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How to do Business in Germany

Germany's economy is the fourth largest in the world, and the largest in Europe. Germany is a major trading partner with the UK, but what cultural and business differences do you need to be aware of?

Germany is the powerhouse of Europe, with the world's fourth largest economy. There are all sorts of exciting opportunities to be seized here, but only if you understand the cultural nuances and adhere to the German way of doing business. If you're reaching out to make contacts, here are just a few things you need to bear in mind when it comes to German business culture.

For starters, you should remain formal at all times. When introducing yourself you should do so with a firm handshake and present your business card. Remember that there are formal and informal versions of the word 'you' in German – “Sie” is formal, “du” is informal. Always stick to the former, the latter is only used between friends and family.

Remember, the Germans have a reputation for efficiency - and for good reason. When working with fellow professionals, you should always arrive on time and never let a meeting over-run. A lack of punctuality is considered incredibly rude, and you'll be thought of as a sloppy worker if you show up to a meeting with no strict agenda to hand.

German people don't really consider it rude to be frank in their comments and prefer a direct approach to everything. They will expect the same level of honesty from you, so be up-front. It's also not impolite to interrupt during a presentation and ask questions, so be prepared for that.

On the whole, small talk is not appreciated and your German counterparts will probably want to get past all the niceties and straight into business. There's also a distinct line between personal and professional, so don't think things have gone badly wrong if you're not invited out for a business dinner or lunch. It's probably just that it was never on the cards.

German companies usually operate according to a strict hierarchy, with many layers of management. Don't expect business decisions to be taken at speed because the information will have to be fed through each tier until it reaches the decision maker. The Germans like processes, systems and doing everything in a methodical, correct way – be patient and don't try to rush things.

If you can remember these key points, you improve your chances of success. Germany is a fantastic country to work and do business in, but only if you play by their rules.

EQWIPPD SUMMARY:

Remain formal at all times
Be punctual and efficient
Prepare for frank comments
Separate personal and professional
Be patient, decisions can be slow