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YOUR BUSINESS IS IN TROUBLE
and why government initiatives still haven’t saved you … Daniel Evans CEO & Economist, Ormita Commerce Network
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FIRST: LET’S TALK ABOUT A TERM THAT YOU HAVE BEEN HEARING LATELY
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BALANCE OF TRADE
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WHAT DOES “BALANCE OF TRADE” REALLY MEAN?
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WHAT DOES “BALANCE OF TRADE” REALLY MEAN?
don’t take my word for it let’s ask someone else…
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my sixth grade teacher
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BALANCE OF TRADE the formula
TOTAL $ VALUE OF EXPORTS – TOTAL $ VALUE OF IMPORTS = BALANCE OF TRADE the formula
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I APOLOGISE … THIS WAS ACTUALLY MY SIXTH GRADE TEACHER…
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my sixth grade teacher
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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).
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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…
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WHICH MEANS …
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LESS MONEY IN LOCAL CIRCULATION
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WHICH RESULTS IN…
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LESS MONEY FOR LOCAL PEOPLE TO SPEND
With you
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WHICH MEANS …
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BUSINESSES WHO EARN MOST OF THEIR INCOME LOCALLY MAY START TO EARN LESS
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WHICH LEADS TO …
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SOME BUSINESSES CUTTING BACK ON THEIR SPENDING
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WHICH CAN MEAN …
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LESS PAID WORKING HOURS
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LESS PAID WORKING HOURS VOLUNTARY PAY CUTS
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LESS PAID WORKING HOURS VOLUNTARY PAY CUTS REDUNDANCIES & LAY-OFFS
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WHAT DOES THIS HAVE TO DO WITH YOU?
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I’M GETTING TO IT …
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WHEN YOU PAY SOMEONE … WHAT HAPPENS?
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WHO WILL THEY SPEND THE MONEY WITH?
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HOW MUCH OF IT WILL COME BACK TO YOU?
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LETS FACE FACTS
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WHEN YOU BUY FROM SOMEONE THERE IS NO GUARANTEE THAT THEY (or someone they know) WILL BUY FROM YOU IN RETURN!
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WE CANT FORCE OUR SUPPLIERS TO BUY FROM US
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SO WHAT DO WE DO?
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WE PUT BANDAIDS OVER THE CRACKS
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Discounting
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Discounting Special Offers
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Discounting Sales Special Offers
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BUT THE CRACKS GET BIGGER
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LESS MONEY IN THE ECONOMY ALSO MEANS …
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MORE SURPLUS CAPACITY!
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“ Every day there is 9.3 trillion dollars of unsold time, space, production capacity or products. This is going to waste. ”
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“ 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…
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EMPTY SEATS @ ENTERTAINMENT VENUES
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EMPTY SEATS @ CAFES & RESTUANTS
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UNSOLD APPOINTMENT TIME
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EMPTY ROOMS @ HOTELS & RESORTS ETC
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SURPLUS RENTAL CAPACITY
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WASTED SPACE
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IDLE PRODUCTION CAPACITY
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DEPRECIATING INVENTORY
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A LACK OF MONEY DOES NOT NECESSARILY MEAN A LACK OF ASSETS
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ASSETS ARE THE THINGS WE BUY WITH MONEY – THEY ARE NOT MONEY ITSELF
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Great Idea Great Idea
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Great Idea
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WHAT IF…
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EVERY TIME WE NEEDED TO SPEND MONEY WE WERE GUARANTEED A NEW SALE?
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THERE WAS A NETWORK OF BUSINESSES WHO PREFERRED TO TRADE WITH ONE ANOTHER?
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WE COULD USE OUR SURPLUS ASSETS TO PAY FOR THINGS WE NEED?
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NO… WE HAVEN’T GONE NUTS
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THE PLAN …
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Put together a network of businesses who have excess capacity
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Media Companies Service Providers Manufac-turers Retailers Start-ups Governments
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LET PEOPLE START SELLING THEIR UNUSED CAPACITY
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E F H D G B A C I
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E F H D G B A C I
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E F H D G B A C I
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E F H D G B A C I
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E F H D G B A C I
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E F H D G B A C I
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E F H D G B A C I
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E F H D G B A C I
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E F H D G B A C I
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E F H D G B A C I
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YOU START TO HARNESS LOST VALUE INSTEAD OF WATCHING IT GO TO WASTE
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LET’S FACE FACTS… WE AREN’T ALL WALMART OR APPLE
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Line starts here.
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NEW CUSTOMERS PROBABLY AREN’T LINING UP AT YOUR DOOR EVERY DAY
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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
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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
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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
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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
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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
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WE WOULD HAVE MORE OF THIS AS WELL …
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If you’re interested … please visit our website at: www. ormita
If you’re interested … please visit our website at: THANK YOU!
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