The biggest problem with establishing a market abroad for your product or services is, quite simply, lack of familiarity with the country. To be successful, one not only has to generate sales, but also must avoid certain traps that can undermine an international operation. Here are some of the most common pitfalls :
Appointing an exclusive distributor, reseller-distributor or systems integrator
Under this type of arrangement your product or services may or may not receive the attention it deserves. It could become nothing more than a line item in a hefty catalogue. Without you to initiate demand, it's unlikely your product will sell on its own since it is new to the market.
Furthermore, Germany is too large and diverse to be served by a single distributor or reseller. Yet if the individual or company you've selected does not fulfill your expectations, you will have no recourse, as you've granted them exclusivity.
Hiring a consultant or salesperson, a one-man band
To attract a talented consultant or salesperson, your firm will need an impressive track record. Germans, in particular, are hesitant to participate in a startup venture. If you are fortunate enough to find a skilled German consultant or salesperson who's willing to take on your product or services, it's still unlikely you'll see impressive results. To operate a true German subsidiary and realize substantial revenues, you need more than one individual to “do it all.” A network of local managers as well as a team of support staff are essential to business success in Germany.
Sending in an expatriate manager with no European experience
The German market is unique in every way--language, culture, attitudes and people. It takes time and experience to know what will work. The learning curve is steep and could prove to be costly. A foreign manager, no matter how successful in his or her own country, will encounter substantial and often insurmountable barriers to success because of his inexperience in Germany.
Fall into any of these traps, and you'll spend a lot of time, money and effort before you profit from your foreign investment. EU Consultants and its German business development service is your best strategy to avoid these pitfalls.
