have branches in other countries? Do similar types of companies exist internationally? Examining the structure of your existing partners can also mean finding out more about their competitors.
Contacting business colleagues and other expats is a very good way to get informed. A person with first-hand experience in an international market may give a personal recommendation for a potential buyer or a distributor. The recommendation against a certain customer for credit or reliability reasons may save the company a number of problems. An excellent method of networking and establishing contacts with business people, who have international experience, is attending trade shows or export seminars.
A large number of publications such as magazines or directories, which list and qualify international companies, are available. You can either find other companies there or promote your own products or services, which might generate responses. Magazines range from specialized international magazines relating to individual industries such as construction or textiles to worldwide industrial magazines covering many industries. Trade associations, business libraries and major universities may provide these publications.
Radio, television, or various forms of outdoor advertising (posters, electric signs, and billboards) may also be used for promoting products or services, as they bring an advertising message to a great number of people.
Another good tip is to join some of the international business chambers, for instance the British-American Chamber of Commerce in the UK. These chambers function much like a local chamber and offer similar networking opportunities. You can also contact foreign embassies in your home country. They have directories of firms located in their countries and can provide written information. Their commercial officers can also counsel you. Furthermore, the diplomatic service of your country abroad can help you with their commercial officers.
If your company is located in the United States, for instance, you can make use of the U.S. and Foreign Commercial Service that delivers a very valuable service. It is part of the International Trade Administration of the Department of Commerce and promotes U.S. export trade. You can meet with a trade specialist who gives you information about the best markets for your business. This is an easy, cheap, and productive way of making contact.
3 Contacting international counterparts
After identifying potential counterparts, the next step will be to contact them. The initial contact should be in writing followed by an appointment to meet in person. Although communication in writing might be hard and frustrating work, it is the best and necessary way for getting in touch with new contacts, especially those that are in foreign countries. Following some general guidelines concerning the format, language, and content will produce the right letter/mail – and hopefully get a response.
3.1 The letter format
Several significant points should be known about letter formats. Since the goal of this letter is future cooperation, it counts as the first impression. Using proper stationary with the company letterhead will make a good impression on the receiver. It is important to spell names correctly, check and double check to make sure, as people can be easily offended by mistakes with their names. The same applies to making sure the correct title of the person is written.
Also keep in mind that countries use letterheads and addresses in very different ways. First and last names can be reversed, street addresses, zip codes, provinces, cities, may all be presented in a different order than in your own country. Make sure it is written correctly so that mishaps in delivery will not take place. To avoid confusion on the other side, your own name and address should be written in the format used in your own country.
3.1.1 Language
Since English is the universal language of commerce, correspondence should be in English. However, consideration might be given to including a translation into the recipient’s language. This would make the letter more “readable” should the recipient’s English not be up to par, and it might be seen as a gesture on your part to accommodate your potential partner. Furthermore, a good translation will avoid any possible misunderstanding of the content of the letter. You can find assistance for translations at certain service providers such as banks, freight forwarders, or commercial translators who are hired on a fee-basis. Other sources could be colleges or universities or even your own company’s translation department. If English is not your native language, using the help of translators on your side would be advised.
Most countries, including Europe, have a very formal and traditional tone and writing style, whereas U.S. letters are less formal. Keep in mind that when the tone and style of the writer differ greatly from those used by the recipient, an intended positive message could be received in a more negative way.
3.1.2 Content
If you would like to contact customers, an introduction letter is common. It is especially effective if it comes from a third party that knows the recipient and has some influence on him. This letter should be written as a letter of recommendation. The company should draft the letter to make sure it contains the necessary information. It usually starts with the profile of the firm, followed by reasons for contacting and finishes with the hope that an appointment for a meeting can be made. In the profile, details may be included, for example the number of employees, products, references, and in some cases C.I.F. prices in U.S. dollars at the nearest port to the recipient. If you want to include more details, particularly technical ones, do this with an attachment.
3.1.3 Reactions to your first letter
After the first letter has been sent, you should remember that failure to answer does not always mean a lack of interest. In some countries it might take a long time to receive an answer because they have a lot more problems with communication, transportation, etc. Having received an answer, it is again your turn to reply promptly, completely, and clearly, even if it is a rejection.
3.2 Making an appointment
After you have successfully introduced yourself and your company, you will start planning an appointment. Although the telecommunication revolution permits quick correspondence with business partners and enables you to stay in constant touch, as mentioned above personal contact is absolutely necessary to build a good relationship. When making appointments the following should be considered.
4 Getting prepared for the first visit
It is highly recommended to visit prospective business partners in order to make personal contacts and build trust. Like in domestic business, face-to-face meetings with partners are the best form of business contact. By traveling abroad, you can also examine the markets where you are considering selling your products, and your company can familiarize itself with the foreign culture. This might impact the design and advertising of a product. Moreover, additional new partners can be located and communication with existing business partners can be improved.
It is not uncommon for this initial trip to result in no finalized business and little chance of closing sales in the future. However, the expenses incurred for such a trip are well worth the money since further steps cannot be taken without this initial trip.
4.1 Learn about the laws and regulations
As in every country, the government influences foreign business by its own laws and regulations. It is crucial to be knowledgeable of the limitations in a country before visiting. For instance, in a centralized economy, direct contacts to companies are difficult, as the decision making is centralized. Initial contact is made via intermediaries (foreign trade organizations or foreign trade corporations) who evaluate the commercial aspects of a potential import like price, payment terms, quality, etc. Before contacting a company it is very important to find out how much authority it has.
A business trip can be turned into a major success for your company if it is well prepared. For example, general knowledge of the