8 Common Issues And Hurdles With Early Start-Up Business Development In Latin America - Corporate/Commercial Law - Chile Law Articles in English - Mondaq Business Briefing - Books and Journals - VLEX 654863825

8 Common Issues And Hurdles With Early Start-Up Business Development In Latin America

Author:Mr Cody Mcfarlane
Profession:Harris Gomez Group
 
FREE EXCERPT

Harris Gomez Group has been helping companies enter the Latin American market for 15 years. Throughout the years, we have worked with hundreds of companies, from small to large, as they have tried to enter the Region, all with varying strategies. We like to say around our offices that we have seen the good, the bad, and the ugly.

We often run into companies that are interested in developing the different Latin American markets for their products/services. The problem is that many companies end up doing nothing because they either do not know where to start or the cost of entering the Region is prohibitive. This is especially true for small to medium size companies where resources (time, money, personal) are limited. It doesn't need to be, there are cost effective solutions.

On the other hand, we have also seen  companies spend an incredible amount of money but without ever achieving their goals.  They often end up frustrated with the endeavour. Again, it doesn't need to be like that with the right guidance and plan.

SOME VERY COMMON ISSUES AND HURDLES WITH EARLY START-UP BUSINESS DEVELOPMENT

Not all countries in Latin America are the same and one must take into consideration and understand the cultural differences that may impact the business deployment process. BDM's or Sales Managers from foreign companies are typically non-Spanish speaking executives so they fail to effectively engage with customers and understand why things are done in a certain way or more importantly identify what the customer issues are. BDM's or Sales Managers from foreign companies typically have global responsibilities so their allocate time to a specific region is split between continents or countries making it very difficult to engage and effectively service the area, resellers and clients. Relationships and trust are an important aspect of doing business in Latin America and like any relationship it needs to be built over time and not by flying in once or twice a year or making one or two phones calls. A lot of the key discussions and relationships need to take place and be built at site level away from the corporate environment and this also requires significant amount of visits to demonstrate commitment and trust. Many companies will not deal with companies that don't have local presence or an in-country company representative. There is growing concern that suppliers will not respond fast enough when issues arise creating uncertainty with the supplier. Many companies...

To continue reading

REQUEST YOUR FREE TRIAL