November 24, 2017 International Business

Keys to Understanding American Business Culture

Stepping into a new culture can be scary. Paying close attention to the culture in a new business situation can greatly impact your influence and leverage on a client or employer. We’ve researched different aspects of American business culture, and through this research and our own personal experience, we have compiled key components that will help you make a great impression on your American business associates.

While business in America can seem different, don’t worry too much! America is a very diverse place with a diversity of cultures. I wouldn’t expect to go long without meeting someone from your own country. This is one of the things that makes American business culture so inviting. We constantly have different ideas from so many diverse people, anything is possible!

 

Basics

 

We’ll start with the basics. American business culture can be tricky sometimes. We are notorious for being informal and humorous but taking negotiations very seriously. Other cultures may pride themselves on building a good relationship before closing a deal but that is not necessarily the case in America. While we remain informal in our language and atmosphere, business meetings are taken very seriously. The concept that “Time Is Money” is true in our society. People look at time as something that can be bought, lost, saved, and spent. Appearance is very important: being clean cut and conservative at first is always a safe bet, then later you can dress based on the attire of your colleagues.

When you first enter American business, you’ll notice that we are a busy, busy breed. American business, centered around “Time Is Money,” has a reputation as being one of the hardest working cultures. In America, we don’t expect more than 2 weeks’ vacation a year, which is unheard of in other cultures. , , & maternity leave are other things Americans get less of on average. So expect jealousy from your American colleagues when you talk about the amazing month you spent in Thailand (while you kept your job!).

 

Meetings and Goodbyes

“How are you?” and “How are you doing?” are phrases you’ll hear almost instantly. These phrases are meant to be a general greeting not an actual question of health or stability. “Fine, thank you. How are you?” or “I’m doing well, how about yourself?” are acceptable responses. Most American business professionals will also greet you with a firm handshake while you exchange words. As for goodbyes. “Let’s have lunch,” and “Let’s meet soon,” are both common. Again, this is not a direct question or invitation, but rather an indication the colleague wants to talk again.

It’s best to avoid tough topics such as religion or politics, and you really shouldn’t talk about personal things like health or relationships. These tend to be heavy conversation for an introduction. explains meeting do’s and don’ts in more depth if you want more info.

Keep in mind that Americans (especially men, although women do as well) tend to use sports terms when talking such as “touch base,” “in the ballpark,” or “…hit a homerun.” American business professionals look at golf as a way to have fun, be casual and still work, so a golfing outing for a big deal is not unusual, but can be rather expected in larger companies, especially for executives.

 

Communication

 

Written Communication

When writing, block-style business letters and a strong resume and cover letter will help instill credibility. You should always use a title (Mr., Mrs., Ms.) and last name when first addressing a client or employer, and should do so until told otherwise. Most professionals will use first names right away. This is not meant to be disrespectful but rather used to build connections. In general, once a new business colleague introduces themselves by their first name, you should feel free to call them by that name, rather than sticking to the more formal “Mr./Ms.”.  

You also want to make sure that you’re using proper grammar when writing business emails. Making simple mistakes (your vs. you’re, or their, there, or they’re, for example) makes your writing look unprofessional and will cost you credibility. If you’re a native English speaker, make sure to proofread your work. A tool like Grammarly can help you find mistakes, but be careful as it does miss things. If you’re not a native speaker, you may need a little more help to make sure you’re writing is perfect, since Grammarly will only catch about 20% of your mistakes. If that’s the case, Writesaver can help. Writesaver instantly sends your writing to native English speakers, who will quickly check your work and make sure it sounds like it was written by a native speaker.

 

Body Language

Let’s talk about body language. Body language plays a major part in communication in any culture and is very telling. Try to be mindful of how you sit, and fold your hands on the table as this shows confidence. You want to be aware of what faces you are making as well.  While most people know how to read a person’s emotions through their facial expressions, how somebody stands in regard to talking to you says a lot as well. Click , , and for more info on “How to Know”. The last link is my favorite because it gives you ways to read a room and then take control of the situation.  

 

In-Person Communication

In person communication will always be the most difficult type of communication in ANY foreign business sector. Different cultures have different mannerisms and gestures. You need to try to identify the difference between a genuine interaction and a polite gesture. For instance, if you show a presentation and as it ends, someone may say “That was very interesting. Thank you,” and leave. This is a polite gesture. They weren’t very interested. However, if someone says “That was very interesting,” and goes on to ask questions and give comments, that is a genuine interaction. Most American business people enjoy sharing ideas and learning new things-that’s why they get into business. If someone doesn’t act genuinely interested (listening intently, asking questions, overall looking like they’re “digesting” the info,) then you should go over your work and ask yourself how you can make it better, whether it be a report, a presentation, or just a general meeting. for some more semantics of American communication, and how it compares to other cultures.

As mentioned above, while it’s not necessary to have a previous relationship with someone to close a deal, many American professionals still like to see your personality. Building a bit of friendship can help propel you in the business sector. A few topics of interest in America are sports, school, and hobbies. You can talk about these in interviews or at lunch with a colleague. Most people enjoy talking about themselves, so you can use this to your advantage. Ask your boss what kind of hobbies they have, or what some of their core values are. This shows that you care about who you work for, and it is an advantage to you to know what kind of person you are working for as well. For example, if you know that a potential boss has a lot of kids and likes to play sports in their free time, you’ll know that they’ll most likely understand your busy personal schedule too, and work around it with you. If you have a boss that works most of their time and doesn’t do much outside of the business, then you know that you have a boss that expects extreme commitment and loyalty to work.

 

A word on “Proprietary Information”

If you come from a European or Asian company, your company likely has lots of information they’d rather keep quiet. Things like company earnings, number of users, user demographics, user activity, new products being developed, and even number of employees or the names of top executives could all be closely guarded secrets, guarded as carefully as if they were a secret recipe or key to success. If you want to do business in America, however, your partners will expect you to drop some of these high barriers and let them in to help them understand what forming a partnership and working with you will mean. They don’t mean to sell your closely guarded secrets to the highest bidder, they just want to better understand your company and how your companies might work together. Most US enterprises are much less secretive than their European counterparts (some have even gone as far as publishing their revenue, salaries, and user metrics online), and will expect you to be just as open, or else suspect you have something to hide.

 

E-mail and social networking etiquette

E-mailing can be quite the endeavor in American business. Many people use different slang abbreviations like, lol (laugh out loud), brb (be right back), IMO (in my opinion), and many others. It is best that you try to stay away from using abbreviated slang. When e-mailing, you want to be professional and be as clear and concise as possible. To communicate effectively, you should say what you mean and use “yes,” and “no,” as often as possible when answering questions. This website gives you the “nitty-gritty” writing style of an email and some helpful tips.

In many cultures, people may see consistently communicate their progress and following up as annoying, but in America, many business professionals expect you to keep them up to date consistently and always reply in a timely manner (within 24 hours, or even sooner). It is important that you set up a business email account and double check your social media sites and be sure you’re reflecting how you want to be seen. In this day and age, many employers reference your social media and underage drinking or drug use posted online could cost you a great opportunity. (I know the laws in other countries can be drastically different, but while you are doing business in America, it is best to adhere to all the local laws.)

 

Time Is Money

 

In American business culture, is the most valuable asset. Meetings are started on time almost always. Showing up to a is seen as rude and disrespectful. American culture in itself is one that enforces a strict and busy schedule to most participants. Time is seen as something that can be bought, sold, spent, lost, and invested. This is mainly because Americans stress individual work ethic on a merit based system, meaning the harder you work, the more successful you’ll be. In essence, it’s the ”American Dream” that instills this behavior. Be mindful of other’s time as well as your own.

Many American business professionals see how much time one spends at the office as a sign of dedication, hard work, and loyalty to the company. This is especially true in certain industries (finance and consulting, for example). Because of this, it isn’t uncommon for professionals to spend long hours at the office, and go in on weekends as well. Many professionals also avoid taking their (minimal) vacation time for fear of falling behind in their career. This element of American business culture is becoming less prominent as employers begin to realize the value of having time to relax on employee satisfaction and wellness, but it is still very noticeable once you spend some time with American professionals.

Outings

 

Going out for a business meeting is meant to put the participants in a more comfortable state. This is supposed to help you relax and open up to them. However, going somewhere new can be difficult. A few key things to remember are: Relax, Enjoy, and Participate. You want to try to make yourself as at ease as possible. This is will give you a clear head and allow you to read the room and add to the general atmosphere. Secondly, you want to enjoy yourself. Whether it be a lunch, a fundraiser, or a game of golf, you want to enjoy what you’re doing and get something out of the experience. It shows and can help build relationships if the participants both enjoy the activity. Business Insider, another site that we use often, goes into specific details about going out to eat for a business meeting.

 

Negotiations and Sales

 

You’ve likely already been a part of negotiations before. Did you ever bargain for a later curfew as a child? How about a bigger allowance? Maybe even negotiated with a friend about making plans for dinner?

Every culture goes through the negotiation process differently. In some cultures, building a strong relationship is necessary before you even begin to discuss business. In others, relationship building is actually frowned upon in business, as it is thought to hinder decision-making, and all transactions are done at arms-length. In America, you’ll often see a blend of the two, depending on the situation. As a sales person, building a strong relationship with your clients is always a positive, and if your company does work that requires it to be working closely with your clients (like consulting, versus selling printer ink), that relationship will likely be necessary before closing a deal.

When this is the case, find ways you can strengthen the relationship to your client during the sales process. Small talk before formal presentations, suggesting lunch meetings versus meeting in the office, remembering birthdays or other significant events, and bringing small gifts (company pens, flash drives, etc…) can all help you build a stronger relationship and ultimately make the sale.

 

Maintaining the Relationship

 

After you succeed in making a sale, the last thing you want to do is lose your newly won customer! Keep in mind that American professionals want to hear from you if you’re a contractor! They want to know how you’re progressing in your project, and want to be informed promptly with changes in timeline, delays, or other challenges. This helps avoid unwanted surprises.

Depending on your business, you may also want to consider forming a stronger relationship with your clients by scheduling client events or giving small gifts. Some major companies, for example, will give their largest clients tickets to concerts or sporting events, with the goal of showing their appreciation (and hopefully keeping their loyalty!). This needs to be done with a lot of tact to not be seen as a bribe or kickback (which is heavily frowned upon). These gifts, if given at all, should either coincide with a corporate meeting or event (so there is a plausible business reason for them), or it should be clear they are given as a gesture of goodwill, rather than with the expectation of anything in return.

 

Final Thoughts

 

Stepping into a new culture can be scary, but it’s definitely doable! If you try your best, and absorb as much information as possible, you will succeed. Learning every day should be one of your top priorities when entering a new business environment. American business culture can ask for quite a bit more work than other cultures. While this will speed up your learning curve, it can also burn you out if you’re not used to it, so make sure to take time for yourself too!