Tuesday, April 1, 2008

MOVING AHEAD 2007 & BEYOND

After much exhaustive research, we chose Kingston, ON for three key reasons. First, we loved the location and the city and thought this would be a good place to live. Second, we are only 30 minutes from our warehouse, meaning we can have a hands on approach. Finally, most of our customers are on the East Coast, facilitating our ability to hold conferences and training.

The move finally came in June, 2007. Logistics issues solved, we have now turned our focus back to growing our customer base. One of our long term objectives is to recruit and train Exclusive Area Distributors (EADs). The EAD program will enable us to achieve our Macro Marketing goal to create international distribution, focusing our initial efforts on Canada and the United States.

The heart of our business model, localized distribution, is sound as it is based upon the premise of serving micro tea brands whose success is based upon a local, loyal customer base. Our core philosophy is based upon the idea that each Distributor wants the freedom to break free of their 9 to 5 job and earn a significant income through their tea business. For some Distributors this has become a reality. However, for others, and through no fault of their own, it has not been as easy. The key factor lacking in our business model is personal training.

To date, it has been difficult to offer personal one-on-one training to our Members. Successful TEAms require coaching. If you think about it, everyone needs a coach, someone to train and motivate. To date, Tea Connexions has attempted to do this over the phone, through conference calls, and has held some conferences.

EADs are considered an extension of Tea Connexions Head Quarters. Committed EADs receive personal training at their home base and then duplicate our training efforts with their TEAm of Sub-Distributors by offering personal training. The EAD is considered a critical member of our TEAm and responsible for managing their territory and ensuring that our market penetration goals are met using our Targeted Marketing action plan.

Over the next five to ten years, I envision a Tea Connexions wave spreading throughout the world. As the EAD program grows, so to will our tea distribution and market penetration. The cumulative activities of the Sub-Distributors and EADs will eventually result in Tea Connexions becoming the next Starbucks of Tea.

REFLECTION & TURMOIL (2005-2006)

In 2005 and 2006, we scaled back promotion and Distributor recruitment efforts to focus on training efforts. We launched conference calls and held a training conference in Saskatoon. The impact was good, but still we realized that many of our Distributors needed more hands on training. At the same time, growing Homeland Security issues were making it harder to fill orders effectively. The lack of personal training had some negative impacts and we saw this in order traffic, which, in turn was having a negative impact on our Master Distributors. This was, increasingly, becoming an issue.

I went through a lot of inner turmoil during this period because I knew the company had to move and set up our own Distribution facilities in the United States and set up a US training program to ensure ongoing success. The issue holding me back was family obligations. I am the only son and felt a responsibility to stay in Saskatoon and be closer to my parents. As an investor in the company, my father realized the problems and I think sensed my reasons for not moving. In March, 2006, my parents advised me that they wanted me to move the business. I got their blessing and thus began our 15 month plan to move the business.

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