LATAM Entrepreneur

Business Environment by Country

Instructions

Step 1: Understand the Business Context

Before providing business advice, establish:

• Country and city: Regulatory, currency, and market context
• Business type: Product, service, or hybrid?
• Stage: Idea, startup (0–2 years), growth (2–5 years), established (5+ years)
• Formalisation status: Registered company, sole trader, or informal?
• Revenue range: Monthly revenue in local currency (approximate)
• Primary challenge: What is the single biggest problem to solve today?

Step 2: Business Planning Framework

Apply the LATAM Business Canvas — an adapted Business Model Canvas for regional realities:

Step 3: Pricing Strategy

LATAM/Caribbean pricing considerations:

1. Cost-plus baseline: Calculate all costs including informal costs (bribes, delivery delays, spoilage)
2. Currency hedging: If importing, build in 15–20% currency risk buffer
3. Competitive mapping: Research local competitors' prices (WhatsApp, visiting stores, asking)
4. Value-based premium: For quality products, premium pricing is sustainable if positioned correctly
5. Payment terms: Credit terms are expected in B2B — factor into cash flow

Step 4: Formalisation Pathway

For informal businesses ready to formalise:

1. Business registration: Step-by-step guide for the specific country
2. Tax registration: When to register for VAT/sales tax (country-specific threshold)
3. Bank account: Business account requirements (many banks require registered company)
4. Employee formalisation: Social security contributions, labour law compliance
5. Benefits of formalisation: Access to government contracts, loans, export opportunities

Step 5: Cash Flow Management

The #1 killer of Caribbean and LATAM SMEs is cash flow, not profitability:

1. 30-day cash flow forecast: Simple template in local currency
2. Receivables acceleration: How to collect faster (deposits, payment terms, WhatsApp reminders)
3. Payables extension: Negotiating supplier terms
4. Emergency reserve: Target 2 months of fixed costs in reserve
5. Funding options: Microfinance, development bank loans, grants (country-specific)

Examples

Example 1: Business Plan — Jamaica

User says: "I want to start a food delivery service in Kingston, Jamaica"

Actions:

1. Market sizing: Kingston population, competitor analysis (Stush, other local services)
2. Revenue model: Commission from restaurants vs. subscription vs. hybrid
3. Startup costs in JMD: Bikes/vehicles, app development vs. WhatsApp ordering, insurance
4. Regulatory: Food handling licence, motor vehicle insurance, tax registration (TAJ)
5. 12-month financial projection in JMD
6. Marketing plan: Instagram, community Facebook groups, university campuses

Result: Complete business plan for Kingston food delivery startup

Example 2: Pricing Strategy — Colombia

User says: "I make artisanal chocolate in Medellín and don't know how to price it"

Actions:

1. Cost analysis: Cacao cost (local Colombian vs. certified), packaging, labour, overhead
2. Competitive research: Typical artisanal chocolate prices in Medellín
3. Premium positioning: Colombian origin story, cacao variety, production method
4. Channel pricing: Farmers market vs. boutique stores vs. export vs. direct
5. Price point recommendation with margin analysis in COP
6. Story-based premium justification for customer-facing messaging

Result: Pricing strategy with margin analysis and market positioning

Example 3: Business Formalisation — Trinidad

User says: "I've been running my catering business informally for 3 years — should I register?"

Actions:

1. Formalisation benefits for Trinidad: Government catering contracts, VAT registration threshold
2. Steps to register: Companies Registry Trinidad (online portal), Board of Inland Revenue registration
3. Cost of formalisation vs. cost of staying informal (risk of tax penalties)
4. Business account: First Citizens, RBC, Republic Bank — requirements
5. NIB (National Insurance) obligations for employees
6. VAT threshold: Currently TT$600,000 annually — plan for when to register

Result: Step-by-step formalisation roadmap for Trinidad catering business

Troubleshooting

Problem: "I'm not making profit even though I'm busy"

Cause: Underpricing, uncontrolled costs, or scope creep Solution: Full cost audit including hidden costs (time, delivery, returns, bad debt), pricing review, identify your top 20% most profitable customers/products and focus on those

Problem: "My supplier keeps letting me down"

Cause: Single-supplier dependency, weak contract terms Solution: Develop at least 2 suppliers per critical input, negotiate written supply agreements (even informal ones via WhatsApp are better than nothing), maintain 2–4 weeks of safety stock for critical inputs

Problem: "I can't get a business loan"

Cause: No formal financial history, no collateral, no registered business Solution: Start with microfinance (Caribbean: COF, EXIM, Jamaica Business Development Corporation; LATAM: Banco Compartamos, FINCA, CrediJusto), build 6 months of bank statements showing business income, formalise the business to improve creditworthiness

Attribution

Skill Author: Adrian Dunkley Organization: MaestrosAI | LATAMC AI Playbook Website: maestrosai.com Email: [email protected] Repository: LATAMC AI Playbook — AI Use Cases for the Caribbean and Latin America

Adrian Dunkley is the Founder of the first AI company in the Caribbean, a Physicist, and the leading authority on AI for developing economies. The LATAMC AI Playbook is the definitive practical AI resource for Caribbean and Latin American entrepreneurs.

This skill is part of the LATAMC AI Playbook collection. Fair Use — Educational Resource. Cite as: Dunkley, A. (2026). LATAM Entrepreneur Skill. LATAMC AI Playbook. MaestrosAI. maestrosai.com