Many companies venture into the Market Entry in Latam without the support of a local business partner, and while this approach is possible, it is not recommended. Latin American markets can vary and be a bit complex to navigate. This complexity increases when there is no shared language as a means of communication. For this reason, it is best to work with a partner who knows the region in detail, at least while operations are in the early stages.
This support from an experienced local partner is invaluable and can help your B2B company overcome the challenges of doing business in Latin America, this may include regulatory compliance, payroll, and accounting. You can also confirm market potential in an area, answer key questions, and even connect your company with the best possible local talent. For these reasons, it is necessary to have a strategic partner in the region.
Below we will see some of the main advantages of having a Business Partner that provides you with the support and timely assistance to successfully achieve a strategy to enter the Latam Market with your B2B Company.
First-hand knowledge of the business environment
As experts in the Latam Market region (which you want to enter), they know how to carry out the large number of tasks and responsibilities that as a B2B Company must correspond and face when carrying out their commercial operations, such as:
- Finding the ideal mechanisms for sales and distribution.
- Know your key customers.
- Hiring and training of the best local talent.
- Location of physical office infrastructures.
- Establishment as a local company.
- Management of payments to your employees and suppliers on time.
- Compliance with tax and accounting regulations.
- And some much more…
Many of these tasks, if not handled correctly, can result in delays that can be costly and / or put your business at risk and result in penalties, lawsuits, etc. To ensure this does not happen and that you will have enough time to focus on your key responsibilities, the assistance of local experts is necessary.
Take care only of strategy and call on local talents
With the support of a commercial partner in the region, you can spend your effort and time in your strategy to the Market Entry in Latam and the business model of your B2B company, while your partner with their expertise and knowledge can use the large number of talents available locally to incorporate into your workforce those important and necessary resources for the operation of your company.
Among these resources we can name 3 necessary key roles with extensive local experience of how to properly operate in the region:
- A Lawyer will help you with the formation of your company, in the drafting of commercial projects and employment contracts and protect your interests in the case of legal issues.
- An Accountant will help you comply with the rules, handle your payroll, payments, administrative tasks and maintain compliance with the tax authorities. It may well be a resource hired in a more complete role as an employee, or as an external service provider.
- A Consultant with sufficient confidence and expertise will give you direct answers, provide timely feedback, explain cultural aspects and provide you with key and valuable perspectives of the market.
They dominate the legal requirements for the incorporation of companies
It is important to understand the different requirements for setting up a business in the region. The most important thing is to understand the different types of legal entities, annual compliance requirements, trademark requirements, etc. When establishing your business in Latin America, it is critical to understand all of these compliance requirements to avoid penalties that could affect your operations. These requirements are unique from one country to another in the region.
It can be overwhelming to navigate through the laws and regulations of any new country for a foreign company interested in the Market Entry in Latam. Additionally, the requirements vary for company registration, corporate banking requirements, sales and import taxes. Local hiring, marketing, and advertising regulations within each Latin American country, which is why the accompaniment and support of a local expert business partner can facilitate all these steps to address them more simply and without complications.
Source of experiences and competitive advantage
A strategic alliance with a local business partner can help your company gain invaluable knowledge and experience. Based on their expertise, partners can contribute skills, brands, market knowledge and assets, which will produce a synergistic effect on the growth of your B2B company.
Similarly, a strategic alliance can help a company gain a competitive advantage. For example, to take advantage of the brand image that your partner has already favorably established in the region; since establishing a brand image from scratch is a long and expensive process that would require more time in your strategy to enter the region. This will give you the opportunity to gain space within the market in interest.
The Marketing del Bueno team working hand in hand with our clients, has achieved successful B2B Market Entry and Expansion within the Latin American market, with the development of optimal strategies and mechanisms to meet their objectives, from increases of 50% in sales through the web, exponential growth in sales of more than $1M, segmentation of its databases for contract closings, as well as expansion campaigns not only in Spanish-speaking regions but also in the territory of Brazil.
If you need help planning your marketing strategy in Latin American countries, Contact us!. Marketing del Bueno´s specialists will be happy to help you.
Are you interested in learning more about the solutions for entering Latam?
Check how with us