1 / 10

International Bootstrapping

International Bootstrapping. Troy Gardella Crystal Courier Imports March 16, 2007. Outline. Background What are some benefits of going international? What are some pitfalls of going international? How can I bootstrap internationally? Keys to successfully working internationally Wrap-up.

burson
Download Presentation

International Bootstrapping

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. International Bootstrapping Troy Gardella Crystal Courier Imports March 16, 2007

  2. Outline • Background • What are some benefits of going international? • What are some pitfalls of going international? • How can I bootstrap internationally? • Keys to successfully working internationally • Wrap-up

  3. Education and Experience Commodities Trading Knowledge Management Strategic Alliances Account Management for Western Europe Leadership & Strategy consulting = service industry background Opportunity to purchase Crystal Courier Imports Wife and I are both entrepreneurial Previous owner lived out of state We saw Crystal Courier as an ‘opportunity purchase’ = product industry Background

  4. About Crystal Courier Imports • Wholesale gift manufacturer/distributor focused on metaphysical and new age markets • Realization – most products were actually purchased from other US based import companies • Transformation to a true import company – currently direct import with ~20 international vendors from 9 countries

  5. What are some benefits of going international? • Reduced manufacturing/labor costs • Unique product selection • Bring new products to untapped market • Reduced product development costs • If on a regional or national scale… • a must to aware of international competitive pressures

  6. What are some pitfalls of going international? • International trade risk exposure • political, economic, social, cultural • Climate • Default • No cost effective international dispute resolution forum • Lead times and ‘bumping’ • Communications • CASH FLOW, CASH FLOW, CASH FLOW

  7. How can I bootstrap internationally? • Startup vs. Purchase existing business • Benefits of purchasing • Availability of debt financing • Established assets to borrow against • Established cash flow to service debt • Established customers and vendors • Pitfalls of purchasing • Lack of YOUR infrastructure • Employee issues • Lack of bootstrap cost controls • Previous customer and vendor relations

  8. Keys to successfully working internationally • Build trusted vendor relationships/ strategic partnerships – face time is a must • Don’t spread too thin among international vendors/ports/regions/countries • Understand landed cost • Freight and Customs • US International Trade Commission Harmonized Tariff Schedule • http://www.usitc.gov/tata/hts/bychapter/index.htm • Special program exclusion countries and anti-dumping duties

  9. Example – Anti-dumping duties • Wax candles from China: 108.30% antidumping duty imposed July 5, 2006 • The United States Department of Commerce (DOC) recently imposed antidumping (AD) duties of 108.30% on mixed wax candles from The People’s Republic of China (China), reversing the department's previous rulings that such candles were not subject to the AD duty order on petroleum wax candles from China. The effective date of this determination is the date of initiation for this anticircumvention inquiry, February 25, 2005.What is covered by the scope of this AD inquiry?Effective June 2, 2006 the scope of products subject to the AD duty order on candles from China was significantly expanded. Initially, the scope of the order included petroleum wax candles, having fiber or paper-cored wicks, sold in the following shapes: tapers, spirals, straight-sided dinner candles, rounds, columns, pillars, votives, and wax-filled containers. As of the above effective date, any candles from China in the above-noted shapes and with an appropriate wick, containing no more than 87.8% palm or other vegetable oil-based waxes and mixed with petroleum wax, are subject to the AD order (A-570-504) on petroleum wax candles from the China.  This expansion includes many candles previously excluded from the order.   (Note: “Festive” candles are still excluded from the order.)

  10. QUESTIONS?

More Related