Pamela Sandoval

Tips for starting a business in Mexico

The client businesses that have fared best over the years are indeed those that have opened businesses in sectors in which they already had experience or know-how.

After more than 10 years of advising clients and friends to open businesses and incorporate companies in Mexico, I have come across all kinds of scenarios, so today I want to give you these tips so that the next time you think about opening a business you can be better informed.

"It's easier to get divorced than to dissolve a partnership."

This is one of the phrases I have repeated the most in my meetings when two people arrive, usually friends, boyfriends, family, and assure me that what they need is to form a partnership. It is very different to have a relationship where there is nothing more involved than mere friendship, love or family relationship. When there are interests involved, things change, the tone rises and that relationship that we were 100% sure was the good one (and almost for life) suddenly turns out not to be. That is why my first piece of advice is to enter into a trial phase by putting in writing and as clearly as possible -in a contract- the rules of the game: what happens if we sell a lot, what happens if we do not sell anything, how do we divide the profits and losses, what happens if we do not sell anything, how do we divide the profits and losses? Having these things clear from the beginning will allow us to undo any knots that have been tied.

"Hand in hand with your lawyer and your accountant."

I know that both lawyers and accountants (well, lawyers more so, let's not kid ourselves) have a very bad reputation. Probably nobody thinks about hiring a lawyer or an accountant when they are thinking about opening a company. Rather, they are thinking about the logo, how the premises are going to look, the website, the payment gateway, and so on. That's all well and good, but if that doesn't go hand in hand with someone who is professionally trained to help them start a business, protect their brands and keep them from getting in trouble with the SAT , I don't predict good fortune. Having a lawyer and an accountant around from the beginning will allow them to really focus on what is important to the business and not on paperwork and legal and accounting procedures.

"Shoemaker to your shoes".

I know this one may be trite, but to my credit: the client businesses that have fared best over the years are indeed those that have opened businesses in the sectors in which they already had experience or know-how. It is very important to know what the value of your company is and even more important is to protect it correctly and in time. Innovation can take many and diverse forms: in processes, in the supply chain, in the customer service platform, among others. But what is really important is to see what they already have and bring it to the table.

4. "Know your true value".

Knowing exactly what is the competitive difference of your business is the key to success and this is not easy. What do you or your partners do differently from others? What is your added value? In a world where there is so much to offer, you have to be very clear about what you do, and if you do it from the beginning, so much the better. The value of companies may lie in their intangible assets, such as their patents or their brands, or in their infrastructure projects or perhaps in their network of contacts. The important thing here is to know that value and protect it in the best possible way.

It is well said: "Walk alone and you will go fast; walk together and you will go farther".