10 Steps To Successful Business Relationships And Deals In The Asia Pacific Region
Part of doing business overseas is understanding and complying with how business is done “there”…it is not about infusing business customs learned from “here.”
Successful Global Entrepreneurs in the Asia Pacific Region adhere to codes and standards for doing business. These codes and standards are centered on networks and relationships…not around transactions.
Here are some great tips for doing business in this region:
- It’s About Relationships – Business in Asia gets done through relationship networks of various cooperating parties that support one another. It is essential to have a solid network of contacts and positive relationships with them.
- It’s About Reciprocity – Reciprocity (give and take) refers to the exchanging of favors between individuals and groups. People will presume upon those with whom they have these relationships and understand the need for returning favors.
- It’s About Protocol – Business in Asia is viewed as more relationship based, where business in the U.S. and other Western countries is viewed as transaction based. It is very useful to view business ventures as relationships first and as a venture second.
- It’s About Patience – A successful entrepreneur knows that these business relationships are built formally after the locals get to know them. Patience is key in paving the way to successful business relationships abroad.
Once the relationship is established, then steps can be taken to solidify the business deal:
- Offer a simple Memorandum of Understanding (MOU) recapping all of the points and topics you have had in conversations and meetings.
- Have potential Licensee sign a Non-Disclosure Agreement (NDA) and/or a Non-Compete Agreement (NCA).
- Start with small agreements and small projects. Test the process and make adjustments as the project progresses. The lessons learned here will be crucial for future ventures.
- It is critical to meet contacts in person even if they have a proven track record or were introduced by a trusted friend or associate.
- Designate who will be the point of contact for all parties.
- Work with a Promoter / Sales organization to license your program, product, or service.
It is very important to understand that business relationships, protocols, customs, and cultural values are different when doing business in other countries. By establishing broad networks and building solid relationships, navigating these differences is very manageable for a small business or entrepreneur.
Overlooking such protocols and attempting to force a Western culture business methodology will lead to frustration and failed business deals.
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