What should be remembered when starting a business in the European Union
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So, get ready for the fact that it will not be like in Ukraine. It won’t be worse, it won’t be better, it will just be different – in all areas – renting premises, opening a bank account, registering a trademark, finding and selecting people for the team, etc. For example, in Europe, a real estate lease agreement is signed not for a month or a year, but for three or five years.
If some companies in Ukraine are ready to start cooperation without a contract and often even without a subscription, in Lithuania you will need at least three months to sign an agreement. In Moldova, for example, you can make it in three days, but, again, without money, they are unlikely to start a conversation.
Each market is a different legal framework. Therefore, strengthen the legal direction and keep in mind that ignorance of laws does not exempt from responsibility, and misunderstanding of the specifics can create additional difficulties. For example, opening a bank account in Lithuania is impossible in a remote format and can take several months, and any operation – from transferring money from a current account to a deposit account to joining a new specialist to a client-bank – requires the personal presence of the manager.
It will be impossible for a purely Ukrainian team to build a business in a new market, even to involve local partners in cooperation, therefore, to feel the market and its intricacies, local specialists in the team of different levels are definitely needed. And, of course, you need to learn the local language. International languages will not be enough.
Reputation is the main thing
A new business in a new country will “reset” all achievements in other countries, even reputation. And for Europe, it is the entrance ticket to the market. And, let’s say, if you can find a solution on the Moldovan market without having a famous name behind you, how about in the Baltics and other countries, because it is here that “word of mouth” is the best tool.
How to attract funds from international donors
Therefore, you should look for business communities, including closed associations, where you will definitely find someone you know, and you and your business will be recommended and supported. You can also find partners there for almost any task. Connections and referrals are the most important thing and it works anywhere. In addition, partnerships and collaborations with an already well-known local brand – public or private – will be useful.
And yes, you should be prepared for the fact that, given the short history on the market, you will have to spend more money or time – for example, pay an advance for a longer term when renting a room or wait in line to print a merch.
We will have to look at the “client-counterparty” coordinate system differently
Previously, having just moved to the European Union, many Ukrainian businessmen thought in the paradigm of “let’s teach Europe to work like Ukraine”, referring to the slowness of colleagues, the dominance of life in the work-life balance system. Although a different approach works in Europe, this is their norm of life and work for locals.
In Ukraine, we are used to the fact that the client is above all else, and all contractors dream of getting large businesses into their portfolio. In Europe, everything is the opposite. It is hard to believe, but here businesses are competing for a reliable counterparty.
Not because the client is not important to the contractor. And because there is no problem for small Lithuania to find a customer on the local market – the whole EU is open to it. Of course, working in Europe, you can currently build work with counterparties from Ukraine. Sometimes it can be convenient, but at the same time it lengthens the chain, which means it multiplies the risks.
The mental characteristics and traditions of the country decide
Each country has certain national features. Lithuanians have a cold, prudent mind and are quite closed in communication than Ukrainians. Residents of Moldova are emotional and somewhat chaotic. And here we are talking not only about communication, but also about conducting business.
In the Baltics, you should not be intrusive, remind more than once about yourself or your request, and even more so call and disturb during non-working hours. In Moldova, one should be careful with promises and be ready for an “explosive” mentality.
The entrepreneur and the state: what should be the impact of business
In general, in Europe, they treat their own and foreign national symbols with great respect. And this is noticeable not only in private, but also in business life. Therefore, a patriotic souvenir can become a worthy corporate gift.
We didn’t have much time to analyze the market, to live in it, to understand all the nuances before going out there. But we concluded that you should not be afraid to develop your business in new markets, choose niches in which you are ready to take risks. And let our experience be useful to you and help Ukrainian business flourish all over the world.
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