The critical first steps in a Japanese business relationship.

One of the first mistakes we see Americans make is at the beginning of a new business relationship. Let's start with the term itself: business relationship. An American would look at this and would likely see emphasis on the term business. It might surprise you to know that a Japanese professional would look at this term and see the emphasis on relationship. In Japan business cannot begin until a relationship is established. Your potential business partner wants to know what kind of person you are. It is not uncommon for a meal and drinks to be shared or a game of golf played before any business is even discussed. Americans often see expensing meals or golf games as a "perk", but in Japan this is where real business is happening. Americans often misunderstand this, and wonder why an inferior or more expensive competitor made the deal with the Japanese customer. The reason is that the Japanese customer didn't like something he saw, either at the meal or on the golf course.

When is a person his most real self? You can often see a person's true personality on the golf course or at a meal (and after a few drinks). Without knowing his personality is being studied, the American "acts like himself". He doesn't know that business decisions are being made in his Japanese partner's mind as he grumbles after a bad putt or, even worse, embarrasses his partner by beating him badly.

To meet someone for the first time and immediately talk business is considered rude in Japan. Whereas in the US we would upset if someone didn't get to their point from the start. This is a very fundamental first step in establishing a business relationship in Japan, and many Americans shut the door on themselves before getting one foot in.

Oftentimes for decision-makers the real business starts after five o'clock. Japanese businessmen, (especially men), are famous for their eating and drinking until late in the evening with business associates. This might look juvenile, or maybe enviable, to an American businessperson, but they are showing dedication to their company and are doing work.

It's only after the 18 holes, the big meal and several big bottles of beer or sake that the potential business partner will say to his new associate "So, we have these new Johnson Rods that I think your company might find useful. What do you say?" If the day went well, the gentlemen got along, the scores fell the right way, and food and drink were consumed without any embarrassing incidents, then we can expect the response to be "Sure. Why don't you bring the specs by my office tomorrow and we can start to discuss it."

An invitation to a meal, golf, or any out-of-the-office activity after five is an invitation to do business. How many times has the American businessperson replied to such invites with, "Oh, I am busy this evening," or "I am afraid I am going to have to pass," without realizing he basically made his chances of making a deal with this potential partner essentially disappear? This is why we later sometimes hear "I don't get it! I had the better product at the better price, but they went with our competition..." That's because the competition knew to make the relationship before trying to make the business.