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?
Friday, February 25, 2011
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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