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Beware The Business Culture Shock, Warns Lloyds TSB Commercial Finance
MORE and more businesses in the South West are selling goods abroad - which is good news for the economy but carries with it an increased risk of cultural faux pas, according to Lloyds TSB Commercial Finance.
And James Cullen, regional director with Lloyds TSB Commercial Finance, says the situation is likely to become even more complex with ten more nations set to join the European Union as of this weekend.
"Business etiquette and seasonal practices can vary widely even between neighbouring European countries," he said.
"For example, in the UK we are used to 30 day terms, whereas a Greek company might take up to 90 days to pay. Unsuspecting UK businesses can find themselves with severe cashflow problems as a result of what might be common business practice in another culture."
The Lloyds TSB Commercial Finance International team has come up with a number of common business etiquette points to help firms who are starting to do business abroad:
There is a global view of how the UK is perceived and you will be expected to act in a certain way. Expect to talk about the weather!
Remember that different countries have different national holidays. France, for example, has four national holidays during May alone and many French businesses close down altogether for the whole of August.
Italian business people generally prefer to do business with only the most important people in any organisation, so if you have any advanced qualifications, make sure you print them on a translated business card.
In the US there is still a belief that "lunch is for wimps", so don't start looking at your watch come 1pm - and boozy lunches are definitely out.
The French, however, love to do business over lunch. It certainly won't be sandwiches in the boardroom and a glass of wine or two is to be expected.
Remember that many European countries will carry out business meetings over long lunches, so don't be surprised if there is no-one to take your call long after you have returned to your desk.
Appearance can be very important for European business people. For example, the French and Italians set a lot of store by appearing elegant and poised, so expect to be judged to a certain extent by your dress. Meanwhile the Germans are known to comment on and be impressed by very shiny shoes!
In Germany, business people address each other by their job or academic titles and surnames. By tradition, only family members and close friends or colleagues address each other by their first names, so don't be over-familiar.
A handshake is the most common form of greeting in Germany, but a man waits for a woman to extend her hand before he shakes it and if in mixed company, he shakes a woman's hand before a man's.
James Cullen concludes: "Lack of thought and preparation can lead businesses to come up against insurmountable linguistic and cultural obstacles. If you want to succeed in an overseas market, do your homework and seek professional advice."
Lloyds TSB Commercial Finance is the UK market leader in the provision of asset based lending. It currently provides funding to over 14,000 businesses nationwide and in 2003, advanced over £2 billion.
Lloyds TSB Commercial Finance is part of the Lloyds TSB Group plc.
Lloyds TSB Commercial Finance is part of the Lloyds TSB Group plc.
