YOUR BUSINESS IS IN TROUBLE and why government initiatives still haven’t saved you … Daniel Evans CEO & Economist, Ormita Commerce Network daniel.evans@ormita.com www.ormita.com

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 it let’s ask someone else…

my sixth grade teacher

BALANCE OF TRADE the formula TOTAL $ VALUE OF EXPORTS – TOTAL $ VALUE OF IMPORTS = BALANCE OF TRADE the formula

I APOLOGISE … THIS WAS ACTUALLY MY SIXTH GRADE TEACHER…

my sixth grade teacher

A POSITIVE BALANCE OF TRADE Is known as a “trade surplus” (because it consists of exporting more than is imported). A NEGATIVE BALANCE OF TRADE Is known as a “trade deficit” or a trade gap (you are importing more than you export).

A POSITIVE BALANCE OF TRADE Is known as a “trade surplus” (because it consists of exporting more than is imported). A NEGATIVE BALANCE OF TRADE Is 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 HOURS VOLUNTARY PAY CUTS

LESS PAID WORKING HOURS VOLUNTARY PAY CUTS REDUNDANCIES & 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 BANDAIDS OVER THE CRACKS

Discounting

Discounting Special Offers

Discounting Sales 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…

EMPTY SEATS @ ENTERTAINMENT VENUES

EMPTY SEATS @ CAFES & RESTUANTS

UNSOLD APPOINTMENT TIME

EMPTY ROOMS @ HOTELS & RESORTS ETC

SURPLUS RENTAL CAPACITY

WASTED SPACE

IDLE PRODUCTION CAPACITY

DEPRECIATING INVENTORY

A LACK OF MONEY DOES NOT NECESSARILY MEAN A LACK OF ASSETS

ASSETS ARE THE THINGS WE BUY WITH MONEY – THEY ARE NOT MONEY ITSELF

Great Idea Great 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

E F H D G B A C I

E F H D G B A C I

E F H D G B A C I

E F H D G B A C I

E F H D G B A C I

E F H D G B A C I

E F H D G B A C I

E F H D G B A C I

E F H D G B A C I

E F H D G B A C I

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

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

SO LET’S DO SOMETHING FOR OURSELVES Bank the value of unsold assets SO LET’S DO SOMETHING FOR OURSELVES Pay for what we have with what we need

SO LET’S DO SOMETHING FOR OURSELVES Bank the value of unsold assets Buy from those who buy from us SO LET’S DO SOMETHING FOR OURSELVES Pay for what we have with what we need

SO LET’S DO SOMETHING FOR OURSELVES Bank the value of unsold assets Buy from those who buy from us SO LET’S DO SOMETHING FOR OURSELVES Invest without spending extra cash Pay for what we have with what we need

Change the way we think about business Bank the value of unsold assets Buy from those who buy from us SO LET’S DO SOMETHING FOR OURSELVES Invest without spending extra cash Pay for what we have with what we need Change the way we think about business

WE WOULD HAVE MORE OF THIS AS WELL …

If you’re interested … please visit our website at: www. ormita If you’re interested … please visit our website at: www.ormita.com THANK YOU!