Expert: Eric Hofer - 1/12/2010

Question
Hi Eric,
I've been working for 3 years now around the wine business, wine tourism, e-promoting brands in France. In the short term I intend to import french wine into CA, my second home. What would be a typical cursus professionally speaking to get into this business and get some credibility within the US/CA ?

Answer
Emmanuel,

I'm sure there are courses that can be of use to you.  However, methodical, tenancious, contacts, realism, and capital are what're key to any successful import business.

As you've been working "around" this business for a while, can you leverage what you already know and the contacts that you've already made?

Importing is capital intensive, risky (if you don't sell your stock above breakeven) and requires surmounting some hurdles (e.g. licenses, find outlets, competition, exclusivities).  Step 1, look at constructing a cash flow and profitability model.  This applies for any venture.  There are a couple of places to look for stuff like this - to get yourself an education.  The small business administration, books in the library, entrepreneurial courses at your local College.  

Knowing Excel or another spreadsheet tool; modelling; how to write basic agreements, letters, etc. would also help.  If you're going to work directly with vineyards in France, you'll get by with English most certainly.  

As to the brands, varietals, etc., that's got a bit to do with local tastes and buzz.  Two good books to read are "The Underground Economist" (Gardner I think) and "The Tipping Point" (Gladwell).  You'll find that fads as pernickity - so being a wine expert won't necessarily make you rich - just impressive.  Scarcity pretty much commands price - your trick will be to figure out what is scarce and be the one to solve the supply problem.

As to credibility, who are you thinking you need to establish such with?  
- Capital Investors - you need a business plan, collateral, contacts, etc.
- Suppliers - if you pay, they'll probably supply
- Outlets - if your price is right, quality in line with expectations, etc. you'll get custom

As to how to actually work the market, taking orders, supplying, etc. there's some products and services available from www.salessuite.net that might help; but your first step is building that model - and proving to yourself that you can find the outlets and return the capital invested.  

On your model, think about:-
- time frame - break it up by months
- number of customers, sales, income; related cost of goods
- lag
- costs (storage, transport, bonding, office, insurance)
- fees and services
- marketing, promotions, etc.

Give me some feedback and we can continue.

Eric