Expanding into Latin America offers exciting opportunities for growth and specifically for start-ups and SMBs. The list of benefits is long including Strong Educational Background, Cultural Affinity, Similar Time Zones and Strong English Proficiency just to name some .
That is no news: multinational companies from tech, consultancy, business, and finance—including the Big Four—have decided that LATAM is the top destination. The good part is that expansion isn’t only for big companies; it’s also an ideal option for SMBs and start-ups, offering ease, cost-effectiveness, and high quality.
However, it’s essential to approach this venture with a strategic plan to navigate the complexities of the region effectively. What to keep in mind? Follow these key steps to ensure a smooth expansion process
🔍 Market Research and Analysis
Understanding the local market is crucial. Latin America is vast, with over 20 countries and a population exceeding 650 million. To streamline your talent search, focus on Brazil, Colombia, and Argentina. Brazil, with a population of about 213 million, boasts a dynamic tech scene in São Paulo and Rio de Janeiro. Colombia, with around 51 million people, has emerging tech hubs in Bogotá and Medellín. Argentina, home to about 46 million, offers a skilled digital workforce in Buenos Aires and other cities just to name a few.
👨✈️ Legal and Compliance Requirements
Each LATAM country has its own set of regulations, making it crucial to understand the local rules. For U.S.-based corporations, working with independent contractors is a popular option in LATAM. This approach simplifies management, as contractors handle their own tax obligations and compliance issues in their respective locations. It’s a straightforward and efficient way to engage talent across the region. 🙋♀️ Check out the template here and feel free to download and adapt to your needs.
💎 Prepare a good offer
Each LATAM country has its own specifics regarding employment benefits. We encourage you to offer the same benefits to your LATAM employees as you do to your local team members. After all, they are part of your team, and providing consistent benefits, regardless of location, is a best practice that fosters equity and strengthens your company culture.
👉Paid Time Off (PTO): PTO policies can range from 15 to 30 days annually, depending on the country.
👉Working Hours: Typical working hours vary, generally between 40 and 48 hours per week.
👉Public Holidays: Each country has its own public holidays. As this can impact work schedules we recommend applying the U.S. holiday calendar for consistency, with the option to establish a policy for swapping holidays if possible.
Check our salary trends for Tech & Digital roles or get in touch with our team for receiving specific salary ranges.
💜 Building Local Partnerships
Forming strategic alliances with local businesses can facilitate your market entry. Look for partners with established networks and local market knowledge will help you to save not only time and money what’s more to access to a solid database, amazing candidates and fresh market insights. Setting a meeting to understand key points is always a good idea even if you decide to manage the process internally. We can definitely help!😉
🎯 Monitoring and Evaluation
Once you’ve set the role, made the offer, and have support from a partner, it’s essential to monitor the progress of the process. Set milestones, ideally on a weekly basis, to track advancement and ensure everything is on schedule. Typically, the process takes between 7 to 10 working days when working with a partner and 15 to 21 working days if managed internally. Regularly reviewing these milestones will help you stay on track and address any potential issues promptly.
LATAM Expansion Checklist
Download 👉 the checklist here and follow each step as outlined to ensure a thorough and effective expansion process. Feel free to adjust any steps based on specific circumstances or evolving needs. If you encounter any challenges or need additional guidance, contact our team.
