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.
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. 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.
The success of your business could depend on how much you invest on learning the culture of the Latin American country of your choice.
Make it a point to be friendly.
Having personal relationships can greatly affect how Latin Americans do 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. 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. 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.
Put it on paper.
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. Having rules and a contract is good but still, do not forget the importance of good business relationship.
Look into 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.
Give careful thinking for your price.
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.
Get familiar with the style of communication of Latin Americans.
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. 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 must try to learn to speak the language.
Brazilians speak Portuguese but the main language in Latin America is Spanish. 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.
Take your time!
Unlike the fast pace where you came from, you need to allow time for the project to be completed.
To end it, the people are really great regardless of the style of business. Discover more about business in Latin America, do more readings.