Focus on Fair Trade

The first thing I did upon returning to the States, with visions of business grandeur in my head, was to do some research. Ok, a lot of research. Initially, our focus was going to be products from Peru. So, I researched the competition to see what was out there. And, of course, no surprise, there are quite a few from the contintental US and from Peru. Some of the sites were fresh, full of great product, and easy to navigate. Some sites looked like the laundry we pull out of our bags after two weeks of travel. Then, I found sites offering a variety of products from other countries. As I poked around, my premise of Peruvian handcrafts began to extend beyond South America and soon took on the world. Continued surfing and I came upon several sites where the handcrafts were "fairly traded".

Now, I had heard of fair trade coffee to the point of buying it regularly in my local store. Fair trade bananas another one, but harder to find. Fair trade handcrafts? Hmmmm. Is this a gimmick or does it add value to my business? Let's consider Fair Trade:

Fair Trade - a social movement started in the 1940's with handcrafts sold through church organizations prior to it catching on in the agricultural model with great success. Fair trade ensures the artisan receives a living wage, which at a minumum is the country's minimum wage, but often is far above it. Working conditions, benefits, education, and market access are all improved under the fair trade model. Sounds fair to me. What does this mean to the consumer? Yes, prices are higher than a non fair trade item, but not so significantly that it makes you think twice. In fact, you'll sleep better knowing that the artisan wasn't starving, dying or under 10 years of age when they made your handcraft.

Ok, that said, the premise for the business was fully developed and the business plan ready to be written. Mamacuna Traders, an Internet retailer, would sell handcrafts from around the world made by Fair Trade Certified artisans or producer groups practicing fair trade practices.

My research included the competition, the marketplace, trends analysis, and oh yes, financials. Financials - the make or break section of every business plan. Now if I can just find my calculator...