Things to Consider When Putting Up a Business in Latin America
Bringing your business to Latin America? Follow these guides for a successful business.
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. 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.
Therefore, to maximize your chances for success, focus on understanding the culture of the Latin American country where you want to invest in.
Develop your friendship skills.
The presence of personal relationships strongly influences how Latin Americans engage in business. The first thing a Latin American business partner does is to get to know you personally. Although this may take time, we must not put aside the significance of forging good local business partnerships. 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.
Aside from checking the legalities, see to it that you have the papers. Having the aid of a good lawyer and an accountant to look into your contract is imperative. But do not forget to consider the role of good business relationship previously mentioned.
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.
Consider your price properly.
It is not possible for you to maintain the same prices among the countries or regions. 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 mostly are amiable, outgoing, respectful and do not want to offend. You may have longer meetings with them because they talk much. 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. Make sure you look into 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. Not all business contacts can speak English so take note of that.
Consult those who previously did business there. Analyze what made them succeed.
Do not rush!
The project need to be completed with more time so align with the pace in Latin America.