A Twenty Something's Business as Mission Journey :: Textile Manufacturing
Sector: Manufacturing textiles for home furnishings.Market: Primarily manufacturing for high-end retailers in west; working on being the low-cost outsourced manufacturer for one of the largest names in the business. Five years ago tried to brand themselves and sell direct but did not succeed.
Structure: Wholly foreign owned enterprise with corporate headquarters and Board of Directors located in the USA. Structured as a for-profit manufacturing business which supports a connected but separate non-profit development company. Both have separate Boards, though the non-profit is a virtual entity.
In-country the for-profit rents and runs a manufacturing facility with 65 employees and 2 expat families and has contractual ties with 10-20 small workshops in rural areas (at their peak they provided employment for 300 people). The expats are provided with a salary but are also partially donor-supported. They also have a small office in their minority people county which they hope to expand into another manufacturing facility. The CEO is based in the US and so is the Board of Directors. The present CEO has had overseas experience in Africa and is the first ‘full-time’ CEO. The Board is primarily made up of people with business background.
In-country the non-profit partners with a minority people NGO (non-governmental organization) to run an English Language Center. The NGO takes care of registration, government relations, finances and recruiting minority students. The non-profit provides up to five native English speaking teachers (visas provided by the for-profit), curriculum and runs the program. They recruit native English speakers with college degrees and TEFL certification for 2-year commitments. All are donor-supported. The NGO Board is made up of pastoral staff from the eight fellowships who are supporting this effort.
In-country the non-profit partners with a minority people NGO (non-governmental organization) to run an English Language Center. The NGO takes care of registration, government relations, finances and recruiting minority students. The non-profit provides up to five native English speaking teachers (visas provided by the for-profit), curriculum and runs the program. They recruit native English speakers with college degrees and TEFL certification for 2-year commitments. All are donor-supported. The NGO Board is made up of pastoral staff from the eight fellowships who are supporting this effort.
Champion: Company founded by two brothers and two friends over 10 years ago. Last of the founders (true champion) left last year, present champion is standing in as the main factory GM but hopes to be the GM of the minority county remote manufacturing facility within 18 months. Present champion has science degree and work experience and linguistic ability. Has been in-country for 10-years and done extensive traveling among these minority peoples. Has a passion for the people and for seeing churches planted among them. He has been working at this facility for 7 years in roles ranging from HR to Sales/Marketing.
Business formation: Do not know story of original champions other than their desire to live in this relatively remote place and gain access to these minority people. They set up a business that tied directly into the cultural values of these people – an indigenous art/textile that is uniquely to these peoples and has been a trade commodity for centuries – and yet an art that is not bound by the design, rather by its construction. Thus this commodity can be adapted to meet western market tastes without losing its identity. The raw materials must be obtained through another minority people group who control the market – and the two minority people groups have a history of animosity between them. They have established a manufacturing facility inside the largest raw material supplying company for product development and quality control. They have their own designers. They also have extensively used small rural workshops for production.
Vision: To bless the lives of these minority people through job and wealth creation, and place passionate expats and local believers among them to share the Good News and raise up a plurality of elders among these people. The manufacturing facility provides jobs and the work culture promotes values and expat and local believers intentionally seek to incarnate Christ in the workplace. The contracting production out to rural workshops gains an audience in the target area. The long-term vision to place a manufacturing facility in the minority area would potentially become the number one employer in that area (very high unemployment). The for-profit enterprise then facilitates other ministry opportunities through the non-profit programs of teaching English and showing compassion. Because the English training is partnered with a minority NGO, almost all the students are of the desired minority people. The English program provides natural means to interact, develop relationships and share lives and Truth. The program also subsidizes manufacturing staff to take classes.
Story: Started by two brothers and two friends. All shared a vision. After one ‘friend’ embezzled a significant amount of their starting capital, they were able to settle down and get the business going. They were the first wholly foreign registered business in this relatively remote area. With the departure of the last founder (one of the brothers) after 25 years in-country, the present team realized that the original vision had never been put in writing. Over the past months they have been working through the process to articulate and agree upon vision, theology and direction, both in the field and with the US-based Board and CEO. The GM and CEO positions have undergone significant turnover over the years. Present champion/GM desires to move on to lead the smaller manufacturing presence in the rural minority county area. Present VGM has been the VGM for 5-years, is getting his Business degree on-line and will then step in as the GM.
Lessons learned:
1) Importance of networking. One of the founders developed networks as he worked his way to this region. Managed to connect to a like-minded local network and several years ago this church network sent three highly qualified national staff to work at the manufacturing facility for 2-years. Great boost to operations and witness!
2) Importance of western-style HR. Wish they’d implemented this from the start. Too much relativism and deal making going on.
3) Importance of market pull, not push. Started by doing own designs and trying to sell on their own in the west. Even paid a consultant to help re-design their marketing approach and create a brand name – but lacked the marketing/sales resources. Had a season of being highly subsidized by a like-minded business that sold their product, purchasing most of their inventory for slightly over cost. However, this benevolent client passed away last year and no other sustainable marketing plan had been developed. The result was almost a total loss of sales, piling up of unsellable inventory, drastic reduction in output and loss of business for their small workshops. They presently now have one solid retail client and are in negotiations with one of the top three high-end retailers of their product who is looking to move their base of manufacturing due to political instability and cost issues. They are making product to meet the client’s specified design.
2) Importance of western-style HR. Wish they’d implemented this from the start. Too much relativism and deal making going on.
3) Importance of market pull, not push. Started by doing own designs and trying to sell on their own in the west. Even paid a consultant to help re-design their marketing approach and create a brand name – but lacked the marketing/sales resources. Had a season of being highly subsidized by a like-minded business that sold their product, purchasing most of their inventory for slightly over cost. However, this benevolent client passed away last year and no other sustainable marketing plan had been developed. The result was almost a total loss of sales, piling up of unsellable inventory, drastic reduction in output and loss of business for their small workshops. They presently now have one solid retail client and are in negotiations with one of the top three high-end retailers of their product who is looking to move their base of manufacturing due to political instability and cost issues. They are making product to meet the client’s specified design.
Future plans: Develop a sound, sustainable and profitable marketing plan. Hoping a key part of it will be to become the manufacturer for this major supplier of their product. Required to move their manufacturing facility to a new business park and take on a major capital cost. Hoping within 18 months to have enough stable business to move a team to the rural minority county area to set up a smaller scale (up to 25 employees) manufacturing facility – in the key area for this minority people group. Hoping to also replicate the non-profit partnership in that area.
Results: Long-term relationships with people in this least-reached minority people group in business relations (workshops, officials, employees) as students in the English program Clearly identified and known as a business that champions this people group. A sustainer of their long-term culture through developing and marketing their traditional commodity item. Long-term presence in a remote area. Ten years and counting. Provides visas for 5-10 expats and eventually for 2-5 more in a very remote area. Partnering with the minority people NGO results in 75+% of their English students being from this minority people group. Providing an excellent English language program means they have a good reputation that draws students from four different provinces Potential to place a manufacturing facility and expats in a very remote position and in the central location of this minority people group. Have seen two minority men make professions, invest time in discipleship but appear to not stay faithful
Observations: Potentially great BAM model. Product that ties right into the culture of the people and most of these people have the skills to do it. Product already does have an international market, once they solve the quality and marketing connection issues. Model potentially allows them to touch the community in multiple ways – through employment, contracting small workshops, teaching English and showing compassion. Non-profit partnership with minority NGO allows them to openly be a champion of a minority people.
Original champion(s) seem to have done a reasonable job with government relations, vision and recruiting. However, not putting the vision into writing and making sure the vision and values were engaged by all and passed down means these core issues all have to be revisited.
Present champion is passionate and articulate about the vision and the people group. However, his best fit is not GM of the for-profit business. He is being worn out by governmental pressures, staff meetings and the details of making the business work. These perhaps are critical for his future role as GM in the rural area, but appear to be draining him now and perhaps slowing the business down.
Some problematic issues with the CEO and Board being based in the US while all the operations go on in-country. Encouraged that the new CEO has spent a lot of time in-country and is planning to invest more. Sounds like in the past there have been many disconnects between the CEO/Board and the team on the ground.
Still face challenges reaching out to a minority people in the capital city. Their people group concentration is almost 500 miles away from the capital city where they are based! Minority people get out-competed for jobs by the majority people in the city. Even for the rural workshops, they are not even 50% of the people with whom they desire to work!
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Labels: A Twenty Something's Business as Mission Journey, Case Studies
