Things to Consider When Putting Up a Business in Latin America
Bringing your business to Latin America? For your business to thrive, consider the following.
Number one is to remember that Latin America is composed of many countries. Chances are that your business might fail if you take Latin America as one and the countries comprising it are the same. For every country in it, they have their own culture, customs and habits. Your marketing plan may be good in one country but may fail in another.
differences that are so emphasized can be seen in a lot of Latin American countries which gives you a feeling that you are in a different 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. Your Latin American business contact usually tries to get to know you as a person first. Building great local business relationships is very important so we must take time to do this. Do away with this step and you will have a difficult time. To make your contact trust you, connect with his or her family and friends. The moment you enter his or her social circle, the contact decides to transact business with you and this can lead to 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.
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.
Give careful thinking for 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. Look into the differences in regional cost before bringing your product or service in the region.
You must get to know the way Latin Americans communicate.
Latin Americans usually do not wish to offend and they are the friendly, social type. They talk a lot so you may have to put up with 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. It is best to study their consumer sales channels.
You must try to learn to speak 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.
Try to learn from those who tried doing business there in the past. Analyze what made them succeed.
Do not rush!
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. Get more info about business in Latin America, read more!