I love it. But Latin America is not for everyone. And here are six reasons why.
As tempting as it can be, Latin America isn’t for everyone.
1- You are not sure.
Latin America will demand resources and commitment. You can never be 100% sure, but if you are really hesitating, make sure you invest in some market research and convince yourself either way.
I see exporters failing because of a lack of commitment. If your strategy isn’t saying “go for it”, your team won’t be involved, and your heart and cash just won’t follow. Best thing is to leave it for now until you’re sure. Determination will be key to succeed.
2- You are thinking about today.
Latin America needs a long-term view and a strategic mindset. It’s not a continent for quick wins. If you are thinking about selling today, find some low hanging fruit, probably closer to home. Latin America takes time, business is slow and personal. Think about a 5-10 year strategy. Latin America and “now” just don’t agree!
3- You think it’s just a one big market.
Stop. Latin America is 20 national markets with 20 different tax/legal background and business/consumer preferences. If you see it as a “chunk”, it won’t work. Take time to appreciate the differences. Colombia is open to trade, Brazil isn’t. Chile is strong in mining, Uruguay isn’t. Costa Rica has American plugs, Argentina has Italian ones. Brazilians speak Portuguese, Bolivians speak Spanish.
4- It’s your first export market.
Or markets, as I said before.
Well, you could be lucky, but I wouldn’t base a strategy on luck. If you’re a start up, or new to exporting, find market closer to you (in terms of currency, trade barriers, language, etc). Latin America is not for beginners.
Those of you with experience in the Far East, Russia, China, India, Africa, even the US, will be in a much better position. If you have battled with Incoterms, customs offices, translations, international payments, overseas distributors, logistics, intellectual property abroad and so on, this experience is amazingly valuable for exporting to Latin America. Go for it.
5- You don’t have time.
Ouch. Latin America needs time. If you don’t have it in-house, borrow it (that’s what I do for my clients). Business is personal and it takes time. You need to travel here, you need to be seen and heard. If it’s only a second-thought, it might not be the right continent for you.
6- Your leadership isn’t that bothered.
If your CEO, MD, Export Director or Sales Director is not up to the challenge, you won’t have the incentive, the cash, the resources, to follows things through. You will drop Latin America at the first hurdle. Make sure the whole company is committed to Latin America. Get then involved and get them to lead.
Still tempted?…
Excelent points!