If you’re looking to expand your UK-based business, the chances are that Boris Johnson’s landslide election victory may have thrown you a curve-ball. After all, this result affords the Prime Minister the mandate he needs to push through his withdrawal agreement from the EU, meaning that the UK will have left the Union’s institutions by January 31st.
This makes expanding into Europe highly challenging, not least because the subsequent trade talks between the two parties could last for another couple of years.
With this in mind, you may instead choose to target lucrative growth markets such as Latin America. But how should you about this, and what are the key steps required to achieve a successful growth plan?
Target The Right Latin American Countries
Latin America is a diverse region, and there’s no doubt that not all economies in this region have been created equal.
As a result of this, you’ll need to be selective when targeting specific Latin American markets, with nations such as Peru offering a potentially viable option.
There are a couple of reasons for this, with the first being that the UK and Peruvian authorities have recently entered into discussions to create a double taxation agreement. This will mean that multinational companies won’t have to pay double the amount of tax on single income streams, reducing the cost of doing business as a result.
At the same time, consultancy firms like RSM can also offer strategic advice on how to expand into Peru. This will cover everything from outsourcing to understanding your tax liability, and it can really help you to establish a successful multinational venture.
Understand The Local Business Environment
Another key step is to understand the local business environment in your country of choice, regardless of the precise sector in which you intend to operate.
This is a broad church, however, as it includes everything from your local target market and distribution channels to the local laws and legislature.
Whilst doing your research is central, it’s also crucial to identify potential partners who are already established in your Latin American market of choice.
This certainly negates issues such as language and cultural barriers, which can undermine even the best global business idea. Local groups can also provide practical support pertaining to production, sales and marketing, which may prove crucial during the initial launch and transitional period.
Be Prepared To Deal With Bureaucracy
Whilst Latin American regions such as Peru may be lucrative and rich in opportunity, they’re also renowned for having a high level of bureaucracy and red tape.
It’s important to cut through this as effectively, and to achieve this you’ll need to have an understanding of the hurdles that you’ll face when tapping into the Latin American marketplace.
More specifically, you’ll need to implement measures that mitigate the impact of bureaucracy, particularly in instances where this cannot be avoided.
For example, you’ll need to factor in potential delays to license applications being approved when planning to target Latin American markets, as this will ensure that you don’t lose too much time or fall too far short of your desired schedule.