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. If you think that all the countries in Latin America are the same, your business can fail. For every country in it, they have their own culture, customs and habits. Your marketing plan may be good in one country but may fail 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.
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.
The presence of personal relationships strongly influences how Latin Americans engage in 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. This important move, if not followed, could make you struggle. Connect and socialize with the friends and family of your contact and earn his or her trust. 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 on paper.
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. But do not forget to consider the role of good business relationship previously mentioned.
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.
Think very well about 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. 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.
Latin American speak mostly Spanish but Brazilians speak Portuguese. Not all business contacts can speak English so take note of that.
Consult those who previously did business there. Learn more on how their business was able to survive.
Take your time!
The project need to be completed with more time so align with the pace in Latin America.
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