Drawn from our experience with many clients, we have come up with a brief overview of the top 5 success factors for foreign company in Ukraine. When our clients set up a business we tackle these issues in details, guiding the client through the seed stage.

1. A knowledgeable local assistant

You will really benefit and your things will go faster and smoother if you have trusted assistant in Ukraine. He/she will make you familiar with the local features and conditions for doing business. Besides you can always use him/her as your distant hands to solve your practical questions in Ukraine.

2. Massive and frequent communication

Communication really is the key to a healthy relationship. Establish partnerships, listen carefully, share your ideas and keep new connections alive. The regular personal meetings with your potential clients or partners are critical in Ukraine. You are also recommended to keep closely in touch with people responsible for your expansion.

3. Accurate planning

Project “Ukraine” is going to be a serious challenge unless your get prepared to it carefully. You may want to take professional project manager on board. Anyway, you need to set clear goals, secure careful planning and  monitoring of achievements. Once you take final decision to be present in Ukraine,  we urge you to make full-scale business-plan.

4. Sufficiency in resources

You cannot risk with your project success by economizing on everything. Be prepared to spend some money for onsite visit, data collection, initial marketing. Besides, it is crucial that you assign a special person dedicated to the expansion.

5. Good initial knowledge transfer

Whether you want it or not, you are newcomer in Ukraine, who will inevitably meet with many difficulties. You can avoid that by collection information regarding macro environment as well as specific issues, connected with your business purposes. Think first of local experts you may talk to. Also, valuable sources of information can be found on Internet, sometimes, for free.

Cost of doing business becomes ridiculously small.

Will you believe that there is a country in the middle of Europe where 150 bucks is ordinary monthly salary? As a matter of fact, in Ukraine currency devaluation and unemployment caused the reduction of salaries by up to 70% in terms of Euro. Similar situation with other operating expenses like office rent, telecommunication and information services as well as insurance. Materials and component parts in many cases cost twice less than just a year ago again in terms of Euro.

Export Rules.

Supply managers from all over the world have new challenges as Ukrainian exporters are now able to offer minimal prices in Dollar and Euro. New times force Ukrainian companies actively seek client abroad and propose them favorable terms of pricing and delivery. Some foreign company are already establish factories at Western borders of Ukraine with the purpose to sell the production to the customers in Europe.

Domestic Competition disappears.

Since 2005 markets have been growing and competition were getting tough. But when economic turmoil began local players found themselves overloaded with expensive debts and not able to manage changes. Many of them disappeared, frozen activities, reduced product lines. Nowadays Ukrainian firms are limited in resources to invest in new products, enter new market and compete with more powerful competitors from abroad.

Speculative investments flourish.

Today, you can easily acquire commercial and residential real estate, land and fixed assets for 30-50% of their last year price. Companies with aggressive investment strategy are able to select the most attractive objects and dictate the conditions to the sellers. The excessive proposition makes many assets underestimated. Investors with long-term plan has also an opportunity to buy businesses or stakes in companies for as little as 10-20% of their last year value.

Business Tourism and Business Services have never been more affordable.

Due to currency devaluation Ukraine becomes a paradise for business travelers in terms of pricing. Hotel prices were reduced by 30% in Euros, apartment rent fall by 50%, average bill in restaurant is 50-60% smaller than a year ago. If you contemplate Ukraine as a potential destination for you business, it is a right time to visit it as well as order services from local researchers, translators and lawyers.

Although Ukraine is a part of Europe geographically and historically, we are not classical “Europeans”. In our emotionality we are more similar to Southern Europe. The cartoon below, although devoted to Italy, will help you to understand Ukraine as well.

In general, Ukrainians lack discipline and responsibility, but they are very adaptable to different people and situations. Friendship goes before business in Ukraine. So be prepared to set personal relations with people you are going to work with.

Ukrainians are more emotional than analytical and more people-oriented than focused on results.

Ukrainians are not about planning, they love to be spontaneous in their private and business lives.

The nation is polychromic, which means that we do not control time well. This means frequent delays, rescheduling and cancellation of meetings.

Most of Ukrainians lack objectivity, their judgments are strong and 100% right.

You usually need to high your expectations with a grain of salt. Average Ukrainian tends to promise a lot, sometimes more than he/she can do.

Interestingly, Ukrainians usually start conversations with unimportant things. The most critical things go at the end, when the personal contact is established.

Aural agreements means much more than written. It is known, that Ukrainians never read just look through agreements they sign.

In their relations with foreigners Ukrainian people becomes especially courteous in case if they speak foreign language or have a translator. Only less than 10% of population – primarily the youth of Kyiv and other big cities – can communicate in English.

Generally people are very smart. 90% of Ukrainians have higher education. People over 35 (56% of population) received soviet education which was quite strong, although too theoretical. Serious reforms in education started just few years ago. Thus, Ukraine has ample of technically advanced people with strong knowledge in math, physics, chemistry, and engineering, but lacks professionals in the field of business administration, finance, human resources, international trade.

And, of course, we are the best nation in the World!

I have collected short list of memorable and proven advices which may help you in your day-to-day communication with Ukrainians:

Overall

Greeting

Business Meeting

Restaurant