Quantcast
Published On: Tue, Sep 25th, 2018

My Experience of Starting a Business in Mexico

For businesses of all shapes and sizes, Mexico remains a popular choice. Its market is the size of all Western European countries combined, has the second largest economy in Latin America, and the fifteenth largest in the world. What’s more, the country is one of the four MINT countries (made up of Mexico, Indonesia, Nigeria and Turkey) and enjoys stable economic growth.

Whether you’re based in the United States and want to expand into the country, or you live and work in Mexico and want to start your own business, then you’re not alone. Tens of thousands of companies launch startups in the country every year, serving a 120 million-strong population.

In this article, we speak exclusively with Craig Dempsey, founder of Biz Latin Hub. In our chat, Craig shares his insights into launching a business in Mexico and gives entrepreneurs advice on how best to take their businesses to the next level. Read on if you’re ready to start expanding!

photo/ Gerd Altmann

Craig, tell us a little bit about your background…

I’d say that I’ve had an exciting and interesting career – and my journey so far has taught me a great deal about business. An Australian national, I started my career working for the armed forces in Australia – and continue to offer my assistance on a part-time basis when I’m in the country. I completed combat tours across Asia and the Middle East, before leaving and then transitioning into the mining sector, where I worked in Canada, Australia, Colombia and Peru.

In 2015, I then co-founded Biz Latin Hub, an organisation that supports local and foreign businesses that want to enter Latin American markets. Our company offers a range of services, including recruitment, commercial representation, market entry, and much more, including company formation Mexico-based. I truly believe that every business, whether they’re in the first few years of their journey or they’ve been running for decades, should consider expanding into new territories, as it allows for a whole host of opportunities – one of which is increased profits!

Why is Mexico so attractive to businesses?

Mexico’s economy is the second-strongest in Latin America and offers huge potential for brands of all shapes and sizes. In fact, some analysts predict that Mexico will have a higher GDP per capita than all but three countries in Europe by 2050, which would make it the world’s eighth largest economy. That’s big news – and offers a whole host of possibilities for businesses.

Another reason why companies choose to expand into Mexico is that the country has more free trade agreements than any other country in the world. This makes it really accessible for imports and exports, whether you’re selling clothing in Florida or you offer services from a London base.

Mexico has seen a huge increase in its retail sector in the past couple of years, recording value growth of 5.5% in 2016 compared to 2015. What’s more, Mexican consumers are becoming more technology savvy, with 89% now accessing the internet from their smartphones and using online shopping sites to make purchases. For ecommerce businesses, a Mexican arm is a no-brainer, as it’s a low-risk operation and allows you to take advantage of a growing market. It’s important to note, however, that confidence is still growing in terms of online shopping – they tend to be mistrustful of new online stores, preferring shopping with established brands.

For UK businesses looking to expand into new territories, in particular, Mexico is a sensible idea. With the United Kingdom set to leave the European Union in 2019 and the threat of a no deal leaving some companies to worry about their European trading partners, Mexico offers a similar economy in terms of GDP, wages, economic opportunities and talent, provided that you speak the language or work with a translator when hiring employees within the country.

How does Mexico differ from the United States, for example?

Aside from language (Mexicans predominantly speak Spanish), the family is the top priority in the country, with the majority of citizens having deep connections with their family members. Of course, that’s true around the world, but Mexican families are large and traditional, which offers a number of benefits for businesses looking to expand. If you can tempt one person to try out your product or service, word of mouth marketing could see you have twenty new customers before the day’s out! That’s why it’s so important to deliver the very best service and conform to traditional Mexican values if you want your business to become a mainstay within the territory.

Another significant cultural difference is status. Unlike in some Western countries, where money is everything, Mexicans place focus on titles, positions, and treating people fairly, regardless of how much money they make. This cultural difference could be useful when hiring new talent.

Finally, nationalism. Mexicans are proud of the country’s long history and celebrate occasions such as Mexican Constitution Day, Celebration of Holy Week, Battle of Puebla, Independence Day and the Anniversary of the Mexican Revolution to name but a few. If you’re planning on hiring talent when you expand into the territory, be mindful of these traditions and holidays when planning your marketing campaigns; a wholesome Mexico-focused campaign could work well.

What advice would you give to businesses wanting to expand?

If I could only say one to thing to budding entrepreneurs and business owners thinking about taking their products to Mexico, it would be this: get on with it! International expansion isn’t a new concept, but within the past ten years or so, new technologies have allowed businesses to expand much more quickly and efficiently than before – and that’s great news for everyone.

No longer do you need to spend thousands of dollars registering a new business or buying an office – you can use virtual offices and hire remotely without even stepping foot in the country. If you’re keen to expand, do your research and weigh up your opportunity costs – you might be surprised at just how accessible and affordable an international expansion could be! What’s more, if you’re too slow, your competitors could enter Mexico before you do, making your job ten times harder, requiring more marketing work and sales staff to get your business where it needs to be. The sooner you make the jump and seriously consider Mexico for expansion, the better!

Author

Oliver Houlcroft is an Australian Marketing and Content Production leader who has been living in Latin America for 3+ years. After finishing his studies in Sydney, Australia in 2014, he decided to leave his country and travel. While passing through Latin America as a tourist, he decided to stay on a more permanent basis. Oliver has spent time working, travelling and living in Mexico, Argentina, Peru, Bolivia, Guatemala and Colombia, giving him a great insight into the Latin America region as a whole. Oliver has a particular interest in the Latin American business environment, specifically relating to regional trade agreements, attractive investment opportunities for foreigners, immigration and visas, regional relationships, thriving business sectors and local/national elections and politics. Oliver is currently based in Bogota, Colombia where he spends his time working, travelling and improving his Spanish skills.

About the Author

- Outside contributors to the Dispatch are always welcome to offer their unique voices, contradictory opinions or presentation of information not included on the site.

Tags
Displaying 1 Comments
Have Your Say
  1. Andrew Jankins says:

    Great Article and well written. An interesting read.

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>



Recent Posts

Categories

Archives

At the Movies