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. Taking the various countries of Latin America as one and the same could lead to the failure of your business. Every country in it has its own uniqueness which include customs, culture and even habits. Your plan for marketing can work in one country but may not work 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.
Understanding the culture of the Latin American country you want to put up your business in is a good thing for business success.
Develop your friendship skills.
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. Socialize with family and friends of your contact to gain 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.
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.
Look into 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.
Consider your price properly.
It is impossible to keep the same price across many Latin American regions. 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.
Latin Americans mostly are amiable, outgoing, respectful and do not want to offend. 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.
Take note that there are differences in the distribution channels and logistics barriers within countries in Latin America. Make sure you look into their consumer sales channels.
It is important that you know the language.
Latin American speak mostly Spanish but Brazilians speak Portuguese. It is not wise to expect that your business contact speaks English well.
Consult those who previously did business there. Learn more on how their business was able to survive.
Do not rush!
The project need to be completed with more time so align with the pace in Latin America.