Doing Business with Denmark
PaulSourcing: Ten Commandments for doing business with Denmark
The PaulSourcing agency has prepared ten recommendations for doing business with Denmark for Czech entrepreneurs interested in business relations with Denmark. In 2020, it was supplemented with 4 current tips.
4 recommendations for entering the Danish market during the coronavirus pandemic:
- Search for business partnersOn the Danish market, you can operate independently or through business partners or distributors. Having a business partner in Denmark is an advantage, but of course it is possible to serve the market directly if you have the capacity to do so. Moreover, Denmark is not too far away.Finding business partners or opportunities is not easy. Although most websites have an English version, unfortunately, there is no comprehensive database of contacts where they can be easily found. The help of PaulSourcing’s foreign office in Stockholm (ZK Stockholm) can therefore be beneficial in this step – it has an overview of the market, experience in searching and, in addition to Google and LinkedIn, it also has its own database of contacts, accumulated over the years of the office’s existence.
- Choosing a partnerChoosing a partner is important. After compiling a list of maximum possible contacts, it is good to ask yourself the question: who is the right partner for me? The best thing to do is to draw on your experience from other export markets. In general, it can be said that what works in other Western European countries can also work in Denmark. If experience from other European countries is lacking, it is good to focus on medium and small businesses. Large companies in Denmark have high demands both on the quality of goods or services and on references.
- Choosing a business strategyAn exclusive partner for all of Denmark, or multiple representatives for individual regions? Both can work, however Denmark is not a large country and one good partner will cover the whole area. If you decide on an exclusive partner, it pays to conclude the first contract for a year and condition the exclusivity on a jointly determined volume of business in the first year. However, expect an investment in the development of activities and also a lower price compared to the competition, especially in the first year of business. The local market is demanding and it is difficult to stand out against tough local and foreign competition. Share these costs with your Danish business partner, but at the same time don’t forget to motivate him with favorable margins.
- Support of the PaulSourcing foreign office The PaulSourcingoffice for Scandinavia is based in Stockholm. Therefore, it is not permanently present in Norway and cannot be your extended arm while you build your business in this country. However, her credo is not to provide you with a list of companies and not to take care of you anymore, but if you decide to try your luck in the Norwegian market, you can contact her at any time. ZK Stockholm also works closely with the commercial section of the embassy in Oslo.
The Ten Commandments for Trading with Denmark
- Schedule meetings at a convenient timeMeetings in Denmark are not scheduled between nine in the morning and four in the afternoon and the agreed duration is kept. Leisure and work are strictly separated.
- Tune in to the informal atmosphereIn Denmark, people are called by their first names, adapt. A suit and tie is not required, meetings take place in a less formal atmosphere. Danes also like to joke at meetings.
- You cannot do without EnglishThe business language in Denmark is English, it is good to have websites and promotional materials in English.
- Prepare thoroughly for themeeting Meetings in Denmark tend to be structured. Prepare well for them, your words will be taken seriously. Expect your partner to have an overview of prices and competition.
- Adopt the Danish way of making decisionsDanes are egalitarians. Decisions are made collectively and all opinions are taken into account. The conclusions of the meeting are known only after a thorough discussion and at a greater distance.
- Don’t be afraid to speak your mindExpress your views directly. Show your partners respect and wait for the other party to finish before you react. Asking questions is perceived very positively.
- Resolve potential conflicts calmlyIf a conflict arises, the Danes resolve it directly and openly. A successful deal is considered one where both parties are satisfied.
- You build trustwith references References are of significant value in Denmark, especially from other countries in Scandinavia or Western Europe.
- The cheapest does not mean the best. A necessary prerequisite for success is high product quality, technical level and reliability. The price does not have to be the lowest, but it needs to be defended with an appropriate argument based on facts.
- Create a stable partnershipDanes are honest, sincere and steady. It takes time to build a business relationship, but if it succeeds, it is a quality and stable partnership.