I spend a great deal of time, and digital ink, convincing emerging entrepreneurs (like you) to think long and hard about the lifestyle they want and the business model that will most easily create their chosen lifestyle. But, as always, there is another way. Sometimes the best way is to just do it.
Recently I interviewed Hugh Prather and his partner in both life and business Rosalba Ruiz. When these two people, a North American expat living in Ecuador and his Ecuadorian partner, decided to start a business, they did not ruminate about the decision but instead they went looking for a near-by, easy to start opportunity.
In the end, Prather and Ruiz opened two businesses, one, Hit Attractions, distributes wine and Ecuadorean coffee from the Loja region to restaurants and individuals in Cuenca, Ecuador. The other, I will tell you about in an upcoming post.
Prather did not think long and hard about his lifestyle choices, his deeply held values or his social responsibilities. In fact, when he moved to Ecuador he did not plan to start a business at all, he planned to live the life of a retired financial advisor but, like many, he got antsy.
“Retirement is okay, but I like to work. I like to create.” he says echoing the words of many retirees.
So, with nothing more than a vague idea of starting some sort of business to keep busy, Prather mentioned his plans to a friend and this friend suggested locally grown coffee.
With little more than a solid background in finance and a desire to try something new, Prather and Ruiz, who were dating at the time, entered the coffee distribution business.
“We tried a lot of different coffees from Loja because that is where the best coffee in Ecuador is grown. We decided to partner with one farm family and set up a distribution business here in Cuenca.”
The farm family selects the beans and does the roasting, creating a consistent product every week. Prather and Ruiz sell the product to restaurants and hotels and to local gringos.
The coffee is available online, but Ruiz, because she is Ecuadorian and speaks Spanish (but not English) is the one who sells the product to 25 of the better restaurants in Cuenca. She is the one who builds relationships and creates returning customers.
“I couldn’t do the sales,” Prather admits, “Because I don’t understand the language that well. It would have been hard for me to break into the restaurants, but it wasn’t hard for Rosalba.”
Once the coffee distribution channels were well established, Prather added another related product, imported Portuguese wine. The wine and coffee are distributed under the Hit Attractions business name.
The Hit Attractions distribution business requires some inventory and the work of delivering the product to the clients. Prather and Ruiz dedicate one room of their house to store inventory and recruit Ruiz’s two sons to make the deliveries.
Does It Work?
Does this business support Prather and Ruiz in the lifestyle they have chosen?
“If someone is looking to create a business here (in Ecuador), says Prather, don’t go in with the expectations it is going to make you lot of money right off the bat. It’s going to take time for you to develop your market. You’ve got to decide what you want to sell. You need to know if you want to produce it yourself or have somebody else produce it for you. You will need a business plan and an idea of how you are going to go about marketing it. You will need to know the regulations that go along with your product. Don’t’ go into it thinking you are going to make a killing and pay for your lifestyle here. I don’t think it’s realistic.”
Still Prather is not discouraged. He started the business to keep busy – but not too busy – and in that he is successful. In fact, he went on to develop another business. The other business, Ecuador USA Roses exports roses from Ecuador to the USA. More about that business soon.