TO: Deborah K. Baird & Maria Vera
FROM: James Bentley
DATE: April 25, 2011
SUBJECT: Proposal to complete a market analysis on the classic automobile environment in Uruguay as well as a business plan to exploit said market.
STATEMENT OF THESIS AND PROJECT SUMMARY
This project will examine the classic automobile market in Uruguay in the form of a thorough market analysis with the purpose of determining the potential profitability of establishing an import and/or export business in relation with the U.S. classic automobile market. An initial business plan will be developed to address the concerns, questions and logistics that go into running a business of this magnitude.
In order to conduct the market analysis I will be examining resources from a variety of government departments including the Department of Transport, Department of Commerce, and the embassies of both countries. I will also be researching U.S. automakers production and exportation history in order to not only be proficient in my knowledge of the products I am dealing with but to understand the types and amounts of U.S. made vehicles that may be found in Uruguay.
I will also be analyzing the classic automobile market here in the United States in order to determine supply and demand in both nations. This will aid my business planning by allowing me to focus on specific brands, models, years, features, importing and/or exporting.
The business plan will be a result of the market analysis findings. The purpose of this project as stated previously is to conduct a market analysis of the classic automobile market of Uruguay to determine if a viable import/export business can be established, however in the event that the market analysis reveals that this is not in my best interest, the business plan will serve the purpose of laying the groundwork for a future business dealing with an alternate product or location in Latin America where a profitable import/export business can be established. While the specifics of the business plan will be different, much of the content will aid me in my career goals of working in international business specifically in Latin America.
The business plan outline will contain an executive summary, organizational plan, marketing plan, financial plan, and all pertinent supporting documents. These sections address issues such as management, legal, customs, financing, as well as providing strategy, and a wide array of analysis methods.
REVIEW OF LITERATURE
My interest in this project stems from the time that I have spent living in both Argentina and Uruguay. Because of this my personal experience is an important and invaluable source for this project. I will also depend on a variety of individuals who have spent time or currently live in Uruguay. My initial research has centered on literature dealing with starting an import/export business such as “Export Import. Everything you and your company need to know to compete in world markets”, in which the author covers a wide variety of issues dealing with customs, government regulations, terms of sale, shipping and documentation. It also provides sample forms, letters for contacting potential clients, culture and language considerations, and many resources and links. The author gives a “magic formula for successful importing” which will be very important in my business plan. The formula includes “know that you can sell the product at a profit…know that you can conform to all applicable laws and regulations without exception…have enough definite buyers for goods to at least break even” (27).
Another source that has been useful is “Start your own Import/Export business” which is targeted for individuals like myself attempting to start their own small import/export business. The author states “Since foreign trade is a field that is good for all countries, and all countries have a great deal at stake, there is an unusually rich array of resources for help in almost any situation” (182). This advice has led me to seek out these specific sources when encountering specific problems.
I have consulted a book called “Doing business in Uruguay” to understand the specific business environment that I will be dealing with there. Although this source does not focus directly with imports and exports, it provides details about how I should set up the Uruguayan side of my business. According to the author, “In general terms, government policy favors the reduction and eventual abolition of trade barriers” (13), “the government regards the development of the free market as a means of improving efficiency”, and “the industrial climate is based on the principle of free enterprise. Bureaucratic procedures have been reduced drastically in certain areas, such as foreign trade” (10). These statements have confirmed my previous knowledge that Uruguay is a positive country to deal with specifically when it comes to imports and exports and running a business.
Because of the nature of my project and the need for up-to-date information some of my most useful sources are government websites. One of particular importance is the customs and border patrol website. They are the government entity that regulates imports to the US. Most of the forms, fees, regulations and essential information can be found on this site as well as links to other resources for the government. Resources from this site have helped me narrow down the specific product that I would like to import based on regulations. The site states “As a general rule, motor vehicles less than 25 years old must comply with all applicable Federal Motor Vehicle Safety Standards (FMVSS) in order to be imported permanently into the United States.” And “The following passenger cars, light-duty trucks, heavy-duty engines and motorcycles are subject to federal emission standards: Gasoline-fueled cars and light-duty trucks originally manufactured after December 31, 1967 and diesel-fueled cars originally manufactured after December 31, 1974”. This information has led me to focus on classic vehicles in order to avoid these difficult regulations.
My main source for writing the business plan is “Anatomy of a Business Plan: The Step-by-Step Guide to Building a business and Securing Your Company’s Future” by Linda Pinson. According to Linda, “The business that fails to plan, plans to fail” (2). I am following this source as a guideline on how to outline my business plan and how to do the research to obtain the necessary information. It as well as other sources will also be useful in guiding my market analysis.
Others source which are not mentioned here will serve to obtain information about specific topics such as vehicle values, historical information, government laws and regulations, and business resources.
PRELIMINARY OUTLINE
I. Introduction and presentation of thesis
II. Classic automobile Market analysis of Uruguay and the United States
A. Uruguayan Market
1. Market research
2. Target market
B. United States Market
1. Market research
2. Target market
C. Analysis and conclusion
II. Business plan
A. Executive Summary
B. Organizational Plan
1. Summary description of business
2. Product description
3. Administrative plan
C. Marketing Plan
1. Summary of market analysis
2. Marketing strategy
3. Implementation of marketing strategy
D. Financial Plan
1. Summary of financial needs
2. Break-even analysis
E. Supporting documentation
IV. Conclusion
SCHEDULE FOR COMPLETION
Tas Completed by
Market Research (Uruguay) 5/21/2011
Market Research (USA) 6/4/2011
Market Analysis 6/18/2011
Business Plan Research 7/9/2011
Business Plan 7/16/2011
First Draft 7/30/2011
Second Draft 8/6/2011
Final Draft 8/13/211(assuming this is when the project is due)
WORKS CITED
Zodl, Joseph A. Export, Import; Everything you and your company need to know to compete in world markets. Cincinnati, Ohio: Betterway Books, 2002: 27
National Business Library. Start Your Own Import/ Export Business. San Diego, California: Pheiffer & Company, 1994: 182
Waterhouse, Price. Doing business in Uruguay. Montevideo, Uruguay: Price Waterhouse World Firm Services BV, 1995: 10-13
http://www.cbp.gov/
http://epa.gov/
Pinson, Linda. Anatomy of a Business Plan: the step-by-step guide to building your business and securing your company’s future. Tustin, California: Out Of Your Mind…And Into The MarketPlace, 2008: 12
BIBLIOGRAPHY
Armstrong, Gary and Kotler, Philip. Marketing, an introduction. Upper Saddle River, New Jersey: Pearson Education, Inc, 2009
This is my Marketing textbook from my business marketing class a year ago. I thought this book would be useful because an important part of my project is to successfully market and move my products once I have them here. I really liked this textbook and it will help me find my customers and represent my products correctly.
Beall, Anne E. Strategic Market Research. Bloomington, Indiana: iUniverse Star, 2010
Ernst & Young. Doing business in Chile. Santiago, Chile: Ernst and Young International, 1995
National Business Library. Start Your Own Import/ Export Business. San Diego, California: Pheiffer & Company, 1994
I got this book from the UVU library and while a little outdated is a good source because it provides the basic information to get started and targets the newbie like myself. It also is targeted to those who have no prior experience or even a college degree. It covers product selection, start up costs, legal and tax considerations, and common pitfalls. I am interested in this book because it explains the different roles that I could focus on.
Pinson, Linda. Anatomy of a Business Plan: the step-by-step guide to building your business and securing your company’s future. Tustin, California: Out Of Your Mind…And Into The MarketPlace, 2008
Waterhouse, Price. Doing business in Uruguay. Montevideo, Uruguay: Price Waterhouse World Firm Services BV, 1995
I got this from the UVU library. It gives specific information about doing business in Uruguay and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Waterhouse, Price. Doing business in Paraguay. Asuncion, Paraguay: Price Waterhouse World Firm Services BV, 1996
I got this from the UVU library. It gives specific information about doing business in Paraguay and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Waterhouse, Price. Doing business in Argentina. Buenos Aires, Argentina: Price Waterhouse World Firm Services BV, 1995
I got this from the UVU library. It gives specific information about doing business in Argentina and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Wilson, Hugo. The Encyclopedia of the Motorcycle. New york, New York: Dorling Kindersley Publishing Inc., 1995
Zodl, Joseph A. Export, Import; Everything you and your company need to know to compete in world markets. Cincinnati, Ohio: Betterway Books, 2002
I got this from the UVU library. Although this book targets established businesses it gives practical solutions and examples that are useful. It has sample forms, letters for contacting potential clients, culture and language considerations, and many resources and links.
Exporting and Importing; Negotiating Global Markets. Amy Zuckerman and David Biederman
I got this book from the UVU library. This book is a good technical resource for my project because it goes into great depth about Customs procedures, all the costs associated with importing, and duty management and government forms. This book along with more up-to-date government websites will be an invaluable resource.
Start Your Own Import/ Export Business. National Business Library
I got this book from the UVU library and while a little outdated is a good source because it provides the basic information to get started and targets the newbie like myself. It also is targeted to those who have no prior experience or even a college degree. It covers product selection, start up costs, legal and tax considerations, and common pitfalls. I am interested in this book because it explains the different roles that I could focus on.
Export, Import; Everything you and your company need to know to compete in world markets. Joseph A. Zodl
I got this from the UVU library. Although this book targets established businesses it gives practical solutions and examples that are useful. It has sample forms, letters for contacting potential clients, culture and language considerations, and many resources and links.
Doing business in Uruguay. Price Waterhouse
I got this from the UVU library. It gives specific information about doing business in Uruguay and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Doing business in Paraguay. Price Waterhouse
I got this from the UVU library. It gives specific information about doing business in Paraguay and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Doing business in Argentina. Price Waterhouse
I got this from the UVU library. It gives specific information about doing business in Argentina and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Doing business in Chile. Ernst & Young
I got this from the UVU library. It gives specific information about doing business in Chile and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Marketing. Armstrong & Kotler
This is my Marketing textbook from my business marketing class a year ago. I thought this book would be useful because an important part of my project is to successfully market and move my products once I have them here. I really liked this textbook and it will help me find my customers and represent my products correctly.
The Encyclopedia of Classic Cars. Kevin Brazendale
This is a good reference guide so that I can get more familiar with classic and desired vehicles here in the US. It will be important that I can accurately identify vehicles and make sure that they are not replicas or not what the owners say they are.
The Encyclopedia of the Motorcycle. Hugo Wilson
Although I had not originally considered importing motorcycles I think it might be a good option considering their size, value and collectability. I need to do more research on the motorcycles that may be available in South America but I think this might be a good business opportunity.
D&B Export Guide: Uruguay. D&B
This is an e-document that has up-to-date information specific to exporting out of Uruguay. This document contains specific information that I will need to know about trade regulations, documentation, key contacts, and shipping. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
Import/Export for Dummies. John J. Capela
This is a good series of books that makes the topic more understandable. This covers a lot of the topics in the other books but in simple terms.
Websites:
http://www.cbp.gov/
This is the customs and border patrol website. They are the government entity that regulates imports to the US. Most of the forms and essential information can be found on this site as well as links to other resources for the government.
http://www.dot.gov/
This is the Department of Transportation website for the US. This site will help me know which vehicles I can import and how they can get through customs and be registered. They also set the rules for vehicle safety tests and regulations.
http://epa.gov/
This is the Environmental Protection Agency website. They regulate emission testing and controls over imported vehicles.
www.autorevival.com
This is a good resource with information about restoring vehicles. It also has good information about indentifying vehicles and parts. (Sometimes the best information about vehicles comes from blogs and personal experiences from others. I may or may not be doing my own restoration work but this website will be a good resource.
www.antiquecar.com
This is a site that has classifieds and vehicle values. This will help me determine the market value of each model and the trends in the market.
www.hemmings.com
This site is a well respected resource in the automotive community. It has classifieds, values, and links to buyers.
www.uruwashi.org
This is Uruguay’s embassy website here in the US. It has good resources for doing business in Uruguay and contacts. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
http://uruguay.visahq.com
This is the US embassy in Uruguay website. It has contact information and resources in Uruguay. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
www.buyusa.gov/uruguay/en/42.html
This is the department of commerce of Uruguay’s website. They help to promote US citizens in their efforts to engage in commerce in Uruguay. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
Monday, April 25, 2011
Saturday, March 5, 2011
My redrafted thesis statement:
This project will culminate in a business plan with the purpose of allowing me to launch a company in which I will export classic and other valuable vehicles from Uruguay and other South American countries to the United States for resale. My project will address the concerns, questions and logistics that go into running a business of this magnitude and will determine if I should go ahead with launching this business.
The goals of this project:
- I have decided to focus on vehicles (classic, antique, rare, desired automobiles and motorcycles). At this point in the business I will only deal with vehicles that are 25 years old or older as these are not regulated by the EPA or DOT. For now I will not be dealing with other products that are not automotive related. (I will import auto parts as well as complete vehicles). I realized that my real passion is cars and I needed to narrow my scoop a bit. If I can pull this business off it will be my dream career so I would like to focus my energy towards this.
- I will establish connections with locals who will act as “Independent Agents” who will find the vehicles and handle the purchasing, paperwork and shipping of the vehicles. (These will be individuals that I already know and others that I can trust. Using native agents will allow me to more easily get around the red tape and not be taken advantage of by locals, etc). They will be paid a finder’s fee as well as a percentage of my final profit. This will give them great incentive to purchase the vehicles for as little as possible and find the most valuable vehicles as well. In this way I will be providing great opportunities for locals and saving time and money on my end.
-I will set up communication and documentation procedures to cover the South American end of the business. I will be using Skype or a similar video conferencing tool to communicate regularly and receive photos and information.
-I will understand the importation procedures like an expert since this is the most challenging aspect of the business. By dealing with non-regulated vehicles I can avoid a lot of the difficulty.
-I will set up a plan to market and distribute the vehicles once here in the US. I have to figure out if I want to personally pick up the vehicles, sell them when they arrive or have them shipped to me. This will require a great deal of research into the local market and cost analysis. I have some well developed ideas already.
Annotated Bibliography
Books:
Exporting and Importing; Negotiating Global Markets. Amy Zuckerman and David Biederman
I got this book from the UVU library. This book is a good technical resource for my project because it goes into great depth about Customs procedures, all the costs associated with importing, and duty management and government forms. This book along with more up-to-date government websites will be an invaluable resource.
Start Your Own Import/ Export Business. National Business Library
I got this book from the UVU library and while a little outdated is a good source because it provides the basic information to get started and targets the newbie like myself. It also is targeted to those who have no prior experience or even a college degree. It covers product selection, start up costs, legal and tax considerations, and common pitfalls. I am interested in this book because it explains the different roles that I could focus on.
Export, Import; Everything you and your company need to know to compete in world markets. Joseph A. Zodl
I got this from the UVU library. Although this book targets established businesses it gives practical solutions and examples that are useful. It has sample forms, letters for contacting potential clients, culture and language considerations, and many resources and links.
Doing business in Uruguay. Price Waterhouse
I got this from the UVU library. It gives specific information about doing business in Uruguay and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Doing business in Paraguay. Price Waterhouse
I got this from the UVU library. It gives specific information about doing business in Paraguay and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Doing business in Argentina. Price Waterhouse
I got this from the UVU library. It gives specific information about doing business in Argentina and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Doing business in Chile. Ernst & Young
I got this from the UVU library. It gives specific information about doing business in Chile and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Marketing. Armstrong & Kotler
This is my Marketing textbook from my business marketing class a year ago. I thought this book would be useful because an important part of my project is to successfully market and move my products once I have them here. I really liked this textbook and it will help me find my customers and represent my products correctly.
The Encyclopedia of Classic Cars. Kevin Brazendale
This is a good reference guide so that I can get more familiar with classic and desired vehicles here in the US. It will be important that I can accurately identify vehicles and make sure that they are not replicas or not what the owners say they are.
The Encyclopedia of the Motorcycle. Hugo Wilson
Although I had not originally considered importing motorcycles I think it might be a good option considering their size, value and collectability. I need to do more research on the motorcycles that may be available in South America but I think this might be a good business opportunity.
D&B Export Guide: Uruguay. D&B
This is an e-document that has up-to-date information specific to exporting out of Uruguay. This document contains specific information that I will need to know about trade regulations, documentation, key contacts, and shipping. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
Import/Export for Dummies. John J. Capela
This is a good series of books that makes the topic more understandable. This covers a lot of the topics in the other books but in simple terms.
Websites:
http://www.cbp.gov/
This is the customs and border patrol website. They are the government entity that regulates imports to the US. Most of the forms and essential information can be found on this site as well as links to other resources for the government.
http://www.dot.gov/
This is the Department of Transportation website for the US. This site will help me know which vehicles I can import and how they can get through customs and be registered. They also set the rules for vehicle safety tests and regulations.
http://epa.gov/
This is the Environmental Protection Agency website. They regulate emission testing and controls over imported vehicles.
http://www.nada.com/
This is the most reliable and trusted site for classic car values. This is what buyers for my vehicles would refer to when determining a fair purchase price. This is essential for me to determine if I should make a buy or not based on profit margin.
www.autorevival.com
This is a good resource with information about restoring vehicles. It also has good information about indentifying vehicles and parts. (Sometimes the best information about vehicles comes from blogs and personal experiences from others. I may or may not be doing my own restoration work but this website will be a good resource.
www.antiquecar.com
This is a site that has classifieds and vehicle values. This will help me determine the market value of each model and the trends in the market.
www.hemmings.com
This site is a well respected resource in the automotive community. It has classifieds, values, and links to buyers.
www.uruwashi.org
This is Uruguay’s embassy website here in the US. It has good resources for doing business in Uruguay and contacts. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
http://uruguay.visahq.com
This is the US embassy in Uruguay website. It has contact information and resources in Uruguay. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
www.buyusa.gov/uruguay/en/42.html
This is the department of commerce of Uruguay’s website. They help to promote US citizens in their efforts to engage in commerce in Uruguay. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
Other sources:
-I personally know a variety of people who have lived, live, or have done business in South America. I am talking or will contact all of these people. Some of them may be business partners or hired agents for my business.
-I haven’t yet found any scholarly journals, articles, or people who have done exactly what I want to do. I do know that it has been done however.
This project will culminate in a business plan with the purpose of allowing me to launch a company in which I will export classic and other valuable vehicles from Uruguay and other South American countries to the United States for resale. My project will address the concerns, questions and logistics that go into running a business of this magnitude and will determine if I should go ahead with launching this business.
The goals of this project:
- I have decided to focus on vehicles (classic, antique, rare, desired automobiles and motorcycles). At this point in the business I will only deal with vehicles that are 25 years old or older as these are not regulated by the EPA or DOT. For now I will not be dealing with other products that are not automotive related. (I will import auto parts as well as complete vehicles). I realized that my real passion is cars and I needed to narrow my scoop a bit. If I can pull this business off it will be my dream career so I would like to focus my energy towards this.
- I will establish connections with locals who will act as “Independent Agents” who will find the vehicles and handle the purchasing, paperwork and shipping of the vehicles. (These will be individuals that I already know and others that I can trust. Using native agents will allow me to more easily get around the red tape and not be taken advantage of by locals, etc). They will be paid a finder’s fee as well as a percentage of my final profit. This will give them great incentive to purchase the vehicles for as little as possible and find the most valuable vehicles as well. In this way I will be providing great opportunities for locals and saving time and money on my end.
-I will set up communication and documentation procedures to cover the South American end of the business. I will be using Skype or a similar video conferencing tool to communicate regularly and receive photos and information.
-I will understand the importation procedures like an expert since this is the most challenging aspect of the business. By dealing with non-regulated vehicles I can avoid a lot of the difficulty.
-I will set up a plan to market and distribute the vehicles once here in the US. I have to figure out if I want to personally pick up the vehicles, sell them when they arrive or have them shipped to me. This will require a great deal of research into the local market and cost analysis. I have some well developed ideas already.
Annotated Bibliography
Books:
Exporting and Importing; Negotiating Global Markets. Amy Zuckerman and David Biederman
I got this book from the UVU library. This book is a good technical resource for my project because it goes into great depth about Customs procedures, all the costs associated with importing, and duty management and government forms. This book along with more up-to-date government websites will be an invaluable resource.
Start Your Own Import/ Export Business. National Business Library
I got this book from the UVU library and while a little outdated is a good source because it provides the basic information to get started and targets the newbie like myself. It also is targeted to those who have no prior experience or even a college degree. It covers product selection, start up costs, legal and tax considerations, and common pitfalls. I am interested in this book because it explains the different roles that I could focus on.
Export, Import; Everything you and your company need to know to compete in world markets. Joseph A. Zodl
I got this from the UVU library. Although this book targets established businesses it gives practical solutions and examples that are useful. It has sample forms, letters for contacting potential clients, culture and language considerations, and many resources and links.
Doing business in Uruguay. Price Waterhouse
I got this from the UVU library. It gives specific information about doing business in Uruguay and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Doing business in Paraguay. Price Waterhouse
I got this from the UVU library. It gives specific information about doing business in Paraguay and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Doing business in Argentina. Price Waterhouse
I got this from the UVU library. It gives specific information about doing business in Argentina and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Doing business in Chile. Ernst & Young
I got this from the UVU library. It gives specific information about doing business in Chile and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Marketing. Armstrong & Kotler
This is my Marketing textbook from my business marketing class a year ago. I thought this book would be useful because an important part of my project is to successfully market and move my products once I have them here. I really liked this textbook and it will help me find my customers and represent my products correctly.
The Encyclopedia of Classic Cars. Kevin Brazendale
This is a good reference guide so that I can get more familiar with classic and desired vehicles here in the US. It will be important that I can accurately identify vehicles and make sure that they are not replicas or not what the owners say they are.
The Encyclopedia of the Motorcycle. Hugo Wilson
Although I had not originally considered importing motorcycles I think it might be a good option considering their size, value and collectability. I need to do more research on the motorcycles that may be available in South America but I think this might be a good business opportunity.
D&B Export Guide: Uruguay. D&B
This is an e-document that has up-to-date information specific to exporting out of Uruguay. This document contains specific information that I will need to know about trade regulations, documentation, key contacts, and shipping. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
Import/Export for Dummies. John J. Capela
This is a good series of books that makes the topic more understandable. This covers a lot of the topics in the other books but in simple terms.
Websites:
http://www.cbp.gov/
This is the customs and border patrol website. They are the government entity that regulates imports to the US. Most of the forms and essential information can be found on this site as well as links to other resources for the government.
http://www.dot.gov/
This is the Department of Transportation website for the US. This site will help me know which vehicles I can import and how they can get through customs and be registered. They also set the rules for vehicle safety tests and regulations.
http://epa.gov/
This is the Environmental Protection Agency website. They regulate emission testing and controls over imported vehicles.
http://www.nada.com/
This is the most reliable and trusted site for classic car values. This is what buyers for my vehicles would refer to when determining a fair purchase price. This is essential for me to determine if I should make a buy or not based on profit margin.
www.autorevival.com
This is a good resource with information about restoring vehicles. It also has good information about indentifying vehicles and parts. (Sometimes the best information about vehicles comes from blogs and personal experiences from others. I may or may not be doing my own restoration work but this website will be a good resource.
www.antiquecar.com
This is a site that has classifieds and vehicle values. This will help me determine the market value of each model and the trends in the market.
www.hemmings.com
This site is a well respected resource in the automotive community. It has classifieds, values, and links to buyers.
www.uruwashi.org
This is Uruguay’s embassy website here in the US. It has good resources for doing business in Uruguay and contacts. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
http://uruguay.visahq.com
This is the US embassy in Uruguay website. It has contact information and resources in Uruguay. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
www.buyusa.gov/uruguay/en/42.html
This is the department of commerce of Uruguay’s website. They help to promote US citizens in their efforts to engage in commerce in Uruguay. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
Other sources:
-I personally know a variety of people who have lived, live, or have done business in South America. I am talking or will contact all of these people. Some of them may be business partners or hired agents for my business.
-I haven’t yet found any scholarly journals, articles, or people who have done exactly what I want to do. I do know that it has been done however.
Friday, February 25, 2011
Talking to people who have done it.
Haven't updated this for a while I know. I am waiting to hear back from David Knowlton on when we can meet. Jarry's dad should be in town in March and I look forward to talking to him. I did interview my father about his experiences in South America and asked him detailed questions about his small importation business that him and a friend had many years ago. He mainly brought back artisan products every time he would go to South America for his job. He would stuff his suitcase full of them. Later he got into bringing back custom fit leather jackets (Uruguay is known for their low-price high-quality leather). He would measure customers ahead of time and then would take the measurements with him and they could be made within a few days. His friend had a small shop that they would sell the products out of. He even had his young sons go door to door with cheap artisan hand painted crafts that he could make a very good profit on. He was a bit hazy on how he handled customs. He thought that he had to declare them in customs and pay a small fee. Shouldn't be that big of a deal but I would need to get specifics for my business plan.
Because of my business background and knowledge I am not to worried about marketing/selling the products. Mostly I just need to figure out which products to focus on and how to get them here. I want to go big with this project and part of the purpose is simply to see if it is possible so I don't want to sell myself short and just deal with small inexpensive items. I have been learning some interesting things about importing that I will detail shortly.
Anyone else have any ideas of who I can talk to or what resources would be helpful to find official/ credible information?
Because of my business background and knowledge I am not to worried about marketing/selling the products. Mostly I just need to figure out which products to focus on and how to get them here. I want to go big with this project and part of the purpose is simply to see if it is possible so I don't want to sell myself short and just deal with small inexpensive items. I have been learning some interesting things about importing that I will detail shortly.
Anyone else have any ideas of who I can talk to or what resources would be helpful to find official/ credible information?
Thursday, February 10, 2011
I can't help but think that my project is a bit shallow because the end goal of it all is simply for me to make money. While making money is important it would be really cool to incorporate something into my idea that helps the local people of South America. I guess purchasing any product from people down there will help them out but I would like to make sure I can purchase products from poor people who have nothing more than the skills of their hands. There are many artisan products that would be desirable here and that would greatly help the locals.
Another important aspect of this project for me is to incorporate most (if not all) of my passions. One of the reasons I choose business management was because I could not decide on any other degree. I have a lot of interests and I figured that business would give me the option of doing my own thing and "creating my own job".
I realize that my plans are ambitious and so at the beginning I may need to focus on smaller more inexpensive items so that I can minimize the risk at first. The goal of my project will simply be to come up with a business plan that allows me to start out small with limited products and then expand once the time is right. If I had to come up with a thesis in the form of a question, I think at this point it would be; Is it possible for me to set up a profitable business that would allow me to work with people and products that I have a passion for (cars, Latin American people/culture, food, etc)?
Cars have always been a passion of mine even though no one in my family knows anything about them. I first started working on them when my older brother bought a land cruiser and then had no idea how to fix it. It had all kinds of problems. He moved away and left it to rot. I fixed it up and drove it for 3 years. He sold it and made thousands on it (giving me my fair share of course). I have since owned many "classics" or older cars/4x4s and each time I end up turning a profit. After spending time in South America and seeing the plethora of vehicles driving around, I came up with the idea of importing them. Upon doing further research, I realized that there are some really cool cars that are still being sold around the world that we don't have access to. My main challenge I think will be getting around the safety and emissions standards that the US imposes. I know that some vehicles can be altered to meet these standards. There are even companies who will perform this service. (That could be another business idea entirely). Older vehicles are exempt form these regulations (I can't remember the year). I could focus more on these older vehicles or just bring vehicles in as parts. Many of the older vehicles would be getting upgraded drive trains anyway when restored.
I just started a full body-off restoration project on 2 Toyota Land Cruisers that I picked up very cheap. This is one of the models that I would like to import. The years of mine are 1978 and 1967. I will be combining the two into one and registering it as a 67 so it's emissions exempt. It is a lot of work but something that I really enjoy and have a passion for.
As far as importing, I have realized that I need to stick to either later model vehicles or be very careful to only bring in older vehicles if they are in very good condition for their age or are very valuable models. While I would love to have my own shop someday and restore all the vehicles I bring in, it is more realistic for me to sell most of the vehicles as-is to people who are looking to do their own restorations.
As far as food, who isn't a food fan? On a deeper level my wife is by far the best cook I know and has taken my culinary fascination to another level. We cook together and especially appreciate food from other countries. Although I ate primarily Italian food when I was in Argentina and Uruguay (a large portion of the population in from Italian descent) the local cuisine is great as well. Many of the food products that I would focus on would be packaged, non-perishable items that could be easily transported over a long period of time.
My other major passion is animals. I am not sure how I could incorporate this into the business but if I could, this would truly be my dream job. Jerry's (in class) dad has a business where he exports exotic pets from Peru to Europe and other countries. He does not export to the US however because he says the regulations are too strict. I by no means want to disturb native species or exploit the animal kingdom but this may be worth looking into and any chance to work with animals would be fun. I will meet with Jerry's dad when he is in town.
My plans this week are to make an appointment with Professor David Knowlton, of the Behavioral Science/Anthropology department here at UVU. He can hopefully give me some good insight into running a import business. I will also meet with my dad when he gets back into town. He has spent 40+ years traveling, living, and working in Latin America. He even started a small side business of bringing home products to sell each time he traveled for business. I am going to pick his brain. I am also looking into establishing some contacts with family friends who live in Argentina. Maybe they can give me more of a feel for the situation down there since it has been 6 years since I have been back. Overall I feel pretty good with my progress so far. OK, I'll be done now.
Another important aspect of this project for me is to incorporate most (if not all) of my passions. One of the reasons I choose business management was because I could not decide on any other degree. I have a lot of interests and I figured that business would give me the option of doing my own thing and "creating my own job".
I realize that my plans are ambitious and so at the beginning I may need to focus on smaller more inexpensive items so that I can minimize the risk at first. The goal of my project will simply be to come up with a business plan that allows me to start out small with limited products and then expand once the time is right. If I had to come up with a thesis in the form of a question, I think at this point it would be; Is it possible for me to set up a profitable business that would allow me to work with people and products that I have a passion for (cars, Latin American people/culture, food, etc)?
Cars have always been a passion of mine even though no one in my family knows anything about them. I first started working on them when my older brother bought a land cruiser and then had no idea how to fix it. It had all kinds of problems. He moved away and left it to rot. I fixed it up and drove it for 3 years. He sold it and made thousands on it (giving me my fair share of course). I have since owned many "classics" or older cars/4x4s and each time I end up turning a profit. After spending time in South America and seeing the plethora of vehicles driving around, I came up with the idea of importing them. Upon doing further research, I realized that there are some really cool cars that are still being sold around the world that we don't have access to. My main challenge I think will be getting around the safety and emissions standards that the US imposes. I know that some vehicles can be altered to meet these standards. There are even companies who will perform this service. (That could be another business idea entirely). Older vehicles are exempt form these regulations (I can't remember the year). I could focus more on these older vehicles or just bring vehicles in as parts. Many of the older vehicles would be getting upgraded drive trains anyway when restored.
I just started a full body-off restoration project on 2 Toyota Land Cruisers that I picked up very cheap. This is one of the models that I would like to import. The years of mine are 1978 and 1967. I will be combining the two into one and registering it as a 67 so it's emissions exempt. It is a lot of work but something that I really enjoy and have a passion for.
As far as importing, I have realized that I need to stick to either later model vehicles or be very careful to only bring in older vehicles if they are in very good condition for their age or are very valuable models. While I would love to have my own shop someday and restore all the vehicles I bring in, it is more realistic for me to sell most of the vehicles as-is to people who are looking to do their own restorations.
As far as food, who isn't a food fan? On a deeper level my wife is by far the best cook I know and has taken my culinary fascination to another level. We cook together and especially appreciate food from other countries. Although I ate primarily Italian food when I was in Argentina and Uruguay (a large portion of the population in from Italian descent) the local cuisine is great as well. Many of the food products that I would focus on would be packaged, non-perishable items that could be easily transported over a long period of time.
My other major passion is animals. I am not sure how I could incorporate this into the business but if I could, this would truly be my dream job. Jerry's (in class) dad has a business where he exports exotic pets from Peru to Europe and other countries. He does not export to the US however because he says the regulations are too strict. I by no means want to disturb native species or exploit the animal kingdom but this may be worth looking into and any chance to work with animals would be fun. I will meet with Jerry's dad when he is in town.
My plans this week are to make an appointment with Professor David Knowlton, of the Behavioral Science/Anthropology department here at UVU. He can hopefully give me some good insight into running a import business. I will also meet with my dad when he gets back into town. He has spent 40+ years traveling, living, and working in Latin America. He even started a small side business of bringing home products to sell each time he traveled for business. I am going to pick his brain. I am also looking into establishing some contacts with family friends who live in Argentina. Maybe they can give me more of a feel for the situation down there since it has been 6 years since I have been back. Overall I feel pretty good with my progress so far. OK, I'll be done now.
Monday, January 31, 2011
Thesis Proposal
My emphasis: Business Management & Spanish
The problem that I would like to write about: After spending five years in Argentina and Uruguay I realized that there were many business opportunities there. Over the years and through the course of my studies here at UVU I came up with the idea of starting a business that imports products from these countries to the US for resale.
This is one reason why I choose the Integrated Studies program so that I could develop a good background and knowledge in the two areas that would aid me in this goal. This senior thesis is the perfect opportunity for me to develop a good business plan and overcome many of the challenges that I will face as I set up an importation network. The project will address every aspect of the business and be a guide for me to launch it after graduation.
The Business Plan: My initial plan is to start out small with a limited number of products primarily in Uruguay and Argentina and later expand my product line in other countries as well.
Products: Some of the products that seem like good options from Uruguay and Argentina include automobiles (classics and non-US models), auto parts (engines, transmissions, etc.), specialty food items, and other random goods (leather, art, and cheap goods for resale).
Advantages: These products were selected for specific reasons but other overall advantages exist such as the value of the dollar vs. foreign currency. It is amazing what can be purchased with very little cash in South America. The poor economy and third world status of these nations also aids my buying power and keeps prices low. I am also benefiting the sellers.
Automobiles are a good option for exportation for many reasons. Many of the same models that we in the US consider classics, rare, or very valuable are prevalent throughout these countries. Thousands were exported from the US and many of them are still being driven on the street and can be purchased for very cheap because they do not have the same status there. Also there is a very small collector market there so the prices have not been driven up.
Engines are a great option because recently the prices of gasoline became very expensive and most car owners swapped out their engines for diesel engines. This means that there are thousands of discarded gasoline engines that can be purchased for extremely cheap. Most of these are the same models that are found in common vehicles in the US. Other auto parts could be purchased new or used as well.
Many major manufacturers sell vehicles in South America that are not sold in the US. Some of the models are variations of models that are sold here and some are highly coveted discontinued US models (such as the Toyota FJ40 Land Cruiser which was still being built in Brazil until 2001).
Specialty food products from many South American countries are a good option because they are not available at least here in Utah. Many food products are desired by immigrants from these countries as well as people who have lived in these countries (LDS missionaries).
Many opportunities exist to import smaller random items such as art, leather, clothing, etc. because of their cheap cost and/or quality.
Challenges: Many challenges exist in making this business successful and even possible. First and foremost is the physical distance between locations. Travel to South America is very expensive and will have to be kept at a minimum through the use of technology. Shipping is complicated and expensive if large items are being sent. Customs and other laws and regulations regarding imports will have to be addressed to determine which products will be viable options. Finding trustworthy contacts in South America who can locate products and manage their end of the business could be difficult. Obviously the language barrier is a challenge as well as is the initial funding of the business. I also need to create a plan for how to distribute products once here in the US.
Conclusion: This project will require intense research as well as the use of the knowledge that I have gained through my Integrated Studies degree. This is a topic I am interested in on many levels including, Spanish language/culture, running my own business, and my love for cars and food.
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