Contributed to MayanHoliday.com by Brenda Alfaro
Great business opportunities abound in the Riviera Maya, and with careful consideration and planning, foreigners can invest successfully in this growth. Doing business in Mexico is not for the faint of heart, however. It requires moxy and experienced advice to be successful. Having a local on your side is always a plus, especially in Latin America, where polite business relationships guide you through the maze of paperwork, labor relationships, and license requirements. Patience is also a must-needed virtue to survive the relaxing mañana Latin style.
Where do you start to create a business in Mexico? Well, not with the “slick talker and aggressive salesperson” attitude, would be my advice. First, look for someone who has been successful in a quiet way, who obviously has learned the ropes and has created the business and official relationships that have kept her in business. Seek her advice and be wise enough to listen to it.
Second, before stepping into the business community with a substantial investment, research and understand the legal system and labor relationships in Mexico. This is easily done on the Internet. Mexico laws are based on the Napoleonic Code, similar to the laws of France or Louisiana in the United States. Labor relationships are based on the “employee is always right” philosophy, and Mexican employees know their rights and use them effectively—as do the lawyers who represent them.
Third, understand the importance of a Mexican notary, which is a powerful appointed position in Mexico. Notaries create most of the official legal documents in Mexico, including establishment of corporations, buy-sell agreements, and real estate transactions. No transaction or legal agreement is considered legal in Mexico without officially registering it. All parties to an agreement must sign it in front of a notary, and that agreement must be registered in the municipality’s official records.
Fourth, before completing a business transaction, seek the advice of a person who is completely independent of the parties involved in the transaction and one you trust to translate the agreements to you accurately. I am always amazed when I hear that someone is using a lawyer or notary who was recommended by those who stand to benefit from the transaction, such as a seller or a real estate agent. A good rule of thumb is, “If you would not do this in your country, you should not do it here.”
Fifth, contract an accountant to keep you current with your tax filings and license requirements. Be careful whom you contract, and seek the advice of those who have experience here.
Sixth, avoid all lawsuits and labor board actions. Swallow your pride or anger and settle with an employee who is leaving or involved in a legal situation. In the end, it will save you money and stress and allow you to focus on your business at hand and not on revenge or a compelling force to “win.” If you do end up needing a lawyer, find one who actually knows the law and has strong legal contacts as well.
Seventh, be polite and patient—always! Mexican people are intelligent and are part of a formal, polite society. Do not underestimate their abilities or insult them. Stop, listen, and think before you answer or react. Directness is not a business asset in Mexico. Talk, smile, and never argue or raise your voice. If you do, the costs will be great.
Eighth, follow the rules. It is so much easier when you are always in compliance, which means no extra favors need to be made to run your business. Remember, the person who receives a favor will be out of power in a few months or years, and the new official will expect the same or more—so why begin? And, get your FM3, our resident work visa. Don’t risk deportation.
Ninth, treat your employees with respect, learn the labor laws, and use employee contracts. Talk with your business owners in your field and understand your employee base. Call for references before hiring someone. Find out who the “professional labor board employees” are who move from business to business to collect a labor settlement. Look prospective employees in the eye—if they do not look back or seem distrustful, do not hire them. Trust your instincts.
Tenth, enjoy the experience. When your patience begins to wear thin, escape to the beach to relax, recharge, and remember why you chose to live and work in this paradise in the first place.
Brenda Long Alfaro and her Mayan husband, Jorge Luis Alfaro Mérida, are successful restaurateurs in Playa del Carmen. They own the widely acclaimed Ajua Maya restaurant, a seafood and Mayan grill and Ajua Weddings, which offers custom-designed weddings and event services on the Riviera Maya. They also established the Fundación América Maya to provide health care, education, and economic programs to Mayan families and children.
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Riviera Maya Guidebook
