Factors to Consider for Business in Latin America
Want to take 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. If you think that all the countries in Latin America are the same, your business can fail. Per country, they have their own rights, culture, habits and customs. 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.
Therefore, to maximize your chances for success, focus on understanding the culture of the Latin American country where you want to invest in.
Make sure you are friendly.
Good relationships have quite an impact on the way the Latin Americans view business. Getting to know you as a person is one of the first steps of a Latin American business contact. Although this may take time, we must not put aside the significance of forging good local business partnerships. Do away with this step and you will have a difficult time. Socialize with family and friends of your contact to gain 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 in black and white.
Rule of thumb is to get familiar with the legalities and make it a point to put it in writing. A very important step is to seek the services of a reputable lawyer and accountant to help in the preparation of your written contract. Good business relationship is still supposed to be kept in mind aside from the existence of a contract.
Check 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.
Consider your price properly.
It is impossible to keep the same price across many Latin American regions. Your level of investment, pricing and profits depend on local costs. 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 usually do not wish to offend and they are the friendly, social type. 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. It is best to study 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.
Consult those who previously did business there. Learn more on how their business was able to survive.
Do not rush!
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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