Get Rich Quick? Thinking Bigg!

Dave Novak - SourceJuice

Do you ever watch television really late and see the guy selling that new real estate (become a quick millionaire) marketing package? Have you said to yourself “That can’t work…. can it?”. The answer to that question is no, it can not. However, if you are looking for a great success story then look no further than Dave Novak.

Novak is the classic “40 Hour Work Week” example. He was a cubical slave/art director turned shower and spa importer and eBay seller powerhouse. He dove into the high end spa market after concluding that there was so much margin purchasing from China that he could turn a huge profit selling at wholesale cost direct to consumers. With no experience, and for that matter, no idea if anyone would buy such a product on ebay, Novak became a success by being bold and thinking big.

I was turned on to this story by a great friend and colleague who peaked my interest one day with an email reading nothing but Novak’s website address and this question: “Dylan…doesn’t this guy remind you of the old days importing granite?“. Novak indeed followed a similar path to my own importing granite. I found a niche market, the margins were high, but would people buy?

Fortune favors the bold, Novak invested $2,000 in savings and continued to double his investment finally to the tune of $2,500,000 over a two year period. So what is Novak going to do with all that loot? Sell subscriptions to his “eBay Millionaire Secrets” website of course.

While my story starts out very similar, with a home-run importing granite, my experience with suppliers has not always been easy. Importing modular kitchen cabinets is a prime example of this and changed my approach to international trading. This is about someone who took a risk, found an opportunity in a niche market and like in poker, went “all in”. Dave Novak has been featured on Fox News, GoDaddy and StartupNation Radio. What his interviews don’t tell you is that there will always be bumps in the road along the way. Using SourceJuice as a forum, I invite Dave Novak to “Share His Expertise” on perseverance, a quality that goes hand-in-hand with success.

Every major company in the world has been started by risk takers who learned as the company grew. SourceJuice is here to educate you, excite you, inform you and learn from you through Sharing Your Expertise. We at SourceJuice celebrate all those that take the risk to do something.

So the core question that is in the forefront of everyones’ minds when doing business internationally or in China:

Is it possible? - Yes! Are there risks? - Yes.

Should I do it? - Do your research, read SourceJuice.com, invest in solid due diligence, scrap the idea and start over, talk to anyone and everyone that has done business in China…. and then the answer is Yes.

When I mean read SourceJuice, I mean read:

Dylan Blankenship signature
dylan@sourcejuice.com // Dylan Blankenship

April 11, 2008 | Filed Under Success Stories | Leave a Comment 

The Holy Grail of Risk Taking Entrepreneurs: Brits Get Rich in China Part 3 of 3

Brits get rich in China

As we conclude our series with this 3rd installation, for those new to the risk taking posts please see part one of the “Brits Get Rich in China” documentary series to get some background on the players and their individual goals and challenges and then go to part two since each of these videos are a must see. Sit back and relax as we get into the final episodes of this fascinating documentary with some dynamic risk takers.

Fascinating food, to say the least, is the menu item of the day for Vance and he is not going to have any of it. As we walk with Peter and his new business partner Sessel and then get into the back seat of their car, we are told of the potential for millions in profits that Peter’s product could reap in China.

However, we are also posed with the reality that is China today in terms of Intellectual Property protection and ownership as the commentator so quickly identifies the potential for Peter’s new partner to copy Peter’s product and take the profits himself. Many of you could probably relate to the commentator asking Peter questions about “did you check him out” and of Peter’s answers when so much is at risk.

Working late with Tony as we learn another lesson of doing business - that of focus. That is what Tony does and relentless he must be to get his business up and running. As he interviews potential employees, you may understand the magnitude of his challenges and opportunities in finding the right people to help him build his business.

Back to Vance and his “Olympic Inspection Committee” bus - make sure to listen to why he takes the risk to “counterfeit” his authority. It is fascinating to say the least.

Back to Vance and the village he literally employs. He made it safe with his “Olympic Inspection Committee” bus. When you talk about going to the “source”, Vance and his village represents the essence.

Jump into the car with Tony and off we are to his new shining factory with a welcome like no other! Can you say “WOW” and we can tell you something from our experiences in China that stuff gets done - period. Not to go into the much publicized issues of quality or with ingredients as in the Heparin Scandal, we can tell you that if the Chinese are focused on something they want, it will get done and almost nothing will stop it. It is this determination and resulting execution which has made the “Made in China” a mighty force in the realms of business all over the world.

Sitting in the KTV Club with Peter’s business partner, Sessel, we watch how business unfolds and many find this far different than Western countries, but is it really? Sessel gets down to business with a very connected business man and secures a commitment over drinks and entertainment China style. Change the language and this may be the same in South Korea to Japan if not in the clubs of Vegas or the private rooms in Europe. Business gets done and another day passes.

Now with Vance we realize yet again that business just gets done as his factory close to the borders of North Korea is humming along and bringing in the money. One important citing not to miss here is Vance’s new showroom. Vance, and many others, realize that China is just not the source but also the destination for his business and he realizes that Chinese consumers have both the money and interest to buy buy buy!

Getting paid - that is the question as the commentator so rightly notes and for the now optimistic Peter, that will be his next challenge and opportunity. Finally, as we walk in the streets of New York with Tony and then get a $3 million dollar order in a party where even the attendees are fascinated by China, we get to ponder the series once again and find that in these three men that risk taking is what they did and what they continue to do.

As we wrap up this series, let’s not forget these are real men with real lives. Many have made fortunes in China and many more have lost everything. Search on stories all over the internet and/or published books on China and you will find this to be true. The opportunities are everywhere and they are nowhere, but for those who are willing and those that have a taste for adventure, China just may be the right place to pursue your “Holy Grail”.

Don’t forget to share your stories and may fortune find you!

March 25, 2008 | Filed Under Success Stories | 1 Comment 

The Holy Grail of Risk Taking Entrepreneurs: Brits Get Rich in China Part 2 of 3

Brits get Rich in China

Risk taking continues in part two of this three part posting of the “Brits Get Rich in China” documentary series. If you haven’t yet seen our first posting on Brits Get Rich in China, Part 1 of 3 be sure to have a look before continuing on to part 2. Part 1 introduces you to the players and their individual goals and challenges.

We start off by getting to go with Peter Williams as he pitches his product to several parties in Hong Kong as a one man company. He is not successful but keeps to his belief and notes that “one has one’s setbacks but it’s like anyone in business will tell you..you either go on and overcome them or you give up…some of us weren’t made to give up.”

Back to Tony Caldera who stakes a large investment at a Shanghai trade fair to secure major orders. He brings his portfolio of cushions with an abundance of new designs. Concerned about people stealing / copying his products, he mentions the camera phone strategy used by competitors taking pictures of his products at the fair. Since it is so easy to copy (he shows how pictures are being taken by camera phones) it is difficult to protect new designs. Gets a big order at a trade fair and stress is the least of his problems now that he has an order and getting the factory up is now mandatory.

The skyline of Shanghai and back with Vance Miller as he takes us on a trip to the borders of China and North Korea as he describes how he is able to take advantage of the changing face of England’s decline and China’s rise in manufacturing capabilities and resources. How you might question? “Snapping up the carcasses” of English businesses laid to waste by China’s dominance in manufacturing is what Vance does as he buys multi-million dollar machinery in England for literally pennies on the dollar from bankrupt factories and ships them back to his factories in China.

As we have a drink with Peter in a suburb of Shanghai, we are told of his new business partner who has a track record of having access to power and more importantly relationships. As this new business partner, named Sessel Pih, talks of China as the “Wild Wild West” and how it’s life and death, he explains and this is a pivotal piece for those not acquainted with both the opportunity and the potential for absolute loss in China. A fascinating and very insightful strategy session is revealed in the exchange between Peter and Sessel – a must for all our readers even if you don’t plan on doing business in China for you are given an education that is very elemental about doing business in China but that is lost so quickly, if not overlooked. While you’re viewing this video, definitely replay Sessel’s explanation of the Four “C’s” that are “must haves” in China to be successful along with how to close the deal which will shed some humorous light on the realities of China today and those of America in the past.

Sessel’s Four “C’s” are”

Back to Vance and the intro of his son as well as something we at SourceJuice hold to be true – China is a capitalist country like no other. China is hungry, China is dynamic, and China is fast. As Vance describes “move over China is coming through big time”. Vance takes us on a ride to visit a supplier and what you may gleam off this visit is some fascinating dynamics of how “control” is both a necessity in managing your money as well as managing your supplier. Don’t forget to look at the “pen”.

March 15, 2008 | Filed Under Success Stories | 2 Comments 

The Holy Grail of Risk Taking Entrepreneurs: Brits Get Rich in China Part 1 of 3

Rural China Factories

SourceJuice is always on the scout for informative and uplifting stories and experiences to share. This YouTube series ‘Brits Get Rich in China’ is just that, and an excellent watch for all those with the entrepreneurship bug! In the first video in the series, we’re introduced to 3 business men, all with their own interesting story.

Tony Caldera - Tony was in the Cushion Business in England; and very successful as he was the #1 Cushion maker in Europe! However, his business was ravaged by Chinese Importers and he could not compete. Tony is headed to China to salvage his business, borrowing 2 Million pounds to restart his business.

Tony chooses the city of LinPing in China because it is famous for its textile industry. He proceeds to find a business partner (Chinese) which he turns over 30% of the company to for help managing and navigating China. He tasks her with building the factory.

As you can expect, most of the time when your partner or supplier provides information on status, quality, capability, etc there is a gap in expectations. You must discount what is said to ensure you expect issues and delays. Tony realizes this when he sees the status of his factory – not what his partner told him it was.. and not close to being completed.

Peter Williams – Peter is a former Colonel in the British armed forces and is now 7o years old. Instead of enjoying retirement he is embarking on selling to the Chinese. Hit product? Energy Savers for Air Conditioners (saves 20 to 30% of energy), which he has collected awards for in England.

Peter feels selling his device will be easy and invested all of his savings and last decade of life to do this business. Moving to Hong Kong he believes his box has unlimited potential due to the number of people in China. Peter believes he will make $500 Million USD in the next year.

Peter is optimistic but has never done business in China and doesn’t speak a word of the language. He is also very concerned about his intellectual property (IP). His box will be copied. He believes time is the enemy and needs to get his product out fast.

Vance Miller – Vance has a notorious reputation for selling cheap Chinese kitchen equipment in the UK, where he has ‘single handedly’ destroyed the UK’s domestic manufacturing base with his ultra-low prices. Vance is going to China to fix his supplier network.

42 year old Vance has made a fortune. He goes far off the beaten path to find suppliers and goes to the source to avoid middlemen. “Got to go right where it begins”, Vance says. Vance is an extremely interesting and passionate individual and you might be interested in seeing an excellent interview done by The China Business Network.

Vance goes to MaDu - a remote mining village, where there is a treasure trove of granite. He goes to personally inspect why he’s been having quality issues and it’s very interesting to see how Vance challenges the factory to show certain cartons, bypassing the factory’s “plan” for what he should see. If you’re interested in importing granite from China, check out the SourceJuice article Let’s Talk Granite - Pre-fabricated Granite Import Guide.

Vance drives around many towns and rural areas, showing how so many towns/cities in rural areas of China are focused on certain product lines. There is “Condom City”, “Zip City”, “Bra City” and ends up “Tap City” to meet a supplier called “Black Horse”, who is known for undercutting everyone in the city. Vance has some great price negotiation skills, breaking down a high end faucet into pieces to arrive at a much lower cost than initially quoted.

Continue on to The Holy Grail of Risk Taking Entrepreneurs: Brits Get Rich in China Part 2 of 3.

March 5, 2008 | Filed Under Success Stories | 6 Comments