Factors to Consider for Business in Latin America
Are you thinking of putting up a business in Latin America? For your business to thrive, consider the following.
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. Every country in it has its own uniqueness which include customs, culture and even habits. 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.
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.
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. 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. 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.
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. But do not forget to consider the role of good business relationship previously mentioned.
Review 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.
It is not possible for you to maintain the same prices among the countries or regions. Considering local costs, these have an effect on your investment, pricing and profits. 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. You may have longer meetings with them because they talk much. 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. Make sure you look into their consumer sales channels.
It is important that you know 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.
Get the feedback of those who went before you. Try to understand how their business thrived.
Take it slow!
The project need to be completed with more time so align with the pace in Latin America.
Lastly, although business may be different, the people are still great. Discover more about business in Latin America, do more readings.