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. Taking the various countries of Latin America as one and the same could lead to the failure of your business. For every country in it, they have their own culture, customs and habits. Your strategy for sales might not work for a certain country but it may work in the other country.
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.
Good relationships have quite an impact on the way the Latin Americans view business. The first thing a Latin American business partner does is to get to know you personally. This might take time but there is really a need to create good, local business partnershps. 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 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.
Rule of thumb is to get familiar with the legalities and make it a point to put it in writing. 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.
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 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. Scrutinize the variations in regional cost before deciding to bring your product or service there.
The Latin American style of communication should be understood by you.
Being friendly, sociable and respectful are traits of the Latin American and also they do not want to offend. You may have longer meetings with them because they talk much. You can get them to finally say yes even if they mean no if you understand how it works.
The channels of distribution and barriers of logistics differ among Latin American countries. It is best to study 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. Not all business contacts can speak English so take note of that.
Consult those who previously did business there. Analyze what made them succeed.
Take your time!
The project need to be completed with more time so align with the pace in Latin America.