Global Business

Florida companies are buying, selling and making products overseas.

Step into a Circuit City to shop for a digital camera and you'll find products made by Tampa's Vanguard Products Group. No, not the cameras. Vanguard makes the security apparatus that prevents customers from stealing the merchandise off the display. Seven-year-old Vanguard employs 20 and generates between $15 million and $20 million in annual revenues, according to Co-founder and President Chris Kelsch.

Vanguard's security systems are a combination of electronic components, cables, metal brackets and plastic display items. Some of the parts are made locally at Brooksville's Chapman Tool & Mold, some are made in Chicago, but most of the electronic items are made at China's booming manufacturing centers in Guangdong province and the Shenzhen special economic zone.

Kelsch says the company initially worked with an engineering firm in Singapore that arranged for the manufacturing in Indonesia and Malaysia. But in 2002, Kelsch hired his own sourcing person. Over time, Kelsch says, "We just gravitated to some of the larger manufacturers," noting that Vanguard now works with one major Chinese supplier and a handful of others. He makes several trips a year to strengthen the relationships and keeps a close eye on potential issues such as currency fluctuations and shipping costs. So far, neither has been a problem. What has been a concern are intellectual property rights. That's where Kelsch has chosen Chinese manufacturing companies he trusts over the lower prices offered by other Chinese firms. He says, "We've gotten very good partners."

Tips for Going Global

• Research the market. Before doing anything else, check out the market you are interested in by talking with a trade specialist at one of Enterprise Florida's six Field Offices or the U.S. Export Assistance Center nearest you (see below).
• Be patient. "Allow for it taking 50% longer to make money than you originally planned," says Arthur J. Furia, an attorney with Gunster, Yoakley in Miami. Have enough capital. Plan your global expansion carefully, making sure your core business won't suffer if you need additional money to enter a market. "The capital raising aspect is the most important part," says Furia.
• Don't be na?ve. Chris Kelsch, president of Tampa security products maker Vanguard Products Group, says, "Don't go in as a trusting person." Always check out information provided to you and make site visits to overseas partners' locations.
• Consider language and culture. If you are going to do business in Latin America, speaking Spanish is a big plus. On the other hand, Kelsch says in China all his communication and documentation is in English.
• Remember timing. Whether you are buying or selling overseas, keep in mind that transport, customs and red tape can crimp your plans. "You have to be pretty good at forecasting," says Kelsch.

Tags: Florida Small Business, Business Services