To invest money in Venezuela it is necessary to be prepared for a volatile market that little by little has managed to position itself again in the country. Previously, we have mentioned which are the 3 strongest industries to invest in Venezuela. So to complement this information, we will explain a step by step guide to successfully invest money in Venezuela.
1- Research the market and business sustainability in the short, medium and long term.
Although the financial context in Venezuela and the world is complex to analyze, there have been recent changes that promote business adaptability. Such as the use and flow of foreign exchange in private banking to interconnect national platforms with international ones, among others. Therefore, the first step that must be made before investing money in Venezuela is to research the industry and the market in which you want to operate commercially. You can do this through the Internet, market research, and with the advice of a marketing specialist in the region. These resources will allow you to have a broader idea of the market and the target segment of your product or service. In that sense, prior preparation is vital to understand the risks that are present in these commercial operations and how to mitigate them.
For example, in Venezuela there are certain limitations in terms of logistics and transportation, so organizations must have contingency plans to ensure that their practices will not be affected by the lack thereof. In cases where companies are concerned about incurring sanctions and trade restrictions applied by the U.S., there are different mechanisms to verify the legality of operating in Venezuela. So with good advice, companies can ensure that they do not incur in any practice that merits international sanctions.
2- Gather successful experiences in the industry before investing money in Venezuela.
Another way to prepare yourself to invest money in Venezuela is through the compilation of successful experiences in the industries you are interested in. This will allow you to understand under which legal figures operate the most recognized companies in the country. At the same time, they acquire certain references on the best business practices within unstable financial environments.
Currently, there are many Venezuelan and foreign companies that are successful in the health, energy and telecommunications sectorsamong others. This is due to the fact that a large part of the foreign currency that moves the country's financial system comes from the private sector, unlike in previous years. For this reason, some experts expect a decrease in oil dependence, while at the same time diversifying local production.
3- Seek legal and financial advice with experience in the industry where you plan to operate.
It is important that investors seek advice from lawyers who specialize in the industry in which they plan to operate. This is critical, as lawyers with experience in healthcare, product manufacturing, corporate complianceamong others, will facilitate the processes and permits that must be managed in order to operate successfully. For that you can turn to a law firm that has a multidisciplinary team within your organization. Because these analyses include administrative, commercial, corporate and legal processes that not everyone masters in its entirety. That is why it is essential to seek the right advice when you need accounting, legal or administrative guidance unexpectedly.
4- How to invest money in Venezuela successfully?
As with any investment process, there are associated risks that must be taken into account in order to minimize them. In the case of investing foreign capital in VenezuelaWith a good corporate structure, it is possible to ensure profitability while mitigating risks. Therefore, a good previous research will give you ideas to solve problems specific to your activities.
In the case of investments with existing companies, such as the case of the factories or the energy industryIn addition, more exhaustive inspections are required to ensure that efforts are focused on business growth.
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