Sunday, January 29, 2012

Having an edge with technology in Nicaragua

If you have a competitive advantage with the production of any product you will find a solid way to profitability. The barriers to entry for a automotive production company are virtually impossible to break through. The entry into mass producing baseball caps in China is pretty easy comparatively speaking. You can see opportunity all around you in Central America. North America has become so over saturated with business that they open on top of each other here in New England. In the south such as Texas it's just as bad. When you travel to Central America you can see the opportunities around every corner. First world technology can really give you that competitive advantage that you seek. For example, I own a chain of restaurants in the states, the more I own the cheaper the cost of my food. The more food I can purchase etc. There in Nicaragua they do not have the same type of supply chain. You will have to buy your produce in the markets with the rest of the merchants. Food looks fabulous there. You just won't have the deliveries coming in everyday. This would make a huge difference in the price of your goods. Quite often the price of the food determines how long you can stay in business at that level. This is an important step that many people seem to overlook when starting a new business. You must take into consideration the cost of your goods compared to what your competition is paying for them. If your pizza is better than your neighbors but he owns 10 shops, he is paying less than you are. You better start expanding fast or he can just lower his price a bit and push you out.
This is where having 1st world technology could be your best friend. Think for a moment about what your business would be like if you owned a crane in any of the major cities there. They would have to rent that from you. They do not have 23 crane operators there like here in my city. You would be the only one there. If there is one in Managua move to Leòn. You guys get the point. I realize getting a crane into Nicaragua would be a huge undertaking but it's just an example. If you are looking to use technology to help you gain an edge shoot me an email and I can discuss it with you further. (Photo below by Monsk April 2011)


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