If you plan to do sell your product or service in Europe the 
problems you encounter may not be the ones you expect. It's easy 
to focus on perceived difficulties, such as the so-called 
"language barrier", while not noticing the real pitfalls - until 
it's too late. I learned three lessons the hard way: appreciate 
the different cultures, understand the value of quality vs. 
speed, and know which foreign language is key to your business.

If you hope to compete with local firms in Europe you must 
understand European business cultures. Notice the use of the word 
of the word "cultures" - plural. When I first started doing 
business in Europe, three years ago, one of the first things I 
learned was that the European business environment is much more 
diverse than in the States. Despite the introduction of the 
single currency, Europe is not a single business entity. 
Different countries retain different ways of doing things. Like 
many Americans doing business in Europe for the first time, I 
learned this the hard way. After a number of awkward meetings and 
deals that mysteriously didn't go through I began to understand 
that it was a bad idea to deal with Europeans like I dealt with 
people back home.

The American business model prevails in northern Europe - with 
the UK and possibly Germany representing the nearest thing Europe 
has to a US-style approach. Businesses in former Easter Bloc 
countries that have recently joined the EU are also very US-
friendly. During the Soviet years America represented freedom; 
American business can now reap the rewards of that iconic status.

The rest of "old Europe" is a little different and you should be 
aware of each country's customs. Italy, for example, retains a 
way of doing business that might seem bureaucratic and 
patriarchal to Americans. Even Silvio Berlusconi - a good friend 
of US business - is known as "Papa" Berlusconi in some Italian 
circles. In France, a history of civil libertarianism twinned 
with state control that stretches back to the revolution of 1789 
has nurtured a business culture that favors consensus rather than 
individual leadership. It's important to do your research - not 
only on a country's business structures but also on its general 
culture and history. It's even more important to get to know the 
people. If you travel to Madrid to cut a deal having never before 
set foot in Spain you are at a disadvantage.

Business people in old Europe have slightly different perceptions 
of what constitutes good practice from their US counterparts. 
Although it would be patronizing to say that a maņana culture 
persists in southern European business, it is true that 
timeliness is not considered a virtue in the way it is in the 
States. For European business people, providing a quality product 
or service is much more important than adhering slavishly to 
deadlines or driving the hardest possible bargain. Because of 
this difference in values, Europeans often perceive Americans as 
being "pushy" - when the Americans in question think they're 
simply being businesslike.

When I first came to Europe I thought that the most important 
thing was to learn languages - I was wrong. Most European 
business people accept English as the lingua franca of 
international business. However, you don't want to risk seeming 
ignorant. A reasonable level of conversational French or German, 
for example, will come in useful. I have found that many 
Europeans have a prejudice about perceived American ignorance of 
the outside world. Showing a little linguistic skill - and, more 
important, willingness - will be to your advantage.

My experience is that knowing the local language is particularly 
useful in France. The French have traditionally been very 
protective of their mother tongue. Today, many native speakers 
consider French to be in a state of crisis, attacked on all sides 
by international English - so your French hosts will warm to you 
quickly if you seem keen to speak it to them. Again, showing you 
are willing to try is more important than being fluent.

Even so, skills learned in language classes back home are useless 
unless basic cultural differences are understood. Once again, do 
your research: time talking to locals or reading about European 
culture and history will be well spent. Knowing a little history 
is especially important if you're working in Greece or any of the 
nearby EU satellite states in the Balkans. Educated people there 
will often talk about events of a millennium past as if they 
happened yesterday. There is a perception all over Europe that 
Americans follow Henry Ford's maxim "history is bunk" - I made 
friends quickly when I disproved this prejudice.

The good news is that Europeans are more like us than they are 
different: the general cultures of both continents respects 
business and promotes honest dealing - but it's important not to 
let the small differences cost you money. 

Steve McLaughlin founded Global Market Insights, with offices 
in Europe and the U.S. (http://www.gmi.lu), with his vision of 
giving clients two synergistic competencies: knowledge of the 
global marketplace and industry expertise in manufacturing, 
finance and information technology. Steve has over twelve years 
of international experience in three continents, having started 
in executive search as a Beckett-Rogers Associate. Steve is a 
graduate of Rice University, where he was student body president,
and completed post-graduate studies in International Economics 
at the Universidad Mayor, Santiago, Chile.