How to Start A Small Business in Costa Rica: Branding and Marketing
In Part 1 we walked you through the legal process of forming a corporation in Costa Rica. Though that’s a multi-step process, we can promise you that’s the easy part! The tricky part of starting a small business lies in your concept, marketing and execution. This, however is our specialty.
We’ve been helping small businesses in Costa Rica for years now, and have also gone through a few business ideas of our own that were great learning experiences. Some of the advice we’re giving applies to starting a small business anywhere, but we also have some Costa Rica-specific tips to share.
If you prefer getting info from videos, check out the vlog version of this same topic! Or keep reading below…
YOUR BUSINESS PLAN AND BRAND
CONCEPT
Before you even start the legal process, you should have a very well thought-out concept and a solid business plan. It’s smart to spend time in the area you want to operate your business observing opportunities in the market before you take an idea very far. Like starting a business anywhere, you need to do the research and make sure there is a demand for your product or services, and a large enough audience to support you. This may seem like it goes without saying, but many people get swept up in the dream of living in paradise and aren’t realistic. Don’t assume that because something worked in your home country that it will work here in Costa Rica, either. More about that here.
Costa Rica is unique in that there are different markets for locals, expats, and tourists, yet they can and often will overlap. There is also high and low tourist seasons with drastic differences in traffic, so you will want to consider this as well. You may make enough money during high season that it carries you through the year, but often businesses will have to shift their focus a bit during low season to try and survive the quiet times. Marketing to locals and expats instead of tourists with a slightly varied product or discounted opportunity is what a lot of businesses do during rainy season.
Aside from being a local, expat or tourist, your audience is defined further by their demographics, location, interests, values, and opinions. Knowing your audience intimately is important so that you can communicate and appeal to them in the most effective ways with your branding and marketing, so don’t skip this step.
BRANDING
Investing the time in developing your brand will pay off in every future step of running a successful business. A brand is more than just a logo; it’s your business’ personality and identity. Your branding and logo is your opportunity to make an impactful first impression and emotional connection with potential customers. In mere seconds, people make subconscious decisions about what your business represents, how trustworthy or professional it is, and the quality of your products or services – all based on your branding.
The standards are being raised now that more small businesses are opening in Costa Rica, and having a professional appearance is a must to stay competitive. Your logo should visually communicate your brand’s values in an instant, and the rest of your visual identity (in signage, ads, decor, print material, website and social media channels) should support that message.
Creating a cohesive brand identity across all channels is important in building brand recognition. If you don’t have a design background, it’s best to seek out a professional designer with branding experience to help you at this stage, or even earlier. We can’t stress enough how important it is that your visuals communicate effectively, are high-quality and cohesive. Otherwise you messaging will be lost and overlooked by your target audience.
If you have a great business idea and want us to help you develop your brand identity, tell us about it!
CREATING A MARKETING PLAN
Once you have a concept, a name, have developed your brand and are fully legal and operational, it’s time to create a marketing plan. You’ll need to decide what you want to tell your audience, and consider the best ways to reach them. Think about the following : Where do they frequent or search for information? When will they be interested in your product or service and why? These answers will help you decide where to spend your time and budget. If you need help getting organized, download and fill out our free “Marketing Cheat Sheet”.
The most common and reliable forms of marketing are through print and web advertising, local and online directories such as Google Places and Trip Advisor. Also having a business website, blog and social media profiles are great ways to have an online presence and market your business. You can direct traffic to your site by investing in SEO, or by creating educational or entertaining content that is relevant to your business, which is known as content marketing. This is done with blog posts, YouTube videos, Facebook groups, and Instagram accounts, just to name a few.
There are plenty of other fun, creative ways to market your business as well. Other great ways to create interest in your business are by hosting a free event like a sampling or workshop, sponsoring an event, or supporting a local charity. Find a business that shares your audience to collaborate with and co-host, or devise a promotion that benefits you both and adds value for the consumer, like a referral program or member discount. Those are just some general ideas to get the wheels turning, but if you want us to start brainstorming creative marketing strategies for your specific business, let us know!
Across the board, your marketing visuals should be eye-catching but clean, and your messaging should be concise yet meaningful. There is a limited amount of time to capture your audience’s attention, and you need to choose the most important points to communicate and actions to take. For best results, all material created to execute your marketing plan should follow your brand guidelines, and ideally, be professionally designed. Ads, flyers, websites, signs and all other marketing material are important, long-lasting communication tools, so you want to be sure they represent your brand in the best way, and convey your messaging clearly.
FOLLOW THROUGH
It’s common for business owners to let their enthusiasm fizzle out over time, or become complacent with initial success. But longevity requires quality, consistency and maintenance. Once you have captured your audience’s attention with your branding and marketing efforts, make sure you deliver what you’ve promised! If you let customers down after building up hype, you may never gain their trust in your products or services again. Your brand’s reputation will become a part of it’s identity, so do your best to build a positive image.
Making customer service a priority is one of the surest ways to stand out in Costa Rica and leave a good impression. Then put effort into collecting reviews. Whether on Trip Advisor, Facebook or another platform for community reviews, this feedback will not only give your business legitimacy but help you to understand your strengths and weaknesses and make necessary adjustments.
Don’t underestimate word-of-mouth recommendations, either. Especially in small communities here in Costa Rica where word travels fast, the experiences people in the area have can make or break a new business. Maintain good relationships with your community so people send others your way.
Following through with your marketing efforts also means getting data savvy. It’s so valuable to track your marketing strategies’ success, to be able to see what worked well and what may not have, so you know where your marketing budget is best spent. Marketing is an ongoing task for small businesses, so having the data from last year’s campaigns can greatly influence this year’s strategy.
We hope this helped as a guide to starting a business in Costa Rica, and got you thinking about what goes into planning and executing. If you haven’t read Part 1 yet, make sure to check it out for a comprehensive breakdown of the legal process in Costa Rica for non-residents.
Contact us if you need help developing your marketing plan and creating awesome marketing materials that will make you stand out in Costa Rica! We love hearing from other entrepreneurs and we love helping small businesses succeed.