Immigrant Business | ImmigrantBiz.org

September 29, 2016 0

Successful Manufacturing: 5 Keys to Saving Time & Money

Manufacturing is not as sexy and exciting as product development, but not understanding production will cost entrepreneurs plenty of time and money.

Entrepreneurs typically do a great job of visualizing finished products, dreaming of them artfully arranged in shop windows, mail order catalogs or point of sale displays. But most don’t have the background to visualize the ins and outs of manufacturing and distribution. However, what you don’t know —and can’t anticipate—about the production process, could cost you both money and time.

To illustrate: Finding a publisher didn’t seem like it would be that difficult for Aziz Makhani, who developed the soccer board game KickShot (Turning Your Idea into a Market-Ready Product). The names of publishers were inside the packaging of popular games, but when Makhani called them, he hit a brick wall. KickShot was just too small a job to interest them. He needed only a thousand copies or fewer, but major game publishers typically published hundreds of thousands of units at a time. Makhani’s had approached publishers who specialized in long production runs rather than companies that handled short-run jobs and prototypes. Find the right kind of vendor cost Makhani valuable time during the development of KickShot.

What you don’t know— and can’t anticipate — about the production process, could cost you both money and time

Here are some of the things that Makhani learned about the world of manufacturing that every entrepreneur bringing a product to market should know.

1. Find your manufacturer/publisher as soon as possible

Schedule time in advance when possible. Production slots can be spoken for many months in advance in some industries. Plan ahead, especially if you’re a small customer.

Find a vendor that fits your product and the size of your production run. Manufacturers specialize, owning equipment that fits their customer needs and niche in the market. One size does not fit all in manufacturing.

Use manufacturers as advisors to avoid building costly mistakes into your product design

2. How do you find the right manufacturer?

Call, email or visit industry trade groups. In Makhani’s case, the tabletop game industry’s GAMA might have been a good place to start. GAMA also sponsors trade shows, where one can make valuable industry contacts.

Attend trade shows. Manufacturers will attend national trade shows in order to locate new business. Retailers, designers, consultants and entrepreneurs with new products also attend. One or two days at the right trade show should give you all the contacts you’ll need to get started

Federal and State Agencies. State and federal agencies such as the Department of Commerce, the Small Business Administration, and the Chamber of Commerce are also sources of vendors, and will often help entrepreneurs by doing research for them.The Idaho Department of Commerce matched Makhani with an overseas manufacturer in Taiwan that turned out to be eager for his business, and able to handle small jobs at relatively inexpensive rates. Furthermore, Makhani was able to handle all transactions quickly via email. No international travel was required.

3. Avoid on-the-job training; learn manufacturing during development

Identify key costs variables and trim away unnecessary fat. Each part of the product, whether its made of paper, wood, plastic or steel has a cost in raw materials, manufacturing, and ultimately, a cost to ship the product to the consumer. The more you learn in the early part of the development process, the better you can design your product, eliminating waste and excess weight. After Makhani sent his game his final prototype to Taiwan, he learned they needed far more detailed specs, such as the basis weight of the paper and card stock, industry standard ink specifications for colors such as the greens needed for his game board. The biggest issue was weight: the weight of the box, the playing cards, the game board, the poker chips, and even the die-cut interior of the box which held all the game elements. Heavier materials were more expensive to source, and they made KickShot more costly to ship to the United States, to truck to distributors, and more expensive to mail to consumers from online retailers such as Amazon, as well.

Call upon your development partners and vendors for help with manufacturing. Ideally, you should consult with them during the development process. Makhani got invaluable aid from the graphic artist that illustrated KickShot.

Network with other entrepreneurs. Others have already dealt with the same problems, and will be happy to share what they’ve learned. Visit Immpreneur’s SOUK to contact other Immigrant entrepreneurs.

4. International shipping.
Most consumer products destined for the United States are manufactured overseas and compete for increasingly scarce container space on international ships, especially leading up to key selling seasons such as Christmas. A futures market now exists for container space, making it more difficult for small players to book space.

Plan backwards from selling season to your manufacturing cycle.

Makhani learned that he needed to plan seven months ahead to be in stores for Christmas. While he was able to make the holiday season, he had to air freight a portion of his initial production to the United States to meet an obligation he had made before he fully understood the production process.

5. Finding a competitive, but profitable price point.

Benchmark competitive products. You do not want to price yourself out of the market

Capture all costs in determining price. Makhani initially set an aggressive price of $19.95 for KickShot, but once he factored in shipping, distribution and mailing costs, he was losing $5 a game. He changed pricing accordingly, but was careful to stay within industry guidelines.

September 28, 2016 0

Lifeway CEO: 3 Tips for Greater Success

A young entrepreneur uses smart marketing and acquisitions to build on her late father’s vision.

Ten years ago, when Julie Smolyansky took control of Lifeway, the company her father founded in 1986, she was barely out of college. But, thanks to a combination of savvy marketing tactics and a number of strategic acquisitions, Smolyansky has grown revenues by more than 560%, to $80 million.

Smolyansky has also become a role model for immigrant entrepreneurs and female CEOs, and her recent marketing campaign “Mother Culture” (featuring a photo of herself while she was pregnant) created major buzz.

“My father left us a company that ran like a well-oiled machine,” she says. “I was able to use that foundation and take the business to the next level.”

Smolyansky suggests these tools for creating greater levels of success in your business:

Improved the Packaging

Smolyansky’s first move was to focus on the packaging of the company’s core product, Kefir. According to Smolyansky, when she became CEO in 2002, the look was what she describes as “old world, even ugly.” But Smolyansky realized that, with a small advertising budget, boosting sales hinged on creating inviting packaging that practically made the product jump off the shelves. The look of the product had to become its own advertising. To that end, Smolyanksy hired an outside design team. Over about a year, using ideas and suggestions from Smolyansky, they came up with a look that kept the health-oriented spirit of the product, but with a more fun and trendy appeal. The result: The product started flying off the shelves. “It was probably the single most important step we took,” says Smolyansky.

Recognizing the Importance of Ethnic Markets

But that was far from the only step. Smolyansky knew that an increasing consumer interest in healthy food meant there was plenty of opportunity to extend the brand into other product lines. And, she recognized the potential in tapping additional ethnic markets that had an affinity for kefir-style drinks. “We wanted to continue our tradition of being first to market, pioneering innovative products that are ahead of their time,” she says.

For that reason, she made new-product innovation a priority, churning out a series of introductions over a period of several years. In 2006, she introduced ProBugs, a no-spill kefir product for children, as well as Greek-style kefir.

In 2007 came Lifeway Lassi, targeting Indian and other ethnic markets; and in 2008, a line of probiotic snack bars. Next year, according to Smolyansky, she’s planning to launch several new products aimed at their existing consumer base, as well as expanding market share by introducing their core kefir line to new customers.

Aggressive Acquisitions

Smolyansky further increased company size through an aggressive acquisitions strategy, buying their two largest rivals.In 2006, she purchased Helios Nutrition; three years later, she bought Fresh Made Dairy. The moves accomplished a number of goals. Of course, they eliminated any serious competition to their core product. But, in addition, says Smolyansky, “we boosted sales, distribution reach and market share—all at the same time.”

September 20, 2016 2

Rami Malek Puts Immigration Debate in Emmy Spotlight

Along with big winners like Game of Thrones and Veep, immigration garnered its share of the spotlight on Monday night at the 68th Annual Emmy Awards in Los Angeles.

After winning his first Emmy award for outstanding lead actor in a drama, Mr. Robot star Rami Malek used his big moment in the Hollywood spotlight to speak out about his family history, being a child of immigrants — his parents immigrated to the U.S. from Egypt before he was born — and how essential it is for everyone to be given an equal chance to succeed.

“We live in a world right now where so many of us feel voiceless. We’re not being heard by the government, we’re not being heard by our society. I grew up in a family that immigrated here. My dad worked door to door to sell insurance, and my mom was pregnant with my brother and I, taking three buses going to work, so that they would give their children the opportunity to be special. My sister’s an ER doctor, my brother’s a teacher, and I’m standing here today. I think a lot of people can relate to wanting an opportunity. I wanted an opportunity and now I have it. I just want everyone, no matter how you grew up, the socio-economic standard you were born into, to have an opportunity regardless, to not be stifled in this time in the work. To be given a chance, like I’ve been given a chance.”

In addition, Master of None star Aziz Ansari — who with show runner Alan Yang won for writing on a comedy series with an episode about the sacrifices and expectations of immigrant parents — spoke out against some of Donald Trump’s controversial comments about immigrants, referencing his parents (who are Muslim immigrants) and Superstore actress America Ferrera (whose parents are Honduran immigrants).

“Mom and dad, I know I just thanked you, but you need to be escorted out. I’m so sorry. America Ferrera, nice try changing your name to America. You’re not fooling anybody. You’re out.”

Earlier this year, Ansari described how the rise of Trump has made him afraid for his family in a moving editorial for the New York Times.

September 19, 2016 3

The Seven Keys to Raising Startup Money

How did this immigrant entrepreneur parlays his savings, sweat equity, friendship and enthusiasm to realize his dream of teaching American kids to play world-class soccer?

Like many immigrant entrepreneurs, Aziz Makhani didn’t need millions of dollars to launch his big idea. To make KickShot, his soccer board game, a reality, he needed less than $50,000 in startup funds. Through self-funding, sweat equity, and the help of friends and colleagues, Makhani was able to keep complete control of his product during the critical development process (Turning Your Idea into a Market-Ready Product). Along the way, he learned lessons that immigrant entrepreneurs like himself can use to limit their need for capital during product development.

Here are Makhani’s Do’s and Don’ts:

1. DO: develop your networks: advisors, friends, and investors. “Don’t waste your time with people that aren’t enthusiastic. You want to work with someone who is mentally and physically engaged. And they’re out there. They’ll give you their heart and soul. All you have to do is ask.”

2. DON’T: Get ahead of Yourself. In the early going, Makhani self-funded as much as possible, and when that wasn’t enough — and only then — he got help from his network of friends, family, colleagues and neighbors — the same folks he used to help him test and refine KickShot during the development process.

3. DO: Get Started with the Four F’s. Raising funds, Makhani says, repeating an old joke, is a question of reaching out to the Four F’s: founders, friends, family, and fools. Adding the punch line, Makhani says, with self-deprecating humor, “I used the first three, and you could argue that some of them probably belonged in the latter category.”

4. DON’T: Give Up Control of Your Product, Until You Have To. Noticeably absent in the Four F’s are angel investors, venture capitalists and crowdfunding. Makhani avoided using this route, or any avenue that involved investors he did not know personally. The first reason is that the process of raising money through third parties can be very slow, and the second reason was that he wanted to maintain control. “I didn’t want to spend all my time in fund raising,” he says. “I’ve seen what happens in other companies. As soon as you take other people’s money you have to report back to them.”

“I’ve seen what happens in other companies. As soon as you take other people’s money you have to report back to them.”

5. DO: Develop your Credibility with investors. Makhani didn’t try to raise all the money he needed upfront, but demonstrated his success at each stage of the project. In other words, he was able to show his potential investors the product as it evolved, and on the schedule he had promised. This approach built trust and encouraged his investors put in more money as they went along. “When you don’t have a prior record of entrepreneurship, “you need to develop your credibility,” says Makhani. “Then you can lean on your network to fund you.”

6. DO: Know When to Ask for Money and When to Wait. There’s a time and a place to ask for money. Makhani discovered that it was more important in the early stages to engage potential investors and ask their advice. If you can get them involved in your project, in many cases they will come to you with an offer to invest. A case in point: His biggest investor was a neighbor, who came back to him a year after their first discussion, and asked for more information. Then he offered a $50,000 loan at 3% interest.

7. Don’t Overlook In-Kind Investments. “When you’re asking people for support, don’t just ask for money,” says Makhani, “because some people will give you an unbelievable amount of in-kind things; they’ll give you furniture, advice, services. These things can become your biggest assets”.

Makhani’s neighbor is a good example of in-kind investments. He offered not only investment funds, but to warehouse the product, and to use as his company’s expertise in shipping and importing, which would eventually cut out 2/3 of Makhani’s shipping expenses. Needless to say, savings such as these have a tremendous effect on cash flow and profitability.

September 14, 2016 2

Escape to Prosperity: How a Cambodian Refugee Created an $8 Million Franchise

Immigrant Entrepreneur: Ty Lav | Country of Origin: Cambodia | Emigrated to the US: 1979 | Franchise: Liberty Tax Service | Gross Revenues: $8 million | Jobs Created: 1,290

Ty Lav’s family escaped Cambodia’s Khmer Rouge uprising with only the clothes on their backs, but in the years following, America has proved to be not just a refuge, but a land of opportunity.

For Ty Lav

’s family, coming to America was literally a matter of life and death. Cambodians of Chinese ancestry, they had to escape into Thailand during the bloody Khmer Rouge uprising in the 1970s. Afterwards, they were fortunate enough to be sponsored by a church in North Carolina, and when young Ty and his parents arrived in 1979, they literally had nothing but the clothes on their backs. Like many other refugee families, they were determined not only to survive, but to thrive in their new country.

Here’s his story

Early Success in the Software Business

After high school, Ty Lav studied engineering at the University of Illinois and helped fund his education through co-op programs with Intel, which helped him land a full-time job with an Intel supplier before he even finished college. In his first years out of college, Lav worked with startups and software companies in the Internet sector, and eventually built his own outfit, a software reseller, which gave him a six-figure income.

When Ty and his parents arrived in the US in 1979, they literally had nothing but the clothes on their backs.

Searching for the Golden Goose

While pleased with his early success, Lav wanted more. He knew there was a difference between a good salary and a secure future. Lav wanted something that he could depend upon, regardless of the economic or political climate. As he puts it, “With a job, you only have a golden egg, but I wanted the golden goose too. The golden goose is much, much more valuable.”

His family had gone into the hotel business, so he was thinking of something in the hospitality area to augment his software business, but then he read about John Hewitt’s new venture, Liberty Tax Service, and he was intrigued. Hewitt was “a proven leader,” says Lav. “Also, I was good with numbers and with business, so Liberty Tax seemed like a good fit.” Furthermore, since Liberty Tax was just developing the California market, there was an opportunity to get in on the ground floor. So, he took the plunge, buying his first franchise in Sacramento.

With a job, you only have a golden egg, but I wanted the golden goose too. The golden goose is much, much more valuable.

Established Demand

If Lav’s experience in the tech sector had taught him anything, it was that starting a brand new business could be very challenging, because you must prove there’s a need for your product before you sell it, and that can take a lot of time and resources. With tax preparation, however, you don’t have to prove a need; there’s already an established demand for this service. And it won’t be going away anytime soon, especially with the increasing complexity of the tax code.

Multiple Franchises

After his first year with Liberty, Lav concluded that the advantages that Liberty Tax Services had over other franchise opportunities, and, indeed, other tax prep companies, were sufficient for him to make a much larger investment in the company. He wanted to buy more franchises, but also to participate in the growth of Liberty Tax Services by becoming an area developer in northern California. However, what he had in mind required far more capital than he had access to personally.

Check out all your financing options with Immigrant Business’ Financing Guide

Lav addressed the issue by building a syndicate of investors in his plan — a highly unusual approach — that raised all the money he needed in only a month’s time. With the infusion of capital he was able to buy seven franchises and an area development license in one bold stroke.

Lav says that he wouldn’t recommend this to everyone, but he knew what he wanted to do, and was convinced he could make it work. And he did, succeeding beyond his dreams. Today, Lav is not only an area developer for Liberty Tax Associates, but owns a software resale business, a building maintenance company, and sits on several corporate boards.

Are You Buying a Job, or Building a Business?

Ty Lav succeeded because he had a good business plan: to diversify from his software business, and to build strong assets for the future. Unfortunately, not all franchisees take this measured approach at the beginning of their careers as franchise owners. Some expect to make enough money in the first year to live on.

“A lot of people make this mistake,” says Lav. Being in profit mode in year one, depends on many variables, he says, such as your capitalization, your business skills, planning, and above all, your expectations. “You have to be realistic, and remember you’re building a business, not buying a job.”

For some people, the seasonality of the tax prep business is desirable, and an established tax preparation business can certainly provide a good living. However other franchisees see their tax preparation business as an opportunity to develop sidelines such as accounting, book keeping, real estate, and brokerages under the same roof, thereby offering additional services to their tax preparation clients.

“You’re either working toward something or you’re not. You must know yourself and what you’re committed to.”

What makes a good franchisee?

According to Lav, being a successful franchisee depends a few common elements:

Having enough capitalization to get through the first year or two without undue stress

Business or tax experience

Being coachable

“You’ve got to be able to get out of your own way to listen to advice, and to learn,” Lav says.

Own your own Liberty Tax Franchise. Get started now!

Lessons Learned

Even though he’s been enormously successful, Lav thinks he could have been better prepared to bring his grand plan into fruition. If he had it to do over again, he would have sense of what his expectations should have been for this business: what resources would be required, how much money would be coming in, and how long, realistically, it would take to develop the business. But above all, he would want to have a better idea of the personal commitment required.

What stands in the way of success? It’s the human condition, accord to Lav. “Very few people have clarity about their goals and commitments,” he says. “You’re either working toward something or you’re not. You must know yourself and what you’re committed to.”

“In America, everything is open to you, and it’s a matter of going after it.”

Why Immigrants Succeed

Lav strongly believes that the reason immigrants succeed in so many business ventures is that they have a stronger sense of what they’re committed to and don’t take things for granted. As he puts it, they stay in the “moment of committedness.” “This is what drives me,” says Lav. “In America, everything is open to you, and it’s a matter of going after it. It’s carpe diem, and what do you want to seize today!”

Read: Jordanian immigrant realizes his American dream through Liberty Tax

For More Information:

Liberty Tax Service
1716 Corporate Landing Parkway
Virginia Beach, Virginia 23454 USA
Corporate Phone Number: 1-757-493-8855

The Big Story

Successful Manufacturing: 5 Keys to Saving Time & Money
Lifeway CEO: 3 Tips for Greater Success
Rami Malek Puts Immigration Debate in Emmy Spotlight
The Seven Keys to Raising Startup Money
Escape to Prosperity: How a Cambodian Refugee Created an $8 Million Franchise

Finance

The Seven Keys to Raising Startup Money

September 19, 2016 David Smith 3

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Franchises

Escape to Prosperity: How a Cambodian Refugee Created an $8 Million Franchise

September 14, 2016 David Smith 2

Immigrant Entrepreneur: Ty Lav | Country of Origin: Cambodia | Emigrated to the US: 1979 | Franchise: Liberty Tax Service […]

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