Launching New Ventures in Latin America
One of the regions that are developing very fast in business is Latin America. A big mistake business people make during this move is trying to apply the business rule from back home onto this new venture. There is very rapid growth in the countries in this region, and this naturally pulls every business that is looking to extend their business into this area that seems to be conducive for business growth. Most people forget that Latin America is made up of very many different countries. If you treat it as if it is one big country, this will probably backfire on you because the different countries are so diverse and may not respond the same way to some things. Some strategies may be very successful in Chile but may not work in Venezuela, or even Brazil. A massive amount of research is required to be able to differentiate between each country and learning about all the different cultures so you can know what will work for what area. Understand each culture before proceeding.
Every matter in Latin America is first based on the personal relationships they establish. The general population that you are hoping to create contacts with there will attempt their absolute best to find out about you. This will determine whether they will confide in you or not so attempt your best to behave well. This is a very long process so don’t rush them to make the deal before they decide it is time. If you don’t go through this process willingly and patiently, you will most likely not close any deal successfully. After the trust is established, the deal is as good as closed. As important as the trust seems to be, ensure you put the business on paper drafted by great legal counselors to maintain a strategic distance from any illegalities. Most Latin Americans feel like anyone from the west coming to open new businesses in their country feel they’re more superior than the residents. This is a delicate issue. This means you should start working there with a clear mind and not try to do things the same way you did them where you came from. You may not like how business is conducted in Latin America, but trying to change their ways to suit your own is a terrible idea.
Cost also determines whether the venture will be successful or not. Local costs contrast from nation to nation so it isn’t a good idea to set a steady cost for the entire Latin America. Because of this, do your research on an area before extending your business there so you know what prices to set. Try your best to know which language is dominant in the region you are working on. Latin America is made up of different countries that speak different languages. Although Spanish is prevailing, a few spots like Brazil communicate in Portuguese. Have a go at the dialect that is talked where you’re going to be working. Local people there will like you better if you do this as it shows you appreciate them. Lastly, study the actions that business that came before, then pick the ones that will work best for you.