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Factors to Consider for Business in Latin America
Are you thinking of putting up a business in Latin America? Follow these guides for a successful 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. For every country in it, they have their own culture, customs and 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.
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.
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. 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.
Rule of thumb is to get familiar with the legalities and make it a point to put it in writing. A very important step is to seek the services of a reputable lawyer and accountant to help in the preparation of your written contract. Having rules and a contract is good but still, do not forget the importance of good business relationship.
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. Before taking your product or service to a region, check very well the regional cost variations.
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 like to chat much so expect longer meetings. 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. It is best to study their consumer sales channels.
You should be able to speak 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.
Consult those who previously did business there. Analyze what made them succeed.
Take it slow!
Unlike the fast pace where you came from, you need to allow time for the project to be completed.