The 101 to do Business In Brazil
Brazil has recovered from the economic doldrums of the late 1990’s and is now considered to be one of the countries with the fastest growing economy. As a result, the country offers very real business opportunities to prospective international investors.
Everyone needs to know about the “Custo Basilâ” or the “Brazil Costâ”. No, these are not coffee houses but terms often used to describe the extra costs of doing business in Brazil. This refers to poor infrastructure, corruption, inflation, government inefficiency, etc. They could lead to unfathomable local complexities. As a result, it is important to work closely with local lawyers and accountants
Doing business in Brazil is seen as any other sort of social interaction. Deals can be lost within seconds or won simply based on your relationship. Yes, Business in Brazil is personal. Everyone travelling to Brazil with an intention of striking a business deal needs to be wary of the cultural challenges that lie before them. It’s important to understand the business culture. They are very communicative, so prefer face-to-face meetings than written communication. The individual they deal with is more important than the company.
No stress is enough for the importance of having personal contacts in Brazil. You need to first start out with a “Despachante” or a local contact. A prospective Brazilian partner is basically looking for someone they are comfortable with, trust and someone who can prove their competency in the business.
One person who you need to treat with respect and kindness is the office secretary. They are the right people to ask questions of, e.g. Dress code, procedures and other things you need when you arrive.
Avoid being aggressive. Brazilians find it quite offensive, so the last thing you want to do is get straight to the point. As mentioned earlier, business in Brazil is all about social interaction. So, people need to get acquainted and comfortable with each other before getting down to business. And when the deal is done, Brazilians insist on drawing up detailed legal contracts.
Those interested in expanding their market should definitely consider Brazil as it represents the fifth largest market opportunity in the world.