How to grow your business in Asia

Growing businesses often consider expanding into Asia. How do you know when it’s time to turn thought into action by taking those first few steps toward your expansion? Perhaps you’ve got the local market sewn up and are looking to ride that momentum into new territory. The Asian way of life is quite different. Before you take the leap, you should assess your existing resources, thoroughly research demand in the market you’re considering, and understand the laws and regulations that govern foreign trade.

Your preparation doesn’t end there. Even the most meticulously crafted business plan can be undone if you don’t pay close attention to the social and cultural elements of doing business in Asia. Learn from Asian business culture to cultivate stronger and more effective relationships.

Change your pace

Take things slowly. You have to be far more sensitive to the idea that a relationship comes first, not the deal. Focus 80 percent on the relationship and 20 percent on the deal and you should be extremely successful. That can require time, patience and an understanding of how long it can take to get deals done in particular countries. It may take two weeks, because everything is consensus based. There is a Thai expression, “The horse is proved by the distance. The human being is proved by time.” Your client's evaluation of you takes place over a long period of time, so be patient. You may have to make a number of visits to build a relationship. The return on investment is good. The respect you earn is likely to bring you referrals from loyal clients who can attest to your strong character. A solid reputation takes time, and it is built on patience.

Be flexible with different styles of communication

Make an effort to show your sincerity, warmth and caring. Take time to get to know people. This is the foundation of success in Asia. Asian people feel it. If they feel it, then they respect you and will go out of their way to help you. Just because you speak the same language doesn’t mean you communicate in the same way. There’s a culture around saving face. People don’t want to tell you no. With employees, you need to ask open ended questions such as, “Can you repeat to me what we discussed you’re going to do?” instead of asking questions that can be answered “yes” or “no.” Malaysia is a good place to learn about flexibility. There are three main groups of Malay: Chinese heritage, Indian heritage and Malay heritage. This requires a flexible approach as you deal with different cultures, beliefs and work ethics. All employees are different, and you need to apply the strategies that will work with the person sitting in front of you.

Leadership

Inspirational leaders I have had the pleasure of working with here in Asia, leverage their team members' ideas and knowledge. Its much smarter than just relying on their own ideas. Title and position may mean you are the boss, but your attitude towards your employees makes you a leader. It’s easy to forget that there are cultural differences. You must be sincere to earn respect. Sharing time and attention with others. Ask each employee where they want to be in their career in five years. Spend time in staff meetings offering career tips. When you spend this time with them, and give to them, they know you respect them. Then when you ask them to do something, they will do it. Integrate this into your leadership style to build loyalty with all employees.

Be aware of hierarchy

You may value workplaces that treat all employees equally, from support staff to top executives. In Asia, it may not be quite the same. Hierarchy is very important. You should always first acknowledge the owner of the business and comment on his accomplishments. If your client is serious about creating a relationship, he or she will make the time to show you around their business personally (getting passed on to a less senior employee is probably not a good sign). If things are going well, the meeting will progress to a meal. That meal will be very lengthy and, if you’re a CEO, you’ll sit next to the boss.

Utilise all your resources

While you may not have the language or cultural knowledge needed to successfully do business around Asia. You may have a hidden asset on your staff. Consider where you might best recruit employees for your business. Invest in setting up your local headquarters with video conferencing software and microphones to enable clear communication with your new overseas branches. Everyone is an individual and it’s all about two businesses developing a relationship based on your personalities and common interests.

Speaking the language

It may be easiest to do business in a country where you speak the language fluently. When you decide to reach out further afield, you may need to pay special attention to how you communicate. Try to communicate in the local language when first contacting a new business prospect. Google Translate or similar apps may work to get a new prospect’s attention, and if the relationship progresses, you should consider moving on to a professional translation service.

Your preparation doesn’t end here. Even the most meticulously crafted business plan can be undone if you don’t pay close attention to social and cultural elements of doing business in Asia. The Business Minder provides business consulting and management for clients in SE Asia notably Bali, Indonesia, Singapore and Malaysia.