A month ago, I participated in an event where I met consultants who are specialized in helping foreign companies do business in Central America. Thus, I would like to share with you some advice both personal and from them.

Let’s begin by saying that people from Central America don’t need our products any longer. They need expertise from a business partner that will bring a solution to their market.

If you want to do business in Central America, you will need to invest a minimum of $40,000 before making your first sale. Don’t bother thinking about developing Central America without this initial investment because you will have to travel at least three to four times in the first year, in order to seal the deal.

Furthermore, the business potential in Central America is about the same as in the province of Quebec with three countries where you can find very interesting opportunities: Panama, Costa Rica and El Salvador.

The following tips come from the conference and the fact that I have had some experience living and working in Panama and doing business with Salvadorians.

Family comes first

It is quite normal to cancel a meeting if a family member needs help. Furthermore answering a phone call during an important meeting or arriving late to a meeting due to family reasons is also a norm.

Religious questions

Don’t be surprised if they ask you about your religion. If they do, tell them the truth. Asking these kinds of questions implies they are trying to find something in common with you.

They are very nationalistic and proud of their roots

When you talk with a Central American, it is important to avoid comparing their country to another. Try to understand their way of thinking, their country’s history and the reasons why they are so proud.

Education is very important

For a lot of people, being educated is synonymous with having the chance of getting out of poverty. Titles are very important and displayed. In Costa Rica, education is free until the doctorate.

Politeness is the key to success

In Central America as in all of Latin America, one does not air their dirty laundry in public, disagreements and arguments are handled in private. It is frowned upon to cry in public, because your reputation will be doubted.

Long term relationships

It is really important to show up in person, and be aware that it takes time to develop a relationship. They are looking for friendship. For example, for Christmas, they like to receive Christmas cards. When you do business with them, it is important to assign a person in your company who will be responsible for relations with them.

The importance of business lunches and /or dinners

Central Americans really believe in networking. Mixing business with pleasure is a must if you want to succeed.

Bureaucracy and hierarchy exists

It is important to ask in a business meeting who makes the final decisions. Otherwise, you may waste your time with the wrong person.

The importance of the secretary

The secretary can do miracles if she likes you. She can give you access to the president of the company when he or she is not available. So, when you visit your client, bring along a little gift for her such as maple syrup. Don’t forget to tell her how to use it and ask if she liked it after she has tried it.

A woman never picks up the tab

Remember that no matter what her financial situation is, a woman never pays a bill at a restaurant.

In conclusion, you have to think outside the box when doing business in Central America. Don’t get the idea that you are doing them a favour. If you plan to do business or want to know more about existing opportunities in that region, I look forward to hearing from you.

Caroline Bouchard