Is investing in Brazil worthwhile? Improve your business in Brazil with our tips.
Brazil has less annual GDP growth compared to other emerging economies but can guarantee more steady growth, thanks to inflation control, greater democratic and political stability, and increasing social cohesion. All this makes it a fertile and safe country for international trade, and at the same time, attractive for investment.
How to improve your business in Brazil
To grow your company’s revenue, it’s important to follow some steps. Continue reading and find our seven tips to increase your income.
1 – Implement new distribution channels.
If your business is aimed retailing, consider opening an e-commerce business. In this case, the space-time constraints that you encounter in a physical store are overcome. The power of extension of virtual reality allows you to reach a big audience. About 60 million users shop online and e-commerce. First, you must check the feasibility of transport. For some products (e.g. those that are easily deteriorated) transport is more complicated. If creating and managing an online store can be difficult, it is not the case of the presence of clients on the web. Finally, social networks today also play an essential role in “traditional” activities. Brazil is third in the world, after the US and China for the use of social media.
2 – Optimize costs
In addition to increasing sales, another useful element to improve your business in Brazil is cost optimization. The goal is to reduce costs without compromising quality in any way.
The first step is the analysis of all the costs of the company, from fixed costs, up to those closely related to the buyer’s activity. Everything should be reviewed to see if it is possible to reduce your spending. Reviewing contracts with suppliers is important to understand whether better or more efficient payment terms can be achieved.
3 – Outsourcing
Some activities do not necessarily require a dedicated person working within the company. For example, hiring employees or having an in-house professional who carries out accounting activities, and in many cases also administrative/financial management activities, these entail a cost that is very often high.
Therefore, you must outsource, that is, entrust an external vendor (outsourcer) with the operational management of one or more functions previously performed within your organization. This is an effective way to reduce costs and increase revenue.
4 – Investing in Post-Sale
Many companies that aim to increase sales focus on finding and winning new customers, usually forgetting to keep those they already own. It is important to remember that the cost of acquiring new consumers is up to seven times higher than that of maintaining the current ones. Therefore, it is ideal to invest in customer loyalty and maintain a closer relationship with them.
5 – People and Processes
The company turnover is obtained through the sum of processes and people who work there. A company won’t be able to increase its revenues without these two aspects. Therefore, it is essential that you perform an analysis of all business processes in place to identify obstacles that could affect the results. Similarly, it is necessary to invest in employee training to increase their efficiency.
6 – Prices
Price is a factor that needs to be well analysed by entrepreneurs. While a price can be more competitive in the market, it can sacrifice the financial health of the company. It is significant to find the right balance so that the price is in line with market standards, to increase sales but without compromising its turnover.
7 – Using technology
Technology is a powerful tool for entrepreneurs to increase revenue. Whether to optimize processes or to sell or do marketing, the intelligent use of the Internet and technology is revolutionizing the market and bringing better results.
All of these are some of the tips that can help you to improve your business in Brazil. Contact the GM Venture team: we accompany you and support you in all activities, including for your investments in Brazil.