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. 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.
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.
Understanding the culture of the Latin American country you want to put up your business in is a good thing for business success.
Develop your friendship skills.
The presence of personal relationships strongly influences how Latin Americans engage in 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. This important move, if not followed, could make you struggle. To make your contact trust you, connect with his or her family and friends. 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. There is a need to consult a good lawyer and an accountant to scrutinize your contract. Having rules and a contract is good but still, do not forget the importance of good business relationship.
Review 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.
Give careful thinking for your price.
You cannot come up with a common price from country to country or region to region. 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.
The Latin American style of communication should be understood by you.
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. 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. It is best to study their consumer sales channels.
You should be able to speak the language.
Brazilians speak Portuguese but the main language in Latin America is Spanish. Don’t think that your business contacts will speak English fluently.
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!
Unlike the fast pace where you came from, you need to allow time for the project to be completed.
No matter how different business may be, the people are always great. Discover more about business in Latin America, do more readings.