2016 Edition. Guide ON EXPORT OF SERVICES

2016 Edition Guide ON EXPORT OF SERVICES 2016 Edition Contents Services, steady value for Brussels’ export. . . . . . . . . . . . . . . . . . ....
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2016 Edition

Guide

ON EXPORT OF SERVICES

2016 Edition

Contents

Services, steady value for Brussels’ export. . . . . . . . . . . . . . . . . . . . . . . . . 4 Services versus Goods.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Stage 1: the feasibility study.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1. Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 2. Is there a market for my service?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 3. Is my business ready to expand abroad?. . . . . . . . . . . . . . . . . . . . . . . . . 15 Stage 2: the internationalisation plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 1. Market analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. Promotion of the service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 3. Distribution channels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 4. Legal aspects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 5. VAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 6. Personnel management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 7. Financing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Stage 3: get started!. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Support from Brussels Invest & Export. . . . . . . . . . . . . . . . . . . . . . . . . . 44 1. Economic and commercial attachés. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 2. Geographical attachés. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 3. B  EST or “Brussels Exporter STarters Program” .. . . . . . . . . . . . . . . . 45 4. Collective actions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5. International trade interns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 6. Financial aids. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Testimonials and business consultancy. . . . . . . . . . . . . . . . . . . . . . . . . 48 Sources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

N.B. Readers wanting online access to all the websites mentioned in this brochure should open the pdf of this handbook at www.bruxellesinvestexport.be > About us > Publications

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Services, steady value for Brussels’ export The Brussels-Capital Region trades a profusion of services. This sector represents almost half of its overall export.

Trade of goods and services from the Brussels-Capital Region in 2012 (in billion euros)

Exports

23,8

Imports

41,0

0

10

n Goods n Services

21,5

19,6

20

30

40

50

60

70

80

Source: National Bank of Belgium in collaboration with the statistics offices of the three Regions

The whole of Brussels’ export of goods and services together represents 14% of Belgium’s export that amounts to €45 billion (2012). 26% of Belgium’s export of services is generated within the Brussels-Capital Region. In comparison, services represent only one quarter of Belgium’s export, whereas almost half of Brussels’ export are linked to services! This result reflects the structure of Brussels’ economic activity. Brussels is small in size and densely populated. Being a Region, a city and capital, this city plays a central position in both Belgium and Europe. Brussels also possesses a highly-qualified workforce. Indications of dominating services directed activities that in themselves account for 91% of the added value and 93% of Brussels’ employment (2013), while on Belgium’s national level the contribution of tertiary activities within the added value and the national employment amounts to respectively 77% and 80%.

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Services, ten years of growth Export of services increased between 2003 and 2012, with the exception of some downfalls observed in 2004 (-3%) and 2011 (-4%). In comparison with the export of goods, export of services has been much less affected by the 2008 economic and financial crisis and even increased up to 52%, which corresponds to an average annual growth rate of 5%. Export of goods never returned to its 2008 level following a 16% loss in 2009, despite two years of strong recovery in 2010 (9%) and 2011 (10%). Services, that traditionally are less sensitive to the economy as thus, has acted as a buffer.

Export of goods and services from the Brussels-Capital Region: changes in volume 2003-2012 (in billion euros) 30 25 20 15 10 5 0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

n Goods n Services

Source: National Bank of Belgium in collaboration with the statistics offices of the three Regions. There are no regional statistics on export of services for 2006 and 2007

Result: The total package of services in Brussels’ total export increased from 40% (pre-crisis period) to almost 50% in 2009. This means that the whole of services together made a much greater contribution to the growth of Brussels’ export over the last 10 years than the export of goods, as opposed to the situation on Belgium’s national level.

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Three core sectors Commerce (21%), the financial sector (24%) and scientific, technological & specialised activities (30%) added together make up 75% of the total export of services. The export within the sector of “car and motorcycle repair and dealerships” mounted up to €4.5 billion, or 34% of Belgium’s total in this sector. A result of both retail and wholesale trading, which each represent 10% of the export of services. These were a major growth areas between 2003 and 2012, almost quadrupling their value. They even registered an average annual growth rate of 27% between 2004 and 2010!

Sectoral distribution representation for the export of services from the Brussels-Capital Region in 2012 (in billion euros)

5,3

6,5

4,5

5,2

n Commerce n Financial sector n Specialist services n Other

Source: National Bank of Belgium in collaboration with the statistics offices of the three regions

Brussels’ percentage for the export of financial and insurance services was even higher and rose to 55% of Belgium’s national total. More specific, this sector exported services worth €5.2 billion. Its strong growth between 2003 and 2008 (66%) dropped in 2009, but, in 2012, it exceeded its 2003 value by 35%. Brussels’ export of “scientific, technological & specialised activities” services was even more prolific at €6.5 billion, or 51% of Belgium’s export within this sector. They mainly involved legal, accounting and management consultancy services (€5.5 billion), as well as architecture & engineering, research & scientific development and advertising & market research… Design and translation/interpreting were included in a different subsector.

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Although export remained stable between 2003 and 2008 (€4.2 billion), the next four years were characterised by strong growth at an average annual rate of 12%. It should be noted that although the “advertising and market research” subsector does not carry much weight at a regional or national level, it does represent more than half of this type of export of the nation. Although the Brussels-Capital Region is heavily focused on the export of services, we foresee that the sector still possesses a significant margin for growth. More important topic is ‘internationalisation’ as businesses that deal in services are even more inclined than others to set up a branch or affiliate abroad which means that this type of direct foreign investments is not included in the export figures. This guide provides tips & tricks on how to be successful and the Brussels Invest & Export team will gladly help you on your way. Bénédicte Wilders

BISA contribution: figures, charts and analysis. These statistics for the period 1995-2012 come from the “Regional distribution of Belgium’s import and export of goods and services” produced by the National Bank of Belgium (NBB), in collaboration with the institutes for statistics of the three regions. They do not include inter-regional flows.

Further statistics on export and general economic activity can be found at www.bisa.brussels>themes>economy. GUIDE ON EXPORT OF SERVICES

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Services versus Goods

Services and goods are two different notions: services are intangible, unlike goods. In the context of internationalisation, this characteristic entails a marketing strategy that will use a range of different methods to make the services as tangible as possible: logos, communication materials and the explicit presence of the service provider. A service also has to adapt to the culture, language and legislation (e.g. the legislation on the protection of private life in the ICT sector). It often is desirable for the vendor of a service to be present during the consumption of this service. Unlike the export of goods, there is no tangible material to be transported across borders. There also is little or no logistics paperwork as there is with the export of goods. This brings us to another major difference: the indivisibility of the production and the consumption of a service. Unlike merchandise, most services are produced and consumed simultaneously. This means that the entire production process takes place in the clients country. A Brussels lawyer defending a client residing in the Netherlands will travel to this country to perform the service on site. This will make the entrepreneur’s personnel management more complicated (secondments, visas, travel, knowledge of languages). As you can see, the exporting of services is not the same as the traditional exporting of goods. Let us draw your attention to certain points before we go into details.

1

 raveling more frequently. Without a tangible product, you will T have to work harder to maintain your company’s reputation and the credibility of your service abroad. In addition, many services will take place on the client’s premises, which involves extensive travel.

2

 our own site. Subsequently, if your market share increases, you Y will have to consider expanding abroad. In fact, the sale of services requires a permanent presence.

3

More complex personnel management. You and your employees will have to spend fixed periods abroad, unless you hire local employees. Be aware of legal requirements such as work permits.

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4

A huge amount of preparation work. The export of services requires as many preconditions as the export of goods. Although there might be less paperwork involved, the preparation time is also to be considered. You will have to adapt your service to the local culture, taking in account the legal constraints and the training and motivating of your employees. You will be required to carry out a rigorous market analysis. Keep in mind that a service oriented market is difficult to test using sampling techniques.

5

Price setting. Like the export of goods, the export of services comes at a cost: travel expenses, legal assistance, additional employees and training, possible VAT losses, exchange rate differences, etc.

6

Financing and insurance. Financial institutions are often less prepared to finance and guarantee their export due to the abstract nature of services. This means that you will have access to fewer instruments. A healthy financial situation and a good investment margin prove paramount.

A detailed export plan first requires a feasibility study. The following pages will provide a good working base. You can also contact Brussels Invest & Export for an in-depth analysis of your dossier.

A Brussels lawyer with a client in the Netherlands or an architect designing a house in the South of France will have to prove that they can access the profession in these countries. Are they members of the local bar or the architects’ association? In which country will VAT be declared? How to apply for a building permit in France?

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Stage 1: The feasibility study

You will need a feasibility study before you invest time and money in producing an internationalisation plan and foreign markets research. Brussels Invest & Export has produced a “quick scan” that will help you produce a structured and exhaustive analysis. The aim is to study the advantages export might have for your business, to define the business sectors to which you will adjust your strategy and to ensure that your business is ready to export. Three main questions:

1 2 3

What are my objectives? Is there a foreign market for my service? Is my business ready to expand abroad?

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1. What are my objectives? What is the end objective of selling your service in foreign markets? It is useful to spend time studying this question. Exports will have an impact on both your employees and your financial resources. Thinking about the motivation behind your ambitions will help you better define what you want to achieve and ensure that this is in line with your other business objectives. The reasons for exporting

1

A potential client base You already have (potential) clients abroad..

2 A competitive advantage Your service does not yet exist in a specific country or you have a significant advantage over your competitors (e.g. you have an intellectual right of ownership or a license for software installation). 3 A necessity Your client base is spread around the world and you want to retain your market share (e.g. the transport sector). Every business has its own reasons for exploring foreign markets. Use the SMART rule to structure your international objectives.

SMART: A TIP FOR SETTING AND STRUCTURING YOUR OBJECTIVES Specific The objectives must be clearly formulated Measurable To what conditions (preferably in figures) are the objectives linked?

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Acceptable Are these objectives acceptable to your employees and do they represent a sufficient challenge Realistic Are your objectives realistic? Time Frame Set deadlines.

2. I s there a market for my service? Study the export potential of your service before carrying out a detailed market analysis. We recommend that you create a USP (Unique Selling Proposition), as exporting an “intangible” service requires you to set yourself apart from your competitors. Try to be unique by offering your clients added value.

UNIQUE SELLING PROPOSITION: SET YOURSELF APART FROM THE “MASSES” Establish your USP by summarising which characteristics of your service set you apart from your competitors. Examples: competitive price, free or quick delivery, qualified employees, specific licences, awards such as Best Environmental Law Firm 2015. Why am I better than my competitors? How is my business exceptional? W  hy do my clients come to me rather than to others? W  hat are the talents and skills that make me different from my competitors? Tip: use a short survey to ask your clients these questions. You can also create free surveys at www.surveymonkey.co.uk. Another tip: Search for “Unique Selling Proposition” in YouTube to discover fun and inspiring ideas.

What is the impact abroad? D  etermine the success factors in your domestic market based on your USP. Then, compare them with the needs, cultures or structures that exist abroad to identify potential markets. D  efine your competitive advantages and check whether they are achievable abroad T  hen make sure that your service can be exported.

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CAN I EXPORT MY SERVICE ABROAD The free circulation of services within and outside the EU It is not guaranteed that you can export your service. As an architect, for example, you will have to check whether you can access this professional category in the country where the service is to be provided. For European countries, a directive was approved by the European Parliament in 2006 and ratified by the member states in 2009, aiming to stimulate the circulation of services. Its aims are: to facilitate the freedom to establish and provide services throughout the EU (particularly a one-window-system that simplifies administrative processes considerably); to reinforce the rights of the receiving side of the service to exploit these services; to improve the quality of the services; to introduce an effective administrative collaboration between the member states. Since the directive was adopted, a website has been made available to help service providing businesses to have quick access to the information they need via the central access point of the member state in question: http://ec.europa.eu/internal_market/eu-go Warning!  his directive is incomplete: certain services are not included, such T as financial and healthcare services. Not all EU member states have implemented the directive. To illustrate this, there are still problems with the mutual recognition of the service providers between European Union member states, particularly based on the validity of diplomas in foreign countries.

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3. I s my business ready to expand abroad? Exporting is a crucial stage and demands change. Compared with operating on national level, selling services on foreign markets requires commitment, resources and additional skills. C  ommitment: it is crucial to find good partners abroad and to sustain good relations. These activities are time-consuming. F  inancial resources: establishing a foreign client base entails additional costs: distribution costs are higher, extra adequate insurances and foreign investments such as opening a branch abroad. Is your business financially sane enough for this?

Did you know about the financial export incentives provided by the Brussels-Capital Region? See page 46.

I njection of personnel: providing your service abroad increases your business’s workload (foreign invoicing, obtaining work permits, compliance with local social security and organising international business trips). S  kills: your employees need to acquire a range of skills, such as learning a foreign language, sensitivity to other cultures or new negotiation methods.

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CHECK-LIST FOR EXPORTING SERVICES Brussels Invest & Exporters has produced a check-list for the exporting of services to help you compose your feasibility study. It will aid you to remember all major and important points. Do this for your business and then contact our organisation to implement it. This is just a draft after all. Management objectives  re the objectives underlying the internationalisation process serious A (e.g. approaching a potential client abroad) or are they weak (e.g. the manager wants to travel more)? Is the management sufficiently committed to the internationalisation process? Does the management truly believe in this process? Experience Which countries have you already done business with or which countries did show an interest in your services? Check whether these foreign business ventures and interests are increasing. What lessons did you learn when providing services abroad? If you’re missing this experience then try to find out what lessons you can learn from the competition (trade fairs are an ideal opportunity to do this). Management and personnel  oes your staff have “foreign trade” skills (e.g. in international sales, D foreign accountancy or perhaps languages skills)? Who will be responsible for the cell internationalisation and its employees? How much time (a) should and (b) could the management of your business devote to the internationalisation process? What organisational structure will be needed to ensure a high quality of service and within what timeframe? Marketing Does your service need alterations for internationalisation? What will be needed to alter the “packaging” and design of your service? Are there any fluctuations to consider as to the demand of your service in the target countries? Which countries do you initially consider to provide your service in? Will you be searching for specific partnerships? How so? Will the price of your service be different abroad?

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Financial flexibility What percentage of the equity at hand (a) can and (b) must be appointed towards international sales and towards providing the service? In the absence of equity, what financial contingencies are in place? What other business plan do you have that might interfere with your internationalisation plans? By what date should your export start to book a net profit?

Should I stay or should I go? 1 2 3

What are my objectives? Is there a market for my services? Is my business ready to export its service?

You now can make a decision based on the criteria above. Is the feasibility assessment positive? Do you feel it’s time? If so, move onto the next stage: the internationalisation plan. Not ready to launch yet? No problem: not too much time has been lost at this stage and you may have avoided a poorly investigated investment. You also now can create a programme, based on the results of your feasibility study, and get your business ready for sound export projects.

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2

Stage 2: Creating an internationalisation plan

There are two objectives underlying an internationalisation plan:

1 2

collecting relevant facts and figures producing a measurable action plan that includes a timetable.

This is divided into seven points:

1 2 3 4 5 6 7

market analysis promotion of the service sales channels legal aspects VAT personnel management financing

Undoubtedly, other aspects can be added to this list. Allow a margin to adjust and refine the plan when necessary.

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ADVICE: CARRY OUT THE TEST WHEN YOU ARE READY According to the American export guide Export.gov and to our own expertise, the plan should provide a clear answer to the following questions:

1

Are we going to internationalise all our services and do we need to adapt them to the foreign market?

2 3 4 5

Are we targeting more than one country? Who is our perfect client? What marketing mix and what distribution channels will we use? What cultural challenges will we face and what will be our strategy to deal with them?

6 7 8

How strong are our competitors?

9

How can we divide up the time so we can implement the plan?

How can we determine the price of our service? What specific operational stages will be involved? And at which moments?

10 Who among our employees will be involved in exportation and in what way?

11 How much time and money will this cost us? 12 How can we adapt the plan if the results require it?

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We consulted some literature on services-marketing and found some striking information. Before anything else, the immense importance of the roll that the staff has in this environment made us decide to dedicate an additional chapter on this subject. The quality of the service being provided is crucial and this is heavily relying on the motivation and the quality of the employees providing a service, as they will influence a customer’s perception. Client-management, which is inseparable from the entire process of providing a service, is an essential task. Relationship-management also is of vital importance due to the direct contact with the client and the variable nature a service represents. Skills-management, on the other hand, is also crucial: unlike a product, a service cannot be stored or kept. This means that a vacant hotel room represents a loss and thus is not profitable. But a room is not available when the demand is high – during a peak period, for example, - the loss of income is just as high. Do not dismiss these facts when you work on your marketing plan.

SERVICES MARKETING: THE 4 + 3 Ps You must be aware of the original marketing mix and the legendary 4 Ps created by Jerome McCarthy: P  roduct P  lace P  romotion P  rice This specific marketing mix was primarily aimed at the market of consumer goods. Afterwards, a version for the services market was created where there are 7 Ps in the services marketing mix. Next to these already established 4 Ps, this mix also emphasises on the role of human interactions during the providing of services (People), on simplified processes for optimum delivery (Process) and on physical proof such as certifications and references (Physical evidence) in order to effectively convince a client.

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1. Market analysis A market analysis exists to identify market opportunities and client potential. It will allow you to create a cohesive international marketing strategy. After analysing the environment, competitors and prices, an overview of the most promising markets, of possible perspectives, of practices and conditions within a market, of the prime competition and of the price levels can be drawn up. You will find more information on how to collect this crucial data at the end of this chapter.

1

Environmental analysis

Increasingly, buyers can be critics. Information is available worldwide and at great speed. Buyers these days, can rely on a number of different methods to decide on choosing a service provider. This behaviour is, due to the uncertain nature (cf. intangibility) of a service, more apparent here than in consumer goods. Result: clients attach a great deal of importance to quality these days, a good reason to carefully study both the client and their environment. The environmental analysis will require of you to define the potential demand for your service in a certain region by examining the purchasing behaviour of your potential clients. You will need: m  acro-economic figures (e.g. general GDP growth forecast); c ultural data (e.g. changes to restaurant chain menus in Muslim countries, language); p olitical data (e.g. political stability, savings policy); d emographic data (e.g. percentage of senior citizens for geriatric medical software); c limatic data (e.g. wind strength for wind energy consultants); information on the infrastructure (e.g. accessibility via airports for client visits); s pecific characteristics (e.g. legal structure for lawyers) and specific trends in the sector (technology, necessary knowledge of the sector, economic growth of the service); information related to the legal aspects (e.g. access to the profession, certifications, registrations); fi nancial data (e.g. payment deadlines, VAT, monetary unit); p ublic tender opportunities.

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2

Analysis of competitors

Many markets for services are witnessing an intensifying competition. However, it is often easier to start a business within this sector. Although we can see a significant increase in internationalisation, it is not necessarily a bad thing to take on the competition. It is useful to analyse your competition, to avoid making the same mistakes they made and to focus on the niches in which you have a clear advantage. Operating in the field itself, on a trade fair for example, is still the best way to get to know your competitors better. Some advice It’s impossible to analyse all the competitors on “busy” markets, so make a sound choice of some of them. R  esearch experienced competitors in your target markets (both local as international businesses). Look for a competitor that has failed in your target market and try to discover why they failed. L  arge competing businesses often have a less flexible organisation and are perhaps less interested in small market segments. Try to find and focus on these. S  tudy your competitors’ pricing policy in order to define the market’s prices.

3

Pricing analysis

Pricing is an essential criterion of your marketing strategy. If they are set by the market (supply/demand), make sure you retain a sufficient margin to cover your internationalisation costs. O  perational costs (e.g. travel). C  ommission for your agents or employees. T  axes (e.g. VAT, companies’ tax for a subsidiary). F  inancing and insurance costs. F  oreign exchange risk.

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FOUR KEY STAGES There are two approaches to perform a market analysis: you either sub-contract it or do it yourself. When you opt for the second solution, then here are the steps to follow: Stage 1. Gather the macro economic data This will give you a good perception on the market, the number of competitors, the political conditions, etc. Websites and other sources (see below) will provide you with sufficient information. Stage 2. Identify potential markets Choose 5 to 10 rapid-growth markets related to your service. Small markets can be interesting, as there is less competition. Rank all the countries according to criteria (economic growth, market size, foreign exchange risk, legal complexity and competition) and then define the three or five most promising markets. Stage 3. Start market research Focus on your target markets. Read the newspapers, talk to trade bodies, consult market experts such as the economic and commercial attachés of Brussels Invest & Export, take part in seminars and make the most of networking opportunities so you can exchange experiences with other entrepreneurs. Stage 4. Analyse the demand for your service, the competitors and the possible obstacles Question potential buyers, carry out market surveys and try to find out the market prices. Observe your competitors, identify the possible obstacles such as culture, certifications and work permits.

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WHERE CAN I FIND THE INFORMATION I NEED FOR MY MARKET ANALYSIS? Document based research versus field research You will find a range of information on the Internet and from public and private trade bodies. Once you have identified your target countries, visit them to verify the results of your research and fill any gaps with what you learn on site. Brussels Invest & Export Check our website www.invest-export.brussels and the information it provides on the markets, its commercial actions and the contact details of its 95 economic and commercial attachés. They work on every continent and will provide free support, advice, contacts, sector-based studies and more. Discover all the services Brussels Invest & Export provides on page 44. Other useful sources/websites OECD: www.oecd.org Eurostat: www.ec.europa.eu/eurostat I MF: www.imf.org World Bank Group - Doing Business: www.doingbusiness.org Export.gov: www.export.gov CIA Factbook: https://www.cia.gov/library/publications/ the-world-factbook United Nations: www.un.org World Bank: http://publications.worldbank.org E U Go!: http://ec.europa.eu/internal_market/eu-go/index_nl.htm One-stop shop: http://www.business.belgium.be/nl Cultural guide: www.kwintessential.co.uk/resources/ country-profiles Contact the public trade organisations (many countries have import services and orientation services for foreign investors) and the Chambers of Commerce.

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2.  Promoting my service abroad Communication abroad The knowledge you gather about local markets proves to be key towards communication of the promotion of services. When it comes to foreign markets, a few extra challenges are to be added to the entire equation:

1

language: although English is the ideal economic business language, learning the country’s officially natively spoken language(s) adds huge value. In a B2C context, this knowledge is an absolute must and often even a legal requirement.

2

c ultural context: cultural differences abroad require you to adapt your communication to local practices.

3

lack of brand awareness: very few people know you if you are a newcomer on a foreign market.

To avoid additional costs, define your target clients, adapt your message and choose the right communication tools to approach them (e.g. social media for young people). Communication tools As we already have mentioned, services marketing involves additional challenges compared with the marketing of goods. The intangible nature and the impression of fragility as a result of this, the crucial importance of employees and the indivisibility of the production and culmination processes have an effect on promoting a service. It is essential that recipients receive a positive impression of your business and are convinced of your ability to provide the professional service that they require. Content of the message D  escription of the business: selection of positive information (e.g. rapid growth or 25 years’ experience). Description of your service: cf. “Unique Selling Proposition”. Physical evidence: give substance to your service by using references (e.g. important clients), certifications, awards or titles (e.g. supplier to the Court), testimonies, etc. C  ontact details: these are vitally important and must be highly visible.

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Media W  ebsite: this is essential for internationalisation, as the concept of distance loses all meaning. Note: you are not alone on the Internet! Use SEO for better referencing (see p. 30). Slideshow: use a slideshow during meetings with potential clients to make your service more real and better presented. As well as Microsoft Office PowerPoint, newer online methods such as Prezi are quite attractive. V  ideo: this is the communications channel of the future. It can be easily integrated into your website or slide slow and makes your service real and lively and it influences how the client perceives you.. B  rochures: these remain an important tool, for example during sales meetings or trade fairs. You are giving your potential clients a “tangible” object that they can take away and read at a, for them, more convenient time.. B  usiness cards: these are unavoidable. Don’t forget to include a link to your website and social media. Smartphone: make your website smartphone-friendly and use QR codes on your brochures, business cards and slideshows. There are several websites to create free codes. Brussels Invest & Export supports Brussels SMEs in developing their promotional tools for foreign markets (see p 46).

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Relationship management We have already mentioned it, relationship management is crucial in the services sector. In an intensive market, take good care of your client contacts to avoid losing tem to the. Here is some advice:

1

 ffer occasionally a promotional gift in line with that country’s O customs.

2

 ive your clients a discount from time to time; this will make them G feel important.

3

 ry to develop a partnership with your client and create a win-win T relationship, particularly for B2B services. For example, introduce your client’s business to other clients.

4

 espect the terms you agreed to, e.g. invoicing, as nothing is worse R than breaking an agreement.

5

Consult the “Business Guide to Culture”, www.executiveplanet.com, which sets out what you should and should not do in each country).

E-marketing The Internet knows no frontiers and can act as a catalyst for the internationalization of services. More than one billion people around the world use it and more and more businesses are adopting an e-marketing strategy to find clients and partners. It’s a cheap and easy-to-use tool. Below are the categories of e-business websites. I nformation website: a simple business website is used for services that cannot be sold online. T  ransactional website: these allow visitors to search, order and pay for a service. They also allow visitors to contact the business for after-sale services, e.g. airlines, concerts. E  -marketplaces: these websites are used to connect buyers and vendors and thus stimulate transactions (e.g. eBay). S  ocial networks: the best-known ones in Belgium are Facebook, Twitter and LinkedIn. Keep in mind that these types of social media come in different formats and are different in use depending on the country you’re in.

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SOCIAL MEDIA ACROSS BORDERS Below are the conclusions of Brussels Invest & Export following a seminar on international differences in the use of social media. The use of social media varies from one country to another.  sian countries have social networks that are equivalent to the A Western networks (e.g. the Chinese ”Renren” instead of Facebook). Cultural differences can affect the use of social media (e.g. the British have a very sceptical attitude towards social media). Respect the local language and cultural customs (e.g. the importance of Catalan in Catalonia). Don’t be present on all of the social media. It’s better to focus on just a few and invest in proactive and reactive interaction with clients. Use certain social media as reference material to increase the amount of Physical Evidence abroad (e.g. recommendations from local clients on LinkedIn).

Have a clear idea of the possibilities of using social media at a local level before you get started.

How to manage an e-marketing strategy abroad

1

Buy a .com URL or a local domain name (e.g. .es in Spain). Clients will get the impression that you are local. In addition, most local search engines are set up to promote local domain names. If you have a specific brand and want to perform some branding, then integrate your brand within your website.

If this is not the case, consider changing the name of your website to the language of your target market. Also consider converting your prices into local currency and to convert the units of measurement to the local system (e.g. square feet instead of square metres in India).

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2

 earch Engine Optimisation. The different search engines, e.g. S Google, use an algorithm to determine the results that will appear first when you enter certain words (three on average). SEO will give you a few tips for optimising the search results of potential clients. c reate unique and concise page descriptions and titles. u se as many words as possible in the URL (avoid HTML codes and figures). u se a clear and user-friendly structure to facilitate browsing on your website.



For more technical information and advice, please download the free Google starter guide at https://support.google.com/webmasters/answer/35291?hl=en. Consider the language and mentality of your target public when using SEO. Think about what your potential clients would type into Google if they were looking for the service you’re providing. Have your translations done locally and implement this in the content of your website.

3

Paid online advertising: for a fee, your website will appear in the search results. “Adwords” is a typical example of this.

4

Social media: try to find out what type of social media your target group usually uses. To improve your SEO, create a profile and link your website to your social networks (e.g. always add a link to your website in your tweets).

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3. Distribution channels Distribution channels distinguish between direct and indirect export. The export of services often requires contact between service provider and consumer and takes place directly via a local structure. However, certain services are also exported indirectly through agents and commercial representatives or in other ways: franchises, joint ventures or Value Added Resellers.

GET HELP BEFORE AND DURING THE SET-UP OF YOUR LOCAL STRUCTURE The creation of a local structure often entails a complicated and bureaucratic process. Choose a market in function of to the efficiency of the process to set up for business locally. It takes more than six months to set up a business in some countries, whilst in others, it takes just a few days. The World Bank (www.doingbusiness.org) has some interesting documentation that will give you an idea of the situation in each country. We strongly recommend that you use the services of a professional before and during set-up. Our economic and commercial attachés. They will provide you with further information and will guide you on site. Local public investment agencies. These will guide you, help you and inform you about existing public subsidies. You will find them on Google by typing “Invest in...” and the name of your target country. Tax experts. Certain countries have very complicated tax systems (e.g Brazil has some fifty different tax systems for businesses).  This is essential for your financial plan, so get help from a professional who possesses a perfect knowledge of local taxation. Check out the following points yourself or let our economic and commercial attachés assist you in this: - does a double taxation agreement with the target market exist? - how high is the corporate tax? - are there any tax measures to assist foreign investors? Lawyers and consultants. They will help you with the set-up process, for example with choosing the company type and its setup procedure.

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Direct sales abroad: your own structure Setting up a local structure will be most beneficial if your service requires regular physical contact with the consumer and the adaptation of the service to local practices (e.g. language). A  local structure is often essential for public tenders and the right to local subsidies. A  local structure reduces risks connected to the foreign exchange rate through local invoicing. T  he client has a better perception of your physical presence. It can be advantageous from a tax point of view. Types of local structures For the creation of local structures, you can often choose between a branch, a subsidiary and, less often, a liaison office. Internet sales are also considered to be direct export. The liaison office. This is interesting from a fiscal point of view (not considered as a permanent establishment and not subject to corporate tax), but also has its limits. Although it is useful for carrying out an accurate market study or for maintaining relationships, it does not allow you to trade. It will, however, be useful during the launch or research phase. Brussels Invest & Export offers a subsidy for setting up a liaison office (see p 46). The branch. This is considered a permanent establishment (subject to local laws and taxes), but not as an individual local legal entity. It, therefore, doesn’t have its own management board or autonomous decision-making power. The main business remains fully competent. The subsidiary. This requires a significant investment. It is a local business with its own legal identity, whose parent company remains a (partial) shareholder. Advantage: it allows you to (partially) redistribute the financial risks onto a different entity. The commercial representative. This person will act as an employee of your business abroad.

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Indirect sales of services abroad Indirect sales abroad require you to entrust part of your business to a partner. However, it takes time to find a trusted partner and it is a good idea to carefully consider your decision before choosing the perfect person. Don’t hesitate to ask the Brussels Invest & Export economic and commercial attachés to distinguish the reliable contacts from those who are less reliable. In the services sector, it is essential to choose a partner with a network who also believes in the strength of your service. In most cases, this relationship will be contractual, which has legal implications. Make sure to get assistance from a good lawyer. Your partnership abroad can take a variety of forms. The commercial agent. This person is responsible for finding clients to the service you’re providing; they work independently and receive commission on their sales. You remain responsible for the process and you keep control of your new clients in the end. The rights and obligations of a commercial agent are set out in a European Directive (86/653/EEC). Some advice A  void granting exclusivity. C  learly specify territory in the contract. Indicate the compensation scheme (commission, basis of calculation). E  ngage in supporting the agent: training, price list.

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The joint-venture. A partnership between a local enterprise and yours, where both parties are convinced that the collaboration will be profitable. This is a commercial cooperation between two or more parties, that decide to undertake a certain economic activity together in which the profits and losses will be shared. Example: the Belgian company X entrusts its technological know-how to the business Y so that X has access to Y’s clients and Y in return benefits advantages in efficiency from its clients thanks to X’s know-how. For the contractual details, consult the website http://www.intracen.org/model-contractsfor-small-firms/ which contains a section on joint-venture contracts. The franchise. This involves a partnership between two parties, the franchisee and the franchisor. The franchisor authorises the franchisee established abroad to use a series of property rights relating to the service: trade name, know-how, logo, commercial assistance, drawings, patents, etc. (Koen Faes, Ambos NBGO, 18 December 2012). Advantage: limited investment in comparison to a subsidiary and the development abroad can be faster. There are few standardised European Union regulations, so it’s important to create a professional contractual framework. Value Added Reseller. An independent foreign business purchases your services with in order to develop its own services before selling them. This model is most commonly found in the ICT sector where a particular business obtains basic software from another business, then adapts the service to local practices or adds aspects specific to an activity.

FIND A PARTNER WITH THE ENTERPRISE EUROPE NETWORK! The European Commission has created a database that allows you to, easy and free of charge, look for potential partner businesses in other EU member states. Brussels businesses can contact BECI (www.beci.be) or impulse.brussels (www.impulse.brussels to register on the network.

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4. Legal aspects Contracts Doing business at international level involves more risks. The distances are longer and you are working with new partners under different law systems. You are subject to international law, bilateral trade agreements, the national law of different countries or EU law. You should create solid contracts that include a few advantages. There are different types of contract: standard sales contracts, franchise contracts, joint-venture contracts and commercial agency contracts. Never sign a contract in a language you don’t understand. Get help from a trusted translator or interpreter or even a sworn translator. Another tip: you will find model contracts at http://www.intracen.org/ model-contracts-for-small-firms/; chapter 8 contains a model contract for providing services internationally. You can use this as a basis to draft your own model contract. Also get help from legal service providers that have experience with different types of contract that apply to your service. Protection of intelligent property/trademark Service providers who use their trademark abroad for branding purposes are advised to protect their trademark in order to avoid counterfeiting and other types of unlawful usage. You can register at the Benelux Office for €240. Prices start at €1,050 for a community trademark (EU). You can obtain information from Innoviris on www.innoviris.brussels if you want to patent your invention. Most importantly, before you start providing a service in another country, check that your brand or invention is not already being used by another business.

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Choosing a legal form? Before you choose a legal form, think about what would be most appropriate in your target country. You intend to open a subsidiary or a branch? What different forms of company are existing? Which one would be best suited to your model? What is the process for setting it up? What is the minimum capital needed? Who will manage the subsidiary? What social rights apply in this country regarding employees? In what circumstances does the double taxation agreement, between Belgium and the target country, impact a permanent establishment? What are the fiscal consequences? To find the most appropriate answer, you will need a local lawyer experienced in international law. The more detailed your internationalisation plan, the more assistance the lawyer will be able to provide.

Contact our local economic and commercial attaché for further information.

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5. VAT Services provided outside the European Union If your business provides services to clients outside the European Union, they will be taxed in the country of your client. You will send them an invoice without VAT (stating “exempt from VAT in virtue of Article 39 of the CTVA [Belgian tax code]”) and will not declare VAT in Belgium. You will, however, have to be able to prove to the tax authorities that your client is based outside the EU. Note: customs duties apply to import outside the EU. Obtain more information from our economic and commercial attachés. Services provided within the European Union A new European Directive that came into force on 1st January 2010 stipulates certain rules on the declaration and application of VAT in another European Union Member State. It makes a distinction between B2B and B2C. B2B (business to business) The place where the service is provided is also the place where VAT must be declared. In such cases we talk about payment delay. The service recipient must pay VAT in their own country. You will therefore prepare an invoice without VAT (stating “exempt from VAT in virtue of Article 21 of the CTVA [Belgian tax code]”). Check beforehand that your client’s VAT number is valid. This information can be found easily at www.ec.europa.eu/taxation_customs/vies. EXCEPTIONS

VAT RULE

Travel agencies

Where the agency is located

Property-related services

Where the property is located

Transport of persons

Where the distance travelled is longest

Services relating to the granting of access to cultural, artistic, sporting, educational or scientific events

Where the event takes place

Restaurant and catering services

Where the service is provided (service during transport: place of departure)

Short-term vehicle rental

Where the vehicle is delivered

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B2C (business to consumer) When the recipient is not subject to VAT, then the tax usually is collected there where the service provider is residing. You will invoice the client and add VAT according to the Belgian tax rates. There are various exceptions, such as the transport of goods within the EU (country of departure) and support activities for the transport of goods (loading and unloading: country in which the operation takes place). As you will have understood, in certain cases you will have to register for VAT in a different member state.

If you have any doubts, contact Brussels Invest & Export and our economic and commercial attachés to find out more about these procedures. Also consult the European Commission website www.ec.europa.eu/ taxation_customs/taxation/vat/how_vat_works/index_fr.htm

6. Personnel management The internationalisation of your service requires frequent journeys and prolonged stays abroad for you and your employees. It therefore has an impact on the management of personnel within your business. To facilitate the free circulation of service providers between member states, the European Union has introduced directives that aim to create a general regulatory framework for work permits, fiscal issues and other social security aspects. Consult the EU GO! website: http://ec.europa.eu/internal_market/ eu-go/index_en.htm. For non-EU countries, Belgian has signed a range of multilateral and bilateral agreements relating to work permits, social security and fiscal issues (e.g. US Visa Waiver Programme and the Social Security agreement with India). Contact our economic and commercial attachés to find out whether there is an agreement of this type between Belgium and your target country.

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Below are three ways of managing personnel abroad. Each has its own repercussions in terms of tax and social security.

1 2 3

Cross-border commuting Postings abroad Expatriation

Cross-border commuting If you cross a border at least once a week for work purposes, you need to study the double taxation agreement between your country of residence and your country where you work to determine where you should pay your taxes. In the EU, if you spend more than six months in a country, you are liable for income tax. But is it calculated on the basis of your overall income or only on the income you make in the target country? To find out, contact EURES, a network you can consult free of charge on the complicated subject of cross-border commuting. Its contact details can be found at https://ec.europa.eu/eures/main.jsp?catId%3F=56&acro =eures&lang=en. You must be compliant with social security and tax regulations. Within the EU, there are general rules that determine the national legislation you must respect when you work in other member states (e.g. compulsory registration for local social security). For other countries, either there are bilateral or multilateral social security agreements, or there is no agreement. Consult www.socialsecurity.be/employer/instructions/dmfa/fr/latest to find out the different legal frameworks for Belgians working abroad.

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Postings abroad Posting employees abroad allows you to temporarily send your employees to a target country without renouncing Belgian social security benefits. However, as an employer, you must comply with certain obligations.

1 2

Formalise the posting in an addendum to your employee’s contract, specifying the target country and the duration. Obtain a valid work permit and employment authorisation. This rule only applies to non-EU countries

The maximum period for a posting within the EU is two years. For nonEU countries, this period depends on the bilateral agreements and can be from one to five years. Postings have clear advantages, namely that your employee enjoys the same rights abroad and you save both time and administrative work. The GOTOT system allows you to submit a posting application electronically at www.socialsecurity.be/site_fr/employer/applics/gotot/about.htm. Social Security has published a guide on foreign posting applications that can be downloaded free of charge from www.socialsecurity.be/ site_fr/employer/applics/gotot/documents/pdf/brochure_F.pdf. For more information on postings in EU Members States, consult: www. europa.eu/youreurope/citizens/work/postings-abroad/index_fr.htm. Expatriation in the target country and subject to local social security whether they work in a subsidiary or a branch You must submit an application for a work permit or work card if you are anticipating expatriation outside the EU. These can sometimes be obtained from the embassy of the destination country in Brussels. Access to the profession Another aspect relating to employees working abroad is the recognition of diplomas between countries. An engineering or law degree does not guarantee that you can exercise your profession in a different country, particularly outside the EU. You will sometimes have to take additional exams, do an internship or be able to prove that you have experience and the necessary skills.

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7. Financing Selling services abroad incurs travel, communication, market research, translation and marketing costs. It is not without risk, such as longer payment times, non-payment and foreign exchange risk. Involve your banking partner well in advance of your international development. It will provide the best possible support (financing, secure payments, risk coverage and guarantees) to make your projects a success. Alternatives for secure payments S  ecure payment instruments such as international transfers, certified cheques and bills of exchange. P  ayment techniques with varying degrees of payment security: cashing, documentary remittance and documentary credit (credit letter). Financial solutions P  ublic aid for export processes. E  quity and capital risks. B  ank finance. T  ax incentives. Techniques for managing the foreign exchange risk B  anking products such as forward exchange, foreign loans in local currencies and advances, currency options, etc.. Insurance products that can cover you for a maximum amount in traded currencies according to the extent of the desired coverage.

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Frequently-used payment methods T  he credit letter (CL): this traditional method of paying export transactions gives you an irrevocable payment agreement from your buyer’s local bank. This is a form of local credit to the purchaser. C  onfirmed CL: in asking the bank for confirmation of this CL, the Belgian exporter is displacing the risk to their own bank. Their own bank will have to pay if the exporter provides the appropriate documents. B  ank transfer: this remains a simple and effective payment method. You will need to take out credit insurance for the transaction to be covered in order to secure cases of non-payment by the buyer . Coverage against risks For insurance linked to commercial transactions, the institute of reference is Ducroire, part of the Credendo Group, the Belgian public credit insurer. They cover the non-payment and/or termination of export contracts. It does not distinguish between the provision of services and the supply of goods, but is based on the terms of the export contract. Credit insurance is not a payment method, but it is rather an insurance that secures the non-payment of a transaction. It is a tool that covers all payment methods by affixing the guarantee of the Belgian State to your transaction. To obtain credit insurance, complete the form available at http://www. delcredereducroire.be/en/products-and-services/contract-documents/. Guarantee for bank credit Ducroire also makes it easier for international businesses to obtain bank credits by giving a financial guarantee to the bank granting the investment credits, working capital credit and credit lines for the issuing of bank guarantees. http://www.delcredereducroire.be/en/products-and-services/financial-guarantees/bank-credit/.

The Brussels-Capital Region supports the internationalisation of Brussels SMEs through financial aid (see p. 46).

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Stage 3: Get started!

SUPPORT FROM BRUSSELS INVEST & EXPORT

1 2 3 4 5 6

Economic and commercial attachés Geographical attachés B EST or “Brussels Export STarters Program” Collective actions International trade interns Financial subsidiaries

TESTIMONIALS AND BUSINESS CONSULTANCY

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Support from Brussels Invest & Export Our team provides specialist assistance as you move towards internationalisation. Don’t hesitate to enlist their services.

1.  Economic and commercial attachés You can count on our international network of 95 economic and commercial attachés in strategic locations around the world. Whatever the size of your export project, these local professionals will identify niches that match your activities, give you access to their network of contacts, inform you on the country’s regulations and practices, target potential local clients or partners, organise your business meetings, facilitate access to the local authorities and help you take part on trade fairs or set up a subsidiary or liaison office. All their services are free of charge. www.invest-export.brussels > our network > commercial attachés Contact Days Business relations require good inter-personal communication above all else. An excellent reason to meet our economic and commercial attachés during their contacts days, as they travel back to Brussels for these days every year. These individual meetings are a perfect opportunity to obtain information on target markets and start a rewarding relationship. Don’t miss them! www.invest-export.brussels > programme of events > contact days

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2. Geographical attachés At our offices in Brussels, our attachés of the cell “export” also are available to advise you. They focus on precise geographical areas and can steer you towards the best markets for exporting your services and towards the appropriate course of action. www.invest-export.brussels > contact us > export and internationalisation

3. B EST or “Brussels Exporter STarters Program” You have a sound project or plan, but you’re not familiar with export. BEST can launch you internationally in five sessions. With its tailor-made export plan, a meeting with five prospected foreign clients, support in negotiations and the legal contractual aspect, this coaching brings together strategy, local probing and monitoring of the selected market. www.invest-export.brussels > programme of events > BEST

4. Collective actions Performing market researches in group often leads to a remarkable dynamic its members. Brussels Invest & Export likes to take you and show you to the most promising markets on the planet. Among its commercial events, large-scale multi-sector missions stand alongside specialised missions that target just one business sector. Invitations from buyers, contact days, seminars in Brussels or abroad and joint stands at international trade fairs are all events that are part of B2B meetings. www.invest-export.brussels >programme of events > events diary

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5.  Host our international trade interns Do you need talented young people to augment your export projects? Every year, Brussels Invest & Export trains job-seekers in international trade techniques. The objective: providing free assistance to SMEs in exporting their products or services. You can choose from two different profiles: one commercial, the other administrative. “Brussels Young Exporters Program” trains young university students to explore foreign markets on behalf of Brussels SMEs, while the “Import Export Assistant” programme focuses on back-office activities to alleviate you from administrative duties. These programmes have proven to be effective, as 80% of trainees find a job at the end of their intensive theoretical training, a six-week internship within a business and, for the students of BYEP, to perform international researches on behalf of the host business. www.invest-export.brussels > our services > training/internships Also consult the brochure “International Trade Training Programmes” at www.invest-export.brussels > about us > publications.

6. Financial aids Financial aids provided by the Brussels-Capital Region are a real boost for SMEs and help to reduce the costs involved in export activities. When added to the different services provided by Brussels Invest & Export, you are guaranteed a seamless transition to exportation. T  o stimulate your SME, the Brussels-Capital Region offers subsidies of up to 50% of your projects: the researching of non-EU markets, participation in specialised trade fairs and shows with a 75% involvement for start-up businesses (under four years old), promotional material, responding to non-EU calls for tenders and to the opening of liaison offices outside the EU. www.invest-export.brussels > our services > support and subsidies T  he Brussels-Capital Region grants other subsidies for recruiting that job-seeker who’s able to develop your activities outside the EU, using the services of an external consultant (market studies, business plan) and receiving training in export. www.economie-emploi.brussels > support and subsidies

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E  xportbru, a subsidiary of finance.brussels (SRIB Group), facilitates direct funding for Brussels SMEs with export activities. It supports market research, international expansion and setting up abroad. www.finance.brussels > funding for exporting businesses Besides Brussels organisations, several federal bodies also support internationalisation. S  BI - Belgian Corporation for International Investment This body provides short- or medium-term co-financing for foreign investments by Belgian businesses. It invests in emerging, in developing and in fully developed countries and targets Belgian companies that have reached their maximum potential for the Belgian market and are thus starting or continuing their expansion abroad. www.bmi-sbi.be F  inexpo Finexpo supports Belgian exporters working in the sector of capital goods (construction of bridges, waste-water treatment and pumping stations, installation of power lines in rural areas, etc.) and their associated services. They are is involved in projects financed by bank credits spanning two years or more and covered by Ducroire.  www.diplomatie.belgium.be/en >policy, economic diplomacy > export financing. D  ucroire, part of the Credendo Group This public credit insurer covers Belgian businesses against commercial risks abroad. Its coverage includes the full range of capital goods, industrial projects, work and services for businesses. It also protects companies from political risks concerning foreign direct investments. Ducroire makes it easier to obtain bank credits by giving a financial guarantee to the bank granting the investment credits, working capital credit and credit lines for the issuing of bank guarantees (see p 42). www.credendogroup.com

Also consult the brochure “Les soutiens financiers à l’international” (French only) at www.invest-export.brussels >about us, publications.

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Testimonials and business consultancy To conclude this guide, here are a few testimonials from Brussels businesses that successfully export their services abroad with the assistance of Brussels Invest & Export. They prove that patience, the choice of the right strategic partners and a healthy dose of ambition can result in the successful internationalisation of services!

Nicolas Wurm Bilateral Project Manager until the end of 2015 at the hospital equipment company FSE International “Our company works in the human health sector, and partially in the animal health sector. Our business is strongly linked to local presence and we’re able to rely on our very tight, but often very distant, network as we work in Africa. We have local agents who take care of any technical aspects, but we’re are also looking for support of the public services sector in order to follow the local official procedures. For us, the strength of Brussels Invest & Export lies in its extraordinary local and strongly established network of relations. Next to medical trade fairs, trade missions are very important to us. They are a very effective tool. I myself have taken part in trade missions in Mongolia, Kenya and Tanzania. They are absolutely vital, as they create visibility and, by pooling resources, allow us access to high-level meetings in a short time frame. It’s a real win-win! We get on well with the economic and commercial attachés, who then perform follow-up work on the ground with our project managers. This support is absolutely essential when you go to a country either for a trade mission or individually. For us, it opens up a certain number of doors, often at a very high level. It would be harder for an exporter to do this on their own.”

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Wouter Neven Managing partner bij Lydian, multidisciplinair advocatenkantoor You cannot afford to miss this trade fair if you want to stay up-to-date with what is happening in the real estate world. It also is the best networking event for professionals in the sector. Our collaboration with Brussels Invest & Export at MIPIM is a tradition very dear to our heart. It is absolutely vital to join forces with a high-profile organisation if you want to play a major role in this trade fair, which is famous in Europe as-well-as around the world. A big name such as Brussels Invest & Export will optimise your chances of promoting yourself. Participation at MIPIM is a direct source of business for a firm like ours. In addition to this direct return on investment, we also feel an indirect impact: every year, we can see how our brand awareness is increasing and becoming top-of-mind awareness. Our efforts and our perseverance are really paying off. We wouldn’t want to miss the next MIPIM, in collaboration with Brussels Interest & Export, for anything in the world!”

Cédric Pierrard CEO of Efficy, a software company specialising in CRM “The CRM software market is highly competitive. We had to expand very quickly internationally in order to gain a sufficiently large market share. One of our biggest challenges has been to find a balance between the rapid generation of profits and the need to stay close to our clients, and to keep our prices affordable at the same time. We therefore decided to expand our international network using the “added value distributor” system. This allowed us to quickly produce high quality software thanks to the experience of our local partners. Our investment costs remained relatively low during this period.

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To achieve these objectives, we employed the services of Brussels Invest & Export and we found their support very effective. With their help, we took part in international trade fairs such as CeBIT and GITEX at little cost. Here is some advice for businesses that want to export successfully: you need to build a long-term relationship and win the client’s trust, which always takes longer than you think. It is essential to focus on one market at a time and stick to your internationalisation plan. You also must select partners who really need your service!”

Bert Dehandschutter Associate at the law firm Racine & Vergels “We have several years’ experience in providing services to Belgian clients abroad and to foreign clients in Belgium. Lawyers also need to adopt a strategy. And as an independent firm, Racine & Vergels has always chosen to collaborate with other firms. Our firm is a founding member of Eurojuris, a network of independent firms present in every country in the EU and in the main commercial hubs around the world. This network, whose head office is in Brussels, allows Brussels businesses to receive support from local specialists abroad. Through our partner, the Racine office in France, we often work with French clients who are dealing with Belgian law. For us, the basis of our success is maintaining good contacts with other firms abroad, both to assist our clients abroad and to offer them a high quality service at a reasonable price. Our participation in seminars organised by Brussels Invest & Export in Spain enabled us to establish important contacts with Spanish businesses wanting to set up business in Belgium. We were able to demonstrate our expertise in Belgian business law and our ability to help clients in their own language.”

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Geert Palmers CEO of the renewable energy software development and consultancy firm 3E. Winner of the Brussels Invest & Export 2012 Export Award “We provide consultancy and software services throughout the world and work on behalf of our clients in more than 40 countries. We mainly focus on Europe, Africa and Asia. Our offices in Paris, London, Toulouse, Milan, Istanbul and Cape Town allow us to support our international clients. This physical presence is very important when it comes to our consultancy services. Our software service, SynaptiQ, on the other hand, is easier to export as it does not always need to be set up locally. It is now used in more than 20 countries. Our clients come to us to explore new projects in countries in which we do not yet have a presence. Following them into new markets is one of the most effective approaches when it comes to internationalisation. And we offer another major advantage, namely the fact that we have a culturally and linguistically diverse team. Brussels Invest & Export has always been an important source of support thanks to its pragmatic approach and the work of its local teams, from subsidies to business development advice and networking events. The first export award we won in 2012 definitely gave 3E an excellent level of visibility worldwide.”

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Luc Deleuze Senior Partner Architect at the architect’s firm Art & Build The company has taken part in trade missions in countries such as China, Libya and Tunisia. “Our loyalty to the philosophy of sustainable development and our creative solutions have won us an international reputation. Our company is an example of the way in which a business can provide its services abroad through physical evidence. It has offices in Paris, Toulouse and Luxembourg and is working on projects in Russia, the Netherlands, Italy and the United Arab Emirates thanks to a diversified offer in the offices, retail, health, housing, leisure infrastructure and service sectors. It also offers associated services such as environmental certification, landscaping, interior architecture, graphic communication and project management. Our firm has won several different international awards (MIPIM Awards 2009 and 2011, RICS Awards 2009) and a number of competitions in France. It is also a founding member of the “Cradle to Cradle in Architecture” work and research group, an international group of architects that promotes sustainability in its manifesto. The key factor in our success is constantly surrounding ourselves with internationally renowned specialists and partners, which allows us to achieve each mission as effectively as possible.”

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Sources

In addition to the websites mentioned in this brochure, other sources have given us valuable assistance in the production of this guide. O  pleiding Laureaat in Exportmanagement, oktober 2012 - maart 2013, Antwerp management school et Unizo internationaal. D  ienstenmarketing - Christopher Lovelock & Jochen Wirtz - 2006, Amsterdam D  e internationale uitdaging die sociale media heet, Lewis PR - 2011 h ttp://files.welzijn-21e-eeuw.nl/ InnovatieplatformDienstenInnovatie.pdf h ttp://statbel.fgov.be/nl/binaries/Kerncijfers_2011_NL%20_ tcm325-148284.pdf#page=12&zoom=auto,0,412 h ttp://www.nbb.be/doc/ts/publications/ directive_services091215Nl.pdf h ttps://new.export.gov/Basic-Guide h ttps://www.ou.nl/web/dienstenmarketing/downloads h ttp://www.belastingdienst.nl/rekenhulpen/ diensten_in_en_uit_het_buitenland

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NOTES

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GUIDE ON EXPORT OF SERVICES

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