You need customers to start a business, that is the most important thing in business, and the hardest thing is getting your product or service right.
The best way to come up with the product or service, is the passion/joy process I've laid out earlier.
I've made clear many times it is disadvantageous to try to begin based on perceived "hot markets" or as Drucker warns, organize around resources. For these reasons I caution against anyone visiting a trade show before they have their product decided, for if not, you will be dazzled by some hot item and decide that you should do that too. And then you fail.
But trade shows are critical to the process of international trade. Last week I assisted a start-up at a USA trade show gain 14 customers from overseas, using the MOQ FOB tactic. The booth cost her $6000.
Independent sales reps promote your item in their booths at no cost to you. Say the commission you pay is 5% of sales, then 100% of what you pay them is that commission. They may have a dozen lines in that one booth. They are keen on writing orders, say $50,000 per vendor, $600,000 gross, and their 5% is $30,000 gross to them, less booth costs, etc. So reps are one tactic for getting into expensive shows.
Another tactic is to join others in getting a booth, and splitting the costs, but a rep is a better idea because they can serve the market after you go back home.
If and when you know what you are going to sell, then going to a trade show for that product may be instructive in a general way. Of course, as soon as you know what you will be selling, you should be focussing on getting the samples and costing and pricing and then of course selling. So the first trade show you visit ought not be only instructive, but you ought to have at least lined up meetings to meet buyers.
Show management never wants people to visit and do business without taking a booth. But start-ups may need to do just that. The shows lost no revenue in such a scenario, because such newbies were not a customer anyway. Yet, if one gets going by meeting buyers at a show, one may indeed become a booth-holder at some time.
Anyone who can afford to have a booth, but does not, is being foolish. A booth allows one to conveniently sell new items to old customers, and old items to new customers. I saves time and money for the vendor and the customers, who can conduct massive amounts of business in a few days. But this assumes one has collected a critical mass of customers to warrant a booth. I reject the idea of getting a booth to start-up a business, or to gain "trade leads." Booths are for writing sales orders. If and when you can reliably predict orders written will be 8 - 10 times the cost of the show, then a booth is a good idea. Until then, you are doing laser marketing.
Having said all that, you might even target a given show, once you know your product, and visit the show as neither buyer nor exhibitor (almost all shows have guest passes for people thinking of getting a booth). You'll be obliged to eschew deal-making as a guest, but there is nothing to keep you from having already made appointments to meet with people at the show (in the coffee shop?) or "back at the hotel lobby."
Now as I started out saying, in USA there is plenty of world trade going on at trade shows. The good people at the HKTDC.com pointed out there is far more going on at their shows in Hong Kong. Just about every category you can think of, Hong Kong has a trade show. And what I observe is young people from all over the world, starting businesses, flock to those shows. Expect synergies.
Say your product is jewelry, and the premier jewelry show is held in Vegas, well the largest in the world is held in Hong Kong. If you plan to enter international trade, which is better, meeting some foreigners in Vegas, or only foreigners in Hong Kong? USA will tend toward more established, I believe, since USA can be a challenge to visit, as opposed to Hong Kong which is wide open to business. Whether buying or selling, having settled on your product and done your research, what show should you target as a beginner? Well, one of those Hong Kong shows would be my advice.
But but but, that is so exotic, and expensive..? well... no, I can do food and lodging in Hong Kong cheaper than New York or LA (or Vegas) , although a ticket will be probably 2-3 times the cost. Figure USA West Coast to Hong Kong just under $1000, and then work Hong Kong very comfortably for $100 a day, hotel, food, transport. Ten days in Hong Kong could be the best $2000 seminar you ever took.
Here is a throw-away video on Hong Kong I made a while back, which might give you some sense of how it is...
Feel free to forward this by email to three of your friends.
The best way to come up with the product or service, is the passion/joy process I've laid out earlier.
I've made clear many times it is disadvantageous to try to begin based on perceived "hot markets" or as Drucker warns, organize around resources. For these reasons I caution against anyone visiting a trade show before they have their product decided, for if not, you will be dazzled by some hot item and decide that you should do that too. And then you fail.
But trade shows are critical to the process of international trade. Last week I assisted a start-up at a USA trade show gain 14 customers from overseas, using the MOQ FOB tactic. The booth cost her $6000.
Independent sales reps promote your item in their booths at no cost to you. Say the commission you pay is 5% of sales, then 100% of what you pay them is that commission. They may have a dozen lines in that one booth. They are keen on writing orders, say $50,000 per vendor, $600,000 gross, and their 5% is $30,000 gross to them, less booth costs, etc. So reps are one tactic for getting into expensive shows.
Another tactic is to join others in getting a booth, and splitting the costs, but a rep is a better idea because they can serve the market after you go back home.
If and when you know what you are going to sell, then going to a trade show for that product may be instructive in a general way. Of course, as soon as you know what you will be selling, you should be focussing on getting the samples and costing and pricing and then of course selling. So the first trade show you visit ought not be only instructive, but you ought to have at least lined up meetings to meet buyers.
Show management never wants people to visit and do business without taking a booth. But start-ups may need to do just that. The shows lost no revenue in such a scenario, because such newbies were not a customer anyway. Yet, if one gets going by meeting buyers at a show, one may indeed become a booth-holder at some time.
Anyone who can afford to have a booth, but does not, is being foolish. A booth allows one to conveniently sell new items to old customers, and old items to new customers. I saves time and money for the vendor and the customers, who can conduct massive amounts of business in a few days. But this assumes one has collected a critical mass of customers to warrant a booth. I reject the idea of getting a booth to start-up a business, or to gain "trade leads." Booths are for writing sales orders. If and when you can reliably predict orders written will be 8 - 10 times the cost of the show, then a booth is a good idea. Until then, you are doing laser marketing.
Having said all that, you might even target a given show, once you know your product, and visit the show as neither buyer nor exhibitor (almost all shows have guest passes for people thinking of getting a booth). You'll be obliged to eschew deal-making as a guest, but there is nothing to keep you from having already made appointments to meet with people at the show (in the coffee shop?) or "back at the hotel lobby."
Now as I started out saying, in USA there is plenty of world trade going on at trade shows. The good people at the HKTDC.com pointed out there is far more going on at their shows in Hong Kong. Just about every category you can think of, Hong Kong has a trade show. And what I observe is young people from all over the world, starting businesses, flock to those shows. Expect synergies.
Say your product is jewelry, and the premier jewelry show is held in Vegas, well the largest in the world is held in Hong Kong. If you plan to enter international trade, which is better, meeting some foreigners in Vegas, or only foreigners in Hong Kong? USA will tend toward more established, I believe, since USA can be a challenge to visit, as opposed to Hong Kong which is wide open to business. Whether buying or selling, having settled on your product and done your research, what show should you target as a beginner? Well, one of those Hong Kong shows would be my advice.
But but but, that is so exotic, and expensive..? well... no, I can do food and lodging in Hong Kong cheaper than New York or LA (or Vegas) , although a ticket will be probably 2-3 times the cost. Figure USA West Coast to Hong Kong just under $1000, and then work Hong Kong very comfortably for $100 a day, hotel, food, transport. Ten days in Hong Kong could be the best $2000 seminar you ever took.
Here is a throw-away video on Hong Kong I made a while back, which might give you some sense of how it is...
Feel free to forward this by email to three of your friends.
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