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.
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. Per country, they have their own rights, culture, habits and customs. 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.
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.
Having personal relationships can greatly affect how Latin Americans do business. Your Latin American business contact usually tries to get to know you as a person first. Although this may take time, we must not put aside the significance of forging good local business partnerships. 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. 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.
Proper documentation should be done.
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. But do not forget to consider the role of good business relationship previously mentioned.
Review your own approach.
Try not to give the impression that your approach is far more superior so that your Latin American contact will be comfortable with you.
Give careful thinking for your price.
It is not possible for you to maintain the same prices among the countries or regions. 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.
The Latin American style of communication should be understood by you.
Being friendly, sociable and respectful are traits of the Latin American and also they do not want to offend. They like to chat much so expect longer meetings. Their yes meaning no may become yes if you get to know them better.
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.
It is important that you know the language.
Brazilians speak Portuguese but the main language in Latin America is Spanish. 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.
Do not rush!
The project need to be completed with more time so align with the pace in Latin America.
To end it, the people are really great regardless of the style of business. Discover more about business in Latin America, do more readings.