Successfully doing business in Mexico comes with many challenges and complications. It’s important to learn about the new culture where you undertake business and to respect and adhere to local laws and customs. Read on to explore 10 cultural tips to use for entering the market or company formation in Mexico.
Mexico is on the way to becoming a top-ten economy in the world within the next decade. Over recent years, Mexico has become an increasingly low-risk, high-growth economy. It has consistent GDP growth, its middle class continues to expand, and the security situation is improving.
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These factors have set the stage for domestic business growth and increased levels of international investment. According to the Ministry of Economy, during the first half of 2023, Mexico received a total of US$29 billion in foreign direct investment (FDI), 41% more than in 1H22.
Biz Latin Hub can help you enter the market with ease and smooth over any cultural misunderstandings you might have when doing business in Mexico. No one knows the region quite like we do, having helped hundreds of clients enter markets across Latin America and the Caribbean over a decade.
Ten top tips for doing business in Mexico
- Develop Rapport.
- Do Business with the Right People.
- Send Experienced Team Members to Mexico when doing business.
- Be Aware of Language Barriers in Mexico.
- Business Lunches in Mexico are common.
- Breakfast Meetings is how to do business in Mexico.
- Dress for Success when doing business.
- Be Punctual always when doing business.
- Learn the Rules and Regulations of Mexico.
- To do business you must communicate effectively.
1. Doing Business in Mexico – Develop Rapport
Developing personal relationships are very important in Mexico as locals prefer to do business with those they know and trust. Building relationships will play a key role in the formation of strategic partnerships in the region. Mexicans strongly value personal relations, and rightly or wrongly, they will often not do business without them.
2. Do business with the right people
Find out who are the key decision makers and be sure to connect with them. Knowing the right person will make things more simple when beginning business operations. Organizations tend to be more hierarchical than you might expect, meaning you need to be speaking to the person who really makes things happen.
3. Send experienced team members to Mexico when doing business
If you choose to send team members to Mexico, make sure that they are of the proper seniority and experience level. Do not send new employees to do this; this may insult your potential Mexican business partners. They will want to feel that they are important to you.
4. Be aware of language barriers in Mexico
Be aware that although the you may need to bring an interpreter or have contact with a bilingual business partner who can help you navigate the Spanish language.
5. Business lunches in Mexico are common
Lunch in Mexico, called ‘la comida’, is the most leisurely and largest meal of the day. It consists of about four courses that include soup or salad, an entree, a main dish and a dessert. Due to its casual nature, ‘la comida’ is not the time or meal to discuss business over.
6. Breakfast meetings is how to do business in Mexico
A normal Mexican breakfast is earlier in the morning and often more simple, such as a cup of coffee or eggs and tortillas. It is common to discuss business at breakfast meetings.
7. Dress for success when doing business
Dress according to the weather, the Mexican culture, and the area of the country you are in. In Mexico City and other cities, individuals are expected to dress more formally than in the suburbs.
8. Be punctual
If doing business in Mexico City, make sure that you have enough time to travel to your destination. It is important to be punctual out of respect for your business partners’ time. The city doesn’t always make this easy, so plan ahead and leave plenty of time for delays.
9. Learn the rules and regulations of Mexico
Knowing the rules and regulations of the Mexican business environment will prevent potential bumps in the road during business dealings. Legislation to be familiarized with includes employment law, import/export laws and customs requirements.
10. To do business you must communicate effectively
Communication is very important when doing business. In Mexico, it is custom to stand at a close physical distance when speaking to one another. Standing farther away, as is the custom in the U.S, may be construed as unfriendly.
Biz Latin Hub can help with doing business in Mexico
Doing business in Mexico is a great opportunity to expand your business horizons. There is so much to learn about the culture and about how Mexicans do business.
If you would like personalized advice, Biz Latin Hub has a group of experts that can offer you guidance for your business in Mexico. In addition to company formation and incorporation, we offer professional accounting, legal, and financial services tailored to you and your company’s needs. Contact us here at Biz Latin Hub for help on getting your business set up in Mexico.
Also, you can learn more about our team of professionals and how they are enabling commercial growth across Latin America.
