Things to Consider When Putting Up a Business in Latin America
Bringing your business to Latin America? Check out these tips towards a smooth flow of business.
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. 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.
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.
Develop your friendship skills.
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. This might take time but there is really a need to create good, local business partnershps. If you do not consider this, you may have a hard time. To make your contact trust you, connect with his or her family and friends. 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 in black and white.
A good rule to follow is to study the legal requirements and don’t forget to do it in paper. 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.
Do not make your Latin American contact feel that you are imposing upon him or her your own approach so try to implement it appropriately.
Give careful thinking for your price.
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.
You must get to know the way Latin Americans communicate.
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. 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. Make sure you look into their consumer sales channels.
You must try to learn to speak the language.
The main language of Latin America is Spanish and Portuguese is the language of Brazilians. It is not wise to expect that your business contact speaks English well.
Try to learn from those who tried doing business there in the past. Analyze what made them succeed.
Do not rush!
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. Get more info about business in Latin America, read more!