Latin America continues to grow as an appealing region to invest in. Companies of all sizes, and in a variety of sectors now see Latin America as an attractive commercial jurisdiction, full of opportunities for business growth and expansion. From the mining sector in Peru, medicinal cannabis in Colombia, agriculture in Ecuador to FinTec in Mexico, the region has infinite options for companies looking to expand their operations and access new markets.
While the opportunities are readily available for keen entrepreneurs, risks and complications are present. When entering a new market, especially in Latin America, individuals and companies need to consider a few things… is there a business opportunity in the market? What is my market entry strategy? Who will I partner with?
A well designed market-entry strategy is key to your company’s commercial success in Latin America. Leveraging the local knowledge of a partner will ensure that your company is able to achieve its business plan.
Biz Latin Hub was approached in 2018 by a US-based client with international experience in the medical billing industry. This company wanted to enter the Mexican marketplace to help US patients (based in Mexico) through the provision of medical billing services by organizing US insurance claims for them.
The Client had a great business plan and had successfully identified that there was a potential market opportunity. Unfortunately, the client did not speak the local language, had no local company to enable their operations and was unsure how to gain access to potential customers. In summary, they needed to partner with a local group to commercially represent them in Mexico.
For this particular Client, an in-country visit the first step of the market entry plan. Our client wasn’t familiar with Mexico and therefore, we organized an in-country visit. BLH Mexico organized business trips to the prominent locations which offered medical healthcare services to US citizens. This helped our client gain confidence in our ability to enable their operations, in order to further develop their operations of the Mexican healthcare sector.
Understand the Local Business Environment
Biz Latin Hub Mexico prepared a comprehensive market research report, undertaken by our Market Entry Team. It contained all relevant information concerning the medical billing industry in Mexico, including:
- Detailed market validation – service feasibility and competitor analysis
- Corporate compliance considerations for companies operating in the insurance sector in Mexico
- Locations with a high number of US citizens
- Key health care clinics used by US citizens
- US expat groups and networks
This report provided the Client with a clear path forward in Mexico.
Local Administration Support
Our office in Mexico City was able to offer our client all the necessary administrative support, in addition to office space when the Client first started to set up the business. Once established in Mexico, our Client needed to hire a local employee to assist with sales. Our team was able to provide recruitment and hiring services, which included creating an employee profile, undertaking a candidate search, creating a candidate shortlist, conducting interviews and then hiring the best candidate.
Through our vast and diverse network in Mexico, in addition to the results from our market research report, BLH Mexico organized meetings with key players in our client’s target industry. Complementary to the online presence, BLH initiated a physical approach strategy to engage directly with potential clients (health care institutions), firstly to explain the product and its benefits, and then to sell it to them. BLH quickly managed to secure face to face meetings with the key stakeholders in our targeting areas. Six weeks after initial contact, our client signed a contract with a key hospital in Merida (a city with a large US expat community – the client’s target market).
Our legal team started to engage with the hospitals to better understand their front and back-end processes in order to draft all the relevant contractual agreements, patient release and confidentiality forms. The cultural awareness and professional experience of our corporate lawyers made legal negotiations quicker and complication-free.
Taxation and Accounting Support
Working side-by-side with our lawyers, our local accountants ensured that all the financial transactions from Mexico to the US and back were in line with the rules and regulations established by the Servicio de Administración Tributaria ‘SAT‘, the Mexican tax authorities. Our accounting team now takes care of our client’s tax declarations, booking, and local payroll each month, enabling his operations and ensuring the company remains in good standing with the local authorities.
Local Support – The Key to a Success Market Entry
If you’re searching for a local partner to help represent your company and support your market entry into Latin America, then get in contact with Biz Latin Hub. Simply put, we are Latin America experts, with extensive regional knowledge and with offices in 10 countries. Get in contact today to see how we can support your expansion to Latin America.