Today, we have an interview with Paula Pinto Ribeiro on how to expand your business within the Portuguese market:

Interviewer: Hi Paula, let’s get started with the questions for those who want to start a business in Portugal.

In your opinion, and from an economic point of view, where is the most interesting area to base your business? Does it vary depending on the type of business (factories, tourism, retail, offices…)?

Paula Pinto: Hi. The most interesting areas are, of course, the big cities like Porto and Lisbon. For factories, I think northern Portugal would be best, and, depending on the factory, I think there are some state grants available (you’d have to look for information from the city councils).

Tourism is a very interesting sector – the Algarve is famous for its beaches, Lisbon for being the capital and a generally really pretty city and Porto, which has been a World Heritage Site for years, is known for its wines, hospitality and because I’m from there!

Interviewer: What do Portuguese clients generally value? What do you need to do to gain their trust and sell successfully in Portugal?

Paula Pinto: We value customer service, care and quality when we buy things. Sincerity and trust in the company or person selling something is also really important.

Interviewer: Is there something you should never do when you meet a Portuguese person?

Paula Pinto: Don’t talk about football, politics or religion – that’s really important.

Interviewer: Is there anything you can do to win over the Portuguese?

Paula Pinto: Honesty and sincerity are a must.

Interviewer: How do Portuguese people see foreigners, and specifically, Spanish people?

Paula Pinto: Portuguese people are known for their hospitality. We see foreigners just as we see Portuguese people – as people!

Interviewer: In Portugal, is it better for a company to show that it’s foreign or try to appear local? (What are the pros and cons of each?)

Paula Pinto: The best thing to do is show what kind of company you really are!

Interviewer: And now for some practical questions:

Can a foreign company really sell in Portugal? What do you have to have in place, legally, administratively and in terms of tax infrastructure in order to sell there?

Paula Pinto: The best thing to do is check with a consultant or lawyer. There are lots of legal issues it’s important to bear in mind and it’s best to get advice from a specialist to make sure everything goes to plan.

Interviewer: In terms of financial services, what would you advise people to do when it comes to banking? Do you know of any banks that specialise in foreign companies and that can help with the first steps? How do people usually pay here? Is it common to pay by card? Do you use PayPal and other similar services?

Paula Pinto: There are lots of foreign banks operating in Portugal. Most people pay by card here. PayPal and other similar services aren’t so common… People don’t use them that much and only some services offer them (TAP, for example, is one of the first big companies to use PayPal here)

Interviewer: Do you need to have a Portuguese contact/partner in order to be able to sell there?

Paula Pinto: I don’t think so, but the best thing would be to get help from a consultant or lawyer.

Interviewer: And finally, do you have any other advice for someone wanting to set up a branch office or start a business in Portugal?

Paula Pinto: To make sure that they are committed to quality and that they understand our customs before starting out. Portugal is a small country, but we have a great variety of customs.

Interviewer: Thanks for the interview, Paula!

Paula Pinto: Thank you too, and good luck to everyone!

Paula Ribeiro owns a translation agency in Portugal (Crossing Words) which has offered translation services both in Portugal and throughout Europe since X.

Try our English Portuguese translation service

Wikimedia Commons; By: Eugen Nosko, Deutsche Fotothek

Sabrina: What exactly does your company do and what is your role within the business?

Paco: Rolled Steel has a general involvement in the trading of steel and, of course, with the raw materials necessary to produce it. Our job consists of contacting producers and consumers with the aim of helping them to reach an agreement and make a sale.

We normally work with importing steel into Spain and exporting it elsewhere, too.

In terms of my job, I’m the company administrator. However, the business is based on trading, and my job essentially involves making contact with customers and producers to make sure they’re reliable and fast, and closing deals.

Sabrina: How long have you been with Rolled Steel and what is your favourite part of the job?

Paco: I started at Rolled Steel when it was founded 15 years ago, and we’ve always worked in the same sector.

My favourite part of the job is that I get the opportunity to meet people from loads of different countries and markets, which is always really interesting.

Sabrina: As you obviously work with international customers from so many different cultures, I wanted to ask you if you could tell us an anecdote about one time you’ve come up against a language barrier at work.

Paco: Well, working with people from all over the world means that we face these barriers every day. You meet people that speak all kinds of languages.

We generally use English with the clients, but obviously, people from Asia, like Vietnam or China, for example, have a strong accent and sometimes it can be really, really difficult to understand.

There have been times when people have asked me questions, and once I’ve understood what they’re saying, I can answer them, no problem. But they were repeating the question and I still didn’t get it and it turned out to be something so simple, like the price of a certain product in Spain.

The stuff that is actually pretty simple in English was so hard to understand in their accent because they were Thai.

I suppose the same thing must happen to them when they’re speaking to a Spanish guy in English.

Sabrina: Do you have any other anecdotes about cultural differences?

Paco: I’ve got loads! We notice it most with Arabic countries because, obviously, they treat people a bit differently to us – women, for example – and sometimes it can get a bit awkward.

For example, we have two women working here at Rolled Steel, and one of them would be writing to this Arabic guy and signing her name as normal, and he would always reply, addressing someone else who works with us here, usually a man.

That’s kind of a negative example. There are funny ones too, but anyway. That’s one which, in terms of cultural differences, definitely gets your attention.

Sabrina: OK, perfect. And what do you think has been your company’s greatest success?

Paco: Well, since Rolled Steel was founded, we have always made sure not just to focus on selling, but also on giving customers the technical and logistical support they need.

In other words, we anticipate potential problems, which is not very common in the brokerage sector. Brokers just want to reach a deal, full stop.

We realised that if deals aren’t closed properly, and customers aren’t satisfied… Even if it’s not your fault, it affects you too. Working in this way has proven successful for us in the end, though we have had some problems.

Sabrina: Of course. And what would you say has been your biggest mistake?

Paco: Well, there have been lots of mistakes – it’s been 15 years! I almost don’t want to talk about them, ha ha ha!

But yeah, mistakes? Well, for example, sometimes we’ve lost suppliers due to a lack of trust on our side, which on the one hand is a mistake, but on the other, it’s been in the interest of the customers who buy through Rolled Steel – we wanted to try and protect them.

Yes, sometimes I think we have made mistakes in giving up on or not encouraging companies that could have potentially brought us good results.

Sabrina: If you could go back and start again now, what would you do differently?

Paco: Very little, to be honest. Maybe just what I mentioned about the suppliers. I’d be a bit less visceral when it comes to them. A lot of the ones with a really good reputation often produce results when it counts. And I’m sure that some of the ones that we lost along the way could have produced better results.

Sabrina: Perfect. And finally, I have heard that you like music and diving. Could you tell us a bit about your hobbies?

Paco: Diving is something that… I grew up diving and I’m on my way to die diving. For me, it’s not just something I enjoy, but I think it’s also given me a lot of things in other areas of life, including my job.

Sabrina: How’s that?

Paco: Well, in the sense that, with diving, you have to overcome a lot of fear and anxiety in order to do it well and be as safe as you possibly can be, and I’ve been able to apply that to life. Nothing scares me when I’m at work and that has brought me a lot of security in my personal life.

Sabrina: So what age did you start diving at, then?

Paco: Umm… I think I started in France when I was about 12.

Sabrina: Wow!

Paco: How time flies…

Sabrina: Ok, we won’t mention age, then! Is music something you’ve been into all your life or is that a recent thing?

Paco: It’s actually more recent. I have always liked music, and I was in some rock bands when I was younger but that… I took a massive break from it… But now I’ve totally fallen back in love with it.

I currently both manage and get involved on stage at some rock concerts, which have been going really well.

Within a really short space of time, we’ve reached milestones and secured some important gigs with really well-known artists, like Barón Rojo and Santelmo.

We’ve managed a lot in such a short space of time. “Ñu”, who’s another Spanish rock legend, is also probably going to come along too, and they’ll probably invite us to perform with them as a group.

Sabrina: Wow, great! Anyway, that’s all for today, thanks a lot Paco!

CC BY-SA 3.0; By Alessio Damato

As promised in our last entry, here is the interview with Irena:

Hi Irena, thanks for giving us the opportunity to ask you some questions for those who are thinking of expanding their business in Russia.

So, in general, what do Russian customers value the most? What do you need to do to gain people’s trust and sell in Russia?

Russian consumers tend to go for the international brands that people know and recognise, because they trust them. If you want to sell in Russia, you have to have a strong brand, otherwise you’ll find the market pretty complicated.

While it’s true that there is a Russian client profile for luxury products and high purchasing power, that isn’t the most common.

If you had to choose 4 or 5, what would you say are the most important cultural differences between Russian clients and those of other nationalities?

Broadly speaking, the main differences are related to the Russian language and alphabet, its weather, geographical location, lifestyle, religion, etc. Where customers are concerned, I’d say that Russians tend to focus a lot on a product’s brand (much more than customers of other nationalities) and also really consider the price before buying – they’re very demanding.

Is there something you should never do when you meet a Russian?

Turn up late to an appointment, not keep your distance or not seem serious or responsible. Russians really value punctuality and sincerity. When it comes to selling a product or service to a Russian client, I would say to act very formally, be punctual and give all the information you have on your product (both the good and the bad), in order to gain their trust. Russians like to compare and contrast every piece of information. They also really take other Russians’ comments and advice into consideration.

Is there anything you can do to win over a Russian?

I wouldn’t say that there are any huge differences between Russians and other Europeans. You have to gain their trust, like with anyone, and be friendly, straight-forward and sincere. If you do that and treat them to a good meal with some nice wine, even better!

What do they think of foreigners?

Foreigners are generally viewed quite positively, especially tourists.

CC BY-SA 3.0; By Dmitry97ken

In Russia, is it better for a company to show that it’s foreign or try to seem local?

I would say that Russians tend to trust foreign companies more than local ones. For example, they would rather put their money in a foreign bank than one based in Russia, or buy Italian shoes or a good Spanish wine. I think it’s better to show that you’re a foreign company and, if you have a well-known brand, then even better.

And now for some practical questions:

Can a foreign company really sell in Russia? What do you have to have in place, legally, administratively and in terms of tax infrastructure in order to sell there?

Russia’s legal, administrative and tax requirements are very different and vary according to the type of product or service on offer. The products that Russia imports must be certified, and in order to export to Russia, you have to have signed a contract; Russian customs are usually very bureaucratic, etc.

Also, these requirements can just change from day to day.

If I’m not mistaken, in terms of financial services, PayPal doesn’t work there, right? What other similar options are there? What would you advise people to do when it comes to sending or receiving money?

PayPal started operating with Rubles in the Russian market in September 2013, though there are other local electronic payment systems which are much more popular, like Yandex Money or WebMoney.

The raised commission that Russian banks usually charge, coupled with people’s lack of trust in electronic payment systems, means that a lot of the time, Russians would rather pay in cash (cash on delivery). In Russia, it is also really common to pay using terminals (like Qiwi, for example), which can be found on the street, in shopping centres, etc.

So, briefly, how do Russian visas work?

Visas are documents which are kept in a person’s passport and serve as authorisation for entry into, stay in or transit through the territory of the Russian Federation for citizens of other nationalities. If you’re from outside of Russia, you’ll need a visa in order to travel there, be it for tourism, business, study, work, etc.

The quickest way of getting a visa is via the Russian Visa Centre, a private entity authorised by the Russian Federation. In order to do this, you’ll need to fill out an application form and bring the necessary documentation, i.e. your passport, proof of health insurance for the duration of your trip, a letter of invitation and proof of payment of the relevant fees.

In any case, a lot of people choose to go directly to their travel agents, so that they manage the whole procedure. It’s more expensive, but the agency does everything.

Do you need to have a Russian contact/partner in order to be able to sell there?

It’s always better to have a local Russian partner, given the huge cultural differences.

And finally, do you have any advice for someone who wants to set up a branch office or business in Russia?

Before deciding on the Russian market, you should know it inside out and, above all, be extremely patient. Results may take time. Also, Russia is very unstable in terms of its economy and politics; you have to think about its ongoing military conflicts. You have to have a lot of stamina in order to succeed in the Russian market.

Thanks for your time, Irena! Until next time!

Irena Domingo, born Russian but Spanish at heart, is an interpreter and translator of Spanish and Russian. She runs a blog in Spanish (rusalia.com/blog), which has loads of useful information for anyone looking for help on the expansion of their business in Russia.

If you need help with Russian translations, Mondo Agit offers both translation and certified translation services.

Before starting a business or opening a branch office in another country, you should bear in mind that what works within your market may not work in others.

As well as the product or service itself, the legal side of things (legislation, bureaucracy, taxes…) is also extremely important, especially if you intend to break into a market in a country with a very different legal and administrative framework to that in place in the European Union.

Therefore, it’s essential to take into account the following:

Eight things to consider before expanding your business abroad

1. Do you like the culture of the place where you’re going to carry out the expansion? If you’re going to have to be in a place and understand its culture, it’s better to feel comfortable. So if you don’t like the cold, maybe it’s best not to venture to Russia, for example…
2. Does the product or service you wish to sell have a place in the target market? Does it need to be adapted to the new environment? I.e. it doesn’t make much sense to sell coats and umbrellas in a place where it’s never cold or rains. However, you could, for example, adapt the product so that, instead of protecting people from the rain, it helped them avoid the sun.
3. Is society ready for your product or service? If people aren’t used to using carwash services, for example, you’ll have to think about whether it’s worthwhile “educating” your potential customers (creating a need) in order to sell your product later. Remember that the first one to break into a market has a big advantage over their competition, but they may also come away with nothing.
4. What is the infrastructure like in the country in question? Do you have everything you need in order for the company to function? (Is the location properly equipped? Have you sorted communications and internet? Do you have a supply of materials? Logistics? Human resources? High or low-skilled workers? Financial services…?)
5. What are the laws like in the new country? Are there regulatory or legal barriers for external capital or businesses? Do you need a local partner in order to be able to start/manage the business?
6. Are you motivated, prepared and, ultimately, do you have the resources to successfully carry out the expansion? Is it really a question of life or death? Do you have to expand so as not to lose your position within the market?
7. What are you aiming to achieve by expanding? Is it realistic? When should you have achieved your goal(s) by? What will happen if you don’t reach your goal(s)? Put together a list of the reasons for taking on all the extra work that will come your way and leave it somewhere you can see it.
8. Who can help you with the expansion? Where can you find advice on any legal or administrative issues? Who can help you with marketing and adapting your product or service to the new market?

As you can see, aside from translations by Mondo Agit, you’re going to need a lot of help. So, if you’re thinking of opening a branch office abroad, speak to us. Thanks to our knowledge of other cultures, we guarantee that we can become the partner you’re looking for on your foreign adventure.

In the next post, we interview Irena Domingo, who will tell us how to start a business in Russia. She’ll definitely have some interesting things to tell us.

Other interesting resources and services from Mondo Agit:

Adapting web pages to other languages and cultures

How to expand your business abroad

International Chamber of Commerce

Recognition and validation of certified translations

Advertising material translation service