Things to Consider When Putting Up a Business in Latin America
Are you thinking of putting up a business in Latin America? Follow these guides for a successful business.
First, take note that Latin America is not a single country but is composed of various countries. Chances are that your business might fail if you take Latin America as one and the countries comprising it are the same. Per country, they have their own rights, culture, habits and customs. Your marketing plan may be good in one country but may fail in another.
You might have the feeling that a region in a country is another country because of the pronounced regional differences in some Latin American countries.
The success of your business could depend on how much you invest on learning the culture of the Latin American country of your choice.
Make it a point to be friendly.
The presence of personal relationships strongly influences how Latin Americans engage in business. Your Latin American business contact usually tries to get to know you as a person first. This might take time but there is really a need to create good, local business partnershps. Do away with this step and you will have a difficult time. Connect and socialize with the friends and family of your contact and earn his or her trust. After becoming part of his or her social circle, the contact will start to do business with you and there can be long term rewards.
Put it on paper.
A good rule to follow is to study the legal requirements and don’t forget to do it in paper. 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.
Review your own approach.
Do not make your Latin American contact feel that you are imposing upon him or her your own approach so try to implement it appropriately.
Think very well about your price.
You cannot come up with a common price from country to country or region to region. Considering local costs, these have an effect on your investment, pricing and profits. Before taking your product or service to a region, check very well the regional cost variations.
You must get to know the way Latin Americans communicate.
Being friendly, sociable and respectful are traits of the Latin American and also they do not want to offend. You may have longer meetings with them because they talk much. Getting to know each other better can turn their yes which means no to yes.
Take note that there are differences in the distribution channels and logistics barriers within countries in Latin America. It is best to study their consumer sales channels.
You should be able to speak the language.
The main language of Latin America is Spanish and Portuguese is the language of Brazilians. Not all business contacts can speak English so take note of that.
Try to learn from those who tried doing business there in the past. Try to understand how their business thrived.
Take it slow!
The difference in the pace in Latin America requires you to give more time for the project’s completion.
To end it, the people are really great regardless of the style of business. Discover more about business in Latin America, do more readings.