          
          
          
          
            INTERNATIONAL BUSINESSES YOU CAN OPERATE FROM HOME
          
          Travel Businesses: Fun, Profit, and Door to Opportunity
          
               There are several ways to look at the travel
          business.  You can become involved just to get free or
          discount travel, you can do it as a full- or part-time
          business for profit, or you can use either of those
          approaches as a stepping stone to other international
          business opportunities.  If your travel business
          activities pay for your research and development work,
          any of the other ideas in this book can be much less
          costly to pursue.
               "Have coffee in Dublin at 11 and walk in Stephen's
          Green and you'll be in heaven." 
               You've replayed the words of that old song over
          and over in your head for years.  In fact, all your
          life, you've dreamt of seeing the Emerald Isle, of
          spending long evenings in Irish pubs, sipping Guinness
          and engaging in lively conversation. 
               The only thing that has kept you from making your
          dreams come true is money.  After all the monthly bills
          are paid, you never seem to have enough left over to
          afford a trip to Dublin. 
               But money need no longer be an obstacle.  You can
          arrange to see Ireland free -- maybe even make a bit of
          money in the bargain. 
               Cruise lines, airlines, tour companies, and hotels
          will gladly accommodate you free of charge -- even put
          cash in your pocket to boot -- if you promise to bring
          them a certain amount of business in return. 
               You don't have to be an experienced tour leader. 
          You don't need any experience as a salesman.  The only
          job requirements are enthusiasm and a desire to see the
          world. 
               The possibilities are endless.  You could lead a
          tour of Ireland's green, green countryside and ancient
          ruins.  You could lead an art tour of northern Italy. 
          A garden tour of Britain.  A river cruise in New
          Guinea.  An archeological expedition to Easter Island. 
          A family train tour of France.  A hiking trip in the
          Alps.  A castles and wine cruise of Germany.  A tour of
          rural Japan, visiting teahouses and farmhouses.  A
          cycling adventure in Scotland.  A luxury yacht charter
          in the Greek Isles.  And as the leader of the tour, you
          travel for free.
          
          Making a business of biking
          
               Peter Costello did it.  He had been working
          restoring antique furniture in Baltimore, Maryland.  It
          was a steady living, but what Peter really enjoyed was
          riding his bicycle and traveling.  If only someone
          would pay me to ride my bike and travel around the
          world, he thought.  Because he could find no one
          willing to do so, he decided to arrange it for himself.
          
               After a vacation to Scotland, his future was
          determined.  He would lead bicycle tours through the
          green and rolling Scottish hills. 
               Peter asked a former executive of a bicycle
          touring company in Vermont to act as consultant. 
          Scotland was the perfect place to begin the business,
          not only because Peter (whose family was from Scotland)
          knew the country, but also because the market was wide
          open.  In fact, no one else in the business was
          offering bicycle tours in Scotland. 
               Peter knew bicycling, and he knew Scotland.  But
          he didn't know anything about starting a business or
          leading a tour.  As Peter explains, "I took a crash
          course in Business 101." 
               "The touring is the easy part," he says.  "All of
          my tours begin and end in Edinburgh.  We take off down
          the road, supported by a van, exploring beautiful
          countryside.  We travel about 40 miles a day, and then
          spend the nights in comfortable, homey bed and
          breakfasts.  That's easy.  "The hard part is the
          marketing."
               Peter handles all of the marketing himself from an
          office in Baltimore.  He advertises in major bicycling
          publications and tries to generate business through
          travel agents. 
               Peter has been quite successful.  His amateur
          operation (Peter Costello Ltd., P.O. Box 23490,
          Baltimore, MD 21203; (410) 685-6918) has grown into a
          full-fledged business.  He employs two other tour
          leaders and leads 17 tours a year.  Peter attributes
          his success to two things: first, he was able to find a
          niche in the market; and second, he keeps his tours
          competitively priced.
          
          Keeping it low key
          
               Peter's tour operation has grown into a big
          business.  He is making enough money to support himself
          and two employees.  To get to this point, Peter has
          devoted himself completely to the company.  It has
          become his livelihood and his favorite pastime. 
               But it doesn't have to be that way.  You can
          travel for free as a tour leader -- and still maintain
          your regular job and home life.  It doesn't take a lot
          of time or energy to arrange one tour a year, for
          example. 
               But it still works in much the same way.  As Peter
          explained, the most difficult part is the advertising
          and marketing.  How do you convince four or five other
          people to pay you to act as their tour guide?   We'll
          tell you, step by step.
          
          How it works
          
               The first step is to decide where you want to go. 
          This should be the easiest task of all.  After all,
          this is the reason for arranging the tour in the first
          place -- to allow you to live out your life's dream of
          seeing another part of the world. 
               Once you know where you want to go, do extensive
          research on the area.  Call the tourist board and the
          embassy for that country and request all the brochures
          and literature they have available on hotels,
          restaurants, nightclubs, transportation, sightseeing,
          and local customs. 
               Spend a day or two at the library, poring over
          travel guides and reference books.  The best general
          reference guides available include Fielding's, Fodor's,
          and Frommer's (which include the Dollarwise series on
          budget travel).  Also read Lonely Planet's guides and
          the series known as Let's Go.  If your library doesn't
          stock these books, you can order them (as well as a
          catalog of worldwide travel guidebooks) from Forsyth
          Travel Library, 9154 W. 57th St., P.O. Box 2975,
          Shawnee Mission, KS 66201, or the Traveler's Bookstore,
          22 W. 52nd St., New York, NY 10019. 
               Also study local maps. Remember, everyone you
          bring with you will look to you for guidance. 
               Once you've become familiar with your destination,
          pick something unique about it and plan your tour
          around that theme.  It is easier to sell a tour of the
          stately homes of Britain's aristocracy than it is to
          sell a tour of Britain, period.  Look for a niche in
          the market, something that no one else is doing (or
          doing well). 
               Next, plan your itinerary.  Choose the hotels
          where you would like to stay, and then contact them to
          explain what you want to do.  Ask for special group
          rates and request that you stay free as the tour
          leader. 
               Do the same with the airline you wish to fly. 
          Find out what restrictions are attached to the cheapest
          tickets available.  Usually you have to purchase
          special fare tickets a certain number of days in
          advance.  Other restrictions involve the length of your
          stay and the days of departure and return.  Make sure
          you know about all of this up front.  And again,
          request that you fly free. 
               Plan some sightseeing and evening entertainment,
          but keep some time open.  Your group will want time to
          itself. 
               Make all of the plans -- but don't make any
          reservations.  At least, not yet.  Wait until you've
          gathered your group together and agreed on a departure
          date. 
               Next, set a price.  This will be the first
          question you are asked when you approach someone about
          joining you on your grand adventure.  Figure in all of
          your costs (airfare, hotels, ground transportation,
          sightseeing, taxes, departure fees, and any meals that
          you plan to include in the package).  Take this total
          and mark it up as much as you think the market will
          bear.  The lower your costs, the greater your profits. 
          You want to make at least enough to cover all of your
          expenses, including the entire cost of your trip.  Any
          money you make beyond that is an added bonus.
          
          Finding the people
          
               This brings us to the most difficult part of the
          project:  finding the tour participants.  The easiest
          way to do this is to tell everyone you know -- everyone
          you work with, everyone you run into at the
          supermarket, everyone you meet on the subway, everyone
          you play bridge with on Thursday nights -- that you are
          planning to lead a seven-day, all-inclusive tour of
          Germany's Bavarian castles (for example).  Tantalize
          them with tales of Mad King Ludwig, who built the
          country's most beautiful castle, Neuschwanstein, the
          turreted, white creation that Walt Disney used as a
          model for Disneyland.  Tell them about Linderhof
          Castle, near Garmisch-Partenkirchen, where the mad king
          had the dining room built directly above the kitchen
          and then installed a dining table that could be lowered
          into the kitchen, set by the cooks, and then lifted
          back up to the dining room.  Thus, King Ludwig could be
          waited on at dinner without ever having to be bothered
          by the servants. 
               Once you've got them interested, remind them that
          group travel is always cheaper than going it alone;
          they'll save several hundred dollars at least.  Remind
          them also that group travel is much more hassle-free
          than independent travel.  Tell them that you'll arrange
          everything.  You'll make all the reservations.  You'll
          check on all the train schedules.  You'll offer
          suggestions for good restaurants.  All they have to do
          is enjoy the experience.
               Another way to find tour participants is to
          advertise in travel magazines and newsletters.  It
          doesn't cost much to place a small classified ad. 
               You can also place ads in your local newspapers. 
          Make the ad simple.  Tell where you're going, when you
          plan to depart, how long you'll be staying, what the
          trip includes, how much it costs, and how to contact
          you for more information. 
               Another easy way to advertise is to put up notes
          on bulletin boards at community centers, colleges, and
          libraries in your area.  Include the same information
          you used in your classified ads.  This may be just as
          effective, and it will cost you nothing.
               Once responses begin coming in, create a log of
          everyone who has expressed an interest (either as the
          result of an ad or the result of a chance conversation
          at a bus stop).  Contact each person by phone or by
          mail and make a record of the correspondence.  If you
          don't hear back within a couple of weeks, send another
          letter or make another telephone call. 
               When someone does make a reservation, ask him if
          he can suggest anyone else who might be interested. 
          You'll find that word-of-mouth referrals will be your
          best source of new clients.
          
          Booking the trip
          
               Once you have your group together and you have
          determined an itinerary and a departure date, the next
          step is making the reservations.  You can do this in
          two ways: on your own or with the help of a travel
          agent. 
               If you go it alone, all of the profit is yours. 
          If the tour costs you $2,000 per person and you charge
          $3,000 per person, you'll make $1,000 off each tour
          participant.  If you have five people traveling with
          you, that's $5,000.  Assume that you're able to arrange
          for your airfare and accommodations free of charge (as
          the tour leader), and you're way ahead.  You'll spend
          several hundred dollars at your destination on your
          personal expenses; the rest of the $5,000 will be clear
          profit.  Plus, of course, you're getting the trip free. 
          Not a bad deal at all. 
               The disadvantage to all of this is that you alone
          are responsible for everything.  If you don't know what
          you're doing -- if you've never dealt with airlines and
          hotel managers and bus drivers and taxi cab drivers and
          translators before --- you might be in for a rude
          awakening.  Your dream trip overseas might turn into
          one huge headache.  It is possible to go it alone.  But
          it may not be practical. 
               So consider affiliating yourself with a travel
          agency.  True, the agency will take its cut of the
          profits -- but in exchange, it will share with you its
          wealth of experience.  It will tell you whether it's
          better to land in Beijing, tour China, and exit through
          Hong Kong or to land in Hong Kong, visit China, and
          return to Hong Kong for the flight home.  It can tell
          you which Rhine River cruises are a delight and which
          are taking water.  It can help you choose hotels.  It
          can tell you about special health requirements at your
          destination.  It can offer tips on the climate and how
          to dress.  It can tell you whether it's better to take
          a bus at your destination or to hail a taxi. 
               When looking for a travel agency to deal with,
          your first question should be, "What commission do you
          pay to outside agents?" (That is what you will be
          considered.) If the agency won't pay you a commission
          (and a sizeable commission at that) for the business
          you bring in, find another agency. 
               The second most important question involves free
          tickets.  Who gets them?  You or the agency?  Travel
          agents receive free airline tickets and vouchers for
          free hotel stays all the time in exchange for the
          volume of business they bring the airlines and the
          hotels.  But make sure that these tickets are also
          available to outside agents. 
               Ask about other outside agents working for the
          agency.  How many of these agents organize tours?  What
          kinds of tours do they organize? 
               And inquire about support for outside agents. 
          Will you be given a manual?  Reservation forms? 
          Guidebooks?  Will the agency maintain records for you? 
               And shop around.  Don't settle for less than you
          think you should be getting.  If you don't come out of
          the deal with at least a free trip, something's not
          right.
          
          
          Book with a tour company -- another alternative
          
               If you're intimidated at the thought of making all
          the arrangements on your own, but you don't like the
          idea of having to share your profits with a travel
          agency, you have a third alternative.  Decide on the
          tour you want to lead, and then book it through a tour
          company that offers free trips to individuals who
          reserve a certain number of spaces on their package
          trips. 
               Globus-Gateway, 95-25 Queens Blvd., Rego Park, NY
          11374, for example, offers a free trip for anyone who
          books 16 people on any of its tours to Europe and one-
          half off a trip for anyone who books eight people on a
          trip to Europe. 
               Saga Holidays, 120 Boylston St., Boston, MA 02166,
          offers one free trip for 20 bookings.  Destinations
          include Europe, Asia, the South Pacific, and South
          America. 
               Travel Plans International, P.O. Box 3875, Oak
          Brook, IL 60521, offers one free trip for 20 bookings
          on a safari to Africa. 
               Toucan Adventure Tours, 1142 Manhattan Ave., CP
          #416, Manhattan Beach, CA 90266, offers one free trip
          for 12 bookings on a tour to Mexico. 
               Newmans Tours, Suite 305, 10351 Santa Monica
          Blvd., Los Angeles, CA 90025, offers discounted trips
          for 10 bookings on trips to New Zealand. 
               The following companies also give complimentary
          trips to anyone who signs on five or six other people
          to travel with them: 
                Ambassadors World, 5601 Roanne Way, Suite 314,
          P.O. Box 9751, Greensboro, NC 27429 
                Bryan World Tours, P.O. Box 4156, Topeka, KS
          66604
                Friendship Tours Inc., P.O. Box 2526, Shawnee
          Mission, KS 66201 
                Travel Careers and Tours, P.O. Box 91102,
          International Airport, Los Angeles, CA 90009 
               In addition, almost all major cruise lines offer
          free tickets to anyone who can sign on 15 paying
          passengers.
          
          Trip tips
          
               You and five strangers are sitting in the airport
          lounge.  They answered your ads in travel magazines,
          and now they are counting on you to take them on a
          memorable tour of the castles of Bavaria.  How can you
          make sure that all the tour participants feel like
          they're getting their money's worth -- and still have a
          good time yourself? 
               Well, you will have to work a bit.  After all,
          these people have paid you money.  Following are a few
          tips to make sure all goes smoothly. 
               1. Take charge.  The old saying that too many
          cooks spoil the soup applies here.  As the leader, you
          should make all the arrangements and all the
          decisions -- within limits, of course.  Ask for input
          from the group, but don't waste time debating every
          move. 
               2. Be flexible.  Itineraries are made to be
          broken.  Don't be more concerned about following your
          original schedule than you are about enjoying the trip. 
          Take advantage of opportunities as they present
          themselves. 
               3. Make sure that no one feels left out or
          overlooked.  Ask if everyone is comfortable in his
          room.  If his luggage arrived safely.  If there is
          anything special he would like to do or see.  Don't
          ever let anyone eat alone during an unscheduled meal
          (unless he prefers to do so, of course). 
               4. Make time for yourself.  Promise your group
          your undivided attention from 10 a.m. until 6 p.m., for
          example, but make everyone know that he's on his own
          after that (except for one planned night out).
          
          For more information
          
               For more on traveling as a tour leader, read
          Travel for Fun and Profit by Larry King, available from
          Dreams Unlimited Inc., P.O. Box 20667, Seattle,
          Washington 98102; (206) 322-4304.  The cost is $12.95.
          
          
          Make money from a travel club
          
               Go anywhere in the world and never pay full price
          to get there...ever again!  PLUS, earn FREE vacations
          and cash...quickly and easily just by recommending
          INFINET to anyone you know.
               INFINET Travel Club was featured in the February,
          1993, issue of Money magazine.  They reviewed a number
          of travel clubs and selected INFINET for overall
          savings.
               Members get:  a full service travel agency, up to
          60% off everything you buy, GUARANTEED lowest available
          airfare, up to 60% off last-minute travel bargains, 50%
          off hotel discount programs, and a proven referral
          system!  Spreading the word is easy and profitable.
               There is an enormous earnings potential -- after
          all, everyone loves to travel and save money. 
          Absolutely no selling or travel experience required for
          success!
               INFINET cuts into their profits by rebating back
          to you 50% of the standard industry commissions.  (Does
          your current travel agent do this?)
               You can earn free vacations and cash just by
          recommending INFINET.  
               Before you even think of booking your next
          vacation or business trip, give Infinet a call to
          compare their prices and services.  You have absolutely
          nothing to lose...and thousands of dollars of savings,
          bonuses and free vacations to get!  You can use the
          Discount Travel Number 12639 to save money.  It's your
          chance to try Infinet at no charge before becoming a
          member.  Just call 1-800-966-2582 to book your trip. 
          There is no obligation to join, and you and your family
          and friends are welcome to use my discount number
          indefinitely if you prefer not to join.  By using this
          number, you will receive a discount of part of the
          standard industry commission, making Infinet less than
          the lowest fare the airline itself can give you.
               You may also call the number and just ask them to
          send you  membership information and information on the
          referral fee opportunity.  Be sure to specifically ask
          for the referral fee information as it isn't
          automatically included with the membership information. 
          The referral fee program is one of the most profitable
          travel industry opportunities available, as you can
          earn commissions on both membership sales and travel
          sales.  You can also get the information by writing to
          Infinet Travel Club, Dept. 12639, P.O. Box 1033,
          Cambridge MA 02140.
          
          
          Leading a tour with a twist
          
               We've a unique suggestion for anyone who loves
          boating, loves to travel, and is ready for a change in
          lifestyle.  It requires a little more commitment and
          investment than organizing a single tour a year, but
          the payoff is potentially much greater as well.  If you
          follow up on our idea, you could earn a comfortable
          living -- and spend your days floating down the
          riverways of Burgundy, France.  The idea is to lead
          guided tours of the French countryside -- in your own
          passenger barge.  As we mentioned already, this is not
          something to be undertaken lightly.  And it is not
          something to be undertaken by a total novice.  You
          should have a bit of experience in the boating
          industry. 
               But don't let these words of caution discourage
          you.  This could be the opportunity of a lifetime, a
          chance to live out your dreams. 
               Dennis Sherman did it.  He had been crewing on
          boats, primarily as cook, for years.  Mainly interested
          in barging, his knowledge of the industry served him
          well when it came time to take the plunge and purchase
          his own passenger barge. 
               "The barging industry is small and close-knit," he
          explains. "If you want to get into it, your best source
          of information, especially about boats for sale, is
          word-of-mouth." 
               Dennis' first piece of advice is that you
          shouldn't buy a working barge and convert it into a
          pleasure craft.  Too timely and costly, he says.  Nor
          should you try to build a barge from scratch -- that
          is, not unless you have nearly unlimited capital to
          invest. 
               The remaining option is to purchase a barge
          already operating as a pleasure craft.  Without
          contacts in the industry, it's paramount to begin by
          contacting a barge agent.  Dennis recommends Joe
          Parfaitt, Chantier du Nivernais, 89000 Mailly-La-Ville,
          France; tel. (33-86) 40-44-77.  Parfaitt has his own
          shipyard.  In addition to barge sales, he handles
          conversions. 
               When you've found a boat you're interested in
          buying, the next step is arranging the purchase.  Find
          an independent lawyer who is experienced with Americans
          doing business overseas.  Dennis consulted Catherine
          Kessedjian, 27 rue des Plantes, 75014 Paris, France;
          tel. (33-1) 45-40-86-27.  Experienced with handling the
          details of setting up a corporation in France,
          according to Dennis, dealing with Catherine "is like
          one-stop shopping," because she is capable in all
          areas. 
               Dennis set up a French corporation to handle the
          barge operation and an American company to handle the
          marketing.  This enabled him, with the barge operating
          under a French corporation, to arrange financing in
          France. 
               Dennis chose France as his location, because
          that's where the barge that he wanted to buy was
          operating.  But there are other reasons to choose
          France.  The country is striving to attract new small
          business, and therefore, any new venture in France is
          eligible for tax-free status for the first three years
          and considerable tax breaks the next two years.
          
          The capital investment
          
               How much does a venture such as this cost?  Dennis
          estimates $250,000, including purchase of the barge,
          any improvements, first-year operating expenses, and
          professional fees.  True, that's hardly free.  But
          think of the return.  After the initial investment is
          made, if your barge company is successful, you'll not
          only be able to travel the French countryside for free
          for the rest of your life, but you'll also have a
          comfortable annual income.  And the equity in the
          barge. 
               Dennis' barge, called the Papillon, travels the
          Burgundy region of France.  Spring and early summer, it
          cruises in the Nivernais; in June, the barge moves to
          the tree-lined waters of the Burgundy Canal; in late
          summer, it cruises the River Saine and the Canal du
          Centre, through the heart of the vineyards of Santenay;
          in the fall, the barge heads back to the Nivernais.  It
          makes one-week cruises for a 33-week season.
          
          
          How To Be an Importer...Or Exporter...Even From Home
          
               "How much?"
               "100 dirhams," answers the young boy, barely
          looking up from his work. 
               You make a quick calculation in your head and
          determine that the cost of the hand-fashioned silver
          bracelet is about $10. The workmanship is exquisite,
          and you find it hard to believe that these young boys,
          no older than 8 or 9, are able to create such beautiful
          jewelry. 
               "I'll give you 800 dirhams each," you respond. 
          "And I would like to purchase 25 of them." The boy nods
          excitedly and turns to fetch the wooden box filled with
          finished bracelets that is sitting on the table behind
          him. 
               You are wandering the dirt roads of downtown
          Tiznit, a tiny pink-walled city of Berbers situated
          along a caravan crossroads in southern Morocco.  You've
          come in search of merchandise to ship back home and
          resell. You figure you can sell the bracelets back home
          for about $35 to $40 apiece.  That's a profit of 300%. 
               Not planning to visit Morocco any time soon? 
          That's OK. You could buy furs in Finland. Finland is
          the world's biggest seller of farmed furs. The pieces
          are well-made and inexpensive.  So you can buy silver
          fox furs in Helsinki along the North Esplanade...and
          then resell them for a warm profit. 
               These scenarios may sound exotic and far- fetched
          at first. But think again. Purchasing unusual and
          unique goods around the world, and then shipping them
          to other countries, where they can be sold for
          tremendous profits, is becoming increasingly common
          among travelers who want to see the world but who can't
          afford an endless vacation. 
               Setting yourself up as a small-time importer is
          the next best thing. It allows you to satisfy your
          wanderlust while earning at least enough to pay for
          your trip. Plus, it makes all of your travel tax-
          deductible.
          
          One woman's story
               Kathleen Rozelle, an interior designer from
          Dallas, Texas, first thought of going into the
          international importing business when she and another
          designer were planning a trip to England to visit
          family. Once in London, they teamed up for a shopping
          spree. They shipped their treasures to Dallas, and then
          sold everything to clients and other designers. Within
          three years, the team made enough money to pay for the
          expenses of their trip (including transportation,
          accommodation, purchases, and shipping) -- and earned a
          $14,000 profit. 
               Confident after that success, Kathleen and her
          family teamed with two other designers for a three-week
          buying trip in France. They began their buying trip at
          the March aux Puces in Paris, which is open three days
          a week. The March Biron section of this enormous market
          is the place to search for antiques. 
               Another place to shop in France is Rouen. All the
          shops here are retail; they are clustered near the
          cathedral and close from noon until 2 p.m. 
               In the south, visit Biot, known for its hand-blown
          glass. (You'll have to pay more to have these fragile
          items packed and shipped.) Also visit L'Ile-Sur-La-
          Sorgue, where the antique shops are open only two days
          a week. At Moustiers-Saintes-Marie, an open-air market
          is set up every Friday in the main square. This region
          is known for its beautiful hand-painted dishes. 
               What lessons can you learn from Kathleen's story?
               First, that you must begin by choosing a country
          where you'll feel comfortable doing business. England
          is a good first choice, because there is no language
          barrier. (Of course, you should also pick a country
          where you want to travel.) 
               Second, study the market back home. Is there a
          demand for the items you plan to purchase? This is the
          most important consideration when deciding what exactly
          to import. The second thing to consider when choosing a
          product is personal experience.  What do you know
          something about? What are you interested in shopping
          for? 
               If you have a bit of experience with antiques (and
          if you love poking around in the dark and dusty corners
          of antique shops), then go with that.  In this market,
          smaller pieces of furniture, such as chairs and end
          tables, and knick-knacks and art objects that aren't
          easily found back home are the best bets. (Small
          accessory pieces also make sense from the perspective
          of shipping. They can be stashed inside the larger
          pieces to conserve space in the freight container.)
          Always mix your purchases. On return buying trips,
          purchase what sold well last time, and then buy a few
          new items to test.
          
          The Peruvian sweater trade
               Antiques is an obvious market for small-time
          importers. But it is hardly the only market. 
               Take Annie Hurlbut, for example. She imports
          alpaca sweaters hand-made in Cuzco, Peru. It all
          started as a birthday present for her mother. 
               Annie, then a graduate student at the University
          of Illinois, was studying the market women in Peru. She
          spent her days at the marketplace in Cuzco, working
          with the Andean women, who make their living selling
          handmade tourist goods, especially alpaca sweaters and
          ponchos. 
               Annie planned to fly home to Kansas City for her
          mother's 50th birthday party - and she needed a gift.
          She chose a fur-trimmed alpaca sweater- coat made by
          one of the market women. The present was extremely
          well-received. In fact, Annie's mother and friends went
          so far as to suggest that Annie had stumbled upon a
          real opportunity. The Peruvian Connection was born. 
               Annie continued her graduate studies, visiting
          Peru to do research, and then returning home with all
          the handmade sweaters she could carry. Her mother ran
          the business end of the company from her farm in
          Tonganoxie, Kansas. Their first customer was a local
          store, which placed a wholesale order for 40 garments. 
               "When my mother told me we had an order for 40
          sweaters, I almost panicked. I couldn't even remember
          where I had bought the first one." 
               Annie began running small space ads in the New
          Yorker and selling her sweaters across the country. 
          She personally visited the owners of stores in New
          York, Philadelphia, Chicago, and California, asking if
          they'd like to carry her line. 
               By this time, Annie had created her own design,
          patterned after what she'd found in Peru.  She'd made
          the sweaters of the market women into a classic fashion
          product that appealed to upscale boutiques. 
               The business really took off in 1979, when a
          reporter for The New York Times Style Section saw
          Annie's sweaters at the Fashion and Boutique Show in
          New York. Annie and The Peruvian Connection received
          front-page billing -- which brought in thousands of
          requests for catalogs. 
               Annie has been running her import business for 10
          years. She spends part of each year at home in Kansas -
          - and the rest of the year in Peru. Not only does her
          business bring in enough money to pay for her regular
          trips to South America -- but it has grown into a big-
          time mail-order company that provides a living for both
          Annie and her mother. 
               Annie has organized 25 cottage industries in Peru
          that work for her under contract. She works out the
          designs and patterns, and then hands over the
          production to the Peruvians. Everything is shipped by
          air to the United States. 
               What words of advice does Annie have for anyone
          considering getting into the international import
          trade? 
               First, don't try to handle the production and the
          marketing yourself. You end up spreading yourself --
          and your money -- too thin. 
               It's better to come up with a good product,
          something that no one else makes as well, and focus all
          your attention on the production. It's not that
          difficult (or costly) to set up the overseas production
          of a product. It's the marketing and advertising that
          can drain you. Sell yourself once to a backer, and then
          let him handle it from there. 
               Annie's other piece of advice is that you should
          give a lot of thought to where you set up shop.
          Americans should think twice, she warns, before opening
          a home office for an international importing company in
          New York. This city is overwhelmed with shipments, and
          you can end up waiting a couple of weeks to see your
          merchandise.  Things go much more quickly and smoothly
          in the Midwest, for example. 
               Another thing to consider is customs regulations.
          However, Annie assures all would-be entrepreneurs that
          they won't have any problems with customs. Importers
          bring a lot of revenue into their home country and are
          generally treated well by their home governments. 
               Nonetheless, you will have to pay import duties.
          In the United States, duty is generally about 20%,
          depending on the type of goods being imported.
          
          Cashing in on Brazil's mineral rush
               How much money do you need to go into the import
          business? 
               Harvey and Michael Siegel, brothers born in Long
          Island, New York, did it with about $400. 
               A boyhood fascination with rock and rubble led
          these two to Brazil, where they filled their knapsack
          with $400 worth of agate ashtrays. This was the
          beginning of Aurora Mineral Corporation, which is now a
          leading wholesaler of semi-precious stone and mineral
          specimens, with a client list that includes the Harvard
          University Museum, the Smithsonian Institution, and H.
          Stern Jewelers. 
               The brothers didn't fly down to Brazil with
          armloads of research, deep pockets, and a long list of
          connections. On the contrary, this was a seat- of-the-
          pants operation. The Siegels' cousin had traveled to
          Brazil for Carnival the year before, met a Brazilian
          girl, and decided to stay. He was their only connection
          in the country, and he agreed to act as their agent. 
               Having a reliable agent can really make or break
          an import business. The agent's role is to screen
          products, accompany the importer on buying trips,
          consolidate orders from multiple suppliers, and arrange
          for a shipper to transport your merchandise back home.
          You can work without an agent -- doing all the legwork
          yourself -- but your job is made much easier if you
          have someone working with you. 
               "It is invaluable to have someone on the spot to
          shop the market constantly," says Irving Viglor, a New
          York-based international trade consultant. An agent is
          independent and acts as an intermediary in a deal but
          does not take title to the merchandise.  "Pay the agent
          a commission to protect your interest," warns Viglor.
          "Don't let the vendor pay the commission. And always
          check references." 
               Aurora Mineral Corporation mines for its minerals
          (figuratively speaking) in the tiny towns of La Jeado
          and Salto Jaqui in Rio Grande do Sul, Brazil's pampas
          grasslands bordering Uruguay and Argentina. Actually,
          the local Brazilians do the mining. They dig for
          amethyst and agate with back hoes on land leased from
          farmers. The bounty is sold by the kilo from wood
          shacks. 
               North of Rio Grande do Sul is the state of Minas
          Gerais, where quartz crystals, rose quartz, fossils,
          aquamarines, topazes, and uncut emeralds are mined. The
          finest quality pieces are purchased in their natural
          form and sold to museums or collectors at trade shows. 
               In addition to the minerals themselves, the
          Siegels also import decorative pieces made of amethyst,
          agate, and quartz. The stones are carved into birds,
          grape clusters, coasters, spheres, book ends, ashtrays,
          and clock faces. 
               These finished pieces are culled from one- person
          workshops and larger factory warehouses. "In Minas
          Gerais, unlike in the south, you deal with many small
          suppliers. An agent is particularly important here,"
          says Michael. 
               The recent craze for quartz crystal, believed by
          some to have curative powers, has meant big business
          for Aurora Minerals. The World Prayer Center, a
          Buddhist house of worship in Maryland, mortgaged its
          real estate to pay for its collection of quartz
          crystal, which it purchased from Aurora Minerals
          
          Your Brazilian connections
               All Brazilian exporters are required to file
          annually with the Department of External Affairs in
          Brasilia. These records are accessible, free of charge,
          from the Brazilian Government Trade Bureau, 551 Fifth
          Ave., New York, NY 10176; (212) 916-3200; fax (212)
          573-9406, or their offices in many major countries.  If
          you're interested in going into the import business in
          Brazil, it would be a good idea to review these records
          to find out something about the competition you'll be
          up against. 
               In addition, the Brazilian Government Trade Bureau
          offers free consultations for anyone interested in
          doing business in Brazil. Other complimentary services
          include use of meeting rooms, conference calls with
          simultaneous translating services (you pay only for the
          telephone charges), assistance with travel arrangements
          to Brazil, and referrals for accountants, lawyers, and
          agents who are experienced with matters of import and
          export. 
               The deputy director of finance for the trade
          bureau, Luiz de Athayda, can answer all your questions
          pertaining to the Brazilian economy, banking, and
          financial regulations. Contact him at the address given
          above. Or contact the trade bureau's office in
          Washington, D.C., (202) 745-2805. The Brazilian-
          American Chamber of Commerce publishes a listing of
          trade opportunities for U.S.  businesses in Brazil and
          vice versa. This international swap meet is part of a
          bilingual business newspaper called The Brazilians. To
          submit a listing (which is free of charge) or to reply
          to a posting, contact The Brazilian-American Chamber of
          Commerce, 42 W. 48th St., New York, NY 10036; (212)
          575-9070; fax (212) 921-1078. To receive a copy of the
          newspaper itself, call The Brazilians, (212) 382-1630
          in New York or (55-21) 267-3898 in Rio de Janeiro.
          
          Choosing an import
               If you're intrigued by the idea of setting
          yourself up as an importer as a way of paying for your
          world travel, but you don't have an idea for what
          exactly to import, attend the Frankfurt International
          Fair. This exposition, held every August, is known as
          the Cannes Festival of Consumer Goods. It is the best
          place in the world to preview the latest European
          trends. Among the exhibits are clocks, tableware, home
          accessories, lighting fixtures, giftware, housewares,
          arts, and handicrafts. For more information on this
          year's festival, contact Messe Frankfurt Office,
          Ludwig- Erhard Anlage 1, 6000 Frankfurt am Main 1,
          Germany; tel. (49-69) 75-63-64. 
               If you can't make it to this annual fair, you
          surely can make it to one of the other 16
          internationally renowned trade fairs held each year in
          Frankfurt, which has become a mecca for international
          importers. For a calendar of the fairs and more
          information on how to make arrangements to attend,
          contact Philippe Hans, Frankfurt Fair Representative,
          German American Chamber of Commerce, 666 Fifth Ave.,
          New York, NY 10103; (212) 974-8856. 
               And remember, if you attend any of these fairs to
          do research for your import business, all the costs of
          the trip are tax-deductible.
               A publication that has provided many product
          sources since 1963 is Worldwide Business Exchange, a
          monthly newsletter with hundreds upon hundreds of
          leads, contacts, sources, and resources every month. 
          It covers not only import sources, but also business
          financing, channels of distribution, franchises, new
          products, finder's fees, mergers & acquisitions,
          venture capital, joint ventures, partnerships and more. 
          Information and current subscription prices can be
          obtained from Worldwide Business Exchange, Dept. 70197,
          P. O. Box 5385, Cleveland TN 37320.  
               It also has free advertising for subscribers,
          giving every subscriber a chance to offer what they
          have available, or request what they want -- at no cost
          -- because that's what makes it a networking
          publication.  Subscribers don't just "read" the
          Worldwide Business Exchange -- they buy, sell, trade,
          wheel & deal and share opportunities with each other. 
          If you just like to read about business, any old
          publication will do.  But if you do business, Worldwide
          Business Exchange is for you.
          
          
          The value of a home-grown import
               The import companies that prove most successful
          are those that grow out of a native cottage industry
          whose product is considered exotic or rare back home.
          That's why Annie Hurlbut's import business is booming.
          She discovered a cottage industry that was already
          thriving in Peru -- and then transported the fruits of
          that industry back home to the United States, where
          alpaca sweaters handmade in Indian designs are valued -
          - and not easy to come by. 
               An idea for a similar import is handmade cotton
          clothing from Guatemala. The colorful and comfortable
          shirts and skirts being made here can be bought for
          virtually nothing -- and then shipped back home, where
          young girls are willing to spend a pretty penny on
          these fashion statements. We know of a couple, living
          in Maryland, who travel to Guatemala several times a
          year to purchase the handmade clothing, and then ship
          the pieces to the United States for resale. Like Annie
          Hurlbut, this couple is not only able to travel to
          their favorite South American country three or four
          times a year free -- but they are also making a
          comfortable living off of the profits of their small
          import company. 
               The ideas are virtually limitless...handmade
          Mexican blankets, which can be purchased anywhere in
          Mexico for a few dollars and then resold in the United
          States for $30 or $35...brass pots from Morocco, which
          can be purchased in any shop or from any street vendor
          for about $15; these can be sold in the United States
          for at least twice that...tiny wooden boxes from
          Uruguay, useful as decorative objects or for storing
          jewelry; these sell for $5 or $6 in nearly every gift
          shop in Montevideo and can easily be resold in the
          United States for $10 or $15...  Similar deals can be
          made between any two countries. 
               Where do you want to go? Which country of the
          world are you interested in exploring? That should be
          the primary determining factor when trying to decide on
          an import. Remember, the whole idea is to use the
          import business as a way of paying for your travel.
          An unusual suggestion for the importer in Sulawesi
               In Sulawesi, Indonesia, craftsmen make traditional
          wooden sailing boats using methods little changed from
          those used hundreds of years ago. These boats, built
          without hand tools and without electricity, come minus
          an engine, and they have two huge steering oars instead
          of a rudder. 
               Known as an Indonesian pinisi, a boat of this type
          is a cross between a junk and a 16th-century galleon.
          The pinisi was once the sailing ship of choice among
          the fierce Bugis pirates, who ravaged the islands of
          Indonesia and conquered much of mainland Malaysia. 
               It is possible to buy one of these boats for as
          little as $5,000 or $10,000. Of course, you must travel
          to Ujung Pandang, the capital of Sulawesi, to do so.
          But that's where the adventure begins. 
               Once in Ujung Pandang, your first job is to find a
          reliable agent, who speaks the language and who knows
          something about building a pinisi. One agent we can
          recommend is a Mr. Rustum, who can be contacted at
          Jalan 302/10, Ujung Pandang, Sulawesi, Indonesia. 
               But perhaps the most helpful person in the
          traditional boat trade in Sulawesi is a Yugoslavian
          sailor named Ivo Rebic. Ivo speaks fluent English and
          Indonesian and has spent two years researching
          traditional wooden boat building. He is your best bet
          for reliable and enthusiastic local assistance. 
          Contact him in care of Evie Rumagit, Jalan Sumba 86/9,
          Ujung Pandang, Sulawesi, Indonesia. 
               Once you have found an agent, the next step is to
          find a competent builder. The biggest boat building
          center in Sulawesi is Tana Beru. At any given time,
          there are 50 boats being built along the palm-lined
          beach of this seaside village. 
               One of the most respected builders in this area is
          Usman Hasan, an Indonesian Chinese who has the most
          Western-style approach to the boat- building business
          of anyone in Tana Beru. You can contact him at Jalan
          Tokambang 072, Bulukumba, Tana Beru, Indonesia. 
               Now, you may be thinking, that all sounds
          intriguing, but why in the world would I want to buy an
          Indonesian pinisi? 
               First, it is a wonderful excuse to travel to
          exotic Indonesia and have the adventure of a lifetime. 
               But more than that, investing the time and money
          in building a pinisi in Sulawesi makes it possible for
          you to see Indonesia free. 
               Before you take off for Sulawesi, contact marinas
          and boat clubs in your area. Put up notices on the club
          bulletin boards explaining what you're planning to do.
          If you're lucky, you may be able to arrange for a buyer
          -- or a sponsor -- before you depart for your trip. But
          at the very least, you'll build interest in your
          venture. 
               Once your boat has been built and shipped back
          home, contact all those marinas and boat clubs again.
          And place small ads in boating magazines and
          newsletters offering your rare and authentic Indonesian
          pinisi for sale -- for several times what you paid for
          it. You should have no trouble finding a buyer -- these
          boats are beautiful and truly exotic in any other part
          of the world. Any boat lover anywhere would be thrilled
          at the opportunity to own one -- and probably more than
          happy to pay enough to cover all the costs of your trip
          to Indonesia.
          
          Buy a Chinese junk
               Years ago, the harbor at Hong Kong was filled with
          Chinese junks. These flat-bottomed, high- sterned
          sailing vessels with square bows and masts carrying
          lug-sails served as floating homes for thousands of the
          island's residents. Today, these traditional junks are
          disappearing from the harbor.  They are inconvenient
          and uncomfortable places to live. And few new junks are
          being built. 
               But that is not to say it is no longer possible to
          buy a junk. You can get one for as little as $8,000 or
          $10,000. They are listed for sale in the classified
          sections of local newspapers. 
               This gave us an idea. You could travel to Hong
          Kong, purchase an old junk, and then go on an
          extravagant shopping spree in the myriad antique shops
          that line the streets of this city. Oriental carpets.
          Porcelain and marble statuary. Centuries-old Chinese
          vases. Jewelry. Carved wooden boxes. 
               Then you could pack up all your Chinese treasures,
          stash them in the holds of your Chinese junk, and have
          your junk loaded on to a huge ocean freighter and
          shipped back home. 
               While your treasure chest is crossing the sea,
          contact the local media of the city where the ship will
          land. Send out press releases. Alert everyone in the
          area that an authentic Chinese junk, filled with
          valuable Chinese antiques, will be landing in the
          city's harbor. Make it a gala event. 
               All the press coverage of the junk's arrival will
          help you sell the treasures it contains. You should
          make enough to pay not only for the antiques you
          shipped home, but also for your adventure in Hong Kong.
          
               What do you do with the junk? Well, you may decide
          to keep it -- you'd surely be the only one on your
          block to own one. Or you could sell it. A Chinese junk
          is a rare and valuable thing outside its home country.
          You could sell one back home for several times what you
          paid for it in Hong Kong. 
               The real wealth angle here, however, is not buying
          a Chinese junk.  It's using your imagination to unlock
          profits that no one else ever thought of.  Ultimately,
          your imagination -- along with your patience and energy
          -- is the key to your fortune.
          
          Before you buy anything...
               You can simply take off for parts unknown, with
          several hundred dollars cash (or traveler's checks) in
          your money belt, and buy up a few dozen of whatever
          strikes your fancy and you believe will sell well (and
          for a premium price) back home. It really could be that
          simple. 
               But taking off blind can also be a bit risky. 
          Better to do a bit of homework first. 
               Begin by reading everything you can get your hands
          on about the country where you want to travel. What do
          the local craftsmen make there?  What do they make it
          out of? Where can you buy it?  How much will it cost?
          Will it ship easily? 
               A good first contact is the embassy or tourist
          board for the country where you'll be shopping. 
          Representatives at these offices should be able to
          provide you with some of this information over the
          phone; most are natives of the country they are
          representing. 
               Also ask a staff member at the tourist board for a
          listing of department stores or specialty shops in your
          area that carry handicrafts or other goods imported
          from his home country. Then go to see for yourself what
          is being sold, for how much, and to whom. 
               It is also a good idea to introduce yourself to
          the owners, managers, or buyers of a few shops in your
          area. Tell them about your shopping trip and your plans
          for importing goods back home. Ask what they would be
          interested in carrying and what prices they would
          charge. (Remember, most retail outlets mark prices up
          100%.) You might even get an order before you leave. 
               The other things to investigate before you take
          off on your grand shopping adventure are customs and
          rates of duty in your country.  Explain to your local
          customs service what you are planning to import and to
          where and ask that you be sent all relevant information
          on clearing customs and paying the appropriate duties.
          
          Setting a price
               Don't wait until you've returned home, suitcases
          full of silver bracelets and brass pots, to determine
          prices for all of your exotic treasures. If you leave
          all of this to chance, you may be in for a very
          unpleasant surprise. 
               Instead, do a bit of arithmetic before you even
          get on the plane. 
               Start with the purchase price. What do you think
          you'll have to pay for whatever it is you plan to buy?
          Add the expected costs of shipping and duty. This gives
          you your total cost. Double it, and you have the cost
          you can charge the retail outlets you do business with.
          Double it again, and you have the cost the retail
          outlets will charge their customers. 
               Say you plan to buy wool blankets in Mexico for $8
          each. You know the cost of shipping each blanket will
          be $1, and the cost of duty will be $2. That's a total
          of $11. Double this to get $22, the cost you should
          charge when selling your blankets to a retail outlet.
          Double that again, to get $44 -- that is the cost to
          the consumer. Is the blanket worth $44? Is it worth
          more than $44? Consider the market. What else is
          available?  How much is it selling for? Who is buying
          it? 
               If the total cost to the consumer you come up with
          sounds like too much -- or too little -- make
          adjustments one way or the other. In the case of the
          Mexican blanket, for example, $44 is a bit high. The
          retail outlet may only be able to sell the blankets for
          $35 apiece. Thus, you can only sell them for $17.50
          apiece. This means that the most you can pay is $5.75.
          It's possible to buy blankets in Mexico for $5.75
          apiece -- if you buy a dozen or more at one time, and
          if you know how to haggle. If, however, once you get to
          Mexico, you find that you just can't find the blankets
          you want for the price you can afford, reconsider.
          Maybe you ought to be shopping for silver earrings
          instead. 
               Remember also that the whole purpose of importing
          the goods in the first place is to pay for your trip.
          So, once you've arrived at a price, determine how much
          you will make if you sell all of the merchandise you
          have imported back home. Make sure you'll come out
          ahead -- or at least even. If not, reconsider, both the
          pricing and the merchandise you're importing.
          
          The shipping factor
               One of the most important considerations for
          anyone in the import business is shipping. 
               The shipper you deal with is responsible for
          picking up your purchases at the shop, packing them,
          and shipping them back home for you in 20-foot
          containers. With some shippers, you can arrange for a
          split-container. This way, the shipper doesn't send the
          merchandise until he has enough going to your city to
          fill the entire container. Shipping costs about 15% of
          the value of the merchandise when a full container is
          sent; about 25% or more when a partially filled
          container is shipped. 
               The shipper should provide you with stickers (one
          is attached to every item being shipped), a shipper
          booklet (in which you record the merchant's name, the
          agreed-upon-price, your company name, and a description
          of the item), and the name of a driver, if you need
          one. (If English is not spoken in the country where
          you're shopping, you'll need a driver to help you find
          the markets and to negotiate with the merchants. A
          driver can be expensive -- as much as $75 a day. But
          this is a worthwhile investment.) 
               How can you find a competent and reliable shipper?
          Two good places to try are your embassy in the country
          where you will be shopping and the local chamber of
          commerce office.
          
          Tricks of the trade
               Always carry a Polaroid camera, a 35mm camera, and
          lots of film with you when shopping for merchandise to
          ship home. Take two pictures of every item purchased,
          one Polaroid and one 35mm.  Keep two ledgers: one that
          lists prospects, another that lists actual purchases.
          This way, if you're unsure of something, you can easily
          go back to buy it later -- you've got a record of where
          to find it. 
               Europe does not have the same type of wholesale
          market, but they do have large wholesalers.  They may
          not be willing to deal with an individual, which is one
          good reason to form a company first. But if you tell
          merchants that you are buying for export, they'll
          usually give you a 15% to 20% discount. 
               In some countries of Europe, especially France,
          the entire country goes on holiday at the same time. In
          France, it is the month of August.  Plan your buying
          sprees around these holidays. 
               Always keep all of your invoices and receipts.  If
          your merchandise doesn't arrive as expected -- or if
          you have to prove the value of your goods to a customs
          official -- you will be lost if you've accidentally
          thrown away your documentation.
               What governments won't allow you to import Many
          countries have passed stringent laws against importing
          many of Mother Nature's souvenirs from foreign
          countries, and many of these types of products are
          protected by international treaties.  These laws have
          been established to protect endangered animal species.
          Certain plant species are also outlawed as imports. If
          you ignore the regulations and try to import two dozen
          pairs of Brazilian alligator pumps (because you're sure
          you can sell them back home for a 200% profit, and you
          simply can't resist the opportunity), you risk having
          your booty snatched. You may even be hit with a hefty
          fine.  So check the regulations of your destination
          country carefully.
          
          Sell American...and make a fortune doing it!
               What would happen if, in your business, all you
          did was "buy" from yourself?
               You wouldn't make very much money, would you?
               Think about it!  That's exactly what this country
          would be doing if we only "Buy American."
               Every time we sell an American made product in the
          international marketplace, those dollars come back into
          the U.S. economy, increasing profits, creating jobs,
          making America stronger.  80% to 85% of U.S. businesses
          don't export.  
               But American products are in demand.  Amway
          recently went into Mexico, expecting $3 to $4 million
          in sales the first year.  Instead they hit $15 million
          in sales the first year and $50 million the second
          year, and said that they have never seen such strong
          demand for American products in any of the more than 20
          countries they are now in.
               Yet it seems that when someone thinks about
          getting into international trade, they decide to import
          instead of export.  Actually, exporting is just as easy
          as, maybe even easier than, importing.  Besides, as an
          importer, you have to buy things to sell here...that
          takes money.  But, as an exporter, you are selling
          things overseas...which doesn't take much money at all.
               As a matter of fact, you can actually start your
          own export business for a couple hundred dollars.  Your
          very first order could easily return your investment
          ten-fold or more.  There are thousands upon thousands
          of products you can start exporting tomorrow!  Most of
          the books and courses on exporting being offered today
          are theoretical, not practical.  In reality, selling
          overseas is no more difficult than a company in New
          York selling & shipping a product to a buyer in
          California.  
               The most useful complete startup is a manual
          called "Sell American", and you can get free
          information on it by writing to Sell American, Dept.
          70197, P. O. Box 5385, Cleveland TN 37320.   Once you
          finish reading "Sell American" you can export U.S. made
          products simply and easily, and start earning your
          fortune in the international marketplace.
               With the end of the cold war, unification of
          Europe, the breakup of the Soviet Union, and free trade
          agreements being established in the Americas, every
          entrepreneur should now recall the words of Thomas
          Jefferson -- "A merchant, by his very nature is a
          citizen of the world."  While the governments discuss
          the issues of world trade, it is up to us as merchants
          (entrepreneurs) to meet the challenge head-on with
          action, instead of talk.  As an American entrepreneur,
          you should make it your responsibility to "Sell
          American."
          
          
          
