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Should I invest in Brazil? (Part 1)

March 03, 2017

A question that has to be answered with "Depends", like so many, when it comes to the topic of Brazil.

If you are looking for a quick success, you should surely look around for other growth markets, if they really still exist. However, if you like to do it properly and you are ready to invest to create the right structures and bring a good dose of patience, you can surely hope for a stable and sustainable growth and return on investment.

Brazil has everything, but often different ...

But certainly, there are products or services with which one you can more quickly reach the expectations as originally forecasted. Because good products, quality and excellent services can be sold well all over the world.
Anyone, who is thinking about Brazil, that there has only Samba and sun, will be very quickly taught a better. Brazil has everything, but often different and you may have to look a little bit longer until you find the right one.

Ease of doing business

What constitutes the biggest challenges is the infinitely complex and cumbersome bureaucracy. Not for nothing is Brazil at position 123 in the "ease of doing business" ranking. It should be emphasized the position 175 in the category "Starting a business". There are hurdles which have to be mastered thoroughly, which cannot handled independently without experienced consultants. If you have managed the first hurdles, come one more to one (e.g. the bank account opening), which is considered in Europe as trivial, needs here in Brazil but certainly need some patience.

Here is where courses are visited ...

But let's not forget the day-to-day business, work that has to be done during the (often long) phase of the business opening procedure, among other things, the selection of the employees. Very difficult if you want "German" standards. Training during a period for up to 3 years seeks in vain in Brazil. Here is where courses are visited and you rely on professional experience. Internal training programs with employee loyalty programs are an effective means.

… directly does not go!

Another very interesting topic is the Brazilian mentality regarding entrepreneurial and interpersonal intercourse. Here is a lot of time and patience needed, because directly does not go. Direct criticism of employees is a "no go"! Here the motto is: "Take she/he at the hand"; but this is then often returned with great loyalty.

From an entrepreneur's point of view, at meetings are often distracted time to time from the actual topic. About private things are often told, which the Brazilian business partner also expects from his counterpart. But you should not think that the Brazilian business partner does not know exactly what he wants and expects. In Brazil, approximately 74% of deals are closed due to interpersonal good relations, even if Brazilian business partner would pay less for the same product elsewhere. Of course, everything is only in a certain frame and one thing is certain; if your Brazilian business partner is not satisfied with the product or the service, you will be personally taken into the duty.

To be continued ......

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