Daniel Evans CEO & Economist, Ormita Commerce Network [email protected] www.ormita.com YOUR BUSINESS IS IN TROUBLE and why government initiatives still haven’t saved you …
Nov 01, 2014
Daniel Evans
CEO & Economist, Ormita Commerce Network
www.ormita.com
YOUR BUSINESS IS IN TROUBLEand why government initiatives still haven’t saved you …
FIRST: LET’S TALK ABOUT A TERM THAT YOU HAVE BEEN HEARING LATELY
BALANCE OF TRADE
WHAT DOES “BALANCE OF TRADE” REALLY MEAN?
WHAT DOES “BALANCE OF TRADE” REALLY MEAN?
don’t take my word for itlet’s ask someone else…
WHAT DOES “BALANCE OF TRADE” REALLY MEAN?
my sixth grade teacher
BALANCE OF TRADE
the formula
TOTAL $ VALUE OF EXPORTS – TOTAL $ VALUE OF IMPORTS =
I APOLOGISE …THIS WAS ACTUALLY MY SIXTH GRADE TEACHER…
my sixth grade teacher
A POSITIVE BALANCE OF TRADEIs known as a “trade surplus” (because it consists of exporting more than is imported).
A NEGATIVE BALANCE OF TRADEIs known as a “trade deficit” or a trade gap (you are importing more than you export).
A POSITIVE BALANCE OF TRADEIs known as a “trade surplus” (because it consists of exporting more than is imported).
A NEGATIVE BALANCE OF TRADEIs known as a “trade deficit” or a trade gap (you are importing more than you export).
Virtually all developed countries have an overall trade deficit…
WHICH MEANS …
LESS MONEY IN LOCAL CIRCULATION
WHICH RESULTS IN…
LESS MONEY FOR LOCAL PEOPLE TO SPEND
With you
WHICH MEANS …
BUSINESSES WHO EARN MOST OF THEIR INCOME LOCALLY MAY START TO EARN LESS
WHICH LEADS TO …
SOME BUSINESSES CUTTING BACK ON THEIR SPENDING
WHICH CAN MEAN …
LESS PAID WORKING HOURS
LESS PAID WORKING HOURSVOLUNTARY PAY CUTS
LESS PAID WORKING HOURSVOLUNTARY PAY CUTSREDUNDANCIES & LAY-OFFS
WHAT DOES THIS HAVE TO DO WITH YOU?
I’M GETTING TO IT …
WHEN YOU PAY SOMEONE …WHAT HAPPENS?
WHO WILL THEY SPEND THE MONEY WITH?
HOW MUCH OF IT WILL COME BACK TO YOU?
LETS FACE FACTS
WHEN YOU BUY FROM SOMEONE THERE IS NO GUARANTEE THAT THEY (or someone they know)WILL BUY FROM YOU IN RETURN!
WE CANT FORCE OUR SUPPLIERS TO BUY FROM US
SO WHAT DO WE DO?
WE PUT BANDAIDSOVER THE CRACKS
Discounting
Special Offers
Discounting
Sales
Discounting
Special Offers
BUT THE CRACKS GET BIGGER
LESS MONEY IN THE ECONOMY ALSO MEANS …
MORE SURPLUS CAPACITY!
Every day there is 9.3 trillion dollars of unsold time, space, production capacity or products.
This is going to waste.
“
”
Every day there is 9.3 trillion dollars of unsold time, space, production capacity or products.
This is going to waste.
“
”Some famous guy said this…
@ ENTERTAINMENTVENUES
EMPTY SEATS
@ CAFES & RESTUANTS
EMPTY SEATS
APPOINTMENT TIME
UNSOLD
@ HOTELS &RESORTS ETC
EMPTY ROOMS
SURPLUS
RENTAL CAPACITY
WASTED
SPACE
IDLE
PRODUCTIONCAPACITY
DEPRECIATING
INVENTORY
A LACK OF MONEY DOES NOTNECESSARILY MEAN A LACK OF ASSETS
ASSETS ARE THE THINGS WE BUY WITH MONEY – THEY ARE NOT MONEY ITSELF
Great IdeaGreat Idea
Great Idea
WHAT IF…
EVERY TIME WE NEEDED TO SPEND MONEY WE WERE GUARANTEED A NEW SALE?
THERE WAS A NETWORK OF BUSINESSES WHO PREFERRED TO TRADE WITH ONE ANOTHER?
WE COULD USE OUR SURPLUS ASSETS TO PAY FOR THINGS WE NEED?
NO…WE HAVEN’T GONE NUTS
THE PLAN …
Put together a network of
businesses who have excess capacity
Media Companies
Service Providers
Manufac-turers
Retailers Start-ups Governments
LET PEOPLE START SELLING THEIR UNUSED CAPACITY
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YOU START TO HARNESS LOST VALUE INSTEAD OF WATCHING IT GO TO WASTE
LET’S FACE FACTS…WE AREN’T ALL WALMART OR APPLE
Line starts here.
NEW CUSTOMERS PROBABLY AREN’T LINING UP AT YOUR DOOR EVERY DAY
SO LET’S DO SOMETHING FOR OURSELVES
Pay for what we have with what
we need
SO LET’S DO SOMETHING FOR OURSELVES
Pay for what we have with what
we need
Bank the value of unsold assets
SO LET’S DO SOMETHING FOR OURSELVES
Pay for what we have with what
we need
Buy from those who buy from us
Bank the value of unsold assets
SO LET’S DO SOMETHING FOR OURSELVES
Pay for what we have with what
we need
Invest without spending extra cash
Buy from those who buy from us
Bank the value of unsold assets
SO LET’S DO SOMETHING FOR OURSELVES
Pay for what we have with what
we need Change the way we Change the way we Change the way we Change the way we think about businessthink about businessthink about businessthink about business
Invest without spending extra cash
Buy from those who buy from us
Bank the value of unsold assets
WE WOULD HAVE MOREOF THIS AS WELL …
If you’re interested … please visit our website at: www.ormita.com
THANK YOU!