Doing Business in Russia

Here are George Rose’s tips for American entrepreneurs. * Plan to lose money on your venture for the first three to four years.

* Buy political risk insurance and insurance that protects your investment from drastic fluctuations in the rate of currency exchange.

* If you don’t speak Russian, hire an experienced guide. It might be a local business person, a consultant or an attorney.

* Be obsessed with bringing your product or service to Russia.

* Look for opportunities to try something over there that you can’t do here. (For example, there are entire towns without telephone systems or ice cream shops.)

* Be patient. It may take 15 faxes to get one response.

* Realize that when a Russian says no, he or she may not mean it.

* Before you do anything, call the U.S. Department of Commerce for help: (202) 482-4655.

Deborah Anne Palmieri said the Russian-American Chamber of Commerce spends about $12,000 a year on newsletters, database services and other information sources. In recent months, her staff has worked with companies trying to establish a Russian American television network and has worked to find financing for a Russian company that makes hydrofoils. She offers these tips. * Remember, you are dealing with a society in the midst of an absolutely earth-shattering transformation.

* Be aware of the criminal underworld.

* Collect detailed information about your industry and specific business niche, including the geographical area you want to do business in.

* Find the right Russian business partner. Beware of inexperienced Russians who claim to have a lot of contacts but don’t.

* Have a written “risk minimization plan” with specific scenarios outlining how you will deal with problems.

* Use all the support services that exist, including the Commerce Department’s Washington-based Business Information Service for the Newly Independent States.

* Set up your own communications systems, including computer electronic mail or satellite telephone systems.