How Nearshoring Yourself Can Help You Enter the U.S. Market
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Launching a business in the American market presents the classic entrepreneur's dilemma. Yes, the consumer market is massive โ but so are the costs. Office space in New York or San Francisco drains startup capital before you've even made your first sale. Work visas? Impossible. And then there's the stiff competition.
If you're struggling to make a business case that holds up to the costs of running a company in the States, there's a third option.
Enter personal nearshoring โ establishing yourself and perhaps a small team in a South American location while targeting U.S. customers. This approach gives you the time zone alignment needed for real-time communication with American clients at reduced overhead costs. Even with the tariffs.
The Advantages of Nearshoring
So what's personal nearshoring? It means positioning yourself and (part of) your business where your dollar stretches further while staying in sync with U.S. customers and business hours. When your Buenos Aires office opens at 9 AM, it's also 9 AM in New York (and 6 AM in California โ early, but workable).
The financials of nearshoring make for a compelling argument. Whereas a small office in Miami might set you back a monthly $5,000, a similar space will only cost $500 in Medellรญn. Hiring local talent comes at a third of U.S. rates. And living expenses? Expect to cut them by 60% or more.
Nearshoring in South American countries that have improved safety in recent years works particularly well for digital businesses like software development, digital marketing agencies, creative services, and e-commerce operations. But it can also do cost-cutting wonders for physical businesses with some digital presence, who can move their customer service or dev team abroad while retaining physical presence where they need it.
Where to Nearshore in Latin America
1. Medellรญn
Once a place best avoided, today's Medellรญn is one of Latin America's innovation hubs. The city isn't just much safer than it used to be, but offers fiber internet, a growing ecosystem of co-working spaces, and a thriving expat entrepreneur community.
Colombia's digital nomad visa allows stays up to two years with minimal paperwork. Local universities produce tech talent familiar with U.S. business practices and English proficiency. Your operational costs? Roughly 70% lower than comparable U.S. setups.
2. Montevideo
Uruguay might be some distance from the U.S. but its capital provides a great environment for financial services or fintech ventures. The South American country's banking system is extremely stable and its policies are friendly to international businesses. Uruguay's small size and educated workforce make government processes surprisingly efficient.
Plus, Montevideo's old-world charm and excellent infrastructure make it an attractive capital for young professionals looking for an exciting urban life next to professional growth.
Uruguay has permanent residency schemes with low income requirements, and its tax system includes benefits for businesses serving primarily foreign clients. And while it's more expensive than options like Medellรญn, businesses operating from Montevideo can still slash costs by about 40-50% compared to U.S. operations.
3. Santiago
You've heard of Chile's reputation as South America's most developed economy, so why not bring your business to Santiago? The Chilean government is actively courting foreign entrepreneurs and investors through Start-Up Chile and other initiatives offering equity-free funding and fast-track visas.
And why pick Santiago over other South American cities? The city's business culture most closely resembles that of the U.S., reducing adaptation challenges. "Chile is so safe and so similar to the United States, that it's often used as a test market for the likes of Coca Cola to launch new products before introducing them in the U.S," Karsten Aichholz, the founder of ExpatDen, shares.
Operating in Chile can cut costs by about 40% versus running a business in the U.S. Another perk is that shiny offices of multinationals dot the Santiago cityscape, presenting potential partnership opportunities that you can leverage for U.S. market entry.
How to Start Nearshoring and Slashing Costs
Want to start slashing costs while growing an American business? Then it's key to sort out your digital presence in the States while operating abroad. Maintaining a U.S. phone number through Google Voice and U.S. payment processing via Stripe keeps customers feeling they're dealing with a domestic company.
But while digital services are borderless, some client relationships require a physical handshake. Whether you fly direct or combine it with a vacation cruise, plan frequent trips stateside for face-to-face meetings that seal deals and renew contracts.
Finally, the real challenge of nearshoring lies in building your team. Small entrepreneurs usually start solo and can bring on local talent as they grow. Existing businesses face the challenge of moving executive team members to a new country, but can then rely on them to replicate operations and ensure business continuity as they attract new talent.
If you can overcome these and other logistical challenges, nearshoring offers an economic edge over the competition. The kind of edge that allows you to grow your business and conquer U.S. market share while enjoying the Latin pace of life.
