This is the fourth and final part of my tips to help your international business. This post is going to address what is the most common problem I see in international dealings- failure to understand foreign business practices.

If you have gone through the first three parts of this, how to address cultural differences, how to address language barriers, and how to address foreign regulations, you are well on your way to more successful international business.

The last part of this is critical though. You may understand another culture, be familiar with the regulations in their country, and speak clearly, now you just have to understand how to conduct business.

My first tip is to let the other person set the pace. In some countries there is an extensive process of getting to know the other person before business can even be discussed. In other countries it is important to have a coffee, in others it could be a glass of vodka.

Secondly, try to find out what is important to them, and why. In some cultures this may be discussed openly while in others it is not. One time I was working on a contract for a phone company in the Middle East. It was very important for the top management to have training in Canada for their employees, and that there would be a lot of competition for the limited spots. While I understood it was important I only found out when the students came for their class that each student who made it actually got a raise in salary for having been on the class. No wonder it was so important.

Lastly, put yourself in the other person’s shoes. The reason international business is difficult is because it is complicated and risky. Anyone wanting to pursue an international transaction is probably doing so because they cannot find what they need locally (or if they can it is very expensive). The risks must be addressed properly because they apply to both parties. If you are selling something you need to be sure you are going to get paid, and if you are buying something you need to make sure that you will receive the goods. If either party does not live up to their end of the deal, it is incredibly difficult to resolve things. Anything that you can do to reduce the other side’s concerns is important.