[Saban]

This is not a revolutionary new idea or a product that will change the world. It is very simple

The business:
A company that provides connections to American companies that need labor intensive products that are produced in the Balkan region. Everything from carpets to car parts.
American companies that need to cut costs would hopefully turn to us and we would match them with many companies in the Balkans.

There are also plenty of empty factories in the Balkans that could turn out products for the American companies. So expansion or outsourcing is an area we would help organize.

I speak the languages and have numerous connections.

Sorry if the there is not enought detail but this came to me a couple of hours ago. After I sleep on it maybe it will be more clear to me but for now If you could kindly evaluate it and tell me if the idea has any potential. Any suggestions are welcome.

Thank you in advance.

[Verberatum]

Outsourcing is a great business model (although it has ethical implications). I did research for a company called IPC Global Solutions that finds manufacturers abroad (particularly mexico, asia, eastern europe) that produce aftermarket auto filters. They basically maintain a competitive advantage by always being a low cost leader, having strong connections with their overseas producers, and creating long terms parternships with their customers.

One big issue with the outsourcing model, particularly with importing is cash flow. If you are a distributor/importer/outsourcer you have larger capital requirements and cash flow implications than if you were just a outsourcing consultant that sets up the deals between the domestic distributor and the balkan manufacturer.

Best of luck!

Do some market research, find out
a) who your potential customers are and what their needs are
b) who can you find to produce these products and at what cost and how does that compare to other countries.

-Dan

[Bscivolette]

Great idea, but the resistance from American citizens is great. Especially at a time when Dell, IBM, etc are moving there enterprises to India...people certainly do not like it.

[teastman]

What I am going to say may be controversial but it is IMHO 100% truth.

Many corporations are being criticized by their stockholders for not outsourcing fast enough.

To be competitive you in the world of globalization I believe you MUST outsource.

I read a recent article in Business 2.0 that spoke of the slow demise of Maytag and the CEO's failure to Outsource when all competitors were doing so.

I think that the companies that feel that they must keep their loyalty to an American workforce are going to go under sooner or later.

The solution for Americans currently working in the labor intensive fields... go back to school and find a job that requires using your brain.

[mpnetwork]

Not just a job that uses your brain, many of the jobs that are being outsourced are white collar jobs in engineering, programming, etc.

You need an education in something that is difficult to offshore, always update your skills, and always watch industry trends.

In other words... you need to remain competitive.

[Saban]

thx for the reply

Iam patriotic as the next guy but we will just have to get use to the outsourcing idea.

The asian market for outsourcing is already getting saturated so i thought maybe there is potential in the balkans and in eastern Europe. Iam still years from starting anything. I still have 3 more years of school (college) but its never too early to start thinking about this stuff.

[Realist]

mpnetwork, good point.

[leaj23]

What I think is, outsourcing will be necessary, whether we like it or not, for companies to stay afloat... Especially with China being more aggressive in the world economy, margins will get smaller and companies will have to find ways to bring down costs and, I agree with you guys, to remain competitive.

My father's business is an integrated outsourcing company, meaning his company services facets of a client that isn't his or her core. So, by tapping his company, clients are not burdened with payrolling, recruiting, warehousing, HR administration, bookkeeping, data encoding, and so on. His company is pretty profitable. Its been around for more than 15 years.

[cr_lester]

Outsourcing is good for companies, bad for employees. Period.

On to the actual topic of discussion.

Saban, I think your idea is too generic. If you're going to develop that million dollar USP (unique selling proposition/point), you aren't going to find it in an overcrowded market. That example of business that Verberatum (I find myself quoting verberatum more and more...) gave is exactly what I'm talking about. They specialize.

It is like my carpenter theory. There are a million carpenters in the world. There is only one you.

What is it that you do best? Do that, and nothing else. Its like the old saying goes, "Jack of all trades, master of none." If you try to be to much to too many people, you'll find it hard to stay afloat in the sea of everyone else doing the same thing. Specialize, differenciate, and make your product your USP. Because you offer something few others do, and you do it best (I hope).
Well, thats my advice.

Because I Care;
Cheryl Lester
www.NovusLife.com