Doing Business in other countries – Emerging Market Handbook.

I have a professional life that is defined by my perseverance, my ability to spot opportunities that others may miss, and my love for travel. Throughout my adventures, I have built a diverse portfolio that reflects the cities I have visited. My entrepreneurial journey has been full of challenges and obstacles, but I have persevered.

Having experienced the chaotic bazaars of Mumbai and the ultra-modern skyscrapers of Singapore, I have learned that success in international business requires more than just expertise in your field. It is equally important to understand the local environment and culture.

FYI: I have incorporated both nonprofit and for-profit businesses in 65 countries, and I have the life lessons, inspiring stories, and scars to prove it.

 The Gospel According to an International Business Voyager

So, let’s break bread, gather ’round the metaphorical fireside, and share my hard-earned mantras, each a gem polished by mistakes and triumphs.

1. Cultural Nuances

Firstly, don’t just tip-toe—dance full-throttle into the cultural norms, taboos, and values. In Japan, for example, business cards are exchanged with a specific etiquette that communicates respect. On the other hand, in Brazil, the relational aspect, the chit-chat and coffee, is almost as crucial as the business proposal itself.

2. Legal Latticework

The intricacies of international law! LLC, PLC, or perhaps a GmbH if you’re in Germany? Understanding the legal structure is like having a roadmap in a labyrinth. Tax implications, intellectual property rights, labor laws—these are not mere footnotes; they are chapters in your business playbook.

3. The Local Business Cadence

Do people operate on “Island Time” or are they strict adherents to the punctuality gospel? This will influence everything from your meeting schedules to contract execution timelines. Adapt or be left behind.

4. Preparedness for the F-Word: Failure

Now let’s talk about the elephant in the room. Failure isn’t just an option; sometimes, it’s an inevitability. Are you prepared, both emotionally and financially, to walk away and start anew? The phoenix of success often rises from the ashes of failure.

5. Know Your Allies and Rivals

In the Game of Thrones that is international business, alliances can make or break you. Who are the key players? What partnerships could propel you forward, and what rivalries could become a thorn in your side?  Who to trust and not to trust.  Do not go down the rabbit whole of under the table payments and bribes.  I have avoided it my entire life and yes, it can cause delays but I sleep at night just fine.

6. Market Nuances

Understanding local demand is crucial. What is considered “quality entertainment” in one market may be viewed as mundane or even inappropriate in another. Tailoring your content to fit the local palate is not just smart; it’s essential. “Pride” is a very big word in all countries.  How they perceive you and people from your country is how they will greet you. Do not be a stereotype.

A Compass for the Brave

I have faced the Goliaths and have not only returned with their swords but also crafted them into plowshares for new fields. The next generation of adventurers would do well to arm themselves with my wisdom, turning pitfalls into stepping stones.

In sharing my journey, I am not just writing a chapter in the annals of business history. I am offering a playbook—a sacred text if you will—that could serve as both a mirror and a window for those daring enough to follow in Marco Polo’s footsteps.

Know your HR

The HR landscape changes its hue as frequently as a chameleon on a patchwork quilt. I have navigated through terrains as varied as the Sahara and the Amazon, each with its own set of customs, legal frameworks, and—let’s not sugarcoat it—potential pitfalls.

From “Work Books” that feel like a blend of a social security card and an employment ledger, to surprise inspections that could give reality TV a run for its money. It’s as if every country is a different episode of “Undercover Boss,” only this time you’re the boss, and, surprise, you’re not undercover.

The HR Symphony: A Multinational Composition

The human elements in each country compose different movements in this grand HR symphony. You’re not just conducting; you’re composing and sometimes, improvising!

1. Laws and Legal Jargon

One day, you’re thumbing through legalese that looks like a 19th-century treaty, and the next you’re learning local labor laws that were probably penned yesterday. The legal diversities are not for the faint of heart—or the casual reader.  Everyone will try to bend your Will. They will regale you with grandiose stories about what they expect to be given.  I have heard it all, but in Former Communist and Socialist countries, you better know the law before you talk to your first potential hire. The sheep dip can run deep.

2. The ‘Work Book’ Phenomenon

The Work Book—less like a diary, more like an employment bible. Mishandling this can be like stepping on a cultural landmine. It’s not just a ledger; it’s often a symbol of one’s professional life, deserving the utmost respect. This little book is extremely important to the individual because it is their career journey. In Socialist countries, this book was a status symbol, l and while times have changed that book’s importance has not. Tread lightly and do not lose them; you cannot imagine the amount of paperwork and people you will need to deal with if you lose someone’s workbook.

3. The Drop-In Auditors

You may be sipping your morning coffee when—bam! —in walks an officer, ready to quiz your staff as if they’re on a game show. Is it stressful? Yes. Does it keep you on your toes? Absolutely. You learn to roll with it; call it business improv. However, these people love to push you into a corner, and they expect bribes. So, when I calmly said go right ahead, and we will stop working until you have completed your investigation, they were not prepared to work that day.

Needless to say, my refusal to breach the topic of bribery upset them more, especially because, by law, they have to interview all 84 of my employees. I continued to work in my office while they spent seven hours interviewing staff, and they found nothing.  We never saw them again.

4. Perks and Quirks

Feeding your employees and providing transportation? In some parts of the world, it’s not just a nice thing to do; it’s the expected norm. And don’t even get me started on public holidays. What’s celebrated in one country could be a regular workday in another. It is simply stunning how many holidays there are in some countries, especially ones with strong religious backgrounds; Holy Cow, it seems like there is a holiday every week.

5. Cultural Adjustments

Work ethics vary as dramatically as local cuisine. Your spicy Thai curry is someone else’s mashed potatoes; likewise, the “American work ethic” is not the universal spice. And ah, the Facebook saga—a social network turning into a productivity black hole. Internet connectivity in the workplace can become either a bridge or a barrier, depending on how it’s managed. When you set up your IT, have all social media BLOCKED.  You will thank me in a year.

Pen Your HR Playbook

I suggest the word for potential pioneers is clear: “Learn about HR before you go.” But let’s level that up a bit:  Make HR your co-pilot, not just a passenger. Adapt, respect, and integrate into the local tapestry because the threads you add are also the ties that bind.  The best word to remember when establishing HR practices in other countries is from the Borg on Star Trek —-  ‘Assimilate.”

Hiring and firing in socialist countries—the fine ballet where economics, politics, and human interaction pirouette in a complex choreography. The narrative here reads like a philosophical treatise meets how-to manual, spiced with a pinch of diplomacy. It’s more akin to a diplomatic negotiation than a straightforward transaction.

Hire and Fire

The Opening Act: Hiring

1. Government Approvals and Documentation: Before the curtain rises, there may be regulatory hurdles to jump. Your hiring might need approval from labor boards or other government agencies. The paper trail you’ll create is less of a trail and more of a multi-lane highway.

2. Social Benefits and Obligations: You’re not just hiring an employee; you’re adopting a citizen with social entitlements. The total compensation package could include everything from extensive healthcare benefits to job security guarantees.

3. Union Engagements: Don’t underestimate the power of labor unions. In socialist regimes, these organizations can wield as much influence as some corporate boards. Engaging with them effectively is often not just wise but mandatory.

4. Cultural Cues and Soft Skills: Never forget, comrades, in socialist settings, collaboration often trumps competition. So, your hiring process might lean more heavily on gauging interpersonal skills and team synergy as opposed to individualistic merit. 

The Intermittent Acts: Employee Life Cycle

1. Evaluations and Appraisals: These aren’t merely performance reviews; they’re social contracts. Expect to consider factors like contributions to collective goals, compatibility with corporate culture, and even civic engagement.

2. Reskilling and Upgrading: It’s not just about firing and hiring anew. Labor laws often require employers to attempt reskilling workers to adapt to new roles before considering termination.

The Closing Act: Firing

1. A Legal Odyssey: Firing someone could require just as much paperwork as hiring, if not more. You’ll likely need to build a comprehensive case demonstrating why letting the employee go is the last available option.

2. Severance Packages and Social Support: Be prepared to offer generous severance packages that could extend beyond simple payouts. We’re talking about potential retraining programs, extended healthcare benefits, and even assistance in finding new employment.

3. Union and Government Consultations: A simple managerial decision to fire someone could require layers of approval. Be prepared for sit-downs, negotiations, and what will likely be a lengthy notification period.

4. Public Relations: Believe it or not, firing can also be a public act. How you handle it could be scrutinized not just by your workforce but by the society at large. Transparency and fairness are not optional; they’re imperatives.

The Final Bow: Knowledge is the Stage, Preparation for the Performance

Understanding the legal and cultural peculiarities of HR in socialist countries isn’t just about navigating a maze; it’s about understanding the mindset that designed it. It’s about embracing the philosophy that the welfare of the one is intrinsically tied to the welfare of the many.

The complexities you’ll face are not just hurdles; they’re features of a system designed to balance individual needs against collective good. Once you understand that, you’re not just following the rules; you’re dancing to the music. So get your ballet shoes on, warm up those limbs, and prepare to take the stage.

Remember, in this grand theatre of socialist HR practices, you’re not just a director; you’re also a performer. How you navigate these complexities adds to the very narrative of the system itself, and who knows, your experiences could inspire the next act in this ever-evolving script.

Marketing

Marketing in emerging markets: where every pixel and phrase holds the power to enchant or disorient, where every campaign is a new chapter in an epic tale of global commerce. Picture this—a billboard that works in Mumbai might flounder in Mexico City, and the jingle that captivates in Jakarta might utterly perplex in Pretoria.

It’s like being a chef who’s tasked with cooking for a global feast; you can’t simply spice all the dishes with jalapeños and call it a day. Your palate must be as diverse as the markets you’re entering. But ah, the nuance! The art! This is where marketing turns from science into high art, layered with sociocultural savvy.

A Tale of Two Markets: Mexico & India – For Example.

Let’s take a dramatic intercontinental leap—from the zest of Mexico to the kaleidoscopic vibrancy of India.

The Mexican Mosaic

1. Family-Centric & Community-Oriented: Family isn’t just an institution; it’s the cornerstone of society. Tailor your marketing efforts to appeal to familial values. Think extended family, not just nuclear.

2. Flavorful & Vibrant: Mexicans embrace life with a vivid palette—both literally and metaphorically. Bright colors, upbeat music, and emotional resonance go a long way.

3. Local Nuances: Mexico is a tapestry of cultures—from the Mayan echoes in the Yucatán to the bustling modernity of Mexico City. One size does not fit all, so localize to mesmerize.

The Indian Odyssey

1. Diversity in Unity: From the snow-capped Himalayas to the tropical coasts of Kerala, India is more like a continent than a country. Regional languages, religions, and festivals abound—generalizing is not just ineffective, it’s nearly offensive.

2. Value-Driven Consumption: Indians seek value in every transaction, big or small. It’s not about the cheapest price but the richest experience. Your product or service needs to offer not just quality but also a sense of long-lasting value.

3. Digital Dynamo: With one of the largest youth populations globally, India’s digital landscape is buzzing. Mobile-first campaigns and social media tactics must be finely tuned to tap into this hyper-connected audience.

 Mastering the Canvas: The Art of Marketing in Emerging Markets

1. Research Like a Journalist, Act Like a Native: Dive into the local zeitgeist. Understand the history, the politics, the taboos, and the trends. Your campaign should feel like it was born and raised in each specific locale.

2. Engage, Don’t Lecture: Traditional advertising talks at people; modern marketing talks with them. Use social media to create two-way conversations. Listen, adapt, and deliver.

3. Trust is Your Currency: In emerging markets, trust is more precious than gold. Build it through transparency, customer testimonials, and local partnerships.

4. Localize but Don’t Lose Your Essence: While adapting is crucial, diluting your brand’s core identity can be a misstep. Strive for that golden balance where your brand feels both global and local—a citizen of the world, yet at home in each market.

5. Measure, Pivot, Repeat: The dynamism in emerging markets means yesterday’s winning strategy might be today’s old news. Consistent monitoring and quick pivots are not just advisable; they’re essential.

Think of yourself as a global raconteur. Your narrative in each market is a tale tailored to its audience, complete with its own cast, setting, and plot twists. And within each tale lies an authentic kernel of your brand, a universal truth that resonates no matter the zip code or time zone.

As you master this art of global storytelling, you become more than a businessperson; you become a cultural translator. And that, my friend, is the kind of marketer who doesn’t just sell products but weaves stories, creates experiences, and, most profoundly, bridges worlds.

Taxes

Taxes—the labyrinthine world where math meets governance, where the ink of statutes is as binding as the ink of a business contract. It’s a realm where the phrase “nothing is certain except death and taxes” takes on poetic, if not dramatic, meaning. A keen understanding of this convoluted tapestry is the veritable Excalibur for any entrepreneur daring to venture beyond domestic borders.

The American IRS

The Internal Revenue Service, or IRS as it is colloquially (and often, apprehensively) known, deals primarily with income-based taxation.

1. Corporate Income Tax: It’s a tiered system where rates escalate according to income brackets. However, the Tax Cuts and Jobs Act simplified this to a flat rate of 21% for corporations.

2. State Taxes: The plot thickens with state taxes. Each state has its unique tax laws, sometimes offering incentives that the federal tax system doesn’t.

3. Capital Gains and Dividends: These are your prose and poetry within the tax epic. They are taxed differently than income and require their own understanding.

4. Filing & Compliance: The IRS has made it an art form. There are forms for every nuance, from deductions to foreign income, and yes, they do expect you to know them.

VAT: The European Mainstay

Value-Added Tax (VAT) is Europe’s reply to the American sales tax, but with a continental flair that values elegance and complexity in equal measure.

1. Addition at Every Stage: VAT is applied incrementally at different production stages, making the end consumer the actual tax bearer.

2. Varying Rates: Not all goods are created equal in the eyes of VAT. Essential items might enjoy a lower VAT, while luxury goods could be taxed higher.

3. Cross-border Intricacies: Conducting business across EU nations? Ah, then you’re dancing with intra-community supply and acquisition—terms you must become intimately familiar with.

4. Input and Output VAT: Keep track of the VAT you’ve paid (Input) and the VAT you’ve collected (Output); the difference is what you owe or get back. It’s not just accounting; it’s high-stakes algebra.

The Exotic Variants

Let’s not forget systems like the Goods and Services Tax (GST) in countries like India or Australia, or Japan’s Consumption Tax. The modalities might differ, but the crux remains—understanding how these taxes integrate with local business cultures is crucial.

Tips for Navigating the Fiscal Maze

1. Consult Local Experts: You wouldn’t sail uncharted waters without a seasoned navigator. Likewise, engage local tax consultants.

2. Understand Double Taxation Treaties: Some countries have these agreements to avoid taxing the same income twice. A godsend, really.

3. Tech is Your Ally: Use tax software that can handle multi-country compliance. It’s like having a pocket translator but for taxes.

4. Always, Always Plan Ahead: Tax implications can dictate business strategy. Ignorance isn’t just bliss; it’s financially ruinous.

In a nutshell, tax structures are the secret codes of global business conduct. To unlock the treasures (or even just understand the penalties) of a foreign market, you must first decipher its tax code. This isn’t just a legal mandate; it’s a rite of passage for the globally ambitious entrepreneur.

So there you have it—a whistle-stop tour of the fascinating world of international business taxation. Trust me, this is one area where what you don’t know can not only hurt you but potentially sink your ship. Therefore, learn, adapt, and conquer this fiscal frontier with the same gusto you would any other aspect of your business, and watch as the world becomes not just a stage but your stage.

Culture and language

The dance of cultures—a subtle ballet where the slightest misstep could land you not in a pirouette but a pratfall. When you step onto this international stage, the audience isn’t just observing your business acumen but also your cultural fluency. And just like any captivating performance, the magic lies in the details.

Learning the Language: A Symphony of Syllables

Picking up phrases in the local language is not merely a courtesy; it’s a demonstration of respect. It’s akin to saying, “I value you, and thus, I value what makes you you.” But ah, the poetic irony! Many locals will seize the opportunity to show off their English skills to you. This delightful interplay is a microcosm of globalization—a simultaneous exchange of cultural currencies.

However, remember this: understanding a language is not just about words; it’s about context, nuance, and the unspoken poetry between lines. It’s not just about “hello” and “thank you,” but the cadence, the body language, and the subtle cues that turn a scripted dialogue into an intimate conversation.

The Culture Club: Navigating Norms and Nuances

Culture isn’t a chapter in a guidebook; it’s the air the locals breathe. It manifests in how people greet each other, how they negotiate, and even how they perceive time.

1. Business Formalities: In some cultures, like Japan, the exchange of business cards is an intricate ritual. In others, like Silicon Valley, it’s often skipped for a quick LinkedIn connection.

2. Time Sensitivity: In Switzerland, being five minutes early is already late. Meanwhile, in many Mediterranean and Latin countries, time enjoys a more fluid interpretation.

3. Group vs. Individual: Know when to appeal to the collective versus the individual. In many Asian cultures, the group’s needs often outweigh those of the individual—a stark contrast to the Western focus on individualism.

The Grand Gesture: Making an Effort

Perhaps the most pivotal is to be seen making an effort. It’s the grand, sweeping gesture that resonates in the audience’s hearts long after the curtain falls. Attend local events, celebrate their festivals, eat their food, and show genuine interest in their customs. Be more than a visitor; be a keen participant.

The Beautiful Paradox

The most enchanting paradox about global business is that by understanding what makes us different, we uncover the universal human experiences that make us all the same—ambitions, dreams, and the quest for meaning and connection.

So go ahead, wear your business suit, but also don a kimono, a sarong, or a sombrero when the occasion calls for it. Juggle the lingua franca of business English with the lyrical dialects of your hosts. And as you navigate through this fascinating tapestry of global commerce, remember: you’re not just building a business; you’re crafting a legacy of cultural diplomacy.

In this riveting saga, your character—the entrepreneur—is both a protagonist and a student, an explorer and a guest. It’s a role that demands more than just a script; it requires an open heart. Because the truth is, the most precious currency in the world isn’t money; it’s understanding. And if you invest wisely, the returns are not just profitable; they are transformative.

Perception

Humility—the quiet maestro conducting an orchestra of virtues, each note of which strikes a chord with those around us. In the theater of international business, humility is not just a supporting character; it’s a star performer.

Humility: The Great Equalizer

In a world of noise, humility is a soft whisper that commands more attention than the loudest declarations. It levels the playing field, serving as a universal language that transcends cultural barriers, jargon, and trade laws. It says, “I’m here not just to lead, but to listen; not just to teach, but to learn.”

The Spotlight’s on You: Observation and Perception

Every utterance, every nod, every choice of attire—you’re under a microscope. Each moment is a slide in the ongoing presentation of “You, Inc.” It’s not just what you say but how you say it. Even your silence has a voice.

1. Cultural Sensitivity: Every eyebrow raise, or casual hand gesture could mean something different, depending on your latitude and longitude. Being humble means being savvy enough to understand this cultural choreography.

2. Feedback as a Gift: In some cultures, direct criticism is considered rude; in others, it’s straightforward. Humility enables you to accept feedback—spoken or unspoken—as a gift, an opportunity to adapt and grow.

The Triple-A Strategy: Alert, Aware, Adaptive

1. Alert: Keep your senses keen, ready to pick up the subtlest cues. It’s not just about seeing but perceiving, not just hearing but understanding.

2. Aware: Know that each market, each audience, each individual is a universe unto themselves. What works in Tokyo may flop in Rio; what’s a hit in Johannesburg might be a miss in Moscow.

3. Adaptive: Fluidity is your superpower. You’re not just prepared for change; you welcome it, you embrace it. It’s your dance partner in the waltz of international relations.

Keeping the Ego in Check

Success can inflate your ego faster than an asset bubble, but humility is the pin that keeps you grounded. By keeping your ego in check, you allow room for other voices, other visions, and other victories.

The Grand Finale

Imagine your venture not just as a commercial enterprise but as a grand narrative. The goal isn’t just revenue but resonance. The endgame isn’t just market saturation but mutual understanding. In this vast, interconnected world stage, humility is your script, your costume, and your direction. It’s what transforms a monologue into a dialogue, a performance into an experience, and a venture into a venture worth remembering.

So there it is, the crux of your international journey. With humility, you’re not just a businessperson but a global citizen. You’re not just selling a product but sharing a vision.

And that, dear entrepreneur, is not just success; it’s significance.