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. 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 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.
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. 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.
Proper documentation should be done.
A good rule to follow is to study the legal requirements and don’t forget to do it in paper. 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.
Check 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.
Think very well about 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. Before taking your product or service to a region, check very well the regional cost variations.
You must get to know the way Latin Americans communicate.
Latin Americans mostly are amiable, outgoing, respectful and 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.
You must try to learn to speak 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.
Try to learn from those who tried doing business there in the past. Learn more on how their business was able to survive.
Take it slow!
The project need to be completed with more time so align with the pace in Latin America.
To end it, the people are really great regardless of the style of business. Discover more about business in Latin America, do more readings.
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