Things to Consider When Putting Up a Business in Latin America
Are you thinking of putting up a business in Latin America? Check out these tips towards a smooth flow of business.
One, don’t forget that Latin America is composed of a group of countries. Chances are that your business might fail if you take Latin America as one and the countries comprising it are the same. Per country, they have their own rights, culture, habits and customs. Your marketing plan may be good in one country but may fail in another.
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.
Understanding the culture of the Latin American country you want to put up your business in is a good thing for business success.
Make sure you are friendly.
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. Although this may take time, we must not put aside the significance of forging good local business partnerships. Do away with this step and you will have a difficult time. To make your contact trust you, connect with his or her family and friends. 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.
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. 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.
Give careful thinking for your price.
You cannot come up with a common price from country to country or region to region. Your level of investment, profits and pricing will rely on the local costs. Scrutinize the variations in regional cost before deciding to bring your product or service there.
You must get to know the way Latin Americans communicate.
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. 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.
The main language of Latin America is Spanish and Portuguese is the language of Brazilians. Don’t think that your business contacts will speak English fluently.
Get the feedback of those who went before you. Analyze what made them succeed.
Take your time!
Unlike the fast pace where you came from, you need to allow time for the project to be completed.
No matter how different business may be, the people are always great. Get more info about business in Latin America, read more!