cairdeas, finance, tips, Uncategorized

Top 6 Tips for Doing Business in Asia

Doing business anywhere in the Asia Pacific region is extraordinary. Asia in general is considered relatively cheap, safe and modern. At times the challenges can be immense, but so too the rewards.

There is nothing that can compare with the excitement of concluding a successful transaction, establishing a new business, or developing a new project in any one of the jurisdictions here. One deal leads to another, relationships accumulate, and layer upon layer of knowledge and trust are developed over time.

Here are some tips for doing business in Asia:

  1. Be patient. If there is one thing you should keep in mind, when taking your business to the Asia, is to be patient. Things will not happen as quickly as you might want them to or gotten used to. Forget about closing a deal after the first or second meeting, as it might require multiple meetings to reach the desired result. In Asia, people generally want to build personal relationships and trust through face to face meetings before making any business commitments. The perception of time also differs from what you might be used to in Europe or the US, so don´t be surprised if you don´t get an immediate response to your email. Asians might not answer your questions if they do not have a definite answer. This is part of not wanting to lose face, a very common cultural trait to all of the Asian countries. Time is also viewed more as a continuation than something lost, hence the lack of urgency. In order to help the process along, you might want to give the recipient a target date for the response.
  2. Be culturally sensitive. Asia, with its many languages, religions and sub-races, is not a homogeneous market, providing new experiences in every city. So take your time learning about the culture. Arriving without any cultural awareness is viewed negatively by the local people, and most Asians expect you to have enough information about the local customs, politics and history for you to be able to act cordially, avoid the big ”no-no´s” and engage in small talk about important cultural- and historical topics. Knowing some of the local language is also important. While English is widely spoken and used in most of the Asian countries, learning some greetings and complimentary phrases will help you along.
  3. Always remember to smile and to be polite. Being known as having the best poker face in the business will not get you far in Asia, where smiling is not only a way of showing friendliness, but also a socially accepted defense mechanism used when feeling nervous or uncomfortable. Also be prepared for less eye contact than you might be used to. Avoiding eye contact, especially when talking to your superiors, is common practice, showing respect and consideration. Finally, it is important to remember not to be too casual when talking to people, unless you know them on a personal level. When in doubt, always use professional titles or surnames to avoid offending anyone.
  4. Be prepared to put in time and money. You should be prepared to spend both time and money establishing your business, as just having an amazing product won´t cut it. You will spend a lot of time working out regulations, arranging necessary government permits, look for local support services and business partners, promote your product and meet with potential clients. It is all about getting the right contacts. Try communicating reasonable time management- and financial goals to your stake holders, in order to avoid failing expectations.
  5. Get a local partner. Sales cycles and decisions processes can be long and tiring. Having some local help might prevent you from ending up frustrated and keen on exiting the country. A local partner can advise you on the local business, political, legal and cultural system and help you with the local language. You will find that many business professionals are willing to help you for a consultation fee or commission. It is also nice to have someone local accompany you to business meetings and events. You might also want to contact a local legal firm to help you with the ins and outs of the regulations and government permits.
  6. Be adaptable and open to changing your plans. Business in Asia is extremely fluid and very frustrating, as things will often not go your way. Keep in mind that the only constant is change. If you don’t like surprises, Asia may not be the business ground for you.

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