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THE WEATHER REPORT

“It isn’t”, pointed out Jesse Livermore, “as important to buy as cheap as possible as it is to buy at the right time.” As the economy worsens, markets fall, the credit crunch bites and all around people are losing their heads… all I can see is opportunity. Of course, I feel enormous sympathy for the people who are being hit hard by our current recession. But the fact is that when things slow down there are more chances to make money. Not that I am buying yet. I think we still have quite some way to go both here in the UK and elsewhere in the world before prices bottom out. Nevertheless, I have my weather eye open for bargains. What am I looking for? First, I shall be shopping for property. During the last downturn, I had a friend who bought about a hundred studio flats throughout Kent. For the last ten years, however, he hasn’t bought a single property. Now he is getting ready to go into the market again. That’s how I feel. Excited and poised for action. Second, possible business acquisitions. Lots of perfectly sound businesses will find themselves in trouble in the coming months or, if we are unlucky, years. (Incidentally, a recession is thought by many to be an excellent time to start a new business, which is worth bearing in mind.) As I say, I feel sorry for those who are/will be hit hard but it is impossible, as an entrepreneur, not to feel a thrill of excitement at what lies ahead.

Anyway, turning to the matter in hand, this month’s column is my usual mix of potential import/export ideas, new business opportunities, business advice and comment. I think I will kick off with my new business concepts.

New business ideas

In May of this year Entrepreneur magazine (the US’s leading business publication) published its Hot 100, which it describes as America’s top fast-growth businesses. I always read these lists with enormous interest. Many of the companies it identifies have been started with next to no money, often raised using credit cards and personal loans. Take Gorilla Nation (www.gorillanation.com), which was launched in 1999 with two employees and a total investment of $25,000. This online ad rep firm now turns over nearly $50 million. Not bad for a company only eight years old. Or what about Winplus North America Inc. (www.winplususa.com) – a supplier of automotive accessories – which was launched in 2000 with one employee and, again, an initial investment of $25,000. This year it will turn over $28.6 million. Allied 100 Llc (www.aedsuperstore.com) – which supplies emergency medical equipment – needed $40,000 to start it in 2002 but it has been making a profit since it started and now turns over $17 million.

The Great American Hanger Company (www.hangers.com) sells, believe it or not, hangers. You wouldn’t think there is much money in it, but there is. Indeed, this year it’ll turn over more than $10 million from just selling hangers. Again, I feel there is an opportunity to run a similar type of business in other countries in the world.

All these businesses are worth checking out as examples of innovative thinking, simple ideas and brilliant execution. Some other companies that I liked the look of on the list included:

• Simply Self Storage. As the name implies, this company provides fantastic up-to-the-minute self-storage facilities. It has invested an enormous amount in its property and assets (more than I would do if I was in this business), but, on the other hand, the company went into profit within a year of being launched and so obviously got the formula right. Visit its website at www.simplyss.com.
• Global Water Resources, a water and waste-water utility based in Phoenix, Arizona, is interesting to me because it is in an area that I think offers huge growth opportunity. Basically, the company recycles wastewater. Visit the website at www.gwresources.com.
• Edible Arrangements International Inc., a franchiser of stores selling floral-like fruit arrangements, was founded in Wallingford, Connecticut in 1999 with three employees. Since I used to have a home not so far from there, I feel a certain affinity with this business. The start-up cost was $16,000. This year the company will turn over $17 million. It has, as far as I know, always been in profit. Here is an idea that really could work almost anywhere in the developed world. Visit its website to see what I mean: www.ediblearrangements.com.
• Cyprexx Services offers something called “clean-up services” for foreclosed residential properties. Its website is www.cyprexx.com and if you visit it you will see why it has been so successful. A simple enough idea, well executed.
• First American Brands Inc. (www.firstamericanbrands.com) is in the business of manufacturing and distributing fragrance. I have always rather fancied going into the fragrance business myself, and so I was interested to see how this company had grown from $200,000 to $9 million in six years.
• Hydro-Industries manufactures a hands-free garden hose reel. Doesn’t sound that exciting – didn’t take up much investment though – and it is currently turning over $23 million a year. Actually, as far as I know, the company doesn’t yet have any European export deals (but don’t quote me on this), and so maybe there is a potential here for someone who wants to get into import/export. The website is www.no-crank.com.
• Greene Resources is in the business of recruiting and managing vendors. It cost the founder, Garry Greene, $43,000 to get the company started and this year he is going to turn over $23 million. Visit his website at www.greeneresources.com and I think you will be as impressed as I was when I first read about the company.
• Soy Basics produces, believe it or not, soy candles. Again, I think there may be an import/export opportunity here. Check out the website at www.soybasics.com.

Quick thinking

While I am in the US, I have to tell you about a firm I spotted called RapidRepair.com. Based in the wonderfully named Kalamazoo, Michigan, the company offers fast repairs for electronic devices. Started by two friends in their twenties, the firm offers low-cost repairs on iPods and other small electronic devices. Nowadays, the website handles more than 500 repairs a week from across the country and 65 countries worldwide, with customers mailing in their broken products to be serviced within 24 to 48 hours. The company has also started manufacturing a number of accessories. This is a very clever business and if you know anything about mending electrical goods you may like to look at its business model to see if you couldn’t do something similar.

Bag this concept

Here is a potential import/export opportunity. A company called QuickSeals has created a double-ended sealable bag. The use of the bag is to put over other packaging that you have opened, such as rice or coffee, which would otherwise go stale if you didn’t seal it. Check out the website www.quickseals.com to see what I am talking about. I know the company has some agents worldwide but there are many countries where it isn’t yet represented.

Cover story

You know if someone said to me that it would be possible to make credit-card covers with artwork and turn it into a business, I probably would have said: “I don’t think so.” However, this is what Antony David Adams and Bowen Dwelle of CreditCovers have managed. They are turning over a modest $1 million a year at the moment, but they are expecting their business to take off in 2009. After all, they have only actually been selling their products for less than 12 months. Based in Madison, Wisconsin, the firm was started with a modest $30,000.

A fantastic green product

I love the products produced by a company called StyroPhobia. It manufactures and sells biodegradable and compostable food containers to replace the plastic and plastic foam ones that are frequently used. Manufactured from cornflour, sugar-cane fibres and reed grass, StyroPhobias are currently only available in local stores, restaurants and schools throughout Hawaii. I’d urge anybody interested in international trade to consider getting in touch with the founder, Krista Ruchaber, to see if they couldn’t do a deal to represent her firm elsewhere in the world.

Better than new

Perhaps it isn’t surprising that the downturn in the economy and the growing interest of consumers in reducing, re-using and recycling has led to a growth of resale shops. ‘Resale shop’ is, of course, a euphemism for shops that sell second-hand goods. Once derided for being at the bottom of the retail pecking order, this is the new, hot growth area. The shops in this sector that interest me most are the ones that take things on consignment: in other words, they sell items for their customers, earning a percentage of each sale. Why? Because it seems to me that it is possible to launch such a business with almost no capital. A bit of clever negotiation should get you a retail space for next to no upfront outlay. Clever advertising should bring in potential customers to provide you with goods for resale. And straightforward promotion should bring in customers keen to buy. Personally, I would focus on a niche, for example upmarket, designer handbags, first-edition books, children’s clothes or musical instruments. I would pick something that I loved and would consider running an online element to my business. Frankly, I don’t see how such an operation could possibly fail.

Book review

I have been so busy, I’ve barely had time to read over the last month but I managed a couple of new releases. The first is called The Levity Effect and its subhead is Why it pays to lighten up. This book attracted me because on the front there is a wonderful picture of those clockwork teeth so beloved of young children. Written by best-selling author Adrian Gostick and comedian Scott Christopher, it explains why it pays for entrepreneurs to laugh a little. To quote one reviewer: “the authors treat the topic seriously, including research and expert opinions to draw a correlation between light-hearted leadership and loyal employees, satisfied customers and higher profits. It also offers ideas for improving your company’s mood.” The other book I have just finished is Awakening the Entrepreneur Within. This is written by Michael Gerber, a small-business guru, who explains to his readers how to use the four dimensions of the entrepreneurial personality – dreamer, thinker, performer and leader – to inspire the vision and purpose to craft their own business narratives. Anyway, I really enjoyed it and wouldn’t hesitate to recommend it as a bit of interesting summer reading.

Online testimonials

Who says you can’t teach an old dog new tricks? Or, rather, who says an old dog can’t read about new tricks and then get one of his members of staff to help him make it come true? Over the last few weeks, I have become obsessed with the potential offered by putting videos up on to websites. In particular, I have decided that I was going to make short films of my own customers to show to prospects. One of the problems I often have is that new people I am dealing with have no idea whether I can actually delivering what I promise. By videoing people I have already done business with and putting the clips up on a website, I feel I will create a fantastic calling card. Anyway, I have just bought myself a very sexy mini video camera called a Flip Video, which is made by Pure Digital Technologies. It is tiny… roughly four inches by two inches by one inch. It comes with a USB connector that allows me to plug it straight into my computer. Best of all, for a mere £80 I can store up to 60 minutes of video.

The hardest part of sharing my mobile videos, as it were, is going to be the editing process. Well, that and getting it up onto the website. I am delegating these to someone younger and more talented than me.