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By Todd Smithee

Economies have had boom and bust times throughout history. It is a fact of life. Instead of dwelling on the hardships, focus on what you can do to make your business excel. There are still services and products that will be purchased by someone, somewhere. The question you need to ask yourself is Who is in a position to buy, and where are they located? Why not take a look at India?

While not large as a percentage of its population, India’s middle class is enormous as is its demand for consumer products and services. This provides an excellent opportunity for companies to begin to tap into a growing market versus the mature economy back in the States. In addition, distributing cash flows across diverse markets offers a terrific opportunity to diversify into new markets, and the ability to further hedge against future downturns in North America and Europe.

India’s population of a billion plus people also opens another opportunity infrastructure. Companies offering products and services that support infrastructure projects (think water purification, sanitation, and public works) will find huge opportunities. Engineering and consulting companies are especially well positioned to take advantage of this market.

Dealing with Bureaucracy

Bureaucracy and Red tape, though better then it was in the past, is still a major hurdle to overcome. Bureaucracy in India is perceived to be slow, corrupt, and full of red tape. Though the Government has relaxed regulations and has made it easier for investors to enter the market, bureaucratic delays are still rampant. Today, most fortune 500 companies have a presence in India. If you asked most of them, they will say that the biggest challenge in doing business in India is bureaucracy. For a smaller sized company with limited resources, the challenge is even greater. So with that said, it is critical for a business looking to enter India to find the right partners to work with who are well-connected in the political and bureaucratic sphere. Having connections at the top level will allow things to move much faster without having to deal with grievances and delays caused by government bureaucracy. Most Indian business top management you talk to will also tell you, the most important part of their jobs is keeping and maintaining relationships in high government posts.

Culture

India is one of the oldest civilizations in the world and over the centuries has created a unique culture. Today, India is at a crossroads. On one hand it is holding on to traditions, and on the other hand is being transformed into a modern society through globalization. There is a strong middle class of 300 million people growing annually, which is the backbone of the Indian economy. Even though India is vastly different in culture than the U.S., there is one common ground – the English Language. English is not only an official language throughout the country, but is the most commonly spoken language in India and definitely the most read and written language. It is also used widely in the workplace. Further, Indians are very hospitable, and family comes before anything else.

Doing Business in India

When doing business in India, there are many things of which to be aware to ensure a smooth process. Most importantly, doing business in India involves building relationships. Indians deal favorably with people they know and trust. If business deals involve negotiations, keep in mind that it can be a slow process, as it is important that trust be established. Aggressiveness in the workplace is looked down on as it’s considered a sign of disrespect. In the Indian workplace, there is a formal hierarchical system in place. Senior colleagues are respected and generally not called by name, but instead addressed as Sir or Madame. With regard to work flow, Indians often have a hard time saying No, and they may sometimes take on more work than they can handle, but will never say they cannot do it. So it is important to keep that in mind when setting goals and targets. Always carry business cards with you because the first time you have a business meeting with someone, they will ask you for a business card before they carry on. If your business process requires thorough documentation, maintaining proper records is something that will have to be discussed or taught before proceeding.

As long as you’re aware of some of these cultural norms, you will find that the Indian workplace is not much different than the U.S. workplace. Could your company do business in India? Does the country have the opportunities you need and the demand for your product or service?

Conrin, Inc.
www.conrin.com
Ph: 616-897-4325

By Todd Smithee

When Columbus sailed west to go east, he had the right idea. The problem was, he did not anticipate the actual size of the world. The result: Columbus “discovered” America, and the rest is what we call history. Columbus was bold and took some educated risks, but look at the payoff. In today’s business environment, bold steps need to be taken in order to thrive.

First, explore the possibility of expanding your client base beyond your own backyard. As a resident of Michigan, a state which has been in a recession for years, this is a lesson we learned early on. While Conrin is no Fortune 500 company, we do not have a single client that is dependent on Michigan as its sole source of clients. All of our customers are national or global in scope, with many of our clients being based in other states. For years we have been able to win business nationwide, enabling Conrin to continue to grow as Michigan suffered a one state recession. The use of technology was key in allowing us to cost effectively pursue business thousands of miles away. It is now time to take this concept to the next step.

For decades the U.S. dollar has been the world’s reserve currency. Transactions and important commodities such as oil have been priced in dollars because of the stability and relative safety of our currency. That is now beginning to change. We are beginning to hear rumblings from a number of major nations including Russia, China, and Brazil about utilizing something other than the U.S. dollar as the world’s reserve currency. Sure, some of the reasons are strictly political, but the viability of the U.S. dollar also raises some concern.

Does this mean the end of the American dream? Absolutely not! What it does mean is that, at least in the short-term, it could very well be in your interest to diversify your customer base beyond our own shores. There are countries such as India that are continuing to grow. Think of the products of foreign companies that we consume in the U.S. There is no reason you should not at least be exploring the opportunity to market your goods or services globally. Today’s Internet, pay-per-click (PPC) and search engine optimization (SEO) marketing, and web meetings make it very possible to sell anywhere, anytime (your only additional expense might be an increased coffee bill for those late night meetings). Think about what kind of shape your sales forecast would be in if you had clients in three or four parts of the world. Like the stock market, some of those markets will be up and some will be off. Like a stock portfolio, diversification will provide you with smoother, more predictable long-term growth patterns and help insulate your company against local/national economic downturns.

You do not need to invest in expensive travel and costly consultants to get started. Simple Google research, combined with PPC and SEO marketing will provide you with an idea of what markets might be productive. Web conferencing will allow you to get in front of your prospects to judge potential demand. All of this can be accomplished before involving the dreaded “hourly” folks ““ accountants and lawyers. These professionals can be brought in after you have identified a promising opportunity.

There is no time like the present to get started. Diversifying out of Michigan has helped Conrin grow as our home state faltered. We plan to use global diversification to help us grow through the national recession as well.