Develop, Finance, Supply & Insure Your Way to International Business Success

Develop, Finance, Supply & Insure,

Are services offered by Broad Street each day.

 In crossing the borders, the headaches we cure,

     For clients who risk, we hold danger at bay

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The deals are global, the problems are massive,

A shepherd is needed to guide business along,

We highlight the issues, and structure financing,

We help sellers export and their buyers grow strong

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We’re Fluent In Foreign and help grow the business

For those who seek to franchise, or invest,

Until they succeed we patrol cross the borders,

Until YOU succeed, our Team shall not rest

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So as you get settled and learn all about

The business of projects, and exports and risk.

Remember to smile, as there is no cure 

From catching the bug called “Global Deals Disease”

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And once you are ready to venture to strange lands,

There is only one thing you can count on for sure,

We are here for you and there is no one better,

When you need to Develop, Finance, Supply & Insure

http://www.broadstreetcap.com

 

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Broad Street Capital Group announces major expansion campaign

Broad Street Capital Group announces major

expansion campaign to meet surging demand for

its ExportBoost™ program.

18 Merchant Banking Offices to open in multiple countries

in the next 18 Months

 

 

To Invest In The Rise Of The Emerging Market Consumer Start By Looking In Their Fridge

TASSOS STASSOPOULOS, THE ALLIANCE BERNSTEIN BLOG 

It’s not easy for investors to grasp the dynamics of consumer spending in diverse emerging markets. We think the best way is to look inside the refrigerators of people across the developing world.
Refrigerators are more than just iceboxes. Their contents speak volumes about their owners. And their proliferation signals a country’s economic progression. So the fridge and its contents can serve as a guide for investors seeking to tap emerging consumer spending, which is projected to grow eightfold to US$63 trillion by 2030, according to our forecasts, based on OECD data.

Devices Are Deceiving

Emerging consumers defy simple classifications. Some analysts look at income, assets or people per room as a framework. In our view, these indicators are flawed. For example, a Living Standard Measure counts the number of certain items in a home to determine a household’s socioeconomic status. So a person with a laptop, TV, mobile phone and stereo could be classified as rich. Yet in our field research, we’ve met people in countries like Ghana whose ramshackle homes are full of electronic devices but who are quite obviously poor.

Kitchens offer a more honest reflection. Behind the fridge door is an abundance of information that can help us understand who emerging consumers are and how they’re likely to spend money in the future. We’ve analyzed the contents of 70 refrigerators in rural and urban homes that we visited across 12 developing countries from Chile to China. While it may not be a statistical sample, the initial patterns we’ve seen suggest that the inside of a fridge mirrors the status of a home.

Food for Thought

In working-class homes, the fridge is used mainly for efficiency items (Display). It includes basic foods such as eggs, fruits and vegetables and some pre-cooked food. Middle-class fridges stock more indulgences, from alcoholic beverages to chocolate and cheese. And for affluent households, health is a primary concern. So expect to find foods like low-fat Yoghurt or 100% fruit juices.

Why is this important? Because once we understand how people’s tastes change as their income levels increase, we can also figure out how to invest in the consumer evolution as the refrigeration revolution sweeps through a market.

The display below shows penetration of refrigerators in different countries as income levels increase, from 1980 through 2013. In developed markets, more than 99% of households have a fridge. Brazil isn’t far behind. In China, about 86% of homes had a fridge. But in India, by contrast, only about 27% of households were able to chill their food. This is likely to increase rapidly as annual per capita incomes reach US$3,000, which seems to be the tipping point for rapid adoption of refrigeration.

refrigeration revolution The AllianceBernstein Blog

Indulgences in China

Our research suggests that China is in the indulgence phase. So companies that make products like beer, butter and chocolates should benefit from rising incomes. Indian families are still buying fridges, then filling them with efficiency items like milk, yogurt and ready-made sauces. Brazil has already shifted toward health mode, which should see higher-end food producers draw more spending.

Of course, specific investing conclusions differ in every country. Market environments and company fundamentals must also be studied to identify successful portfolio candidates. But by starting with refrigerator shelves, we think investors can gain vital intelligence to understand the people, lifestyles and spending scenarios that will unlock earnings growth in emerging consumer companies

This article originally appeared at The Alliance Bernstein Blog. Copyright 2014.

Read more: http://blog.alliancebernstein.com/index.php/2014/06/20/cold-facts-in-emerging-market-fridges/#ixzz35M4aCKN2

Crimean Lessons for US Companies Doing Business Abroad

International political disturbances such as current events in Crimea and prior upheavals in, among others, Syria,Venezuela,Thailand, Kyrgyzstan, Egypt, Georgia, Congo, Iran and even Cuba always have profound effect on US businesses operating in the countries involved in those conflicts. Large US companies operating across the world have long learned to foresee and mitigate risks associated with politics, while small and medium-sized businesses (SMEs), not so much. This is at the time when US SME sector has undergone unprecedented international expansion fueled by low dollar exchange rate, reduced costs of telecom and travel, advances of the internet and growing demand for US products and services.

So what can US exporters, contractors, investors and franchisors learn from the Crimean conflict and what steps can they take to protect themselves from the next eruption in a seemingly safe international destination?

DO NOT PANIC!

This is by far the most important lesson. My business and I have survived three full-blown political crises, living through the fourth and have saw many significant government and policy changes, financial melt downs a half-dozen revolutions and a war in countries where we have had permanent operations, or business dealings.

First, protect your employees, corporate property and information. Start implementing contingency plans and have all non-essential personnel leave the country if the State Department issues travel warnings for the country you operate in. Stay in constant touch with the local US Embassy, or US Commercial Service. Analyze and reanalyze the news and information you gather from your private network. Look for signs of permanent shifts, if those are not present odds are any crisis will blow over and things will return to normal and in many cases lead to greater economic prosperity.  Some crises play out in days (Georgian war, GkCHP in Russia in 1991) some like Crimea look like they are long-term game changers and require a more fundamental reaction and adjustment of one’s business to be in sync with the new reality and with the modified US policy.

STAY INFORMED

Develop and cultivate multiple sources of reliable information. During rapidly breaking international events, there is a tremendous amount of white noise and inaccurate information pouring out of multiple sources. Social network posts, experts of various stripes appearing on TV, newspaper and magazine articles all putting their own spin on the events, with many being inaccurate and some just plain fake.  Thus it is important to distill several balanced general news, as well as trade sources to extrapolate accurate and timely information. For instance during Crimean crisis multiple US mainstream news sources were a day late reporting many important developments, so having reputable local sources (often available in English) is important.

Develop an informal network of Embassy and government agency officials, local chambers of commerce (AMCHAM) offices, bilateral councils, legal and financial professionals operating in the countries of interest. Initiate regular information exchanges and analysis sessions with members of your network. Join LinkedIn groups and actively monitor subject discussions. Ask yourself periodically if coverage you are receiving is correct and balanced. Make sure you understands all the issues and perspective of all sides involved in the conflict.

CONTINGENCY PLANNING

What happens if you have an order in route to a foreign country and a conflict arises there? What happens if your buyer is arranging credit and you have ramped up your production when sanctions are imposed? What happens if you, or your employees are in the country during the start of an unrest?  What happens if the ruling party changes during significant contract negotiations? What about a politically motivated change in leadership among your perspective customers, borrowers, and other interested parties?

To minimize your risks, you will want to keep your business, your person, and your information secure. That means at least taking common sense precautions in your daily business operations.  It also means that you have to be absolutely ready to  abandon your entire business in the foreign country at a moment’s notice. In the movie Heat, Robert DeNiro, playing the part of Neil McCauley, defined his survival strategy:  “Don’t let yourself get attached to anything you are not willing to walk out on in 30 seconds flat if you feel the heat around the corner.” A similar strategy should be employed when doing business abroad.

An effective survival strategy must always include contingency plans. These could include getting out of a country in a hurry whether via traditional or alternate routes, implementing a crisis management plan and hiring security, using medical evacuation insurance, or knowing where you can get access to  a few thousand bucks for when your wallet is lost, office ransacked, ATMs cease operating or Visa/Mastercard system is disabled. For exporters who have goods en route, or are n the middle of a contract production, know your rerouting options, alternative markets and formulate your plan in case the force majeure clause of your contract is invoked.

DO NOT SAVE ON LEGAL COSTS and PAPER ALL TRANSACTIONS PROPERLY

Small and mid size businesses generally despise lawyers (well certainly legal costs) and temptation is often to cut corners, re-use standardized contracts, distribution agreements and not go through with full legalization of property and asset acquisition in country. Often owners wish to remain hidden and transactions are done through intermediaries and sometime with “tax optimized” funds. BIG mistake. What will you do if a country has change of government, or worse yet the place where your company does business become’s another country (Crimea is just one of many examples of such transformations over the last 25 years.)  Use reputable lawyers both in the US and locally. Spend a bit extra upfront and have a piece of mind later on.

BUY INSURANCE!

In addition to commonly used freight insurance used by exporters, three specialized kinds of insurance are available to protect US companies and their employees venturing abroad:

Political risk insurance (PRI) – covers investors from such perils as political upheaval, currency inconvertibility and expropriation, creeping expropriation or nationalization of their assets. This type insurance also protects franchisors from loss of their royalty streams and protects contractors who are building international projects. Many private companies offer PRI, but OPIC – a federal agency tasked with financing and insuring American cos.’ investments abroad offers the most comprehensive and flexible policies for the money. MIGA – a unit of World bank is another potent source of PRI. Coverage is open in about 150 countries and we recommend it to all our clients venturing abroad.

It is important to consider PRI at the very early stages of the planned international investment or franchising process. Underwriting process is similar to that of a traditional loan and takes a few months.

Export credit insurance (ECI) – covers exporters from the risk of non-payment by the foreign buyers whether due from financial or political causes. It allows exporters to vastly expand their intentional business by offering open account sales with terms of up to 180 days. ECI policies range from an umbrella type of insurance covering multiple buyers to an individually tailored, albeit more expensive, single buyer coverage. Underwriting for ECI policies depends on the size of the proposed transactions and usually takes 1-2 weeks. ECI is offered through a number of private insurance carries and through the Export Import Bank of The United States (US Ex-Im).

Travel Medical Insurance (TMI) – covers business travelers against illness or injuries while traveling abroad. This type of coverage either permits subsidized or free treatment at authorized local doctors and hospitals, or when needed, allows for MEDEVAC evacuation to safe jurisdictions in case of serious injury

Fluent In Foreign Academy puts a series of bi-weekly educational webinars on selecting the right PRI, TMI and ECI solutions. To register for the upcoming sessions, please complete the form below:

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International business is often very profitable and exciting, but events like the Crimean crisis remind of the perils and should force each and every one of us doing business abroad to reassess and augment our risk mitigation strategies and procedures.

Please email me with any questions you may have about making your company better prepared to deal with international crises – agordin@broadstreetcap.com

A FRANCHISE TO WATCH! London’s first pay-per-minute cafe: will the idea catch on?

Ziferblat is London’s first pay-per-minute cafe, based on a Russian chain where ‘everything is free, except the time you spend there’

Vicky Baker theguardian.com,

Ziferblat, London – where drinks are free, but you pay 3p-per-minute to be there

Ever felt you’ve overstayed your welcome in a cafe, by reading, working or surfing the web while hugging the latte you bought two hours ago? Pay-per-minute cafes could be the answer. Ziferblat, the first UK branch of a Russian chain, has just opened in London (388 Old Street), where “everything is free inside except the time you spend there”. The fee: 3p a minute.

Ziferblat means clock face in Russian and German (Zifferblatt). The idea is guests take an alarm clock from the cupboard on arrival and note the time, then keep it with them, before, quite literally, clocking out at the end. There’s no minimum time. Guests can also get stuck into the complimentary snacks (biscuits, fruit, vegetables), or prepare their own food in the kitchen; they can help themselves to coffee from the professional machine, or have it made for them. There’s even a piano – an idea that could seem brilliant or terrible, depending on who takes the seat.  READ MORE

Felix, or no Felix? That is the Question.

I hope all of you had a terrific holiday season and once again would like to wish everyone health, happiness and prosperity in 2014.  We have a very exciting and event-filled year planned, so over the next couple weeks you will be seeing a number of announcements on the pages of this publication.  Today, I would like to kick off the year by announcing an upcoming release of the completely updated and revised Fluent In Foreign Business™ book.

The new edition sub-titled “A Candid and Practical Guide on how to Grow Your Company by Expanding into Foreign Markets”, will include the 2015 Emerging Markets: KeysToAmerica™ Challenge, as well as additional chapters on Financing Exports and Projects, Franchising Abroad, Picking Most Promising Markets, Risk Mitigation, and new stories about author’s own international business adventures. The new edition of the book is scheduled for worldwide release on March 18th of this year. Those wishing to reserve a signed limited edition hard cover version, please register below. You can also see reviews and sample the original at http://wp.me/P1iIhX-I

Meanwhile we at Fluent In Foreign have a very serious question to all of you:). Should our beloved Global Felix™ be included in the second edition? Some folks who read the book said that having Felix illustrations included detracts from the serious nature of the book, others love the jovial character who makes difficult issues and complex subjects easier to deal with.  Here are some Felix illustrations from the book, each illustrates the main issue of a corresponding chapter. Let us know your opinion, on whether we should include Global Felix in the new edition of the Fluent In Foreign Business?Thank you and all the best in 2014!

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YES -Keep Felix in the New Edition

NO - Do Not Keep Felix in the New Book

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Fluent In OPIC™- Getting financing and political risk insurance for your projects abroad

Please join us for a “Fluent In OPIC™ – Getting financing and political risk insurance for your projects abroad” webinar series. This webinar will only be presented three more times this year. Please register for the date and time that work best for you. Register now! https://attendee.gotowebinar.com/rt/7554456675803863297 Sponsored by the Broad Street Capital Group, this proprietary complimentary webinar ($379 Value) will offer comprehensive “beyond the website” look on how to effectively utilize little-known programs offered by the Overseas Private Investment Corporation (OPIC) – a US Government Agency – to finance international investment and franchise transactions for US companies expanding abroad. The workshop will address the types of transactions and industries being financed. It will go over the application process, deal structures, sponsor requirements and commitments, approval procedure, realistic time frame estimates, costs, fees, legal and developmental issues. The workshop will also examine various options for protecting investment through effective use of political risk insurance. PRESENTER:  ALEXANDER GORDIN, Managing Director of the Broad Street Capital Group and Creator of the FLUENT IN FOREIGN BUSINESS franchise. An international merchant banking professional with over 25 years experience providing cross-border strategic advisory services in the areas of export finance, international project finance, risk mitigation and business development. Clients include foreign governments and state enterprises. Transactional and negotiations experience in over thirty-five countries. Author of the critically acclaimed “Fluent in Foreign Business” book. Published and featured in numerous publications including: The Wall Street Journal, … for more ….http://wp.me/P1iIhX-I REGISTER NOW! https://attendee.gotowebinar.com/rt/7554456675803863297 After registering, you will receive a confirmation email containing information about joining the webinar. View System Requirements

“Emerging Markets’ Business Opportunities Disconnect and What to Do about It.”

Please join us for  an “Emerging Markets’ Business Opportunities Disconnect and What to Do about It.” webinar on Oct 09, 2013 at 2:00 PM EDT. Register now! https://attendee.gotowebinar.com/register/5282226836565226242 PROBLEM  As their economies grow, emerging market countries are aggressively building infrastructure, and developing commerce. These countries need a host of resources including suppliers, professionals, investors, franchisors et cetera from outside their borders to help them capitalize on their potential. At the same time, many companies from developed nations, particularly from the U.S., are eager to provide products or services. However, the market of connecting these buyers and sellers is extremely inefficient. Tremendous amounts of valuable time, resources and money have been wasted, until now. Professionals at Fluent In Foreign Business have developed a program that effectively and efficiently connects emerging countries with companies and investors that are ready, willing and able to provide needed products and services. This initiative addresses several fundamental problems currently hindering international business such as cross-culture gaps, lack of financing, risk mitigation and legal compliance with anti-corruption and anti-money laundering legislature. Fluent In Foreign also provides a cost-effective platform for pre-selected Emerging market companies, as well as North American exporters, investors, project developers and franchisors to access and take advantage of qualified business opportunities in more than 40 of the most promising emerging markets. PRESENTER: ALEXANDER GORDIN, Managing Director of the Broad Street Capital Group and Creator of the FLUENT IN FOREIGN BUSINESS franchise. An international merchant banking professional with over 25 years experience providing cross-border strategic advisory services in the areas of export finance, international project finance, risk mitigation and business development. Clients include foreign governments and state enterprises. Transactional and negotiations experience in over thirty-five countries. Author of the critically acclaimed  FLUENT IN FOREIGN BUSINESS book. Published and featured in numerous publications including: The Wall Street Journal, … for more ….http://wp.me/P1iIhX-I REGISTER NOW! https://attendee.gotowebinar.com/register/5282226836565226242 After registering, you will receive a confirmation email containing information about joining the webinar. View System Requirements

The 15 Countries Spending the Most on Business Travel

BY CATHERINE CLIFFORD | Entreprenuer|

Image credit: Shutterstock

Businesspeople from the U.S. spend more on work-related travel than corporate travelers from any other country in the world, but Chinese business-travel spending is expected to overtake the U.S. in the near future, according to a new report from the Global Business Travel Association.

With email, phone and video conferencing, and considering the time and expense required to travel, it may be tempting to stay chained to your desk. But there’s no replacing the connection of sharing a meal with a client, shaking hands and talking eye to eye. In the coming years, U.S. entrepreneurs may have to spend more time on planes headed East to stay competitive.

 

In 2012, professionals in the U.S. spent $262 billion on business travel, including both domestic and international trips, according to a report from the business travel and corporate meetings organization GBTA, released today. While that’s more than the $196 billion Chinese business travelers spent last year, business-travel spending in China grew 13.2 percent — three times the 4.4 percent growth rate in the U.S. By 2016, Chinese business travelers are expected to spend more than those from the U.S., according to the report.

In the coming years, the GBTA also expects India and Brazil to become increasingly aggressive when it comes to packing a suitcase and hitting the road. And while business travel in Western Europe has been on the slower side, as Spain, Italy, Portugal and Greece have struggled with crippling debt, the GBTA says the worst is over and expects business travel in those regions to begin picking up.

Based on the GBTA study of 75 countries, here’s a look at the top 15 by total business-travel spending in 2012, with percentage growth from the previous year:

1. U.S., $262 billion, 4.4%
2. China, $196 billion,13.2%
3. Japan, $65.2 billion, -1.2%
4. Germany, $50.5 billion, 1.1%
5. U.K., $40.2 billion, 0.1%
6. France, $35.7 billion, -2.1%
7. Italy, $32.7 billion, -7.5%
8. South Korea, $30.5 billion, 2.8%
9. Brazil, $30.1 billion, 9.3%
10. India, $22.1 billion, 5.8%
11. Canada, $22.0 billion, 1.4%
12. Australia, $21.1 billion, 2.8%
13. Russia, $20.4 billion, 2.6%
14. Spain, $17.9 billion, -8.0%
15. Netherlands, $17.8 billion, -4.5%

How does your business decide it’s worth it to spend money on international travel? Where do you go the most? Leave a note below, and let us know what you think.

Read more: http://www.entrepreneur.com/article/227717#ixzz2bJ6DqBCr

APPLE SEEDS, AWARD-WINNING CHILDREN’S PLAYSPACE, EXPANDING ITS FRANCHISE GLOBALLY

apple seeds expanding its franchise globally, yet carefully

(click to watch the MSNBC video on how apple seeds have done it)

apple seeds is highly popular with kids and their parents

APPLE SEEDS, AWARD-WINNING CHILDREN’S PLAYSPACE, TAPS  FLUENT IN FOREIGN TO MANAGE INTERNATIONAL FRANCHISING  

Fluent in Foreign LLC, a New York City based advisory firm that helps companies grow, finance and protect their business internationally, has been retained by Apple Seeds International LLC (http://www.appleseedsplay.com) to help them develop and manage children’s activity centers, through franchising arrangements, in international markets.

apple seeds, which opened its first activity center in Manhattan in 2007, has won numerous awards for innovation in the design of its 15,000 sq. ft. facility as well as for its wide variety of extracurricular classes for children, and their parents or caregivers, from newborn to five years of age. Last year the company opened its first international facility, in Mumbai, India, with locations in Dubai and Mexico City slated to open this year along with a second Manhattan location.

“Our concept has won recognition and praise from prestigious media like New York Magazine, Time Out New York Kids and Nickelodeon, and we feel the time is right to take our concept — via franchising agreements — to other major cities around the world,” said Bobby Berna, who, with his wife Alison and another couple, Allison and Craig Schlanger, co-founded apple seeds.  “Busy parents in other big cities have the same desire for quality playtime and an innovative learning experience for their young children.  It’s something that is common to all parents no matter the border.”   ( Please visit  http://wp.me/P1iIhX-7K for more…)