Launching New Ventures in Latin America
An area that is growing quickly in business is Latin America. A major mix-up specialists make amid this move is attempting to apply how the company was run back home here. 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. Different parts of a country also have different cultures, so much research is needed to know how to treat each region. Understand each culture before proceeding.
Each issue in Latin America is first based on the personal relationships someone establishes. The people that you are looking to develop contacts with there will try their very best to learn about you as a person. This will decide whether they will trust you or not so try your best to get in their good graces. This is a very long process so don’t rush them to make the deal before they decide it is time. Any indication of a quality they don’t admire and the transactions will stop. After the trust is built , the deal is sealed. As necessary as the trust is, make sure you put the business on paper drafted by good lawyers to avoid any complications along the way. 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 have to adapt to how they do things there, as the saying goes when you go to Rome, do what the Romans do.
Cost also determines whether the venture will be successful or not. Local costs differ from country to country so it is not wise to set a constant price for the whole region. 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. Different countries speak different languages in Latin America. Though most of them speak Spanish, some regions like Brazil use Portuguese. Try learning the language that is spoken where you’re going to. The locals there will feel like you are considerate of their culture if you do this. At long last, follow in the strides of the organizations that preceded you and was successful.