Doing business in Mexico opens you up to several potential benefits. However, running a business in a city such as Guanajuato Mexico differs from running a business in a city like Tokyo or Chicago. There are different customs and ways of life you need to understand before moving your entire base of operations to this new location. However, it is worth checking out, as there are several perks of having a business in the city of Guanajuato Mexico. You just need to determine whether it’s right for you or not.
Doing Business in Guanajuato Mexico
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Doing business in Guanajuato Mexico, and in the rest of the country, has slight variations to what you might be accustomed to. If you’ve run a business in other countries previously you will know the ins and outs, the laws you need to follow and the government approvals you need. Doing business in Guanajuato Mexico is similar, but there are differences you need to keep in mind.
Welcome to International Businesses
Mexico is internationally business friendly. It does what it can to welcome foreign investors who are bringing in money and jobs. The city of Guanajuato Mexico is in central Mexico, which has been overlooked in the past by companies opening up branches either in tourist destinations around the beaches or along the northern border.
Some factories have moved south to the central areas closer to Mexico City and Guanajuato Mexico as the pay is often lower here than it is along the northern borders, but it is still limited. This allows you the ability to open up a business with lower operating costs than other areas of the country.
Proximity to Other Large Cities
If you plan on running an online business, you can open it anywhere in Mexico. However, if you are manufacturing goods or want to sell in different regions of the country, then the city of Guanajuato Mexico is desirable due to its centralized location. Just to the west is Leon, with San Luis Potosi directly north of the city. Mexico City isn’t a far drive to the southeast, and Guadalajara is just a few hours further west than Leon. If you want to hit the major business sectors in Mexico but don’t want to pay the higher rent or higher worker rates, then Guanajuato Mexico is an excellent spot.
Pros and Cons of Taking Your Business to Mexico
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Before you move your business to Mexico, you need to do your research. Making any kind of international business move is critical and will influence the success or failure of your company. Before moving forward with investigating cities, regions and a move, here are the pros and cons of taking your business to Mexico.
The first benefit of moving your business to Mexico is the cost. The cost of living in Mexico is substantially cheaper than the cost of living in not only the United States, but Japan, nearly all of Europe, and other industrialized cities. This way, you can move your base of operations and save on rental space, what you pay employees and even your general cost of food and utilities.
Reduced Government Regulations
If you are in manufacturing or you need something produced the government regulations on manufacturing are reduced to what you’re likely accustomed to. In the United States, not only are the requirements greater on waste but you’ll pay additional fees if you’re unable to reach a specified level by both the state and federal governments.
Depending on what you’re making you may never be able to reach these established requirements. While Mexico is gradually improving environmental requirements placed on businesses, these are nowhere near what you’ll find in other destinations, which makes it easier to produce a cost-effective product.
In Mexico, there is less government interference. You will not have the same hassle of government inspections and mandates. You can open and run your business, pay taxes and do what is necessary to help your own business survive and thrive. There are some specifics you need to understand about business in Guanajuato Mexico and much of the rest of the country. There is a lack of government oversight compared to some other countries, but for many, this is a benefit.
Good Supply of Eager Workers
If you’re offering work there are workers who are ready and willing to help. You can pay what the other businesses in the area are paying, or if you pay even a little bit more (or offer benefits such as housing help) you’ll see a greater retention of employees. Either way, you won’t have trouble filling roles in your business.
While there are many benefits associated with doing business in Guanajuato Mexico, you’ll also find several less than desirable aspects of Mexican business. Some of these issues you may run into while other problems you may avoid based on your line of work and the business you run. So keep all of these negatives in mind.
For starters, bribes are a way of life, especially when starting off. You may need to bribe certain officials to let you open up shop. Others might seek bribes for protection money. What you don’t pay in government regulations you may pay in necessary bribes. While technically illegal (and while the Mexican government says it’s trying to crack down on them) it’s part of the process of greasing wheels to get jobs done. You’ll find many third-world countries are like this, so it’s to be expected.
You will not have problems finding employees. However, if you’re not careful, there will be a high turnover rate. If you’re offering work at similar rates as everyone else in the area you’ll discover employees will come and go. If you want to increase the retention rate, you need to offer more pay or benefits.
Depending on the exact location, utilities can be spotty at times. If you run a business out of your house you will likely run into the occasional power outage or water issue. It’s not something that happens every day, but you’ll probably see this issue from time to time.
5 Things You Should Know Before Doing Business in Guanajuato
Before conducting business in Guanajuato Mexico there are several specifics you need to keep in mind. This will make doing business in not only the city of Guanajuato Mexico but the entire country that much easier.
1. Long Year-End Holiday
Holidays, especially religious holidays, are important in Mexico. In December, there are religious holidays and celebrations spanning from December 12th to beyond the new year. If you’re not prepared ahead of time, you might run into production trouble during this time of the year.
2. Keep It Personal
When running a business in Guanajuato Mexico you need to make personal connections with business partners. In Mexico, especially in the non-tourist areas, developing a personal relationship with partners is critical. It develops a level of trust you wouldn’t have otherwise. Paperwork is still important in Mexico, but word of mouth and a handshake are just as essential in making it with your business in Guanajuato Mexico.
3. Change Happens Slowly
Change might take place in Guanajuato Mexico, but it takes place slowly. Don’t expect things to get done right away. Construction plans that are scheduled to take a few months may end up taking a year. It’s important to stick to your word and to hold others to stick to their word. However, just know that change will happen slowly, so if you need government inspectors to come out to give you the approval to begin work, it can take time (this, again, is where greasing the business wheels with a bribe may be necessary).
4. Do You Need Imports?
Can you do business completely off what is immediately available or do you need to import goods and other items for manufacturing? If you do need to bring in imported goods, it can take time. You are in the center of the country, which means it will take time to move from a border town or port to Guanajuato Mexico. You’ll eventually learn how long it may take for the movement of goods to your location, but it’s something to think about before you start.
5. Will People Want to Work With You?
When you first move in other business owners and employees will likely test you to see if you’re willing to bend to external pressure or if you’re easily bullied. It very much is a survival of the fittest landscape.
However, as long as you don’t bend to this external pressure you’ll discover a region that is ready and anxious to work for you.
If you’re looking for a new destination to set up your business, Mexico is a fantastic country and friendly to international investors and business owners. With so much potential you owe it to yourself to consider it. The city of Guanajuato Mexico is right in the middle of the country, proving several perks you won’t find along the northern border or in the tourist beach towns. If you’re serious about cutting down on expenses while enjoying some of the best infrastructure the nation has to offer, then now is the perfect time to look further into what Guanajuato Mexico can provide.