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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.
One, don’t forget that Latin America is composed of a group of countries. Chances are that your business might fail if you take Latin America as one and the countries comprising it are the same. Per country, they have their own rights, culture, habits and customs. Your marketing plan may be good in one country but may fail in another.
You might have the feeling that a region in a country is another country because of the pronounced regional differences in some Latin American countries.
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 sure you are friendly.
Good relationships have quite an impact on the way the Latin Americans view business. Your Latin American business contact usually tries to get to know you as a person first. This might take time but there is really a need to create good, local business partnershps. 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. The contact begins business with you if you become part of his or her circle of friends thus giving rise to long term perks.
Put it in black and white.
A good rule to follow is to study the legal requirements and don’t forget to do it in paper. A very important step is to seek the services of a reputable lawyer and accountant to help in the preparation of your written contract. Having rules and a contract is good but still, do not forget the importance of good business relationship.
Review 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.
Consider your price properly.
You cannot come up with a common price from country to country or region to region. 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.
The Latin American style of communication should be understood by you.
Latin Americans usually do not wish to offend and they are the friendly, social type. They like to chat much so expect 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.
Latin American speak mostly Spanish but Brazilians speak Portuguese. It is not wise to expect that your business contact speaks English well.
Consult those who previously did business there. Analyze what made them succeed.
Take your time!
The project need to be completed with more time so align with the pace in Latin America.