Things to Consider When Putting Up a Business in Latin America
Want to take 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. Taking the various countries of Latin America as one and the same could lead to the failure of your business. 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.
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.
Understanding the culture of the Latin American country you want to put up your business in is a good thing for business success.
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. Building great local business relationships is very important so we must take time to do this. If you do not consider this, you may have a hard time. Socialize with family and friends of your contact to gain 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.
Aside from checking the legalities, see to it that you have the papers. There is a need to consult a good lawyer and an accountant to scrutinize your contract. Having rules and a contract is good but still, do not forget the importance of good business relationship.
Check 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.
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. Look into the differences in regional cost before bringing your product or service in the region.
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 talk a lot so you may have to put up with longer meetings. Their yes meaning no may become yes if you get to know them better.
The channels of distribution and barriers of logistics differ among Latin American countries. It is best to study their consumer sales channels.
You must try to learn to speak the language.
Latin American speak mostly Spanish but Brazilians speak Portuguese. Not all business contacts can speak English so take note of that.
Get the feedback of those who went before you. Analyze what made them succeed.
Take your time!
The difference in the pace in Latin America requires you to give more time for the project’s completion.
Lastly, although business may be different, the people are still great. Discover more about business in Latin America, do more readings.