Factors to Consider for 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. Chances are that your business might fail if you take Latin America as one and the countries comprising it are the same. Every country in it has its own uniqueness which include customs, culture and even habits. Your plan for marketing can work in one country but may not work 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.
Understanding the culture of the Latin American country you want to put up your business in is a good thing for business success.
Make sure you are friendly.
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. Although this may take time, we must not put aside the significance of forging good local business partnerships. If you do not consider this, you may have a hard time. Socialize with family and friends of your contact to gain 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. But do not forget to consider the role of good business relationship previously mentioned.
Look into your own approach.
Be careful in implementing your business approach so as to make sure your Latin American partner will work harmoniously with you and not feel inferior.
Think very well about your price.
It is not possible for you to maintain the same prices among the countries or regions. Your level of investment, profits and pricing will rely on the local costs. Scrutinize the variations in regional cost before deciding to bring your product or service there.
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 talk a lot so you may have to put up with longer meetings. Getting to know each other better can turn their yes which means no to yes.
Another thing that varies in each Latin American country is the channels of distribution and barriers of logistics. It is best to study their consumer sales channels.
You must try to learn to speak 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.
Try to learn from those who tried doing business there in the past. Try to understand how their business thrived.
Take it slow!
Unlike the fast pace where you came from, you need to allow time for the project to be completed.
Lastly, although business may be different, the people are still great. Discover more about business in Latin America, do more readings.