Are you exploring the idea of doing business in Latin America? As a huge melting pot of different cultures and languages, opportunities are vast here! Geographically, Latin America spans all of South America, Central America, Mexico, and parts of the Caribbean.
Why do we call it Latin America? Well, that’s because many countries here share a similar history. They also speak languages of Latin origins, known as ‘romance languages’. These Latin languages include Spanish, French and Portuguese.
With this in mind, the diversity of the consumer market that fills Latin America makes it a ripe business environment for those interested in international business. Latin American countries have the potential to provide great business opportunities that will foster development and growth in the region. In recent years the economies within these countries have seen increased stability. This coupled with the fact that people within this region are highly educated and each country within the region has an abundance of in-demand natural resources, Latin America should be on your radar as a place for you to launch out and do business.
In this blog, we explore a few tips to take into consideration when launching out and doing business in Latin America. We also look at a few key destinations and best businesses practices in each area!
Tips for Doing Business in Latin America
Localize Your Products and Services
If you’re an international company seeking to enter a local market, then localizing your product or service is the best way to have the greatest impact within a new found international market. Latin America is a vast region with different countries so naturally doing proper research before entering any of the markets is key.
The behavior of the consumer market in Columbia is going to be different from that of Brazil. Therefore launching, presenting, and marketing your product or service is going to have to be detailed. Ensure you’re connected with your audience and address their particular wants and needs.
Translation is also going to be a major part of localizing your product or service. You’ll need to consider things such as branding and the use of slogans. Entering into different territories and cultures requires you to adopt and adjust.
That said, Day Translations provides both translation and localization services to suit your needs.
Include Local and Experienced Professionals When Making Decisions
Entering into new business territory can be both a fulfilling and scary experience at the same time. With this in mind, no amount of research can replace first-hand experience. You also need advice from someone who has been exposed to your target market.
Therefore, seek to partner with someone local with knowledge about business compliance like registering the business, paying taxes, and any other fees or up-keep mandates that are required. Of course, this trusted person is also an asset when planning and implementing business strategies and hiring local staff. They will also help you to better understand the overall lay of the land and help you to expand your network.
Protect Your Digital and Physical Assets
Security is always something we should take seriously whether it be your physical assets such as electronics, money vehicles, or cybersecurity matters such as credit card information. Scams and theft are at an all-time high no matter the region you find yourself in. With this in mind, be sure to protect yourself from these types of vulnerabilities by taking the necessary measures to prevent them.
Of course, security and insurance may come at a cost, but it pays off, in the end, should anything unfortunate take place.
Now we’ll look at what it’s like to do business in Latin American countries by breaking them down.
Doing Business in Brazil
Brazil is a famous tourist destination. Their main language is Portuguese which means becoming familiar with the language is going to be necessary for your business success. It is important that you plan ahead, especially if it’s your first time venturing into this territory. This is because compared to other nationalities Brazilians tend to take things a little slower than usual.
Additionally, holding face-to-face meetings is the better approach to take as opposed to an email or over the phone. Having personal connections means a lot to Brazilians. And of course, get everything in writing especially when it comes to business. In Brazil, a verbal contract carries no weight.
Doing Business in Mexico
Probably one of the more popular Latin American countries, Mexico is a promising business destination but not without its challenges. A very interesting fact to note when attempting to do business in Mexico is the fact that Mexicans do not like to do business with strangers. Therefore, you can’t close business deals without building relations and earning the trust of Mexicans.
Mexico’s official language is Spanish which means that if you are not fluent in Spanish or at least have a basic vocabulary, it’s best to have someone on your team who does. Punctuality and communication are also very important to Mexicans, to be sure to get these in check. Dressing smartly is also always a very good choice.
Finally, get familiar with Mexican laws and regulations, in particular regulations for customs and the rules associated with export.
Doing Business in Panama
Also a popular tourist destination, Panama is a very good choice when seeking to do business. First, it’s important to note that Panamanian law does have a differentiation of opportunities or regulations for local as opposed to foreign investors.
Of course, Spanish is the official language for Panama. Thus, improving your Spanish or hiring an interpreter will do you well. It is also important to note US products are popular in Panama. This means that entering this market shouldn’t be all that difficult based on cultural preferences.
Wrapping Up
It’s time to make that bold step and venture into that Latin American region you’ve always dreamed of. Understanding cultural differences within the region definitely does the trick. Anyone keen on doing business in Latin America understands this.
Spanish is one of the most commonly spoken languages across Latin America and the world. Naturally, this means your Spanish skills must be relevant and up to date.
Of course, do your research and prepare detailed plans to get going with doing business in Latin America.
We hope we’ve helped you gain a better understanding of the lay of the land for doing business in Latin America.