Every country and culture has a certain style of conducting
business, making negotiations, and exchanging money.
The most important differences to acknowledge immediately
about doing business in the Czech Republic, is that Czechs
are not yet used to taking each other at their word. Nor
do they place a high value on repeat business, but focus
on one deal at a time, always as if it were the last deal
you will make together.
This can, and does, cause some havoc when trying to pair
a foreign business person with a local Czech agency on
a business deal.
Trust Is Never Assumed
While you may be used to closing deals verbally, (which is
par the course in the USA or UK for example), and expecting
to be taken literally at your word in a business arrangement,
the Czechs do not function this way either in the business
or personal environment. Quite unlike where you may be used
to doing business, trust is never assumed in Czech business
or personal arrangements and deals.
Even after you have stated your intentions to conduct business,
you will immediately realize that you are under suspicion of
being a scammer, but relax: this is normal.
That is environment in which business is done in the Czech
Republic, were it is normally assumed that every deal is a
potential scam, and every agent a potential scammer. In point
of fact, you may on many ocassions laugh at the almost farcical
mechanations people will go through here to insure that they
are indeed getting a fair deal, and protecting themselves from
fraud.
On the other hand, this is a lesson you should also take to heart,
and remember never to do anything here too quickly, without proper
planning and precautions, or to agree to a business deal based
solely on taking someone at their word like you might back home.
However, it is still offensive to many foreign business people who
are new to business practices here to be immediately considered to
be lying or scamming, and it does take some getting used to,
believe me.
However, it is equally offensive to most Czechs, especially those
unused to dealing with foreigners, to be expected to trust in your
integrity, simply because you say so.
The good news is that after the first deal, if it goes well, all
parties tend to relax and more easily focus on the tasks at hand,
although one should again never expect to be simply taken at one's
word or trusted "just because."
Repeat Business is Not Standard
There are a lot of very hard working Czech people trying to do
their utmost to provide quality products and professional services,
and these people are to be applauded not only for their efforts (and
the great service they provide!) but also because the local environment
works against them.
Never is this more true than with the concept of repeat business,
(meaning fast and friendly service), which is still quite new to
Czech business culture.
Emphatically, which you already know if you¹ve ever visited the
Czech Republic and sampled some of the stunningly poor service one
receives so commonly, Czech businesses typically function according
to the concept that every deal is the last one, and that you will
never come again. This remains true for both standard consumer shops,
and for most professional service businesses as well, surprisingly.
Or at least, to a foreigner, it may seem that way.
The truth is that Czechs are simply unused to good service as defined
by many foreign standards, and thus services do not provide it, as it
is neither expected nor looked for. One only needs to walk into any
McDonald¹s to see the startling difference between the service available
there compared with nearly any other local service, shop, or provider.
Please Note:
Now, a lot of people will surely write me an email about this, but I
stand by it it is true, and if you do not understand the difference,
it is because you have never experienced the quality of service available
in more competitive business environments. My clients have, they are
used to it, they do expect it, (and they won¹t get it), and thus I
write about it to prepare them.
However, the good news is that this is rapidly improving with the
influx of more foreign-owned businesses and foreign workers and investors.
Czech businesses are feeling the pressure of competition, and many are
trying hard to learn and integrate effective customer service policies.
The bad news is that it is still fairly common, so common in fact that
it is part and parcel of any trip to the Czech Republic as anyone who
has ever visited or done business here will surely tell you. So there's
still a ways to go...
Doing Business in the Czech Republic
If you've read on the history of this country, then you already understand
many of the reasons why fraud is currently so prevalent in this culture.
You will find many honest, hard-working Czech business people as I said,
but these people don¹t tend to gravitate to foreign investors crooks do.
So you'll have to be very choosy about who you do business with. All too
often, you will discover common problems that throw you for a loop even
with legitimate and honest business partners, such as:
- You may be charged double the current rate for services and
products - or more - without your knowledge simply because
you are a foreigner.
- The "real" negotiation begins after the deal is settled and
the contracts have been signed, and often the one person left
out of these "real" negotiations is you.
- Contracts are returned to you from the main office with a
list of tacked on fees and conditions that were never discussed
with you, and which you are expected to accept.
- After you have made your downpayment for services to commence
on a project, the service provider fails to perform the work
contracted.
- When your partner says "I need a few days to think," he is
actively searching for someone else to counter your deal, and
if successful you will not be notified.
As you can imagine in a country where the law and the courts
provide ZERO recourse or protection, who you know is everything.
Nothing should ever be rushed, when possible, and deals should
always go through trusted local contacts.
Personal relationships and/or family ties with nearly everyone
you will do business with is extremely valuable. If you have
none, at least hire a local who does to assist you with your
business arrangements.
If you've evaluated the pros and cons, and are quite serious
about investing and doing business here, then
give
me a call and let's talk in person.
Local Services - What to Expect:
Good news!
You'll find most of what you need in the Czech Republic as far
as service providers, and the level of service you can expect
varies from very good at the somewhat rare end of the spectrum,
to (normally) good, to poor and apathetic, which is increasingly
rare although startlingly still more common than you might expect,
as stated.
Services that are readily available most everywhere include dry
cleaners; electronics, vacuum, stereo, TV, auto and computer
repair; window replacement; internet and networking; tailors;
shoe repair; hair care professionals; lawyers, doctors, dentists
and CPAs (tax people); carpenters; painters; construction workers,
etc.
If the level of service even at friendly places seems poor
compared to what you are used to, it is important to remember
three key facts about Czech service workers:
- Even local phone calls cost money, a lot of money, in the Czech Republic.
A 5 minute call from a cell phone to another cell phone within the same city
costs me an hour's local salary, as a Czech teacher.
- Most Czech workers are poorly paid. Even middle-class families with both
adults working professional jobs can just manage to get by, with very little
if any money going into a savings or toward a future home.
- Czechs don't normally put a very high value on the work ethic, which is
both a hangover from Communism and part of the standard European mindset
which focuses more on holidays, and the quality of life in general, than
on burning one's self out on overwork, like we do in the USA and UK.
If the system here begins to frustrate you, as is common and nothing to be
ashamed of, it may help to remember that the golden rule of Czech life is
simply not to use a last-minute approach to your list of needs or errands,
as you might back home.
Realistically, nearly every task, no matter how small it may seem,
is usually a one-day project (or longer) in the Czech Republic.
Some helpful tips on how to adjust to the slower pace:
- Simplify your needs.
The infrastructure here just isn't setup for the 24/7, "I need it
yesterday" lifestyle you may be used to. Therefore, it really pays
to keep your needs simple, and to plan well ahead to
accomplish your goals.
- Take your time - or else!
Realize that you will have to spread out your errands and tasks
over the course of an entire week, or longer, not get it all done
last-minute. In the Czech Republic, nobody is in a hurry - at
least not in the way you may define the term if you are from
the USA or UK.
- Plan for things to take time - a lot of time!
Just because you saw the exact product you wanted at the local shop,
doesn't mean that it will still be in stock when you show up. Neither,
surprisingly perhaps, does it mean that they will ever restock it!
Expect that the simplest tasks and purchases may be far more complicated,
and take a much longer time, than you may expect.
If you're planning on living and working in the Czech Republic, then
a working knowledge of how Czechs conduct their businesses is essential
to save you tons of time, money and frustration.
