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Tips to Start a Manufacturing Business in Mexico

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Tips to Access Shelter Services and Much More

The many benefits of Mexican manufacturing markets and grounds are enticing to American production companies, the lower risks and costs, the ease of access, the proximity, and the government policies. Mexico’s pro-trade and pro-business attitudes also prove to be a contributing factor.

Where moving your manufacturing services to Mexico reaps you a list of benefits, the only way to capitalize your business on it is through the right approach. For such contingencies, you need guidelines, tips, the know-how, and the what-to-dos. Here is such a brief listing:

1. The Right Location: You can set up your company anywhere in Mexico but to derive benefits from the maquiladora program and shelter services, you have to select the right location. These locations are either near the American-Mexican border or in concentrated industrial regions, on the border, near the border, and central Mexico. Most of the US production companies are based in these regions. Each region comes with its benefits and advantages. The benefits range from the reduction of inventories and low transportation costs to the skilled labor force and easy access to the seaports.

2. The Legal Help: The Mexican legal structure and laws are obviously different from those of America’s. Mexican business is complex to set up. Before starting, you should get appropriate legal help, like hiring an attorney and an accountant. You should also be aware of the rules and regulations, and consulting a local expert is the best approach to that. The legal help will help you figure out the best corporate structure catered to your business with accounts and taxes.

It is dependent on the size of your business, as well. If you have a huge business, then you may consider hiring legal corporations. Some corporations exist for the sole purpose of helping American companies to open shop in Mexico with an easy transliteration.

3. Cultural Differences: The main difference that you’ll have to adjust to in Mexico will be there culture, language, and customs. Foremostly, understanding, respecting, and accepting such differences will be your stepping stone to the boundless opportunities in Mexico. Hiring and finding local managers and partners will expose you to the local markets and the map of the successful business, and building political and personal relationships with them will only benefit you in the end.

4. Expectations & Realities: Last but certainly not the least, having realistic expectations and a positive attitude will be the foundation of your companies. No business becomes successful in one night. Moreover, moving shop to another country and setting up there is maybe monetarily advantageous, but it can be tedious and long. Much research and local scouting, along with legal procedures among the business and personal affairs, a dedicated campaign is needed for a successful venture in Mexico that will help you reap the benefits of the Mexican manufacturing market to the best of your abilities.

Thus, these pointers and tips are one step ahead in the right direction of setting up your business subsidiary in Mexico. And remember, doing things right but slowly is better than jumping shoes off in cold water.