Although I’ve been in the international business arena for some time, in the past I was always covered by the powerful support of FedEx Corporation. I didn’t have to worry about my travel arrangements, safety, worrying about the customer on the other side complying with procedures and policies, paying on time, legal matters, etc.... Some one else at FedEx was taking care of that. But recently I traveled to Europe to meet with my first international client. Although things are proceeding smoothly, it is taking time and I am involved in way more activities than I would have in positions past. This got me thinking about how other small businesses successfully conduct business outside of the United States. Below are some tips if you are considering doing international business for the first time. Many companies avoid doing business outside of the border because of it’s complexities. Yes, it is complex, but it can also be profitable. If you use common sense, the process (and sometimes pain) can be worth it.

Vetting your client: This is much easier to do in the United States because we have organizations, like the Better Business Bureau (BBB), who keep tabs on complaints made about certain organizations. Overseas, it’s a different story. I recommend you contact the U.S. Embassy in the country you are considering doing business. Although the Embassy will not personally vet your client, they can put you in touch with the local Chamber of Commerce or other organizations that can help.

Cultural differences in conducting business: Realize immediately that the way we do business in the U.S. may not be the way they do business overseas. Many times the process to close an account is much slower. Relationships tend to be more important in other countries than they are over here. A great book to help guide you through cultural differences is the book “Kiss, Bow, or Shake Hands.” They now have a website at www.kissbowshakehands.com.

Documentation: It’s a good practice to keep excellent records regardless of who your clients are. However, in case your client later misunderstands your agreement, you’ll have your documentation to review. It is also a good idea to keep terms and your language in the simplest manner possible.

Legal matters: Another reason to keep good documentation is in the event, Heaven forbid, you have to take legal action. Legal action for international business matters will be very different and more complex than in the United States. All the more reason to always spell out your terms clearly. One organization you can turn to is The Conflict Resolution Information Source at www.crinfo.org. They can help you get started on the right path to correcting a wrong.

The importance of flexibility: With just some of the examples I’ve given in this blog, you will learn the importance of being flexible. Your new client will be in a new time zone. Don’t expect them to always take early or late conference calls. Sometimes you will be the one getting up at 4 AM to talk to someone in their afternoon. Don’t always expect an immediate answer like you might with someone in The States. It may be a day or two before you get an answer due to their internal processes and time zone.