What is your perception of Asia? If you have never traveled to the East, I can tell you from experience that it is nothing like what you imagine.
My first trip was in January 1991 to make products. I made many mistakes, learned valuable business lessons, and made many new friends and business contacts.
My first mistake was thinking with a western mind. I lined up 3-5 appointments a day on my first trip, only to find that the East doesn’t work like the well-oiled “do it now” mentality of the West.
Traffic and transportation presented obstacles that I was not prepared for and I considered myself lucky to be able to make 2 of my appointments per day. I spent a lot of time apologizing for not being able to attend scheduled meetings. This was not a nice or comfortable thing to do.
So the first business mistake was overbooking appointments when you weren’t familiar with modes of transportation, traffic patterns, or the country’s attitude toward punctuality.
You hear stories from people (who you later find out don’t know what they were talking about) about how cheap things are to make in Asia and how you can make a fortune.
Labor is less in most of the East than it is in the West, but there are plenty of hidden costs that you run into. You have to be realistic about what things will actually cost. The biggest surprise I received was the money (next door, under the table, in cash) that had to be doled out to get things moving at the western pace I was used to.
So business mistake number two is twofold. Don’t take advice from people who have never done it and realize the days of cheap local labor and materials are fading fast. Just look at the price of oil and steel and you’ll see that unless you’re making millions of parts, the little guy has a hard time competing.
The hardest thing to handle was my own impatience. I’ve spent most of my life in Los Angeles and it’s a fast-paced, competitive and often frustrating place. (rage at the wheel is common)
Getting down to business is a common mode of operation in the West, but in the East it boils down to relationships. You must first establish rapport, a comfort level, a feeling of trust and friendship, before proceeding to the business end of your meeting. You may miss out on opportunities to work with big companies if you let your western impatience get in the way.
So business mistake number three is when you try and rush to close a deal. You will miss out on some valuable opportunities if you are in a hurry. (I really speak from experience). Slow down; be prepared for delays, multiple meetings, and slow responses to your questions. Answers will come, opportunities will arise and deals will be made as long as you are patient.
I am grateful that the business world contains the English language. I must say that worse than not speaking the language of a foreign country you are trying to do business in, would be mispronouncing the language in an attempt to appear informed and well-informed.
Travel with a first-rate interpreter and limit your conversation in a foreign language to greetings. I have addressed company executives with the wrong pronunciation, tone of voice, and inflection and paid the price. The price was not a deal or the prices were so high that they discouraged my business.
So business mistake number four is fumbling around and muttering a language you have no skills in. My suggestion is to learn simple greetings and a couple of key phrases, but unless you intend to master the language, speak slowly and carefully in your mother tongue.
Your slowness of speech will be appreciated and you will gain respect for your courtesy and shed the image of an arrogant Westerner. He smiles, but not so much that he looks silly.
Foreign countries have foreign laws and getting fined or even arrested can put a real damper on your business agenda. Simple things like crossing the street in the wrong place, ignoring a sign, or smoking in the wrong area can cost you more than just money.
Environmental issues have spread throughout the world and as a result, laws have been imposed that can hurt or embarrass you in front of an important business contact or company executive.
So business mistake number five is not being aware of local laws, social graces, or environmental policies. Review the etiquette of your destination in the East.
These five trading mistakes can be avoided with very little effort, but you have to put in the effort. If you don’t make the effort, you’ll waste a lot of time apologizing, paying fines, and trying to close a deal.
As a bonus tip, some businesses move at a faster pace than others, but still at a slower pace than you’re used to, so learn to take a chameleon approach. In other words, mimic the other person’s pace and rhythm.
