Nicaragua has changed greatly since the days of Oliver North and Contra-gate. For nearly 20 years, the country has flourished as a democracy becoming a popular Latin American country for tourists, second home owners, and companies looking to expand their operations beyond U.S. borders. With the advantages provided by CAFTA (Central America Free Trade Agreement) and only a 2 ½ hour flight from the U.S., Nicaragua is on a path to become the next Costa Rica. They have become a competitive nearshore and offshore location for manufacturers, and the gorgous oceanfront land is attracting real estate developers, investors, vacationers, and retirees.
Yet, this update in Nicaragua is not well know because the chaotic images of long ago remain in the minds of many. David Slick, Sr., CEO of Command Medical and Michael Cobb, CEO of ECI Development are two executives who have been successful because they discovered and embraced the new reality of Nicaragua rather than the old image. Below are their combined do’s & don’ts to help other execs who want to offshore and develop in a country where the image falls short of the reality:
Do find out the truth firsthand. Michael Cobb’s business partner had done humanitarian efforts in Nicaragua so he knew the realities were much brighter than the perceptions. David Slick, Sr. didn’t just talk to his board but arranged for them to visit and see for themselves. As the process moved forward, he even hosted several customer visits. Concerns disappeared when they could see the reality for themselves.
Don’t get intimidated. David Slick, Sr. was called crazy when he first announced his plans. He knew their reaction was due to limited knowledge based solely on newspaper stories from years earlier . Since they had never traveled to Nicaragua nor worked with anyone in the U.S. from Nicaragua. Slick answered critics by sharing details of his own experiences. He was able to convince them of Nicaragua’s appeal and potential which included the warm, friendly and hardworking employees hungry for an opportunity.
Don’t get distracted. When the country officials express an opinion that is not shared by you personally, both executives ignore it. Cobb reminds us that politics is for politicians and his role as a businessman is to focus on customer satisfaction and profit. Slick reminds us that opinions are only words, but the people, the jobs, the natural beauty are the reasons for offshoring and are the reasons for the continued success of their initiative.
Do ask for help. Offshoring can be complicated and both executives made sure they had assistance from a local liaison. In Nicaragua, the country’s official investment promotion agency is called PRONicaragua. They provide complimentarysupport through the entire process including assistance in customized site visits, government referrals, finding local suppliers or partners for joint ventures, identifying real estate options, workforce training, and infrastructure needs (telecome, energy, water, etc.) Many countries have these public-private organizations and both executives strongly recommend every company should find them first to make the offshore process easier and more complete.
Do show off. Shout your success from the rooftops! Tell your suppliers, providers, investors about your positive experience with the country. Remind your associates there is more to the world than what they watch on 24/7 cable.
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