Case Studies
Problem: 'A brilliant invention, but no budget for a demo. Now what?’
Inventing a new and very unique product and generating sales immediately - what entrepreneur wouldn't want that? This company had invented something that immediately generated a lot of interest. However, buyers first wanted to see a demo that worked, and this was yet to be produced. The manufacturing of a demo cost around 1 million euros, and the money simply wasn’t there.
The Solution:
The entrepreneur in question made a business plan together with COVISO’s specialists. While drawing up the business plan, we quickly determined that it was impossible to find a financer for such a large amount during the current crisis. In addition to looking for funding, we immediately set to work on an alternative solution. We looked critically at what was needed to get a working demo that would demonstrate the product to potential customers. With this in mind, we stripped down the device so that the basic operation was easy to see. We then sat down with suppliers and made certain agreements, such as supplying the parts for the demo on consignment for a maximum period. In the end, we were able to make a demo model for less than a hundred thousand euros. Shortly afterwards, the orders came in, and production was full for the first year and a half. By now, the first models have been put on the market and are being used intensively. An example of smart entrepreneurship in times of crisis, where COVISO contributed to the solution.
Problem: 'International expansion, but there is more to it than that ...'
One of our customers in America wanted to expand its market and break into Europe. They first tried it themselves, but unfortunately, without success. We helped this customer by giving advice. They had not taken into account that in Europe, we work with a metric system along with the significant time difference between America and Europe. This made their response time for the customer seem very slow.
The Solution:
By setting up several official sales points with stock in Europe, delivery times were significantly reduced (next day delivery instead of 8 weeks). We advised one main dealer with sub-dealers for the remaining hubs, so that the Americans only communicated and traded with a single party and thus make larger shipments at a time. This drastically improved the response time. While the Americans slept, trade was conducted here. In three to four years' time, the turnover grew to €1,000,000.
It was a challenge to explain to the Americans that in Europe, each country has its own language, culture and values. And the fact that they had to make documentation with metric measurements and therefore also adapt some products was the toughest job. The Americans struggled to come to terms with this.
Problem: ‘Being restricted in growth due to the manufacturer. How can you deal with this?’
One of our customers had a dealership, but the manufacturer restricted their sales market, which held back growth. Various talks failed to change this. That is when we were called in.
The Solution:
After this company switched to another manufacturer, all options were open. However, the quality of the product was significantly diminished, which was another major setback for this company. Several talks with this manufacturer did not result in an improvement of the quality. After looking at various manufacturers worldwide, the company finally decided to make the product itself. This choice has been a great success. Not only could new markets be opened up, but the company also had the quality under its own control, and the product could be sold worldwide. Within three years, turnover had doubled.
Problem: ‘Expanding into South Africa, what's involved?’
A wholesaler from Belgium approached us for advice on starting a branch in South Africa.
The Solution:
COVISO provided advice and insight into a few key competitors in the area. We also looked at possible takeover candidates. Although the management was very enthusiastic, shareholders decided to temporarily put this form of growth on hold due to the current times.