There are many things to think about before you sell and market your products or services in Germany. For instance, do you have a potential customer base in Germany? A product that sells well in your home country may not necessarily have the same appeal elsewhere.
The local market opportunity
- Make sure there is a need for your offering.
- Look for markets that are similar to yours. While the business environment won’t be identical to your home country, you should be familiar enough with the market for smooth business discussions.
- Take into consideration trade barriers in Germany, proximity, currency, and culture
- Seek out homogeneity â€“ the fewer differences between your country and the one you export to, the easier it will be to do business
The challenges of an international business
- No major business decision is without its hurdles, but expanding internationally comes with its own unique set of obstacles. Here are some challenges you should prepare for before going global.
- Language and cultural barriers
- You will have to understand the different ways people communicate
- Tax codes and compliance issues
- Different tax codes, business regulations and packaging standards in different countries
Pace of Business
- In America, the business world moves quickly – In Germany, doing business is as much a personal event as it is professional.
- You have to be patient and prepared for multiple interactions to build trust
- ThereÂ´s local competition. Why would [customers] buy from you over the local champion?
- Can you penetrate the market? If you do, can you be profitable under the circumstances?
The impact of trends and new ideas
- Always do your due diligence.
The right partners
- Find the right partners and team.
- If you plan on expanding globally, you’ll want a great team and partner. Even if your “partner” is in the form of a mentor, you’ll want someone you trust and who can vouch for you.
The right team
The people you hire to deal with your overseas business partners and customers must be fully immersed in the local environment but should also be looking out for your interests.