How a web-studio from Russia makes the first steps of opening a representative office in Germany (part 1 is theoretical)

“But would it be possible for us to open a WebCanape office in Europe?” Marina asked me, a friend who has been living in Germany for more than 6 years. Why not? We have been working in the market for developing websites for small businesses for more than 5 years and have already done websites for countries in Europe, Australia, the USA, etc. In Europe, similar services are 3-4 times more expensive. Sin is not to try. We made a decision and went on this “journey”.

Marina assumed the role of the head of the unit. The product and production technology were worked out, it remained only to localize under the German market and start selling. But it was not so easy.
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The simplest thing is to open a company.

We choose the form of ownership, determine the form of taxation, draw up a business plan. To make sure that everything is provided correctly, we turn to consultants or specialized companies. The tax consultant agrees the business plan, and the lawyer prepares a package of necessary documents. After that, the notary registers the company. Next, open a bank account - and you can work. The whole process took us about 4 weeks in duration, and about 2,000 euros in costs.

It is worth noting that knowledge of the language and the presence of a local partner can significantly save and speed up the process. It is also possible to get a subsidy for starting a business, which we did. Details of the registration process will sign for the next post, if there is interest.

The reality was that we did not specifically plan and invent anything. We did not set specific goals. We just had an opportunity, and we took advantage of it. Difficulties began further.

Laws work

That is why it is better to follow them. Repeated rumors that you can grab fines, not having managed to earn your first money, plus Marina’s perseverance forced us to turn to a lawyer for advice (which is completely atypical for a Russian entrepreneur). The lawyer checked our site for compliance with German standards and made a number of useful comments that we now use in our practice for our client sites.

The “Buy” button, for example, is not just a button. It assumes the existence of a legal relationship between the business owner and the site visitor. Therefore, at least next to this button there should be a link to AGB (working conditions) and the visitor must agree with these rules. Therefore, on information sites such as ours, where the client first makes a request, receives a CP and only then decides on the work, it’s better to install the “Request information” or “Receive a CP” buttons, etc.

The site must have an Impressum section (imprint), which provides information about the company, as well as lists the photos (and their authors) that are used on the site. There should also be sections AGB, Datenschutzerlärung. Their content depends on what is presented on the site. For example, the use of social buttons, the conditions for subscribing to news, etc. must necessarily be reflected there. If you use cookies on your website or service, the user must agree to this before starting work with the site.

Compliance with these and other rules is strictly controlled by the relevant organizations. To insure yourself, it is better to pay once to a lawyer who will check everything and will be responsible. So we did, especially since the happiness of getting a German client was already close, but ...

Difference markets

In Europe, compared with Russia, the urban business infrastructure is changing much more slowly. During the last trip to Europe, we stopped at Maastricht (a small town in the south of the Netherlands). After 5 years since the last visit, almost nothing has changed in his business infrastructure. The same shops, hairdressers, garages and even sellers. At the same time, in Smolensk (our hometown) for the year in one room can be replaced by three different organizations. Someone grows fast, someone quickly closes.

In Russia, it is vital for a small and micro business to have a website, since a large turnover forces one to constantly convey information about its existence. And for a small business in Europe, which operates within the street or a quarter and whose customer flow is limited by its own performance, the site is not needed in principle. Rather, they are important point on Google maps and Facebook page for tourists and residents from other areas. For them, this is a simple and inexpensive way to integrate into the common information space. The content of the site in Europe is a very significant expense (the cost per hour of a specialist is 80-120 euros), which must be justified. For small businesses in Europe, the availability of the site becomes relevant if the organization works for the external market or creates network companies.

Simple copying of the Russian model in the development of budget sites in Europe does not work. It is necessary to think, more accurately choose a market segment.

Distrust of Russians in practice

Russians in Europe do not trust, however, as well as Hindus and Chinese. When negotiating with German companies, it is felt that the Russian roots of WebCanape cause mistrust, despite the fact that we offer lower cost of services, high speed of work with similar quality. There are even those who, with the word "Russia", do not wish to continue the dialogue (this is before the events in Ukraine). It is worth putting a lot of effort to convince the German businessman to work with us.

Today, most WebCanape DE customers are Russian-speaking Europeans. There are, of course, purely German clients, but there are still a few of them. In order to get access to the market in full, we have a serious work ahead, but for now we are reviewing the business plan and fighting for reputation.

New Market - New Product

Before the official entry into the German market, we conducted a short survey about the associations of the Germans with our name. It turned out that the word “Canape” among the Germans is more associated with the sofa than with the dish (canapeshka), which is familiar to Russian people. In general, the sofa for the Germans is a pleasant thing, so they did not change the name. :)

Well, if you have to change only the name. In our case, due to the development of the German market, a modification of the product was also required. We realized that some of the functionality of the sites is not claimed and that for a part of the market the website development service is not claimed by itself. Life made us think about how we can be useful in the European market.

We focused on services for European business operating on the external market (the Russian one in particular). Having a good experience in the Russian market, we can be useful in creating a website for a European company adapted for a Russian-speaking audience, and are able to ensure its promotion in runet. At the same time, our German representative office allows us to overcome the barrier of unwillingness of Europeans to have legal relations with a Russian company. We are taking steps in this direction.

Conclusion

Today we clearly see the difference in the markets and we understand that it is necessary to change in order to work successfully in Europe. This is how to master a foreign language: until you know it, you do not see part of the world and its capabilities. We are at the beginning of the journey and we will be glad to hear about your experience. He will need us much. If you have any questions, we will be happy to answer them.

Vasily Churanov and the WebCanape RU and DE team