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.
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 plan for marketing can work in one country but may not work in another.
differences that are so emphasized can be seen in a lot of Latin American countries which gives you a feeling that you are in a different country.
Therefore, to maximize your chances for success, focus on understanding the culture of the Latin American country where you want to invest in.
Develop your friendship skills.
Having personal relationships can greatly affect how Latin Americans do 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. If you do not consider this, you may have a hard time. Socialize with family and friends of your contact to gain his or her trust. 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.
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.
Look into 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.
It is not possible for you to maintain the same prices among the countries or regions. Your level of investment, profits and pricing will rely on the local costs. Scrutinize the variations in regional cost before deciding to bring your product or service there.
Get familiar with the style of communication of Latin Americans.
Latin Americans mostly are amiable, outgoing, respectful and do not want to offend. 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. Make sure you look into their consumer sales channels.
You should be able to speak 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.
Try to learn from those who tried doing business there in the past. Try to understand how their business thrived.
Take your time!
Unlike the fast pace where you came from, you need to allow time for the project to be completed.
To end it, the people are really great regardless of the style of business. Get more info about business in Latin America, read more!
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