The United States has one of the largest and most influential markets in the world. If you have a sense for the business etiquette guidelines and can work within them, you have a much better chance of successfully communicating and doing business. Since it can be easy to inadvertently break some of the unspoken rules, we’d like to give you some tips to help you understand how things work in the US.
Business relationships in the US
Americans are informal and friendly compared to other, more reserved countries. You will find them starting a conversation with total strangers on a bus, when standing in line, or sitting next to others at all kinds of events. This informal openness and directness can be startling to people from other countries. Be prepared to be spoken to by a stranger at some point or another.
This general friendliness carries over into business. When you first meet an American in a business setting, you may be overwhelmed by their enthusiasm to meet you. Noteworthy to many non-Americans, however, is that Americans do not feel the need to first have a personal relationship with you to do business. If the business opportunity is right, Americans are willing to conduct business right away since the transaction is between companies, not necessarily individuals. They would rather sign a deal with you than build a relationship first. If a relationship develops afterwards, all the better, but it is not a goal. Americans, however, do want to do business with people they like and can relate to. First impressions, friendliness, trust-worthiness, and enthusiasm without being overbearing can all impact a business deal.
Americans are generally very direct and want to quickly get to the point of a meeting. “Time is money” to Americans and they will use a direct approach to keep things moving. If your culture is not direct, avoid using your culture’s perception of it when you evaluate the Americans you are meeting with. You may also benefit from being more direct, yourself, than you normally are.
Greetings and meetings in the US
Greetings in the US tend to be more informal and come with a handshake. Americans are friendly and smile a lot. They are often quickly on a first-name basis, so be prepared for them to share their first name and use yours. This is a reflection of the American egalitarian society. People in the US tend to be positive and enthusiastic and may vigorously shake your hand, and even put their hand on your back or hold your arm. And maintaining eye contact while talking is the norm in the US.
Though you will often hear, “How are you?” or “How are you doing today?”, Americans are generally not really asking you how you are so you aren’t expected to answer in detail. A simple, “Fine, thanks” or “I’m doing well” should suffice. They may also say, “See you soon!” or “See you later!” when you are parting. These are common phrases and don’t literally mean they will see you soon.
American body language can be confusing. They smile a lot, even at strangers, and like to have people smile back at them. They may put their hand on your back and even hug you when they feel you’ve established a rapport – but others may make it clear they dislike touching. Most Americans do have a strong sense for personal space and are comfortable with some physical distance when talking. They will be uncomfortable if you sit or stand too close to them. If you are from a country that is comfortable with a lot of physical contact and you stand too near, pay attention to their signals and keep your distance if they look uncomfortable. On the other hand, if you are from a culture where people avoid physical contact, don’t be surprised by an American who holds your arm, hugs you, or lightly slaps your back.
Punctuality
Punctuality is important, based on the notion that you are wasting both time and money if you are late. In fact, time has an almost tangible status in that you can spend it, waste it, save it, and invest in it. Therefore, being on time, getting quickly down to business, and sticking to an agenda are common in the US.
There are some regional differences in punctuality guidelines around the country. People in the Midwest and Northeast are much more conscious of being on time. If you are late, it will reflect poorly on you and you will be considered rude and disrespectful. People are more casual about being on time in the West and South, but you should be on time and be comfortable with having to wait a while before the meeting starts.
Keep your commitments for appointments, sharing information, finishing a project, or delivering a report.
Business Cards
In the US, business cards are used as a way to exchange contact information for future reference and do not hold the importance that they do in some other countries. They are typically handed out as a formality in a somewhat casual way and there may be times when they aren’t handed out at all. Try not to be offended if your card is briefly reviewed and then stuffed into a pocket.
Shaking hands and titles
Americans greet with a firm handshake while making eye contact. Your handshake doesn’t have to be long, but it should not be weak. You will shake the hands of everyone to whom you are introduced, including the women and regardless of seniority. Once you have shaken hands, make sure you are then at least an arm’s length away, as Americans like their personal space.
When you first meet, use the title and last name of your American colleagues until they tell you to use their first name – which could be very quickly in America. If you introduce yourself with your own last name, they will be more likely to continue to use it until you give them permission to use your first name. When introducing others, use their titles, and it’s good to give a bit of context for who they are, such as, “This is Jessica Hoyt. She heads up our legal team”.
Dress
There is a wide range of dress codes in the United States, depending on the region, the industry, a person’s position, and the individual company’s policies. It is always safe to attend a first meeting in classic business attire and then determine how to proceed for subsequent meetings. It is not unusual to see different levels of dress formality in the same meeting in America. You will not have a problem with being well-dressed when you first meet, or better dressed than others in the meeting. You may find that your American counterpart is more casually dressed than you are. Don’t be offended, but take it as a cue for future meetings.
Communication style in the US
Americans are direct. They say what they mean, so “yes” means “yes”, “no” means “no”, and “maybe” is not a polite way for saying “no” – it really does mean maybe.
Even though it is considered rude to interrupt someone when they are speaking, it often happens in the United States. If you hesitate to gather your thoughts or to think things through, someone else may jump in and start talking, finish your sentence, or take things in a new direction. If you would like to make a point, you can say, “Excuse me” when there is a pause and you can then continue.
Americans are uncomfortable with silence and will find ways to fill it. They also expect people to participate and speak up in meetings. Americans are comfortable with asking questions if something is not clear to them. If you don’t ask any questions, it will be assumed that you understand everything and if you are quiet, they may assume that you do not have anything to contribute or that you didn’t come prepared to the meeting.
Though the atmosphere may appear friendly and casual, meetings are taken seriously and any agendas will be followed and outcomes documented. Americans tend to want to get quickly to a decision and will discuss a topic then strive for consensus and a decision – and move on to the next topic.
Many meetings in America start with a brief amount of small talk to settle things down, ease any tension, make people comfortable, and test the mood of the meeting. Typical topics in the US include work, sports, the weather, travel, food, how your stay has been, even family. This conversation generally will not last long and people will get started on the business at hand.
Americans tend to be comfortable with conflict and are very comfortable with publicly disagreeing, openly criticizing, or saying “no”. Disagreements are often handled publicly, directly, and openly. If this style is different from your own culture, you may be uncomfortable with it, but keep in mind that it’s not intended to offend you or make you uncomfortable.
Negotiations and contractual business agreements
Americans are focused on the deal, on the result. They do not need a relationship to make a deal. The relationship can build over time as business is being done. The do seek ‘likability’ and signs of trust in business partners such as truthfulness and friendliness.
Negotiations are viewed as problem-solving exercises and are based on mutual benefit. Americans generally ask for much more than they expect to ultimately get, keeping some room for negotiation as they go, and their first position may appear outrageous. It is expected that all parties will think for themselves and express their own ideas. Being straightforward and using facts and data are valued.
Americans would prefer to move quickly to an agreement, which could feel rushed to you. This goes back to the earlier points that Americans do not feel the need to first establish a personal relationship and that since “time is money”, they do not want to waste any.
The main objective of negotiations is to get a signed contract. Once signed, contracts are legally binding documents. During the negotiations, all the contractual details will be scrutinized and if there are any disagreements later on, the contract will be referred to. There are often both state and federal laws that apply and both you and your American counterpart will have to adhere to them.
Be sure to obtain the help of a US-trained attorney that is familiar with American contract law to assist you in any contractual negotiations. Savvy Americans would not enter into a contractual agreement without legal consultation. Verbal agreements are rarely considered binding.
You can learn more about Business Culture in the US and read more of our blogs on setting up and doing business in the US.
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