Things to Consider When Putting Up a Business in Latin America
Are you thinking of putting up a business in Latin America? For your business to thrive, consider the following.
First, take note that Latin America is not a single country but is composed of various countries. If you think that all the countries in Latin America are the same, your business can fail. Every country in it has its own uniqueness which include customs, culture and even habits. Your strategy for sales might not work for a certain country but it may work in the other country.
Also, for some Latin American countries, they have differences regionally that could make you feel you are dealing with another country in the same country.
Therefore, to maximize your chances for success, focus on understanding the culture of the Latin American country where you want to invest in.
Make sure you are friendly.
Good relationships have quite an impact on the way the Latin Americans view business. The first thing a Latin American business partner does is to get to know you personally. This might take time but there is really a need to create good, local business partnershps. This important move, if not followed, could make you struggle. Socialize with family and friends of your contact to gain his or her trust. The contact begins business with you if you become part of his or her circle of friends thus giving rise to long term perks.
Put it in black and white.
Aside from checking the legalities, see to it that you have the papers. A very important step is to seek the services of a reputable lawyer and accountant to help in the preparation of your written contract. Good business relationship is still supposed to be kept in mind aside from the existence of a contract.
Check your own approach.
Be careful in implementing your business approach so as to make sure your Latin American partner will work harmoniously with you and not feel inferior.
Think very well about your price.
You cannot come up with a common price from country to country or region to region. Your level of investment, pricing and profits depend on local costs. Before taking your product or service to a region, check very well the regional cost variations.
The Latin American style of communication should be understood by you.
Latin Americans usually do not wish to offend and they are the friendly, social type. They like to chat much so expect longer meetings. Getting to know each other better can turn their yes which means no to yes.
Another thing that varies in each Latin American country is the channels of distribution and barriers of logistics. Make sure you look into their consumer sales channels.
It is important that you know the language.
Brazilians speak Portuguese but the main language in Latin America is Spanish. Don’t think that your business contacts will speak English fluently.
Get the feedback of those who went before you. Try to understand how their business thrived.
Take it slow!
The project need to be completed with more time so align with the pace in Latin America.
No matter how different business may be, the people are always great. Discover more about business in Latin America, do more readings.