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The bridges are becoming longer and wider

Two years ago BOOM referred to Daniel Isler and Heinz Zürcher in terms of 'bridge-builders for the economy'. This is an image which still applies today: their winning business concept has been put to the test - and succeeded.

The new name 'Fargate AG', assigned to the former Tozai Group AG at the end of 1998, is representative of the leap in quality achieved by Daniel Isler and Heinz Zürcher. Tozai, whose name was derived from the Japanese words for 'east' and 'west', focused solely on the Japanese market. Thanks to advice and support from Tozai, small Swiss companies were able to take up opportunities to export to this market.

The new name 'Fargate' stands for the expansion of the successful business strategy to different markets and the entire world. The idea for the name came about in the course of various brainstorming sessions and was then analyzed, since a good proprietary name is an asset which should not be underestimated in the service industry - and can say a great deal.

"The idea of globalization came originally from Tozai clients who, after gaining access to Japan, set their sights on other markets", explains Daniel Isler.

Zürcher and Isler decided to take the plunge one weekend in Olten, whilst participating - in their capacity as the successful founders of a company - at the Young Entrepreneurs' Day held at the School for Young Entrepreneurs where they first met.

The spontaneity of the decision matched the care and solidity with which the transition from Tozai to Fargate was planned and implemented. While Zürcher concentrated on client contact, Isler's work focused on the strategic aspects of the company.

Fargate's business concept is the only one of its kind in Switzerland. When enquiries are received from a client, it is possible - by means of standardized procedures - to verify rapidly and cost-effectively whether the company and its products are suitable for export purposes. During this process, "we are more interested in sounding out the company's weaknesses and stumbling blocks - and those of its products - than in its strengths".

If a positive decision is reached, the actual work on a project is pre-financed with the exception of the reimbursement of limited expenses. According to Isler: "We only start earning when the client does". This means that Fargate does not receive any large income until the contracts have been successfully concluded - which means that the company needs capital for this initial stage.

The two young entrepreneurs therefore began the search for additional funds. "We wrote to over 30 potential investors and had the opportunity to present our project on 15 occasions. We struck up a good relationship with one of our financial backers that resulted in a mutual decision to go ahead", is how Isler describes the process. Christoph Ringier, who switched from publishing to management consultancy, therefore sits alongside the two Fargate founders on the Board of Directors. They have since been joined by a lawyer, bringing with him his specialist knowledge.

Fargate's strategy for success is based on two pillars: firstly, the Fargate 'satellites' throughout the world. Isler says: "As our partners, they not only know their own market but are also familiar with the respective ways of thinking, customs and laws". As he further explains "Contrary to our expectations, the search for partners was not the main problem. And there is no shortage of good Swiss products for us to present. Our greatest difficulty was in establishing the most clear, efficient and straightforward organizational structure possible".

This organizational structure forms Fargate's second pillar and is based on the systematic use of the Worldwide Web: "Our Extranet contains all our data but only those persons working on a project have access to it. This allows us make use of the Internet whilst simultaneously guaranteeing discretion and data protection".

Isler outlines Fargate's target group as follows: "We are not seeking to compete with large companies but want to be available for companies which would not dare to take the step towards exporting without our help. We think of ourselves as a type of external export department for medium-sized firms, which are themselves able to contribute a minimum amount of export experience". 

Peter Stöckling