Doing business in Europe? Easier than you think!

For the vast majority of high-tech companies in Ireland (North & South), building a business means exporting. You need to take advantage of the larger markets on our doorstep as our home market is not big enough to sustain most companies. 

However many would-be exporters seem to think that same language is vital to success: sell into GB, Ireland, then move to the USA, Australia, New Zealand and South Africa.  This is perfectly valid but ignores the enormous potential of Continental Europe that is considerably cheaper to travel to, within two hours reach, easier to stay close to customers, and ready to invest for innovation.  Being part of the European Union also offers you a legal framework which protects your rights easily and hedge against currency risk, since 320 million people in 22 countries use the Euro.  

So have you agreed a Strategy for Europe yet? We hope not.  One strategy will just not do it.

Europe is a fantastic market for us but it’s also big, at times complex to sell into and culturally diverse, so it requires many strategies and tactics to be successful.  Selling in France - where consensus is important and decisions take place outside of meetings - is very different to selling in Italy, where individual leadership dominates.   Germany is the largest potential market at 47 times the NI population, but can be conservative when embracing new technology. Eastern European countries are still growing the fastest, so if your product can support this speed and give them a “step advantage” over their neighbours, they listen; Scandinavian countries and the Netherlands speak excellent English and are receptive to new ideas and technology.

 You should have a strategy for breaking into continental Europe but it needs to be focused with small steps and minimal risk. Top tips for successfully exporting to Europe:

1.   Research your market thoroughly:  You need to know about the fabric of the local society to assess demand (how & where do they shop, on which items do they spend their disposable income, how does the climate influence daily life), about the ranking of different channels of distribution (Portugal has still a strong network of small shops as opposed to Germany), about terms of payment .Be selective: you are not going to launch into all of Europe at once (even Microsoft started its European activities in France first, before spreading to other countries).  Take it step by step, pick your country and segment carefully and commit to it.

2.   Understand how to market and sell in your chosen country:  This means understanding the culture (how they conduct business), not the language (although a few words won’t hurt).  However, while English is now accepted as the de facto business language across Europe building a relationship will require local language skills. While English will get you in through the door and allow you to handle the first couple of meetings, a partner or employee with local language skills is essential for the longer term.

3.   Ensure you have CEO commitment: your CEO will need to spend considerable time building/cementing relationships in your target markets.  One week per month is not unusual.

4.   Get a local partner: at a minimum this should be a well-connected individual who you invite onto your local advisory team or even Board, or a strategic channel partner who will lead your selling effort. Listen to them and ensure that they are involved in setting strategy, agreeing marketing activities and, importantly, creating your product roadmap for that country.

5.   Innovate for local needs: involve your R&D team and that of your local partner where possible.  This can’t be stressed enough.  Do not let your locally based R&D assume that they know exactly what your overseas customers need – get them engaged to be confident that they do understand.

6.   Be prepared for set-backs:  They will happen and cost you more than you think and take longer than you initially plan.  Have a plan B ready. 

CASE STUDY - MARKET ENTRY INTO FRANCE:

Antrim-based company TextHelp, the worldwide leader of literacy software solutions, was ready two years ago to explore global markets after being highly successful in the UK market. We helped research potential customers and develop a market entry strategy in France for its BROWSEALOUD product, since it was one of the biggest European markets for software solutions and only 90 minutes away from Belfast International Airport.

After identifying and screening potential resellers, appointments were made for the Texthelp team to pitch within three days in Paris. As a result of this short and highly targeted action, strategic partnerships with three resellers were signed within three months.

Success in France now gives TextHelp a platform for further growth in other parts of Europe which, under European Union laws, are required to ensure high levels of web accessibility.

Doing business in Europe is easier than you think, despite the challenges we have outlined, and with 40% of EU GDP coming from a triangle with its corners at Liverpool, Berlin and Paris, it’s not that far to travel to reach a very wealthy marketplace!

Geraldine Fusciardi www.strategy-structure-sales.com 
Norbert Sagnard www.sagnard.biz

A Kiss to Foreigners

Sales people can be their own worst enemies.   We lead complicated lives juggling opportunities, contacts, events, markets, building pipelines, developing account strategies, entertaining prospects, managing long sales cycles and somewhere along the way we complicate buying decisions for our prospects.  There are many ways we do this:

·        Great-looking websites that leave the prospect asking what exactly do you do and where’s the value for me?

·        Too many product options requiring too many decisions (when people have too many choices, studies have shown that they typically buy less);

·        Unable to explain simply what your product’s value is (go on, try right now to explain it clearly in a couple of sentences);

·        Bombarding prospects with too much information and not showing enough value (contributing to paralysis by analysis and, given that your biggest competitor is likely to be the status quo, this is a very dangerous approach to take);

·        Not differentiating what information is required at different times in the sales cycle.

When we export products and services, our opportunity to complicate gets even greater:

• Not communicating in the right language (as Germany's former chancellor Kohl once said: "If I'm selling to you, I speak your language. If I'm buying, dann muessen Sie Deutsch sprechen.”)
• Assuming that the sales approach will be the same in different countries (when selling in Italy, strong individual relationships built while socialising are very important, in Denmark consensus is key and socialising is not so critical);

·        Using jargon that is not consistently understood across all of Europe – have it checked or avoid it!

The products you are selling abroad may be technically complex but it is your job to ‘keep it simple and stupid’ (KISS) for your prospects – simple for them to understand, simple for them to perceive the value, simple for them to buy.  If you don’t simplify the decision-making for your prospects in a language they understand and a manner they’re used to, they will either not make a decision or they will simplify the process themselves, coming to a decision that may make you lose that opportunity.

Geraldine Fusciardi

www.strategy-structure-sales.com