- Inform yourself about the destination country, the market conditions and above all about the local culture
Without an understanding of the current economic and political situation, the state of the healthcare system and fundamental problems in the target country, it is not possible to make an appropriate assessment of existing potential. Also, and above all, in the search for a suitable local partner, it is essential that a certain basic knowledge exists so that the partner can build trust and does not doubt the seriousness of the project. Don’t expect your business partner to act as they do in your home country and don’t mix up local cultures and habits. If you think that there is an “African” business culture that covers 55 countries and 1,3 bn people, you might be surprised that you will already experience remarkable differences in behaviour and attitudes e.g. between the economic hub Lagos and the political nucleus Abuja.
- Establish own criteria that a potential local partner must meet
Before the search for a local partner is started, explicit thought should be given to what skills and experience the partner should have. This is especially important to ensure that the partner is up to the challenges that are presented to him or her.
- Execution of Due Dilligence
Before a contract is signed, all controls should be carried out (verification of the owners of the company, compliance with standards, tax obligations, origin of funds, etc.) This is particularly relevant to avoid disappointments and legal difficulties. Furthermore, it is also advisable to consult an experienced lawyer in Nigeria who is familiar with the regulations, especially in the healthcare market.
- Try to understand the interests and concerns of your potential partners
Not only the cultural conditions and a proper mutual understanding are highly important, but also an understanding of the goals and concerns of the local partner. The local partner will only fully commit to the business if he or she has the feeling that his or her goals are also taken into account and not just used as an instrument to achieve a one-sided goal.
- Show commitment to the country despite difficult times
Even if the goal of market entries is of course an increase in sales, under sustainability aspects it should definitely be emphasized that one should offer added value for the whole country. Especially in African countries, which are backwardly developed compared to European countries and face a variety of challenges, it is important to support your local partners also in difficult times and to actively engage in improving the situation in the future. This should be communicated to the local partner in all sincerity.
- Adapt your goals and assumptions to the target market
It is not enough just to be informed about the conditions in the target country, because the goals and potential assessments must also be adjusted accordingly. Make it clear to the local partner that you know about the country and that your goals have been formed based on this information. This not only avoids disappointment when set goals are not achieved, but also shows a potential partner that you have truly engaged with the target country.
- Focus on the future and sustainable management, not on short-term profits
Local partners are not interested in harming the domestic country through quick profits. It is therefore important to emphasize a long-term commitment in the target country when entering the market, so that a potential partner recognizes the project as a good opportunity.
- Fostering personal contacts and expanding your own network
As a general rule, personal contacts are extremely important for the establishment of a network. According to this, the chances of finding a suitable local partner are greatly improved when personal contacts are made. In pandemic times, make use of digital information and networking events, as long as you are not able to travel to the target country in order to get a feeling for your sales potential in the market as far as you can.
- Seek assistance from a market entry specialist
Market entry specialists like trAIDe GmbH have made it their business to support companies in this relevant but sometimes difficult process. Such a partner has many advantages since substantial steps are taken over and the enterprise can concentrate on the essentials. Furthermore, the experience of market entry specialists which cover a wide range from information about the target country to own networks can play a decisive role saving you time and money.
- Business Initiation Trip
A central field of market entry specialists like trAIDe GmbH are business initiation trips to the target country, where the market entry specialist takes care of the entire program. Not only are there excursions, which are extremely instructive and explain the conditions on site and the health market in an optimal way, but there are also business meetings with potential partners. In this way, numerous potential partners are met personally within a few days, so that the basic elements for a successful market entry can be established while you get familiar with the local culture too.
Are you interested in entering the Nigerian healthcare market or another promising market in Africa?
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