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.
First, take note that Latin America is not a single country but is composed of various countries. Taking the various countries of Latin America as one and the same could lead to the failure of your business. 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.
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.
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. Getting to know you as a person is one of the first steps of a Latin American business contact. Building great local business relationships is very important so we must take time to do this. If you do not consider this, you may have a hard time. Connect and socialize with the friends and family of your contact and earn his or her trust. The contact begins business with you if you become part of his or her circle of friends thus giving rise to long term perks.
Proper documentation should be done.
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. Good business relationship is still supposed to be kept in mind aside from the existence of a contract.
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.
Think very well about your price.
It is impossible to keep the same price across many Latin American 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.
You must get to know the way Latin Americans communicate.
Latin Americans usually do not wish to offend and they are the friendly, social type. They like to chat much so expect longer meetings. 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. So check out 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. 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 your time!
The difference in the pace in Latin America requires you to give more time for the project’s completion.