In mijn Columns in China Times beschrijf ik de verschillen tussen Nederland en China. Deze keer :… half the battle In my previous column I shortly mentioned the individualistic Dutch nature. Something you, as an entrepreneur, should always keep in mind in order to operate successfully on the Dutch market. Unfortunately, many Chinese company owners return to their motherland disappointed. Individualism is the reason why Dutch people hesitate to call for help or give support to others. They prefer to put down as much as possible in rules and regulations. Subsequently, they apply these equally to every citizen en maintain them strictly. For an entrepreneur it is key to go deeply into the subjects of culture & mentality, rules & laws and market & competition, before entering the Dutch market. On the last two categories I will elaborate as practically as possible. Quick Scan From my own experience I know that it is important to make an inventory of legal and economic data of the country where an entrepreneur would like to do business. The best way to compile this information is in a Quick Scan. I always used to include information on relevant industries and local distribution systems. It is also important to mention in this document local laws and regulations regarding products and services. A Quick Scan answers basic questions like: which product or services do I offer my clients? Will I do so online, offline or combined? It is also important to define goals which preferably are based on thorough market research. This research would then contain sector, markets, target groups, suppliers, competitiveness, marketing strategy and marketing instruments. Besides, it is important to make an inventory of intellectual property and other legal aspects. To make such an analysis is time consuming, but it gives the company owner an important first impression of the Dutch market and market developments. Thus increasing the chances of success considerably. Based on a Quick Scan an entrepreneur knows whether he has a future in the country he wishes to do business. Strategic plan However, there is the risk that after a Quick Scan, an entrepreneur gets to work, focuses on his company and forgets to further substantiate his strategy. Therefore, he should regard the Quick Scan as a starting document. A document containing information merely as a basis to write a critical and thorough Strategic Plan. A plan that fully focuses on the country where a company owner would like to be successful. A Strategic Plan is the foundation of any organization. It is a panoramic overview with opportunities and recommendations necessary to realize business plans in the Netherlands. It indicates where the market power lies and which market entry strategy is possible. A strategic Plan contains, besides financial data, also information on the right marketing tools, a market and competition analysis, a buyers market analysis and a SWOT analysis to identify your strengths, weaknesses, opportunities and threats. Plan of Approach Both the market and economy quickly change. And an entrepreneur swiftly has to respond to trends and developments. When I was the CEO of an international company (and also now as CEO of the Utrecht Investment Agency) I used to make a Plan of Approach every year. This was and still is one of the success factors of a company. Such a document is not just handy to maintain continuity of business in another country, it also supplies a firm foundation for the coming year. A Plan of Approach answers questions like: how will I run my business in the year to come en which steps do I have to define to make it successful? Which markets are moving? Which entry strategy is important? Which target group should I approach? Are my current relations the right partners to realize such a market shift? And which costs are involved in the acquisition of a company in order to gain more control over a market? Financial forecast Furthermore, it is important to give Research & Development (R&D) initiatives of the company and the technical feasibility of innovations a thought. Also, a financial planning is important. This forms the basis of the coming year. The Plan of Approach could, besides the financial forecast, serve as a basis for bankers or other financers. Part of the financial forecast is also an international currency index. This should be made on a regular basis, but at least once a year. In this way you keep an eye on possible fluctuations of the Yuan and Euro. An increase or decrease of their value could have a big impact on your company in the Netherlands. A strong Yuan will make export from China more expensive and could mean loss of competitiveness. Only entrepreneurs who are aware of those fluctuations are able to anticipate. Finally, it is important to have your strategy and approach assessed by an independent professional. Half the battle Hopefully I did not scare anyone with this practical information. The only thing I want to emphasize is that a good preparation is half the battle. And that regularly checking the pulse of market developments will make you win the war. There are authorities and organizations in the Netherlands that will show you the ropes in regulations and other things an entrepreneur should know. Start with the Department of Economic Affairs or local organizations like the Utrecht Investment Agency. They will offer free support to entrepreneurs. The Chamber of Commerce will ask you a small fee for certain services. Accept this help. In this way you are able to put more energy in reinforcing your market position. This will certainly and considerably increase the chances of success for a company in the Netherlands.
Posted on: Thu, 07 Aug 2014 15:10:56 +0000
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