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Factors to Consider for Business in Latin America
Are you thinking of putting up a business in Latin America? Check out these tips towards a smooth flow of business.
First, take note that Latin America is not a single country but is composed of various 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 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.
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 it a point to be friendly.
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. This might take time but there is really a need to create good, local business partnershps. If you do not consider this, you may have a hard time. Connect and socialize with the friends and family of your contact and earn 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. Having rules and a contract is good but still, do not forget the importance of good business relationship.
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.
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. Look into the differences in regional cost before bringing your product or service in the region.
You must get to know the way Latin Americans communicate.
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.
It is important that you know the language.
The main language of Latin America is Spanish and Portuguese is the language of Brazilians. Don’t think that your business contacts will speak English fluently.
Get the feedback of those who went before you. Try to understand how their business thrived.
Do not rush!
The difference in the pace in Latin America requires you to give more time for the project’s completion.