How to Execute Leadership in an International Company With Clients Around the Globe Use these guidelines to prepare your leadership team for a successful expansion.
By Sebastian Huelck Edited by Chelsea Brown
Key Takeaways
- Success in international business requires understanding cultural differences, from communication styles to business etiquette, and how those details impact the way they operate.
- To become or support a global company, you must focus on equipping your team with the skills needed to navigate diverse markets, understanding communication nuances for your target market and getting to know the people you want to do business with.
- You should also hire people locally (in the area where you're planning to expand) and advocate for team members to learn those nuances from within your company.
Opinions expressed by Entrepreneur contributors are their own.
It's an exciting global economy where those who are able to master navigating international clientele may find themselves competing more effectively.
International business trends show some surprising changes. Ecommerce — not just from within the U.S.'s borders but across the world — continues to be favored by consumers. It's never been easier for consumers to buy products directly from companies. By 2026, global ecommerce sales will reach $8.1 trillion, according to research.
At the same time, geopolitical tensions and regulator changes are also impacting global economics. It's hard to overlook the reshaping of Asia's capital markets or the shift in North America and Europe to create more balance in goods and services. The world's largest companies continue to expand, and the number of businesses that will have an international clientele has risen, according to reports, to 359 million businesses.
Considering all of this, it's critical to consider how well your company's leadership is capable and ready to become an international company with clients around the globe.
As a German-born CEO of an 8-figure company in the U.S. that operates as a subsidiary of a publicly traded parent company based in Europe, I know firsthand the importance of spreading your reach. Not only is it necessary to grow on a worldwide scale, but to do so, organizations must understand the nuances between different cultures and countries and how those intricate details impact the way they operate.
It's a learning curve that's both vital and hard to learn, especially for young entrepreneurs. How do you bridge an international curve like this?
Related: Is Your Business Ready for International Expansion? Here's What You Need to Know.
Creating opportunities in international business
To become or support a global company, whether you are just out of school or have years under your belt, you must focus on a few critical areas — some of which I believe no one talks about but are critical in building success.
Consider, for a moment, how your cross-cultural employees and international clientele perceive you and your business. How can you improve these areas? Here are my recommendations, which are applicable across most industries.
1. Provide internal training
That training is not just about speaking a secondary language. It's also about teaching cultural expectations. For example, understanding Portuguese business etiquette and cultural sensitivity when entering the Brazilian market is very different from what would apply in Germany or the U.S.
More so, you must invest time into understanding the economic climate, inflation rates, currency exchange rates and overall regulations for doing your type of business in that country. This takes time, as does navigating the legal aspects of this, from contracts to handshake agreements. We provide internal training for our staff to understand the nuances of their market and cultivate stronger connection points with their constituents.
2. Cut the small talk
The language barrier is one thing, but small talk is very different. I was responsible, at one point in my career, for 15 countries, from Finland to South Africa, from Portugal to Israel. The "small talk" in each of these areas is very different, from discussing Formula 1 or soccer in the UK. In Israel, you'll need to cut the small talk completely as it's just not normal, and people are far more direct. Germany and The Netherlands also have a very direct type of experience.
In some areas, such as the Nordic areas, relationships are far less important as people are all about investing based on the product. Conversely, if you head to Italy or Spain, you'll be social selling. Even in the U.S., building social connections is important. If you want to be successful, understand the communication nuances for your target market.
Related: 6 Obstacles of Expanding Your Company Internationally — and How to Overcome Them.
3. To tip or not to tip
Consider tipping as an example. In the U.S., you tip for some services. In Japan, you never leave a tip and could even insult someone by leaving one.
If you do not know this and try to head to one location for a business conversation, and you haven't studied these areas, you could insult that person long before they consider your product.
It's beyond tipping, though. International business means getting to know the people and professionals you want to do business with and doing so with a whole new perspective. This isn't easy, but it is critical and beneficial for difference-makers.
4. Team building
The question I often see, then, is this one. How can you teach people who are already busy how to interact with culturally different people around the globe? Whether you are looking to build relationships through remote experiences or in-person events, you need to get people to work together.
Find meaningful ways to build a team that is centered around a mission bigger than yourself or your company. For example, at tec5USA, we orchestrate a team-wide outing to give back in partnership with organizations such as Habitat for Humanity. Consider what community-based programs exist to facilitate culture-building conversations and foster deeper relationships on your team.
Apply that same strategy on an international and cultural scale. For example, host holiday parties that are associated with other people's celebrations and not just your own. Find out what a different culture does, eats or expects.
Related: Successful Leaders Think Globally — How to Expand Your Business Abroad For Maximum Success
5. Hire internally and locally
Another valuable component of this process is to build your international business with care. If you have the resources, hire someone who is local in the area where you're planning to expand to help you with these nuances. If you're planning a market expansion without the biggest of budgets, you'll want to advocate for team members to learn those nuances from within your company.
It helps to have a channel partner, a person who has already expanded to another country or can help you expand with confidence. At tec5USA, we have worked to build an international business through our people, relationships and dedication to truly being a global company, not a U.S. company providing services in Europe, South America or beyond. As you expand, these principles will make the difference in success for your organization.
