Secrets of Growth
Behind an expat's wine startup success
January 25, 2012: 9:31 AM ETVines of Mendoza managed to overcome the pangs of the global financial crisis and Argentina's inflation woes by keeping a close eye on costs and cutting deals whenever possible.
By Ian Mount, contributor
FORTUNE -- Language and cultural differences make it hard to be an expat entrepreneur under any circumstances. It's doubly hard if the main market for your product plunges into a wrenching economic crisis. And it's even more difficult if your costs are in a country that suffers incredibly high inflation.
That's the position in which Michael Evans has found himself during the last few years. The Mendoza, Argentina-company he co-founded, Vines of Mendoza, was selling turn-key "vineyard estates" largely to Americans, whose disposable income evaporated following the 2008 collapse of Lehman Brothers and financial crisis. Even worse, as Evans' buyers were disappearing, his costs were rising; Argentina's already high inflation shot past 20% in 2010 and stayed there. Evans knew something would have to be done fast.
"I've been through something like this before in 2000, when I was at a dot-com. When something like that happens, you don't know exactly what's going to pass, but you know things will get worse before they get better," says Evans, 46. Faced with tumbling income and soaring inflation, as 2008 moved into 2009, the company cuts costs by 40% by laying off 30% of its staff ("By far, the worst day of my life," says Evans).
Breeding armchair Mondavis in Mendoza
Vines of Mendoza was born in 2005. At the end of 2004, after a stint on John Kerry's presidential campaign came to naught, Evans visited Argentina with his friend David Garrett, and they ended up touring Mendoza with Pablo Giménez Riili, a member of an old wine family.
At the time, Argentina's economy was recovering from its 2001-2002 collapse and peso devaluation. While it had been disastrous for most Argentines, the collapse was great news for the local wine industry, because it lowered production costs and made the wine regions attractive to tourists and investors.
Seeing that tourism was set to soar, Evans, Garrett, and Giménez Riili banged out a business plan for a company that would have a tasting room, a hotel, a mail order wine club and, most importantly, a vineyard estate business. More
-
Building a business with unwanted customers
A Newark, N.J. dental operation is turning a profit by focusing on the patients that most dentists shy away from: Medicaid recipients. By Shelley DuBois
Shelley DuBois, writer-reporter - Jan 20, 2012 10:52 AM ET -
Inside job: Consultants don't need to be outsiders
Many companies turn to consultants for guidance, but several big firms have created in-house teams to keep big decisions close to the vest, among other reasons. By Ethan Rouen
Jan 11, 2012 10:22 AM ET -
How crafty startups handle job recruiting
Finding great job candidates is both time-consuming and competitive, especially for startups. Some companies and B-schools are getting creative.
By Ethan Rouen, contributor
FORTUNE -- Just hearing the words "cash flow" can send a startup CEO into a panic, and for good reason. Entrepreneurs are frequently lectured on the importance of managing cash as their businesses grow, and hot companies can implode when they run out of money to support their expansion.
But MORE
Dec 19, 2011 9:57 AM ET -
When you work for yourself, can you take time off?
It's no simple task, but here are a few strategies from business owners who've managed to do it.
By Laura Vanderkam, contributor
FORTUNE -- Not many job categories are growing in today's economy, but here's one that is: the number of workers calling themselves "free agents." According to temp staffing agency Kelly Services, more than four in 10 workers call themselves "free agents," feeling unattached, long term, to any employer. This is MORE
Dec 16, 2011 9:18 AM ETPosted in: time management, Vacation -
Small biz loans: Credit unions to the rescue?
Spying an opening amid a credit crunch for many small companies, credit unions are expanding their offerings to entrepreneurs facing rebuffs from banks. By Elaine Pofeldt
Dec 2, 2011 10:10 AM ET -
Why gratitude is good for business, year round
Instead of showing appreciation exclusively during the holidays, some businesses are building it into their day-to-day and reaping business benefits on account of it.
By Vickie Elmer, contributor
FORTUNE -- When Kristina Bouweiri started hosting customer appreciation lunches in 2009, she thought she was just helping a friend boost her lagging business.
Little did she know that the lunches, which have been held in posh restaurants around Washington, D.C. like The Palm and MORE
Nov 23, 2011 3:47 PM ETPosted in: Gratitude -
What makes a business pitch so daunting?
Small business leaders need to convince an investor that funding them would start a mutually beneficial relationship. But sometimes the simplest things are the hardest to say. By Shelley DuBois
Nov 15, 2011 12:30 PM ET -
Meet the small biz loan matchmakers
The climate for small business lending over the past few years has been dark to say the least, opening a door to entrepreneurs who pair business owners with interested lenders. By Elaine Pofeldt
Nov 10, 2011 9:39 AM ET -
When your parents pay your salary
For family-owned businesses, melding personal and business life creates a unique brand of conflict. By Shelley DuBois
Nov 8, 2011 9:43 AM ET
-
Converting from a robotic scripted environment to a conversational environment has helped AmEx build relationships with customers. Play -
Influencing customers to tell others about their experience with American Express has turned from a cost to an investment in its business. Play -
Focusing on service has helped American Express create value for customers, and shareholders. Play -
National champions from Asia and South America are changing the makeup of the world's top chemical companies. Play
Every morning, discover the companies, deals and trends in tech that are moving markets and making headlines. SUBSCRIBE
Receive Fortune's newsletter on all the deals that matter, from Wall Street to Sand Hill Road. SUBSCRIBE
Covering the digital giants of Silicon Valley and beyond, an in-depth look at enterprise companies, and the startups disrupting them. Emailed twice weekly. SUBSCRIBE
Anne Fisher answers career-related questions and offers helpful advice for business professionals. SUBSCRIBE
