Doing Business in Mexico

Doing business in Mexico is rarely very difficult, as long as you keep the local culture in mind. Foreign professionals are welcome here, but Mexican customs are not window dressing, and a misstep can cost you more than a moment’s awkwardness.

Local customs take time to learn anywhere. Get the basics right, though, and you have most of what you need to do business in Mexico.

Fast facts

Business language

Many Mexican businesspeople speak fluent English, but Spanish is the language of business, and every legal or official document must be in Spanish. Use the formal usted rather than tú in professional settings. Outside the big cities, or in technical meetings, do not assume everyone is comfortable in English; check in advance whether you will need an interpreter.

Hours of business

Office hours are usually 9am to 6pm, Monday to Friday. A long midday break is common, traditionally an early afternoon siesta of an hour or two in smaller towns and family firms. In the big city corporate offices, a standard lunch break is more normal.

Business dress

Dress in the Mexican business world is smart and formal, and style counts for a lot. For men, that means dark colours and a good tie with matching accessories. Women dress just as sharply: tailored suits are common, and heels and make-up are usual in corporate offices. In the big commercial centres, Mexico City and Monterrey most of all, expect strict formality; smaller towns and the hot coastal regions are more relaxed.

Greeting

Greetings in Mexico are warm. A firm handshake with eye contact and a smile is the standard opener in business, and you greet the most senior person first. With women, follow their lead. You can always offer a handshake, and save the cheek kiss common in social settings for people you already know. Professionals are often addressed by their qualification, such as Licenciado for a graduate, Ingeniero for an engineer, or Doctor. Anyone without a professional title is Señor (Mr) or Señora (Mrs), followed by their family name.

Gifts

Gifts are not expected at business meetings, although a small, sincere token is always welcome. If a colleague invites you home, bring something for the host. Wine and good sweets are safe choices; flowers work too, as long as you choose the bloom with care. Avoid marigolds and other yellow blooms, which Mexicans link with the Day of the Dead, and purple flowers, the colour kept for funerals.

Gender equality

On paper, women are equals in the Mexican business world, and they are increasingly reaching senior positions. Many firms are still paternalistic though, and women in Mexico are paid less on average than men. Machismo is a workplace reality that many international businesswomen run up against, more so in traditional firms than in multinationals.

Working in Mexico

Business culture in Mexico

Business culture in Mexico is built on personal trust above all else. Deals here are made between people who know and trust each other, not between names on a contract.

Relationships

Business in Mexico is best done face to face, between people who already know and trust one another. Wherever you can, arrange your first introduction to a prospective partner through someone who can vouch for you. Mexicans call these well-placed connections palancas, or ‘levers’, and they open doors that a cold approach never will.

This relationship-first habit means business can move slowly. People want to know you before they negotiate with you, so build in time for that. Chambers of commerce and professional associations are a practical way for newcomers to widen their circle.

Hierarchy

Management in Mexico is hierarchical, but the etiquette around it is warm and personal. Juniors may be asked for a view, but the most senior person generally makes the final call, and it may come across as an overstep to offer strong opinions uninvited.

Time

Time in Mexico is a more elastic concept than international professionals may expect. Punctuality is most important in formal business settings and far less in social ones. Do make the effort to arrive on time yourself, since it shows respect, but do not be surprised if your hosts run late. Make sure there are buffers between appointments rather than stacking them back-to-back, and treat deadlines as intentions rather than guarantees.

Meetings

Set meetings up in advance, and confirm them a few days ahead. Meetings usually open with a fair share of small talk. There may be an agenda, but conversations often wander and run over. The pace is set by the most senior people present. A first meeting is often about sizing you up rather than signing anything, so bring patience.

Communication

Mexico is a high context culture: people convey as much through how they speak and what they leave unsaid as through the words themselves. Learn to read between the lines. You will rarely hear a flat ‘no’, because a blunt refusal feels rude; a soft ‘let me think about it’ or ‘we’ll see’ can usually be taken as a polite no. Read the warmth of a reply as closely as its content. If the response is genuinely warm, you can usually take it as real interest; if it is polite but lukewarm, the answer is probably no, however nicely it is put.

Strong feeling is welcome in meetings. Animated, even loud, exchanges can unsettle international arrivals at first, but in the Mexican workplace, they are a sign of engagement and passion rather than conflict.

Once a relationship is established, much of the everyday business happens on WhatsApp. Mexicans reach for it far more readily than email for quick professional messages.

Business cards

Expect to hand out a lot of business cards in Mexico. Have one side of the card translated into Spanish, and present the card Spanish side up. List your professional qualifications on it; people here take such credentials seriously. Follow your host’s lead on timing: people may swap cards at the introduction or save them for the end of the meeting.

Attitude toward foreigners

Mexico is a friendly place to do business, and most foreigners settle into corporate life without much trouble. Keep in mind, though, that without any Spanish, you will struggle to connect with the wider public.

In some parts of the country, Americans in particular can get a cool, even suspicious, reception. Political tensions between the US and Mexico surface from time to time, and you will do well to understand their background before you arrive.

Local Culture in Mexico

Dos and don’ts of doing business in Mexico

• Do be willing to invest in personal relationships with colleagues
• Do learn to relax and to take things as they come
• Do learn Spanish; the culture opens up to those who make the effort
• Do accept the long lunch; the meal is where relationships are built, so clear your afternoon
• Don’t rush people or throw your weight around; let things unfold at their own pace
• Don’t be blasphemous, especially during business meetings
• Don’t feel frustrated if good ideas are not used immediately. Mexican businesspeople are open-minded but may be slow to change their ways.
• Don’t wade into politics, above all the tangle of US-Mexico relations; leave it to your hosts to raise if they wish