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.
Number one is to remember that Latin America is composed of many 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 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.
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. 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.
Rule of thumb is to get familiar with the legalities and make it a point to put it in writing. 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.
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 impossible to keep the same price across many Latin American regions. Your level of investment, pricing and profits depend on local costs. Scrutinize the variations in regional cost before deciding to bring your product or service there.
Get familiar with the style of communication of Latin Americans.
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. Their yes meaning no may become yes if you get to know them better.
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.
Get the feedback of those who went before you. Learn more on how their business was able to survive.
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!