INTERNATIONAL BUSINESSES YOU CAN OPERATE FROM HOME Travel Businesses: Fun, Profit, and Door to Opportunity There are several ways to look at the travel business. You can become involved just to get free or discount travel, you can do it as a full- or part-time business for profit, or you can use either of those approaches as a stepping stone to other international business opportunities. If your travel business activities pay for your research and development work, any of the other ideas in this book can be much less costly to pursue. "Have coffee in Dublin at 11 and walk in Stephen's Green and you'll be in heaven." You've replayed the words of that old song over and over in your head for years. In fact, all your life, you've dreamt of seeing the Emerald Isle, of spending long evenings in Irish pubs, sipping Guinness and engaging in lively conversation. The only thing that has kept you from making your dreams come true is money. After all the monthly bills are paid, you never seem to have enough left over to afford a trip to Dublin. But money need no longer be an obstacle. You can arrange to see Ireland free -- maybe even make a bit of money in the bargain. Cruise lines, airlines, tour companies, and hotels will gladly accommodate you free of charge -- even put cash in your pocket to boot -- if you promise to bring them a certain amount of business in return. You don't have to be an experienced tour leader. You don't need any experience as a salesman. The only job requirements are enthusiasm and a desire to see the world. The possibilities are endless. You could lead a tour of Ireland's green, green countryside and ancient ruins. You could lead an art tour of northern Italy. A garden tour of Britain. A river cruise in New Guinea. An archeological expedition to Easter Island. A family train tour of France. A hiking trip in the Alps. A castles and wine cruise of Germany. A tour of rural Japan, visiting teahouses and farmhouses. A cycling adventure in Scotland. A luxury yacht charter in the Greek Isles. And as the leader of the tour, you travel for free. Making a business of biking Peter Costello did it. He had been working restoring antique furniture in Baltimore, Maryland. It was a steady living, but what Peter really enjoyed was riding his bicycle and traveling. If only someone would pay me to ride my bike and travel around the world, he thought. Because he could find no one willing to do so, he decided to arrange it for himself. After a vacation to Scotland, his future was determined. He would lead bicycle tours through the green and rolling Scottish hills. Peter asked a former executive of a bicycle touring company in Vermont to act as consultant. Scotland was the perfect place to begin the business, not only because Peter (whose family was from Scotland) knew the country, but also because the market was wide open. In fact, no one else in the business was offering bicycle tours in Scotland. Peter knew bicycling, and he knew Scotland. But he didn't know anything about starting a business or leading a tour. As Peter explains, "I took a crash course in Business 101." "The touring is the easy part," he says. "All of my tours begin and end in Edinburgh. We take off down the road, supported by a van, exploring beautiful countryside. We travel about 40 miles a day, and then spend the nights in comfortable, homey bed and breakfasts. That's easy. "The hard part is the marketing." Peter handles all of the marketing himself from an office in Baltimore. He advertises in major bicycling publications and tries to generate business through travel agents. Peter has been quite successful. His amateur operation (Peter Costello Ltd., P.O. Box 23490, Baltimore, MD 21203; (410) 685-6918) has grown into a full-fledged business. He employs two other tour leaders and leads 17 tours a year. Peter attributes his success to two things: first, he was able to find a niche in the market; and second, he keeps his tours competitively priced. Keeping it low key Peter's tour operation has grown into a big business. He is making enough money to support himself and two employees. To get to this point, Peter has devoted himself completely to the company. It has become his livelihood and his favorite pastime. But it doesn't have to be that way. You can travel for free as a tour leader -- and still maintain your regular job and home life. It doesn't take a lot of time or energy to arrange one tour a year, for example. But it still works in much the same way. As Peter explained, the most difficult part is the advertising and marketing. How do you convince four or five other people to pay you to act as their tour guide? We'll tell you, step by step. How it works The first step is to decide where you want to go. This should be the easiest task of all. After all, this is the reason for arranging the tour in the first place -- to allow you to live out your life's dream of seeing another part of the world. Once you know where you want to go, do extensive research on the area. Call the tourist board and the embassy for that country and request all the brochures and literature they have available on hotels, restaurants, nightclubs, transportation, sightseeing, and local customs. Spend a day or two at the library, poring over travel guides and reference books. The best general reference guides available include Fielding's, Fodor's, and Frommer's (which include the Dollarwise series on budget travel). Also read Lonely Planet's guides and the series known as Let's Go. If your library doesn't stock these books, you can order them (as well as a catalog of worldwide travel guidebooks) from Forsyth Travel Library, 9154 W. 57th St., P.O. Box 2975, Shawnee Mission, KS 66201, or the Traveler's Bookstore, 22 W. 52nd St., New York, NY 10019. Also study local maps. Remember, everyone you bring with you will look to you for guidance. Once you've become familiar with your destination, pick something unique about it and plan your tour around that theme. It is easier to sell a tour of the stately homes of Britain's aristocracy than it is to sell a tour of Britain, period. Look for a niche in the market, something that no one else is doing (or doing well). Next, plan your itinerary. Choose the hotels where you would like to stay, and then contact them to explain what you want to do. Ask for special group rates and request that you stay free as the tour leader. Do the same with the airline you wish to fly. Find out what restrictions are attached to the cheapest tickets available. Usually you have to purchase special fare tickets a certain number of days in advance. Other restrictions involve the length of your stay and the days of departure and return. Make sure you know about all of this up front. And again, request that you fly free. Plan some sightseeing and evening entertainment, but keep some time open. Your group will want time to itself. Make all of the plans -- but don't make any reservations. At least, not yet. Wait until you've gathered your group together and agreed on a departure date. Next, set a price. This will be the first question you are asked when you approach someone about joining you on your grand adventure. Figure in all of your costs (airfare, hotels, ground transportation, sightseeing, taxes, departure fees, and any meals that you plan to include in the package). Take this total and mark it up as much as you think the market will bear. The lower your costs, the greater your profits. You want to make at least enough to cover all of your expenses, including the entire cost of your trip. Any money you make beyond that is an added bonus. Finding the people This brings us to the most difficult part of the project: finding the tour participants. The easiest way to do this is to tell everyone you know -- everyone you work with, everyone you run into at the supermarket, everyone you meet on the subway, everyone you play bridge with on Thursday nights -- that you are planning to lead a seven-day, all-inclusive tour of Germany's Bavarian castles (for example). Tantalize them with tales of Mad King Ludwig, who built the country's most beautiful castle, Neuschwanstein, the turreted, white creation that Walt Disney used as a model for Disneyland. Tell them about Linderhof Castle, near Garmisch-Partenkirchen, where the mad king had the dining room built directly above the kitchen and then installed a dining table that could be lowered into the kitchen, set by the cooks, and then lifted back up to the dining room. Thus, King Ludwig could be waited on at dinner without ever having to be bothered by the servants. Once you've got them interested, remind them that group travel is always cheaper than going it alone; they'll save several hundred dollars at least. Remind them also that group travel is much more hassle-free than independent travel. Tell them that you'll arrange everything. You'll make all the reservations. You'll check on all the train schedules. You'll offer suggestions for good restaurants. All they have to do is enjoy the experience. Another way to find tour participants is to advertise in travel magazines and newsletters. It doesn't cost much to place a small classified ad. You can also place ads in your local newspapers. Make the ad simple. Tell where you're going, when you plan to depart, how long you'll be staying, what the trip includes, how much it costs, and how to contact you for more information. Another easy way to advertise is to put up notes on bulletin boards at community centers, colleges, and libraries in your area. Include the same information you used in your classified ads. This may be just as effective, and it will cost you nothing. Once responses begin coming in, create a log of everyone who has expressed an interest (either as the result of an ad or the result of a chance conversation at a bus stop). Contact each person by phone or by mail and make a record of the correspondence. If you don't hear back within a couple of weeks, send another letter or make another telephone call. When someone does make a reservation, ask him if he can suggest anyone else who might be interested. You'll find that word-of-mouth referrals will be your best source of new clients. Booking the trip Once you have your group together and you have determined an itinerary and a departure date, the next step is making the reservations. You can do this in two ways: on your own or with the help of a travel agent. If you go it alone, all of the profit is yours. If the tour costs you $2,000 per person and you charge $3,000 per person, you'll make $1,000 off each tour participant. If you have five people traveling with you, that's $5,000. Assume that you're able to arrange for your airfare and accommodations free of charge (as the tour leader), and you're way ahead. You'll spend several hundred dollars at your destination on your personal expenses; the rest of the $5,000 will be clear profit. Plus, of course, you're getting the trip free. Not a bad deal at all. The disadvantage to all of this is that you alone are responsible for everything. If you don't know what you're doing -- if you've never dealt with airlines and hotel managers and bus drivers and taxi cab drivers and translators before --- you might be in for a rude awakening. Your dream trip overseas might turn into one huge headache. It is possible to go it alone. But it may not be practical. So consider affiliating yourself with a travel agency. True, the agency will take its cut of the profits -- but in exchange, it will share with you its wealth of experience. It will tell you whether it's better to land in Beijing, tour China, and exit through Hong Kong or to land in Hong Kong, visit China, and return to Hong Kong for the flight home. It can tell you which Rhine River cruises are a delight and which are taking water. It can help you choose hotels. It can tell you about special health requirements at your destination. It can offer tips on the climate and how to dress. It can tell you whether it's better to take a bus at your destination or to hail a taxi. When looking for a travel agency to deal with, your first question should be, "What commission do you pay to outside agents?" (That is what you will be considered.) If the agency won't pay you a commission (and a sizeable commission at that) for the business you bring in, find another agency. The second most important question involves free tickets. Who gets them? You or the agency? Travel agents receive free airline tickets and vouchers for free hotel stays all the time in exchange for the volume of business they bring the airlines and the hotels. But make sure that these tickets are also available to outside agents. Ask about other outside agents working for the agency. How many of these agents organize tours? What kinds of tours do they organize? And inquire about support for outside agents. Will you be given a manual? Reservation forms? Guidebooks? Will the agency maintain records for you? And shop around. Don't settle for less than you think you should be getting. If you don't come out of the deal with at least a free trip, something's not right. Book with a tour company -- another alternative If you're intimidated at the thought of making all the arrangements on your own, but you don't like the idea of having to share your profits with a travel agency, you have a third alternative. Decide on the tour you want to lead, and then book it through a tour company that offers free trips to individuals who reserve a certain number of spaces on their package trips. Globus-Gateway, 95-25 Queens Blvd., Rego Park, NY 11374, for example, offers a free trip for anyone who books 16 people on any of its tours to Europe and one- half off a trip for anyone who books eight people on a trip to Europe. Saga Holidays, 120 Boylston St., Boston, MA 02166, offers one free trip for 20 bookings. Destinations include Europe, Asia, the South Pacific, and South America. Travel Plans International, P.O. Box 3875, Oak Brook, IL 60521, offers one free trip for 20 bookings on a safari to Africa. Toucan Adventure Tours, 1142 Manhattan Ave., CP #416, Manhattan Beach, CA 90266, offers one free trip for 12 bookings on a tour to Mexico. Newmans Tours, Suite 305, 10351 Santa Monica Blvd., Los Angeles, CA 90025, offers discounted trips for 10 bookings on trips to New Zealand. The following companies also give complimentary trips to anyone who signs on five or six other people to travel with them: ù Ambassadors World, 5601 Roanne Way, Suite 314, P.O. Box 9751, Greensboro, NC 27429 ù Bryan World Tours, P.O. Box 4156, Topeka, KS 66604 ù Friendship Tours Inc., P.O. Box 2526, Shawnee Mission, KS 66201 ù Travel Careers and Tours, P.O. Box 91102, International Airport, Los Angeles, CA 90009 In addition, almost all major cruise lines offer free tickets to anyone who can sign on 15 paying passengers. Trip tips You and five strangers are sitting in the airport lounge. They answered your ads in travel magazines, and now they are counting on you to take them on a memorable tour of the castles of Bavaria. How can you make sure that all the tour participants feel like they're getting their money's worth -- and still have a good time yourself? Well, you will have to work a bit. After all, these people have paid you money. Following are a few tips to make sure all goes smoothly. 1. Take charge. The old saying that too many cooks spoil the soup applies here. As the leader, you should make all the arrangements and all the decisions -- within limits, of course. Ask for input from the group, but don't waste time debating every move. 2. Be flexible. Itineraries are made to be broken. Don't be more concerned about following your original schedule than you are about enjoying the trip. Take advantage of opportunities as they present themselves. 3. Make sure that no one feels left out or overlooked. Ask if everyone is comfortable in his room. If his luggage arrived safely. If there is anything special he would like to do or see. Don't ever let anyone eat alone during an unscheduled meal (unless he prefers to do so, of course). 4. Make time for yourself. Promise your group your undivided attention from 10 a.m. until 6 p.m., for example, but make everyone know that he's on his own after that (except for one planned night out). For more information For more on traveling as a tour leader, read Travel for Fun and Profit by Larry King, available from Dreams Unlimited Inc., P.O. Box 20667, Seattle, Washington 98102; (206) 322-4304. The cost is $12.95. Make money from a travel club Go anywhere in the world and never pay full price to get there...ever again! PLUS, earn FREE vacations and cash...quickly and easily just by recommending INFINET to anyone you know. INFINET Travel Club was featured in the February, 1993, issue of Money magazine. They reviewed a number of travel clubs and selected INFINET for overall savings. Members get: a full service travel agency, up to 60% off everything you buy, GUARANTEED lowest available airfare, up to 60% off last-minute travel bargains, 50% off hotel discount programs, and a proven referral system! Spreading the word is easy and profitable. There is an enormous earnings potential -- after all, everyone loves to travel and save money. Absolutely no selling or travel experience required for success! INFINET cuts into their profits by rebating back to you 50% of the standard industry commissions. (Does your current travel agent do this?) You can earn free vacations and cash just by recommending INFINET. Before you even think of booking your next vacation or business trip, give Infinet a call to compare their prices and services. You have absolutely nothing to lose...and thousands of dollars of savings, bonuses and free vacations to get! You can use the Discount Travel Number 12639 to save money. It's your chance to try Infinet at no charge before becoming a member. Just call 1-800-966-2582 to book your trip. There is no obligation to join, and you and your family and friends are welcome to use my discount number indefinitely if you prefer not to join. By using this number, you will receive a discount of part of the standard industry commission, making Infinet less than the lowest fare the airline itself can give you. You may also call the number and just ask them to send you membership information and information on the referral fee opportunity. Be sure to specifically ask for the referral fee information as it isn't automatically included with the membership information. The referral fee program is one of the most profitable travel industry opportunities available, as you can earn commissions on both membership sales and travel sales. You can also get the information by writing to Infinet Travel Club, Dept. 12639, P.O. Box 1033, Cambridge MA 02140. Leading a tour with a twist We've a unique suggestion for anyone who loves boating, loves to travel, and is ready for a change in lifestyle. It requires a little more commitment and investment than organizing a single tour a year, but the payoff is potentially much greater as well. If you follow up on our idea, you could earn a comfortable living -- and spend your days floating down the riverways of Burgundy, France. The idea is to lead guided tours of the French countryside -- in your own passenger barge. As we mentioned already, this is not something to be undertaken lightly. And it is not something to be undertaken by a total novice. You should have a bit of experience in the boating industry. But don't let these words of caution discourage you. This could be the opportunity of a lifetime, a chance to live out your dreams. Dennis Sherman did it. He had been crewing on boats, primarily as cook, for years. Mainly interested in barging, his knowledge of the industry served him well when it came time to take the plunge and purchase his own passenger barge. "The barging industry is small and close-knit," he explains. "If you want to get into it, your best source of information, especially about boats for sale, is word-of-mouth." Dennis' first piece of advice is that you shouldn't buy a working barge and convert it into a pleasure craft. Too timely and costly, he says. Nor should you try to build a barge from scratch -- that is, not unless you have nearly unlimited capital to invest. The remaining option is to purchase a barge already operating as a pleasure craft. Without contacts in the industry, it's paramount to begin by contacting a barge agent. Dennis recommends Joe Parfaitt, Chantier du Nivernais, 89000 Mailly-La-Ville, France; tel. (33-86) 40-44-77. Parfaitt has his own shipyard. In addition to barge sales, he handles conversions. When you've found a boat you're interested in buying, the next step is arranging the purchase. Find an independent lawyer who is experienced with Americans doing business overseas. Dennis consulted Catherine Kessedjian, 27 rue des Plantes, 75014 Paris, France; tel. (33-1) 45-40-86-27. Experienced with handling the details of setting up a corporation in France, according to Dennis, dealing with Catherine "is like one-stop shopping," because she is capable in all areas. Dennis set up a French corporation to handle the barge operation and an American company to handle the marketing. This enabled him, with the barge operating under a French corporation, to arrange financing in France. Dennis chose France as his location, because that's where the barge that he wanted to buy was operating. But there are other reasons to choose France. The country is striving to attract new small business, and therefore, any new venture in France is eligible for tax-free status for the first three years and considerable tax breaks the next two years. The capital investment How much does a venture such as this cost? Dennis estimates $250,000, including purchase of the barge, any improvements, first-year operating expenses, and professional fees. True, that's hardly free. But think of the return. After the initial investment is made, if your barge company is successful, you'll not only be able to travel the French countryside for free for the rest of your life, but you'll also have a comfortable annual income. And the equity in the barge. Dennis' barge, called the Papillon, travels the Burgundy region of France. Spring and early summer, it cruises in the Nivernais; in June, the barge moves to the tree-lined waters of the Burgundy Canal; in late summer, it cruises the River Saine and the Canal du Centre, through the heart of the vineyards of Santenay; in the fall, the barge heads back to the Nivernais. It makes one-week cruises for a 33-week season. How To Be an Importer...Or Exporter...Even From Home "How much?" "100 dirhams," answers the young boy, barely looking up from his work. You make a quick calculation in your head and determine that the cost of the hand-fashioned silver bracelet is about $10. The workmanship is exquisite, and you find it hard to believe that these young boys, no older than 8 or 9, are able to create such beautiful jewelry. "I'll give you 800 dirhams each," you respond. "And I would like to purchase 25 of them." The boy nods excitedly and turns to fetch the wooden box filled with finished bracelets that is sitting on the table behind him. You are wandering the dirt roads of downtown Tiznit, a tiny pink-walled city of Berbers situated along a caravan crossroads in southern Morocco. You've come in search of merchandise to ship back home and resell. You figure you can sell the bracelets back home for about $35 to $40 apiece. That's a profit of 300%. Not planning to visit Morocco any time soon? That's OK. You could buy furs in Finland. Finland is the world's biggest seller of farmed furs. The pieces are well-made and inexpensive. So you can buy silver fox furs in Helsinki along the North Esplanade...and then resell them for a warm profit. These scenarios may sound exotic and far- fetched at first. But think again. Purchasing unusual and unique goods around the world, and then shipping them to other countries, where they can be sold for tremendous profits, is becoming increasingly common among travelers who want to see the world but who can't afford an endless vacation. Setting yourself up as a small-time importer is the next best thing. It allows you to satisfy your wanderlust while earning at least enough to pay for your trip. Plus, it makes all of your travel tax- deductible. One woman's story Kathleen Rozelle, an interior designer from Dallas, Texas, first thought of going into the international importing business when she and another designer were planning a trip to England to visit family. Once in London, they teamed up for a shopping spree. They shipped their treasures to Dallas, and then sold everything to clients and other designers. Within three years, the team made enough money to pay for the expenses of their trip (including transportation, accommodation, purchases, and shipping) -- and earned a $14,000 profit. Confident after that success, Kathleen and her family teamed with two other designers for a three-week buying trip in France. They began their buying trip at the March aux Puces in Paris, which is open three days a week. The March Biron section of this enormous market is the place to search for antiques. Another place to shop in France is Rouen. All the shops here are retail; they are clustered near the cathedral and close from noon until 2 p.m. In the south, visit Biot, known for its hand-blown glass. (You'll have to pay more to have these fragile items packed and shipped.) Also visit L'Ile-Sur-La- Sorgue, where the antique shops are open only two days a week. At Moustiers-Saintes-Marie, an open-air market is set up every Friday in the main square. This region is known for its beautiful hand-painted dishes. What lessons can you learn from Kathleen's story? First, that you must begin by choosing a country where you'll feel comfortable doing business. England is a good first choice, because there is no language barrier. (Of course, you should also pick a country where you want to travel.) Second, study the market back home. Is there a demand for the items you plan to purchase? This is the most important consideration when deciding what exactly to import. The second thing to consider when choosing a product is personal experience. What do you know something about? What are you interested in shopping for? If you have a bit of experience with antiques (and if you love poking around in the dark and dusty corners of antique shops), then go with that. In this market, smaller pieces of furniture, such as chairs and end tables, and knick-knacks and art objects that aren't easily found back home are the best bets. (Small accessory pieces also make sense from the perspective of shipping. They can be stashed inside the larger pieces to conserve space in the freight container.) Always mix your purchases. On return buying trips, purchase what sold well last time, and then buy a few new items to test. The Peruvian sweater trade Antiques is an obvious market for small-time importers. But it is hardly the only market. Take Annie Hurlbut, for example. She imports alpaca sweaters hand-made in Cuzco, Peru. It all started as a birthday present for her mother. Annie, then a graduate student at the University of Illinois, was studying the market women in Peru. She spent her days at the marketplace in Cuzco, working with the Andean women, who make their living selling handmade tourist goods, especially alpaca sweaters and ponchos. Annie planned to fly home to Kansas City for her mother's 50th birthday party - and she needed a gift. She chose a fur-trimmed alpaca sweater- coat made by one of the market women. The present was extremely well-received. In fact, Annie's mother and friends went so far as to suggest that Annie had stumbled upon a real opportunity. The Peruvian Connection was born. Annie continued her graduate studies, visiting Peru to do research, and then returning home with all the handmade sweaters she could carry. Her mother ran the business end of the company from her farm in Tonganoxie, Kansas. Their first customer was a local store, which placed a wholesale order for 40 garments. "When my mother told me we had an order for 40 sweaters, I almost panicked. I couldn't even remember where I had bought the first one." Annie began running small space ads in the New Yorker and selling her sweaters across the country. She personally visited the owners of stores in New York, Philadelphia, Chicago, and California, asking if they'd like to carry her line. By this time, Annie had created her own design, patterned after what she'd found in Peru. She'd made the sweaters of the market women into a classic fashion product that appealed to upscale boutiques. The business really took off in 1979, when a reporter for The New York Times Style Section saw Annie's sweaters at the Fashion and Boutique Show in New York. Annie and The Peruvian Connection received front-page billing -- which brought in thousands of requests for catalogs. Annie has been running her import business for 10 years. She spends part of each year at home in Kansas - - and the rest of the year in Peru. Not only does her business bring in enough money to pay for her regular trips to South America -- but it has grown into a big- time mail-order company that provides a living for both Annie and her mother. Annie has organized 25 cottage industries in Peru that work for her under contract. She works out the designs and patterns, and then hands over the production to the Peruvians. Everything is shipped by air to the United States. What words of advice does Annie have for anyone considering getting into the international import trade? First, don't try to handle the production and the marketing yourself. You end up spreading yourself -- and your money -- too thin. It's better to come up with a good product, something that no one else makes as well, and focus all your attention on the production. It's not that difficult (or costly) to set up the overseas production of a product. It's the marketing and advertising that can drain you. Sell yourself once to a backer, and then let him handle it from there. Annie's other piece of advice is that you should give a lot of thought to where you set up shop. Americans should think twice, she warns, before opening a home office for an international importing company in New York. This city is overwhelmed with shipments, and you can end up waiting a couple of weeks to see your merchandise. Things go much more quickly and smoothly in the Midwest, for example. Another thing to consider is customs regulations. However, Annie assures all would-be entrepreneurs that they won't have any problems with customs. Importers bring a lot of revenue into their home country and are generally treated well by their home governments. Nonetheless, you will have to pay import duties. In the United States, duty is generally about 20%, depending on the type of goods being imported. Cashing in on Brazil's mineral rush How much money do you need to go into the import business? Harvey and Michael Siegel, brothers born in Long Island, New York, did it with about $400. A boyhood fascination with rock and rubble led these two to Brazil, where they filled their knapsack with $400 worth of agate ashtrays. This was the beginning of Aurora Mineral Corporation, which is now a leading wholesaler of semi-precious stone and mineral specimens, with a client list that includes the Harvard University Museum, the Smithsonian Institution, and H. Stern Jewelers. The brothers didn't fly down to Brazil with armloads of research, deep pockets, and a long list of connections. On the contrary, this was a seat- of-the- pants operation. The Siegels' cousin had traveled to Brazil for Carnival the year before, met a Brazilian girl, and decided to stay. He was their only connection in the country, and he agreed to act as their agent. Having a reliable agent can really make or break an import business. The agent's role is to screen products, accompany the importer on buying trips, consolidate orders from multiple suppliers, and arrange for a shipper to transport your merchandise back home. You can work without an agent -- doing all the legwork yourself -- but your job is made much easier if you have someone working with you. "It is invaluable to have someone on the spot to shop the market constantly," says Irving Viglor, a New York-based international trade consultant. An agent is independent and acts as an intermediary in a deal but does not take title to the merchandise. "Pay the agent a commission to protect your interest," warns Viglor. "Don't let the vendor pay the commission. And always check references." Aurora Mineral Corporation mines for its minerals (figuratively speaking) in the tiny towns of La Jeado and Salto Jaqui in Rio Grande do Sul, Brazil's pampas grasslands bordering Uruguay and Argentina. Actually, the local Brazilians do the mining. They dig for amethyst and agate with back hoes on land leased from farmers. The bounty is sold by the kilo from wood shacks. North of Rio Grande do Sul is the state of Minas Gerais, where quartz crystals, rose quartz, fossils, aquamarines, topazes, and uncut emeralds are mined. The finest quality pieces are purchased in their natural form and sold to museums or collectors at trade shows. In addition to the minerals themselves, the Siegels also import decorative pieces made of amethyst, agate, and quartz. The stones are carved into birds, grape clusters, coasters, spheres, book ends, ashtrays, and clock faces. These finished pieces are culled from one- person workshops and larger factory warehouses. "In Minas Gerais, unlike in the south, you deal with many small suppliers. An agent is particularly important here," says Michael. The recent craze for quartz crystal, believed by some to have curative powers, has meant big business for Aurora Minerals. The World Prayer Center, a Buddhist house of worship in Maryland, mortgaged its real estate to pay for its collection of quartz crystal, which it purchased from Aurora Minerals Your Brazilian connections All Brazilian exporters are required to file annually with the Department of External Affairs in Brasilia. These records are accessible, free of charge, from the Brazilian Government Trade Bureau, 551 Fifth Ave., New York, NY 10176; (212) 916-3200; fax (212) 573-9406, or their offices in many major countries. If you're interested in going into the import business in Brazil, it would be a good idea to review these records to find out something about the competition you'll be up against. In addition, the Brazilian Government Trade Bureau offers free consultations for anyone interested in doing business in Brazil. Other complimentary services include use of meeting rooms, conference calls with simultaneous translating services (you pay only for the telephone charges), assistance with travel arrangements to Brazil, and referrals for accountants, lawyers, and agents who are experienced with matters of import and export. The deputy director of finance for the trade bureau, Luiz de Athayda, can answer all your questions pertaining to the Brazilian economy, banking, and financial regulations. Contact him at the address given above. Or contact the trade bureau's office in Washington, D.C., (202) 745-2805. The Brazilian- American Chamber of Commerce publishes a listing of trade opportunities for U.S. businesses in Brazil and vice versa. This international swap meet is part of a bilingual business newspaper called The Brazilians. To submit a listing (which is free of charge) or to reply to a posting, contact The Brazilian-American Chamber of Commerce, 42 W. 48th St., New York, NY 10036; (212) 575-9070; fax (212) 921-1078. To receive a copy of the newspaper itself, call The Brazilians, (212) 382-1630 in New York or (55-21) 267-3898 in Rio de Janeiro. Choosing an import If you're intrigued by the idea of setting yourself up as an importer as a way of paying for your world travel, but you don't have an idea for what exactly to import, attend the Frankfurt International Fair. This exposition, held every August, is known as the Cannes Festival of Consumer Goods. It is the best place in the world to preview the latest European trends. Among the exhibits are clocks, tableware, home accessories, lighting fixtures, giftware, housewares, arts, and handicrafts. For more information on this year's festival, contact Messe Frankfurt Office, Ludwig- Erhard Anlage 1, 6000 Frankfurt am Main 1, Germany; tel. (49-69) 75-63-64. If you can't make it to this annual fair, you surely can make it to one of the other 16 internationally renowned trade fairs held each year in Frankfurt, which has become a mecca for international importers. For a calendar of the fairs and more information on how to make arrangements to attend, contact Philippe Hans, Frankfurt Fair Representative, German American Chamber of Commerce, 666 Fifth Ave., New York, NY 10103; (212) 974-8856. And remember, if you attend any of these fairs to do research for your import business, all the costs of the trip are tax-deductible. A publication that has provided many product sources since 1963 is Worldwide Business Exchange, a monthly newsletter with hundreds upon hundreds of leads, contacts, sources, and resources every month. It covers not only import sources, but also business financing, channels of distribution, franchises, new products, finder's fees, mergers & acquisitions, venture capital, joint ventures, partnerships and more. Information and current subscription prices can be obtained from Worldwide Business Exchange, Dept. 70197, P. O. Box 5385, Cleveland TN 37320. It also has free advertising for subscribers, giving every subscriber a chance to offer what they have available, or request what they want -- at no cost -- because that's what makes it a networking publication. Subscribers don't just "read" the Worldwide Business Exchange -- they buy, sell, trade, wheel & deal and share opportunities with each other. If you just like to read about business, any old publication will do. But if you do business, Worldwide Business Exchange is for you. The value of a home-grown import The import companies that prove most successful are those that grow out of a native cottage industry whose product is considered exotic or rare back home. That's why Annie Hurlbut's import business is booming. She discovered a cottage industry that was already thriving in Peru -- and then transported the fruits of that industry back home to the United States, where alpaca sweaters handmade in Indian designs are valued - - and not easy to come by. An idea for a similar import is handmade cotton clothing from Guatemala. The colorful and comfortable shirts and skirts being made here can be bought for virtually nothing -- and then shipped back home, where young girls are willing to spend a pretty penny on these fashion statements. We know of a couple, living in Maryland, who travel to Guatemala several times a year to purchase the handmade clothing, and then ship the pieces to the United States for resale. Like Annie Hurlbut, this couple is not only able to travel to their favorite South American country three or four times a year free -- but they are also making a comfortable living off of the profits of their small import company. The ideas are virtually limitless...handmade Mexican blankets, which can be purchased anywhere in Mexico for a few dollars and then resold in the United States for $30 or $35...brass pots from Morocco, which can be purchased in any shop or from any street vendor for about $15; these can be sold in the United States for at least twice that...tiny wooden boxes from Uruguay, useful as decorative objects or for storing jewelry; these sell for $5 or $6 in nearly every gift shop in Montevideo and can easily be resold in the United States for $10 or $15... Similar deals can be made between any two countries. Where do you want to go? Which country of the world are you interested in exploring? That should be the primary determining factor when trying to decide on an import. Remember, the whole idea is to use the import business as a way of paying for your travel. An unusual suggestion for the importer in Sulawesi In Sulawesi, Indonesia, craftsmen make traditional wooden sailing boats using methods little changed from those used hundreds of years ago. These boats, built without hand tools and without electricity, come minus an engine, and they have two huge steering oars instead of a rudder. Known as an Indonesian pinisi, a boat of this type is a cross between a junk and a 16th-century galleon. The pinisi was once the sailing ship of choice among the fierce Bugis pirates, who ravaged the islands of Indonesia and conquered much of mainland Malaysia. It is possible to buy one of these boats for as little as $5,000 or $10,000. Of course, you must travel to Ujung Pandang, the capital of Sulawesi, to do so. But that's where the adventure begins. Once in Ujung Pandang, your first job is to find a reliable agent, who speaks the language and who knows something about building a pinisi. One agent we can recommend is a Mr. Rustum, who can be contacted at Jalan 302/10, Ujung Pandang, Sulawesi, Indonesia. But perhaps the most helpful person in the traditional boat trade in Sulawesi is a Yugoslavian sailor named Ivo Rebic. Ivo speaks fluent English and Indonesian and has spent two years researching traditional wooden boat building. He is your best bet for reliable and enthusiastic local assistance. Contact him in care of Evie Rumagit, Jalan Sumba 86/9, Ujung Pandang, Sulawesi, Indonesia. Once you have found an agent, the next step is to find a competent builder. The biggest boat building center in Sulawesi is Tana Beru. At any given time, there are 50 boats being built along the palm-lined beach of this seaside village. One of the most respected builders in this area is Usman Hasan, an Indonesian Chinese who has the most Western-style approach to the boat- building business of anyone in Tana Beru. You can contact him at Jalan Tokambang 072, Bulukumba, Tana Beru, Indonesia. Now, you may be thinking, that all sounds intriguing, but why in the world would I want to buy an Indonesian pinisi? First, it is a wonderful excuse to travel to exotic Indonesia and have the adventure of a lifetime. But more than that, investing the time and money in building a pinisi in Sulawesi makes it possible for you to see Indonesia free. Before you take off for Sulawesi, contact marinas and boat clubs in your area. Put up notices on the club bulletin boards explaining what you're planning to do. If you're lucky, you may be able to arrange for a buyer -- or a sponsor -- before you depart for your trip. But at the very least, you'll build interest in your venture. Once your boat has been built and shipped back home, contact all those marinas and boat clubs again. And place small ads in boating magazines and newsletters offering your rare and authentic Indonesian pinisi for sale -- for several times what you paid for it. You should have no trouble finding a buyer -- these boats are beautiful and truly exotic in any other part of the world. Any boat lover anywhere would be thrilled at the opportunity to own one -- and probably more than happy to pay enough to cover all the costs of your trip to Indonesia. Buy a Chinese junk Years ago, the harbor at Hong Kong was filled with Chinese junks. These flat-bottomed, high- sterned sailing vessels with square bows and masts carrying lug-sails served as floating homes for thousands of the island's residents. Today, these traditional junks are disappearing from the harbor. They are inconvenient and uncomfortable places to live. And few new junks are being built. But that is not to say it is no longer possible to buy a junk. You can get one for as little as $8,000 or $10,000. They are listed for sale in the classified sections of local newspapers. This gave us an idea. You could travel to Hong Kong, purchase an old junk, and then go on an extravagant shopping spree in the myriad antique shops that line the streets of this city. Oriental carpets. Porcelain and marble statuary. Centuries-old Chinese vases. Jewelry. Carved wooden boxes. Then you could pack up all your Chinese treasures, stash them in the holds of your Chinese junk, and have your junk loaded on to a huge ocean freighter and shipped back home. While your treasure chest is crossing the sea, contact the local media of the city where the ship will land. Send out press releases. Alert everyone in the area that an authentic Chinese junk, filled with valuable Chinese antiques, will be landing in the city's harbor. Make it a gala event. All the press coverage of the junk's arrival will help you sell the treasures it contains. You should make enough to pay not only for the antiques you shipped home, but also for your adventure in Hong Kong. What do you do with the junk? Well, you may decide to keep it -- you'd surely be the only one on your block to own one. Or you could sell it. A Chinese junk is a rare and valuable thing outside its home country. You could sell one back home for several times what you paid for it in Hong Kong. The real wealth angle here, however, is not buying a Chinese junk. It's using your imagination to unlock profits that no one else ever thought of. Ultimately, your imagination -- along with your patience and energy -- is the key to your fortune. Before you buy anything... You can simply take off for parts unknown, with several hundred dollars cash (or traveler's checks) in your money belt, and buy up a few dozen of whatever strikes your fancy and you believe will sell well (and for a premium price) back home. It really could be that simple. But taking off blind can also be a bit risky. Better to do a bit of homework first. Begin by reading everything you can get your hands on about the country where you want to travel. What do the local craftsmen make there? What do they make it out of? Where can you buy it? How much will it cost? Will it ship easily? A good first contact is the embassy or tourist board for the country where you'll be shopping. Representatives at these offices should be able to provide you with some of this information over the phone; most are natives of the country they are representing. Also ask a staff member at the tourist board for a listing of department stores or specialty shops in your area that carry handicrafts or other goods imported from his home country. Then go to see for yourself what is being sold, for how much, and to whom. It is also a good idea to introduce yourself to the owners, managers, or buyers of a few shops in your area. Tell them about your shopping trip and your plans for importing goods back home. Ask what they would be interested in carrying and what prices they would charge. (Remember, most retail outlets mark prices up 100%.) You might even get an order before you leave. The other things to investigate before you take off on your grand shopping adventure are customs and rates of duty in your country. Explain to your local customs service what you are planning to import and to where and ask that you be sent all relevant information on clearing customs and paying the appropriate duties. Setting a price Don't wait until you've returned home, suitcases full of silver bracelets and brass pots, to determine prices for all of your exotic treasures. If you leave all of this to chance, you may be in for a very unpleasant surprise. Instead, do a bit of arithmetic before you even get on the plane. Start with the purchase price. What do you think you'll have to pay for whatever it is you plan to buy? Add the expected costs of shipping and duty. This gives you your total cost. Double it, and you have the cost you can charge the retail outlets you do business with. Double it again, and you have the cost the retail outlets will charge their customers. Say you plan to buy wool blankets in Mexico for $8 each. You know the cost of shipping each blanket will be $1, and the cost of duty will be $2. That's a total of $11. Double this to get $22, the cost you should charge when selling your blankets to a retail outlet. Double that again, to get $44 -- that is the cost to the consumer. Is the blanket worth $44? Is it worth more than $44? Consider the market. What else is available? How much is it selling for? Who is buying it? If the total cost to the consumer you come up with sounds like too much -- or too little -- make adjustments one way or the other. In the case of the Mexican blanket, for example, $44 is a bit high. The retail outlet may only be able to sell the blankets for $35 apiece. Thus, you can only sell them for $17.50 apiece. This means that the most you can pay is $5.75. It's possible to buy blankets in Mexico for $5.75 apiece -- if you buy a dozen or more at one time, and if you know how to haggle. If, however, once you get to Mexico, you find that you just can't find the blankets you want for the price you can afford, reconsider. Maybe you ought to be shopping for silver earrings instead. Remember also that the whole purpose of importing the goods in the first place is to pay for your trip. So, once you've arrived at a price, determine how much you will make if you sell all of the merchandise you have imported back home. Make sure you'll come out ahead -- or at least even. If not, reconsider, both the pricing and the merchandise you're importing. The shipping factor One of the most important considerations for anyone in the import business is shipping. The shipper you deal with is responsible for picking up your purchases at the shop, packing them, and shipping them back home for you in 20-foot containers. With some shippers, you can arrange for a split-container. This way, the shipper doesn't send the merchandise until he has enough going to your city to fill the entire container. Shipping costs about 15% of the value of the merchandise when a full container is sent; about 25% or more when a partially filled container is shipped. The shipper should provide you with stickers (one is attached to every item being shipped), a shipper booklet (in which you record the merchant's name, the agreed-upon-price, your company name, and a description of the item), and the name of a driver, if you need one. (If English is not spoken in the country where you're shopping, you'll need a driver to help you find the markets and to negotiate with the merchants. A driver can be expensive -- as much as $75 a day. But this is a worthwhile investment.) How can you find a competent and reliable shipper? Two good places to try are your embassy in the country where you will be shopping and the local chamber of commerce office. Tricks of the trade Always carry a Polaroid camera, a 35mm camera, and lots of film with you when shopping for merchandise to ship home. Take two pictures of every item purchased, one Polaroid and one 35mm. Keep two ledgers: one that lists prospects, another that lists actual purchases. This way, if you're unsure of something, you can easily go back to buy it later -- you've got a record of where to find it. Europe does not have the same type of wholesale market, but they do have large wholesalers. They may not be willing to deal with an individual, which is one good reason to form a company first. But if you tell merchants that you are buying for export, they'll usually give you a 15% to 20% discount. In some countries of Europe, especially France, the entire country goes on holiday at the same time. In France, it is the month of August. Plan your buying sprees around these holidays. Always keep all of your invoices and receipts. If your merchandise doesn't arrive as expected -- or if you have to prove the value of your goods to a customs official -- you will be lost if you've accidentally thrown away your documentation. What governments won't allow you to import Many countries have passed stringent laws against importing many of Mother Nature's souvenirs from foreign countries, and many of these types of products are protected by international treaties. These laws have been established to protect endangered animal species. Certain plant species are also outlawed as imports. If you ignore the regulations and try to import two dozen pairs of Brazilian alligator pumps (because you're sure you can sell them back home for a 200% profit, and you simply can't resist the opportunity), you risk having your booty snatched. You may even be hit with a hefty fine. So check the regulations of your destination country carefully. Sell American...and make a fortune doing it! What would happen if, in your business, all you did was "buy" from yourself? You wouldn't make very much money, would you? Think about it! That's exactly what this country would be doing if we only "Buy American." Every time we sell an American made product in the international marketplace, those dollars come back into the U.S. economy, increasing profits, creating jobs, making America stronger. 80% to 85% of U.S. businesses don't export. But American products are in demand. Amway recently went into Mexico, expecting $3 to $4 million in sales the first year. Instead they hit $15 million in sales the first year and $50 million the second year, and said that they have never seen such strong demand for American products in any of the more than 20 countries they are now in. Yet it seems that when someone thinks about getting into international trade, they decide to import instead of export. Actually, exporting is just as easy as, maybe even easier than, importing. Besides, as an importer, you have to buy things to sell here...that takes money. But, as an exporter, you are selling things overseas...which doesn't take much money at all. As a matter of fact, you can actually start your own export business for a couple hundred dollars. Your very first order could easily return your investment ten-fold or more. There are thousands upon thousands of products you can start exporting tomorrow! Most of the books and courses on exporting being offered today are theoretical, not practical. In reality, selling overseas is no more difficult than a company in New York selling & shipping a product to a buyer in California. The most useful complete startup is a manual called "Sell American", and you can get free information on it by writing to Sell American, Dept. 70197, P. O. Box 5385, Cleveland TN 37320. Once you finish reading "Sell American" you can export U.S. made products simply and easily, and start earning your fortune in the international marketplace. With the end of the cold war, unification of Europe, the breakup of the Soviet Union, and free trade agreements being established in the Americas, every entrepreneur should now recall the words of Thomas Jefferson -- "A merchant, by his very nature is a citizen of the world." While the governments discuss the issues of world trade, it is up to us as merchants (entrepreneurs) to meet the challenge head-on with action, instead of talk. As an American entrepreneur, you should make it your responsibility to "Sell American."