10 things that US businesses need to be aware of when developing business in Europe

Use international english

English is the most widely spoken language in business transactions. In most international negotiations, the standard is "international English". It's just a simplified language and easy to understand. Avoid idioms, local idioms, and complex sentence structures. To avoid misunderstandings, it's also helpful to restate important points in several different ways to ensure that everyone understands.

Working with an interpreter

If your partner doesn't speak English well, they may choose to use an interpreter. When using an interpreter, make sure not to look at the interpreter while speaking, but to look directly at the other party in the negotiation. If you talk to an interpreter, it may indicate a lack of respect.

Break the ice

At the beginning of the negotiation, it is helpful to know each other a little bit to break the deadlock and build a relationship. Famous local attractions, sports events or festivals are good topics to discuss. Sharing experiences of any kind will be very helpful. Always avoid topics such as politics and religion, and avoid making any negative or judgmental statements about your position or culture. Humor can be dangerous because sometimes humor translation is not effective in different cultures.

Deal with people properly

In some countries, such as the Netherlands and Germany, people using academic titles are important. For example, in those countries, a person with a PhD should be called a PhD. Americans are usually more casual and familiar, and Brits are inclined in this direction. If you want to introduce a man and a woman, politely ask the woman to initiate a handshake.

Social with business

Americans tend to separate business activities from social activities. Negotiations are held in conference rooms, and social events take place at different times and places. British and Scandinavian negotiators use the same approach. However, some other cultures (especially French) treat negotiation and social activities as part of the same ritual process. If working in France, discussions can continue with lunch in a good restaurant, while sandwiches on the negotiating table are not welcome.

Be patient

Americans think that just because they are bargaining in Spain or Italy, the deal is signed as soon as it gets there. Going abroad to negotiate does not mean that the contract is yours. If you want to succeed, be patient and flexible. You may not need to spend a few weeks hurriedly enjoying your business trip.

Long-term relationship

In some cultures, people like to negotiate long-term deals. They want to make connections for future work, so you should be open to their claims. Build relationships and let your opponents meet the people behind your company, and you have a great chance to help your business thrive.

Learn about Europe before the meeting

If you are traveling to Europe for business purposes, you must know at least some basics of the continent. Learn more about countries, major cities and cultures just to have the courage to break the deadlock and don't feel embarrassed when your opponent asks you where France is on the map.

Respect

Europeans are not like Americans. They are more creative, patient and calm. Enter into negotiations with clear goals. Respect your opponents, make concessions, and find ways to reach a common position. Respect you even if you can't reach an agreement and want to leave.

Foreign investors interested in doing business in Europe can contact our local advisory team who can successfully assist them with the company registration process.

For more information about

Netherlands Company Formation

Germany Company Formation