Latin America is as fascinating as it is varied. The continent is home to a diverse mix of cultures and business models, many of which are developing at a rapid pace. The growing economy in countries such as Paraguay and Bolivia, and the burgeoning middle class, also mean more business opportunities. The sheer buying power of the region is also impressive. It is estimated that in 2017, Latin America was home to 640 million people with a GDP of US$5,573,397 million – this is a lot of potential customers. Other perks include a lower cost of living and being based in an exotic location just waiting to be explored. With this in mind, here are four tips for launching your startup in Latin America.
Build Relationships
Latin Americans love social media. In fact, according to a study by IMS and Comscore, the region’s social media mobile use is one of the highest in the world. While this is great if you are in the e-commerce business, you shouldn’t take for granted the fact that Latin Americans appreciate building old-fashioned face-to-face relationships. As such, earning trust of the locals is vital to the success of your new venture. Small talk is important, and spending time with the people you are planning to work or do business with is crucial.
All Latin American Countries are Different
With the exception of Brazil, people in Latin America speak the same language. This can make it seem like they should also have the same culture. In fact, this couldn’t be further from the truth. For example, doing business in Guatemala would be very different to setting up in Mexico or Colombia. As such, to succeed, you need to ensure that your venture is optimized to the local conditions. And the best way to do this is by partnering up with a local who knows the mindset of their country.
Invest in the Right Facilities and Equipment
It goes without saying that starting a business without using tools such as laptops and smartphones these days is close to impossible, no matter where you are located. However, there is more to think about here. Many Latin American countries are not as developed as, say, the US. This means that there are a number of things you need to consider before setting up shop, including the telephone network (yes, this can still be an issue in some areas) and the speed of the internet connection.
Adapt to the Local Market
If you have a firm idea in place for your startup, or are considering bringing an existing product or service to Latin America, think again. Are people going to be interested in what it is you are trying to sell? Most successful startups in the region have had to tweak their business models to adapt to the local conditions. Do your research before getting your business off the ground, and remember to hire a translator if necessary.
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