Leveraging International Partnerships for Competitive

AdvantageStep #1 towards world domination!

Becky DeStigter@intlentreprenr

Becky DeStigter, FIBP|CITP, MBA, MS

• Serial entrepreneur

• Help companies research & expand into new international markets

• B2B tech & professional services markets

• Lived in 14 places, including 2 overseas

• Speak 5 languages – English, Dutch, German, Spanish & Mandarin

Isn’t international for the BIG firms?

Not Any More. Major changes in the world business environment have worked to open up markets for Entrepreneurs:

• Communication Costs - Internet, email, telecomm, mobile

• Transportation Costs - ocean & air freight, flights

• Trade Barriers –ex. tariffs, import taxes, domestic input requirements

• Buyer Information Access Across Markets - buyers can look up pricing online to make better decisions

Identifying International Partnerships

First, Know Your SWOT• What are your company’s:

• What kinds of assets or specific outside capabilities would help your company grow?

Strengths Weaknesses

Opportunities Threats

Areas in you business to look for partnersMarketing

• Current market base

• Compatible product offering

• Market research

Operations

• Production capacity

• Manufacturing

• Design expertise

Finance

• Access to government grants

• Access to superior financing

• Shared costs

Legal/Structural

• Country input requirements

• Government relationships

• JV requirements

How to Find Potential Partners

• Networking through your industry contacts

• Industry trade shows

• Your industry’s associations

• International trade groups (ex. AmCham)

• Local government trade/export offices

• Embassies, consulates & chambers of commerce overseasBecky DeStigter ©2016 All Rights Reserved

Vetting Potential Partners• 3rd Party Validation of Facts

• Government agencies• U.S. Chambers of Commerce• Private firms

• Intuition Check• Spend Time Together

in Both Countries

• Get Financials, but understand they might not carry the same importance in another country

How to Adjust to Cultural Differences• Research before you meet or call

• Cultural information

• Information about your counterparts

• Listen & ask questions

• Find common ground upon which to build rapport

• Look for reasons for why something doesn’t fit your expectations

Negotiations: Courtship, Marriage and Breakup

Negotiating a Successful Deal• Prepare, Prepare, Prepare!

• Know your limits

• Know your options

• Bring the right people to the table

• Go for the win-win

• Communicate results of meetings

Closing the Deal: Contract vs. RelationshipContracts

• Responsibilities & expectations spelled out

• Enforceable?

• Static or fluid?

Relationship

• Strength lies in the mutual benefit between partners

• Partners have to trust each other

• Flexible?

• Long-term?

Becky DeStigter ©2016 All Rights Reserved

Navigating Trouble

• Is the partnership critical to both sides?

• Resolve open issues together

• Win-Win position is best

• Know the cultural conflict style

• Save face, if possible

Exit Strategies• Positive End

• Project Completed

• Cooperatively bring partnership

to an end

• Negative End

• Minimize your losses

• Exit quickly

Becky@The-International-Entrepreneur.com