american admin on 30 Aug 2008 01:13 am
Understanding US Business Culture - Tips for Australian Businesses
While Americans and Australians may appear similar in language and culture, the two nations are actually quite different. Understanding these idiosyncrasies will ensure Australian businesses are better equipped to negotiate deals and develop long-term business relationships. Below are some primary aspects to consider:
For Australian businesses, it often seems that Americans are more likely to build personal relationships through business deals, rather than build business deals through personal relationships. This means Australian businessmen and women, need to focus on getting the details of the deal right first, with the idea that a relationship might develop later.
In a somewhat related them, active selling in the US is expected, often to a degree that may be regarded as over-the-top or overly agressive in Australia. You cannot be shy or timid in the US, be clear of your advantage and be prepared to “sell it” strongly.
In addition, time is money, so you must not waste time. Be well preapred with samples, packaging, sales sheets, ROI calculations or sales forecasts and be able to answer detailed questions on pricing, marketing and logistics.
Be prepared to be direct, its seen as a virtue. Ask for what you want, say what you mean and do what you say. Americans seldom take offence to a well-phrased, direct question because they always reserve the right to say “No”. Likewise, they expect you not to take offence if they cleraly outline their reservatiosn with your proposal or simply say “no”.
Be positive. The Australian tendancy to be self-effacing or to downplay achievements so as not to be seen to be “boasting” can clash with American’s can-do attitude. However, it is also important to watch the use of Australian humour that can often be inappropriate in the US. In general, business conduct in the US is conservative, polite and succinct - keep the Australian sense-of-humour in check until you know your contact very well.
Be persistent, effective follow-up is essential. In Australia you would most probably be considered as someone who is extremely annoying after 2 - 3 follow-up attempts. In the US there is so much “noise” and competitive activity in the marketplace that your target contact may not have had time to hear and absorb your message. Be persistent - 10 - 12 attempts to make contact can be very normal in the US.
Lastly, be very, very clear on your competitive advantage and be able to articluate that advantage in a brief marketing message - often called the 30 second elevator pitch. Americans were the inventors of the 30 second elevator pitch and whether you like or loathe the idea, you need to have one. What problem does your product or service solve, what benefit does it deliver, who are you better than and how can you prove it.
America is an amazing country of opportunity and innovation. It is Australia’s largest trade and investment partner and the recent Free Trade Agreement (AUSFTA) ensures our two countries continue to strengthen their economic and political ties. Within this broader context however, its important for both sides to realise that while some of our cultural differences might be subtle, mis-understandings can easily occur. Hopefully, some of the practical advice provided here and in the Australian Trade Commisison’s free guide - “Doing Business in the United States” can help businesses on both sides of the ocean to avoid unnecessary faux pas.
Kylie Hargreaves is the Senior Trade Commissioner for the Australian Trade Commission in Los Angeles. She has over 14 years experience in international trade in both the US, Europe and Australia. The Australian Trade Commission is the Australian Government’s primary agency responsible for helping more Australians succeed in export and international business by providing advice, market intelligence and support to Australian companies to reduce the time, cost and risk involved in selecting, entering and developing international markets. The Commission also provides advice and guidance on overseas investment and joint venture opportunities and has offices in more than 60 countries around the globe.
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