10 Things To Consider If You're Considering Doing Business In Cuba

Cuba is a land of contrasts. While much of its infrastructure is crumbling and in need of repair, there are also beautiful examples of sturdy historic architecture. You don't have to be a baby boomer to appreciate 50s-era cars. And the natives aren't the evil Communist boogeymen us boomers were warned about back in junior high. Finally, the mild tropical climate and natural beauty are pleasing to the eye.

Historic architecture

Cuba's architecture dates back to the 1500s. By the 17th century, Cuba was one of the main ship-builders in the Caribbean. There is an abundance of Baroque and neoclassical styles, and older neighborhoods boast private houses with arcades, balconies, iron gates, and internal courtyards. In Havana alone, there are 444 buildings designated by UNESCO as World Heritage Sites.

Classic Cars

The streets of Havana are full of classic American cars from the 1950s. Most Cubans have been unable to afford new cars since the 1959 revolution, so they have carefully maintained the old ones.

Friendly People

The Cuban people are known for their friendliness. Employees in the service sector are especially friendly and helpful, and a $1 tip may be more than their wages for the day.

Good Climate

The warm tropical climate makes outdoor living pleasant year round. Breezes keep the temperature from being unbearably hot. While hurricanes represent the greatest natural threat, there's plenty of advance warning that a hurricane is approaching.

Natural Beauty

Lush greenery, tropical flowers, and miles of coastline offer plenty of natural beauty to appreciate.

All these factors make Cuba an interesting place to visit. But before you rush into a plan to do business there, a few more factors need to be considered.

Ownership

You won't own your business. The Cuban government will. You are only allowed a 49% interest in your business.

Who are your customers?

Most Cubans earn an average of about $20US a month. While there is a lovely underground economy from taxi service to in-home restaurants and craft sales, most Cubans have very little discretionary income.

Expecting a bargain?

With such a low income for the natives, you'd expect to find some real bargains. You'd be wrong. Most visitors to Cuba are amazed at how expensive everything is.

Who's the Boss?

Employees are hired and paid by the Cuban government. You don't control who gets a raise, or when. And you can't use that classic gentle reminder that "I'm the one who signs your paycheck!" business finance is different in communist countries!

Do Your Diligence

Doing business in any foreign location presents a special set of challenges. Be sure you have all the facts about legal and financial requirements.

Starting any business presents an exhilarating contrast of exciting possibilities and frustrating details. A contrast just like the contrast that is Cuba.