational in negotiations and initial contact. This directness can work in your favor as you will quickly know if they are interested. Similarly, if they are not interested you will also be told quickly during the meeting. Your first meeting with a Dutch customer will probably involve just one or two people. Getting this first meeting may be difficult unless you can demonstrate there is a clear purpose to it and what you have to offer is of use to them. The Dutch do not like to waste time and prefer to plan their time well. The Dutch business approach is to gain consensus internally so you may find having to wait a long time to receive any follow up. Do not use meetings just for general market research. You could damage your relationship with your customer unless you can show that they will gain something from the meeting. Dutch people prefer to have a clear objective for all meetings in advance so agree an agenda in advance. The Dutch like to quickly get down to business in meetings so there will be very little small talk at the start of a meeting. Do not use PowerPoint unless you are talking to a large group because it limits the discussion. Discussion is valued in Dutch culture. During the presentation expect people to openly give their opinions. Dutch people regard lateness as a symptom of unreliability so make sure you are on time for meetings. Call ahead if you are going to be late. Avoid emotional arguments and unsubstantiated claims as the Dutch are mainly interested in facts. Make sure you can support any claim you make with verifiable data. Your audience will react favorably if you can provide proof that your offering can save them money. Always focus on what you can do for the customer. You will be taken at your word and expected to deliver on your promises within the agreed timeframe.
  • 19. The Ultimate Guide to Doing Business in Europe Page 18 of 25© MavenTM, 2015 Luxembourg Luxembourg is a small country with a population of under 600,000 who generally protect their privacy. French and German are the two official languages but most of the population speak Luxembourgish. English is spoken by 66% of the population so is acceptable in most business contexts. Luxembourg is favored by financial service firms and those that provide supporting services as a strong place to do business. Personal relationships are important in business but can take time to develop but business and private lives are kept separate. Luxembourg society is very hierarchical so those that have attained rank and position expect to be shown appropriate respect. Be Patient! Impatience may prevent you being successful. Although they can be direct, people in Luxembourg typically show tact and diplomacy communicating with you and would therefore expect you to do the same. Punctuality in business meetings is important in Luxembourg. Your customer will be on time so you must also be on time. Business culture is to get down to business very quickly. As a result, meetings tend to be brief, with little small talk.
  • 20. The Ultimate Guide to Doing Business in Europe Page 19 of 25© MavenTM, 2015 Switzerland Introduction One of the world’s most competitive economies, Switzerland is home to several Fortune 50 companies, major multinationals and prominent NGOs. Switzerland as a reputation for being open to doing business with overseas companies. It has also proven to be a good market for new technologies. Switzerland has four official languages - German, French, Italian and Romansch. English will be widely understood in most business circles. Doing Business in Switzerland Swiss business people are typically persuaded by details, facts and figures. Make sure you provide plenty of factual information to back up your claims. Try and avoid overt sales or marketing based messaging and focus on technical detail to help your audience evaluate your offering and come to an informed decision. You will be expected to deliver on any promises you make. Business culture can be seen as conservative and it may seem difficult to make progress as decisions may take some time. This is because Swiss companies tend to think in the medium and long term and will be looking for a long lasting relationship with you. They tend not to drop suppliers for short term gain. Punctuality is very important in Switzerland and you will be expected to be on time for both business and social appointments. Ideally try and arrive 5 minutes early – even earlier will impress. Being late will cause offence so ring ahead if you are held up. When first addressing someone, use their professional title such as Dr. Only use their first name if invited to. - In German-speaking Switzerland, address men as Herr for a man and women as Frau. - In French-speaking areas, use Monsieur and Madame. - In Italian-speaking areas, use Signore and Signora. Generally speaking, Switzerland is seen as an early adopter market with a focus on innovation. As a result, Swiss companies are willing to try new products or services if they are confident they can deliver real value to them. Cost is not really an issue in Switzerland with customers unlikely to focus on price. Value for money and a clear and unambiguous statement of what will be delivered are of more importance. You will be expected to at least meet and ideally exceed the terms of your agreement and continually deliver. Negotiations are seen as being between companies rather than between people. This gives you the flexibility to involve other people in the discussions without causing an issue with your customer. Although likely to be early adopters, Swiss companies tend to be risk-averse. This means they will spend a lot of time and effort checking out your business and how you operate. Expect a lot of communication with them before a deal is finalized.
  • 21. The Ultimate Guide to Doing Business in Europe Page 20 of 25© MavenTM, 2015 Many business customers will want to visit your facilities or offices as part of a risk assessment or full due diligence process. They could also request to talk to existing customers and they will appreciate it if you can help make this happen as they will see it as proof of your openness in business. Meetings in Switzerland Some aspects of business culture could vary, based on region. Swiss-Germans will typically be direct and want to get down to business immediately, but Swiss-French or Swiss-Italians will probably start the meeting with small talk. Unlike many other European countries, the Swiss still expect to exchange business cards, so don’t forget them. Swiss society places a great deal of importance on rank and seniority and this is reflected in business. So in large meetings introduce your team in order of rank, starting with the most senior member of your team. Detailed documentation including full product specifications are seen as important. When setting up a meeting, offer to supply documentation in advance. Your customer may appreciate translated materials but check whether this is needed and if so, which language. During the presentation, be ready to answer a lot of questions in detail. Listen to what your customer needs and tailor accordingly – avoid just jumping in with a general sales pitch. Make sure that any claims are specific (how much, how many etc.) and backed up with data. Try to schedule meetings in at least one or two weeks in advance. An agenda is important and meetings will strictly follow this. As a result agendas are prepared and sent to all participants in advance. Use clear, direct and logical language and get into the detail quickly. Start with giving a brief overview of your presentation before you begin. In advance of the meeting provide the names, titles and responsibilities of all people in your team so your customer understands exactly who they will be meeting with.
  • 22. The Ultimate Guide to Doing Business in Europe Page 21 of 25© MavenTM, 2015 Italy Introduction Italy is a strong manufacturing economy with a reputation for design. Italian firms are always looking for ways to become more efficient and grow to help maintain their place in global markets. If you have a strong offering that can do this, backed up with good customer service, then you have a good chance of being successful. You are less likely to find fluent English speakers in business but this should not be regarded as a problem. Surveys have shown that only about a third of the population are confident to have a conversation in English. Business in Italy can be quite formal. Doing Business in Italy Do not use first names with someone you have never met before. These are used once the relationship is more established. Use formal greetings such as ‘Buongiorno’ (good day) or ‘salve’, followed by either Signor for a man or Signora for a woman followed by their surname. Do not use Ciao as this is seen as informal and is more suitable when just using someone’s first name. Personal, third party introductions are very important to doing business in Italy. Italians prefer to meet you face-to-face contact rather than phone calls or email. Try as spend as much time as possible meeting in person as it will make it easier to build relationships. As they are known as a stylish people, Italians will pay attention to how you are dressed and also how you conduct yourself. Unlike other countries a lot of emphasis in the negotiations will be on you as a person rather than purely on your offering. Keep to you word. If you promise to do something but do not deliver on this, you could damage the business relationship in some way. Working hours in Italy can vary depending on the specific industry and where they are based. There are 12 standard public holidays in Italy. As in other countries, people often take extra holiday around these to create an extended break. Check with your contacts before you try and organize travel. August is the main time for holidays and many offices will be closed for at least two weeks. Try and avoid arranging meetings during the summer period. Italy is unique among larger countries in having an economy largely made up of SMEs. Many of these are still family owned and so they are likely to have built up good working relationships over a number of years with their existing suppliers. As a result you need to have a strong argument if you are going to replace their existing suppliers. You will need to be able to demonstrate success with strong customer references – ideally in Italy or other parts of Europe. Italians may need persuading about your ability to provide quality customer support given the distances and time zone differences involved. It is important to build trust between you and the customer. You will need to invest time in making this happen by regularly communicating with them. This helps them fell that you represent a reliable
  • 23. The Ultimate Guide to Doing Business in Europe Page 22 of 25© MavenTM, 2015 and stable organization. When planning to target the Italian market, bear in mind that networking is very important. Try and build contacts with people who may be in a position to influence potential customers. Meetings in Italy You are expected to prepare a proper presentation for your meeting to demonstrate your professionalism. Not to do so will go down very badly. You will be expected to “put on a show” with high quality supporting materials. Don’t start with a hard sell. Show you have done your homework and understand the company and how your products or services can explicitly address the issues they face. Typically your first meeting will be with a mid-level person who probably doesn’t have authority to make a decision. Their role is to report back to their managers. There is likely to be a second meeting at this level and then it will be discussed internally. It is therefore important you impress your contact and give them all the information they need to accurately represent you at these internal discussions. Don’t expect meetings to result in any decision as the main purpose is to provide a forum where everyone can have their say. Italians enjoy talking and debating an issue at length. These discussions may therefore be diverted into other areas and can go on for some time. Be warned. The more Italians in the room, the longer the meeting is likely to be. Italians enjoy robust debate and it is common to interrupt someone when speaking. This demonstrates that everyone is interested and paying attention. Therefore make sure you plan your presentation to have the most important information towards the beginning. You may not get to the end! Aim for a presentation of between 15 and 20 minutes. Ask in advance who will be present at the meeting, their role and any specific agendas or interests you need to be aware of. E.g. If someone will be there who likes to ask detailed, technical questions, having a technical resource on your side can shorten the selling process and add detail to the discussions. Being able to have a technical discussion will add credibility to your offering, invite more detailed feedback from the customer and help you drill down to the details of what the customer is looking for. Because of the variation in levels of spoken English (especially amongst older people) try to have an Italian company representative or partner present. If this is not possible, you may want to consider an interpreter although this may not be necessary. Check with your contact in advance. If the meeting is conducted in English, speak in short, simple sentences and avoid jargon or slang. Also check regularly they have understood what you have said. Ask in advance if they would like copies of slides in Italian as well as English. This will help them follow the presentation. Setting an agenda in advance will mean that both sides know what to expect. However, some may see the agenda as a starting point and not necessarily a strict timeline. If you front-load your presentation with the important facts, prepare back-up slides to help explain complex of difficult subjects. You will be expected to drive the meeting but to do it in a way that encourages full interaction and participation. Don’t rush to close the deal too quickly as this process may take some time. Before you leave make sure you have agreed next steps with timescales and ideally agreed dates for the next meeting. Don’t rely on the customer to do this.
  • 24. The Ultimate Guide to Doing Business in Europe Page 23 of 25© MavenTM, 2015 Try to ensure you have translated marketing materials and invoices. People will like to feel a connection with the people they are dealing with. If you are selling something intangible like software, rather than something they can touch and feel, this is even more important.
  • 25. The Ultimate Guide to Doing Business in Europe Page 24 of 25© MavenTM, 2015 Spain Introduction Strong economic, historic and cultural ties make Spain a gateway both to North Africa and Latin America so success with Spanish companies could open up these markets. Customer care is very important, so strong account management activities, well as personal contacts, and regular face-to-face meetings are all critical. The market is typically much more focused on price rather than quality. As price will almost always be a deciding factor, make sure you have a strong business case. Buyers may ask for the price before they have gone into the details of the product. High quality (and therefore higher priced) B2B products are difficult to sell unless you are demonstrate and prove a good ROI. Doing Business in Spain Culturally, personal relationships are very important for conducting business, and can be very useful in introducing you to the right people. Regularly catching up in person is very important but this does not mean you have to have formal meetings. Informal meetings such as over coffee for a brief chat should be enough to maintain these relationships. Spanish companies tend to have a hierarchical management structure, so position is important. You should bring someone at a similar level to those you will be meeting. Having a local partner or internal company contact is very important to help you to get to the decision maker. These can be difficult to reach in person as there may be several layers of gatekeeper in the way. Do not assume that an e-mail will be seen by the appropriate people. Business lunches are common but are not likely to be a feature of your interactions until the relationship is established or you are towards the end of a negotiation. When invited to a business lunch, the customer will play host and suggest a time and place. Lunch is unlikely to start before 2:00pm so keep the rest of the afternoon free. Dinner is also late typically starting around 10:00pm and even later in the South of the country. Spain is made up of 17 very distinctive, autonomous regions and the population tends to be very proud of their region. Your host may therefore be keen to show you something special, or typical of their region. It would be considered rude to decline this. Traditional working hours are 9:00am to 2:00pm and then from approximately 4:00pm to 7:00pm or even later. While normal 9-5 business hours are becoming more popular – especially with larger multi-nationals – you will still find a number of Spanish businesses still keeping with the traditional work day. Peak summer holiday time is August. People are increasingly taking holidays in July and September but assume no one will be available in August. In the summer months, banks, public bodies and private sector companies may work half-days (8:00am – 2:00pm) because of the heat. Spanish companies – especially smaller, private ones are not always keen to share financial information such as turnover etc. If you need this information, for example when looking for a
  • 26. The Ultimate Guide to Doing Business in Europe Page 25 of 25© MavenTM, 2015 potential distributor, ask tactfully and avoid what many see as the aggressive and very American approach of sending out detailed pre-qualification questionnaires asking for detailed financials, references etc. Although the use and quality of spoken English in business has improved in recent years, Spanish language capability is essential in building long-term relationships. You are less likely to find widespread use of English amongst older people and in family-owned companies. Note: In addition to Spanish, some regions have specific languages and in those regions with strong regional identities it will be used as an official language alongside Spanish. In these regions you may see signage or hear people speaking in these languages so don’t get confused thinking you longer understand Spanish! Meetings in Spain A typical first meeting should last around an hour at the most and consist of a short PowerPoint presentation by both parties. This will then be followed by a general discussion to see if there are any possible grounds for doing business. Do not expect key decisions to be made at this first meeting. Once the personal connection has been made, you can expect any negotiations to comprise the exchange of proposals until agreement is reached. Before the first meeting, check whether English is acceptable or if you need a translator. Attempting to communicate in Spanish will be appreciated. There are some differences in the Spanish spoken in Spain and that spoken in Latin America. These have been likened to the differences between American English and British English so they should not prevent you from being understood - particularly if you avoid slang. There are no formal rules regarding dress code. It is best to dress conservatively for the first meeting then match the customer’s dress code in subsequent meetings. At the start of the meeting, the customer may try and find some common link between everyone present but as a rule they prefer to get down to business quickly.
  • 27. The Ultimate Guide to Doing Business in Europe Page 26 of 25© MavenTM, 2015 How MavenTM can help Confused? Hopefully this guide has not confused you but given you an insight in how business in conducted in the diverse continent of Europe. However, for a new entrant into the European market, the variations in language, culture, business approach, currency and legislation can provide a minefield of potential traps. Partnering with a reliable partner that understands this environment, will accelerate your business. MavenTM has built a reputation as a provider of flexible, cost effective and creative solutions for B2B Technology companies looking to generate leads, nurture contacts and grow in various international markets. Utilizing a range of state of the art tools, we combine traditional calling with social, content and digital marketing techniques to create a unique package designed to exceed your targets. Based in Ireland, an acknowledged center of technology and language skills, MavenTM can support all main European languages and manage campaigns across many countries. We have particular expertise in helping US companies succeed in Europe. If you are planning to develop sales in Europe, get in touch today. Tel: US: 866-861-4622 Ireland: +353 59 910 1500 Email: sales@maventm.com Web: www.maventm.com Follow us: