His plan is to expand to neighbor countries due to similar culture and business strategy, but he has the concern on limited cash flow, confidence level and know how. Basically he is doing cabling infrastructure distribution and services business. From what I noticed, he is doing very well on services over the past few years because of his public relations, reasonable price and being very flexible in doing business. Most of the customers like to deal with them.
For their distribution business, it compliments with their projects and services, I guess may be about 15-25% of the total annual sales. A good thing about their distribution business is, all the products are self-developed and they have a lot better margins compared to the local rivals. Right now, his plan is to focus only on distribution business in neighbor country.
I commented that I don't really look good on neighbor country even it's a much bigger cake, as the cabling infrastructure there are more mature and competitive than local market. Yes, they have their own brand and they are able to control the cost and selling price. But these cable items are very mature in the market, what makes me want to change brand or vendor? Are both solving the same problems? Unless you tell me I can make more margin by using your product?
Well, this is traditional trading game and the price can only go lower and lower with lesser margin. With his concern in mind, it might be a waste of time and money, unless he has a out-of-the-box business strategy. I did advice him to try participate in international fair in the neighbor country and check out the response before rush in just like that.
Unfortunately, free advice is always useless, people just don't appreciate it. He got pissed off. He scolded me for depreciating his products and he feedback that if everyone think like me, then no one is going to expand overseas. Well, it is true but that's only for those losers who stopped by the negative feedback. What I mean is he can actually leverage on those negative feedback to move forward!
Well, I get his point why he is angry. From the way I noticed, most of the bosses or entrepreneurs do not like people provide negative feedback about their company, especially on their ideas, plans and solutions. Perhaps they were having hard time to make it over, and they think they need to be recognize badly.
In my opinion, if one only want to listen positive feedback and fake comment, then I don't see this topic needs to be brought up and discussed anymore in the near future. When I reached home, I did apologize and text him we would not discuss about his company again and he is fine with it.
I hope he'll ponder over my comments before he takes action. I wish him all the best for his overseas expansion.