I fondly recall one expat from a few years ago who ran a thriving business in the Canary Islands, until greed finally overcame common sense and the business, somewhat predictably, failed.
I enjoyed Peter’s company, but became continually irritated by what became his catch phrase of “What’s in it for me?” Any ideas for promotion, additional services for customers, developing good relations with the Town Hall, which is an essential part of business life in Spain, and even charitable events always met with the same predictable response of “What’s in it for me?”
I appreciate that businesses are not charities, and a good businessman is always seeking opportunities to develop and expand the business and not to indulge in too many favours and freebies. However, a focus upon a philosophy based solely around “What’s in it for me” is not a good strategy.
The most effective and profitable businessmen that I know in both Spain and the Canary Islands are people people. That is to say that these businessmen and women actually appear to like people, and doing business with them always appears to be a pleasure.
In Spain, as well as other Latin countries, it is often not what you know, but who you know that is important. Successful businessmen and woman in Spain and the Canary islands are part of a wide and fluid social network, and will quickly go out of their way to get to know those in power or positions of influence, yet give the impression that they do not care about such issues.
Political loyalties too are also very flexible, although I suspect that being pragmatic would be the preferred term. Under no circumstances would they admit to any idea of “What’s in it for me?”, even though that may be the hope and eventual outcome.
Developing good relations with the local Town Hall and politicians is also something that many expat businessmen forget to cultivate. These are small islands and everyone knows everyone else, as well as much of their business. Uncomfortable it may be, but it can also work to one’s advantage.
I recall having a conversation with a lawyer several years ago about a property that I was interested in. Within minutes I had been introduced to the manager of a local bank, with whom I had no previous contact, and offered a mortgage without the bank knowing anything about me, simply because the lawyer played golf with the manager of the bank, and the bank manager’s father in-law happened to own the property company of the house that I was interested in purchasing.
Not only did I receive a free lunch, but also a favourable price and a ‘special’ mortgage interest rate. I have never known a transaction to proceed as smoothly and as quickly as that one.
I suspect that a lack of awareness of the hidden agenda is where many expats fail when trying to establish a business in Spain and the Canary Islands. When opening a cafe bar, for instance, it may be more appropriate to turn a blind eye to the bill for a coffee and tapas when dealing with the local police, than to present a bill. In turn, a blind eye will often be shown when opening hours are accidentally exceeded or a customer is caught smoking inside the bar.
I recall one example when Peter presented a bill for a round of drinks to a group of off duty policemen who were drinking in his bar one evening. Peter became very angry when, a few days later, he was reminded by the same group of policemen that he was infringing local laws and liable to a heavy fine by having too many tables and chairs on his outside terrace.
I am not suggesting that expats indulge in bribery and accept corruption, but adopting a little sensitivity to the local culture is often a wise course of action. You see, favours are repaid in kind over here and the wise expat quickly understands and accepts this.
If you enjoyed this article, take a look at Barrie’s websites: www.barriemahoney.com and www.thecanaryislander.com or read his latest book, ‘Twitters from the Atlantic’ (ISBN: 978 1480033986). Available as paperback, Kindle and iBooks. iPhone/iPad Apps: ExpatInfo and CanaryIsle now available from the Apple Store.
© Barrie Mahoney
Filed under: http://www.theleader.info/article/39709/
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