Opportunity to meet a high ranking Congress leader at my recent trip to Iloilo

Every generation needs a revolution - an entrepreneurial revolution

In my trip to Iloilo last Monday, I was informed by our friend and business partner, that representative from their place, a relative of wife was conducting a meeting at 2 - 4  pm meeting.  Pershpas by chance, I could be at their house again.by 4 to 5 pm.  She was a fmr student at MBA  Health at GSB where I formerly taught

However I overslept, and besides, it was caught of awkward.  What would that end up to?  Will I be currying favors from the congresswoman.?   Was it a lost opportunity?

We are in Luzon province and she is not representing our province.

Crypto is supposed to be stable storage of value as substitute for currency; but joined market crash last Monday, lost over $500 billion

Every generation needs a revolution - an entrepreneurial revolution

Crypto loses $500 billion in value - joins market crash   Crypto agents said that its value could reach $200,000.  But with the global market crash, its just at $50,000 vicinity.   

One of the arguments for crypto is that it can be good substitute vs currency and as stable as gold and other precious metals.  But in the stock market route, crypto joined the stocks in the crash.  Perhaps, in the carry trade which is unravelling because of rise in Bank of Japan interest and rise in yen value,  some of them were invested in crypto.  Funds are probably ditching their crypto position.   

So the conservatives;  Dimon,  Buffett SEC were right about crypto.  My initial reaction to crypto is that it is not real.  Probably drug and gambling lords use crypto for Money Laundering.   You do not know where it is.   The crash in crypto values were similar to 2022 when FTX fraud were discovered.   

So be careful of investment of crypto.  I had a classmate who worked at ADB.  It was reported that she parlayed P500,000 to P14M but later on lost everything.   How sad.

I remember the advice of olds -  DO NOT INVEST IN ANYTHING YOU DO NOT FULLY UNDERSTAND.   

I dont think this post undersand crypto well enough

Took a long arduous trip for a closure in a negotiation, and to endorse the same

Every generation needs a revolution - an entrepreneurial revolution

This post left early morning yesterday to go on a long rip to a tourist town in Region 1 for closure.   Our group was unceremoniously dumped by a pair of relatives who owned a 5 hectare for a possible memorial park.  

They did not agree to our proposed sharing and curtly categorically said in messenger that they did not want the deal, and secondly, gave  us a deadline on a govt permit that was taking time with an ultimatum of "forgetting it"  

I went to the place, met with one of the relatives who works for a a BPO in MM.  I said we, our group

company business is exiting for personal reasons because of what we all ready know as bad communications regarding the deal and endorsing this with a new group who can take over

The replacement was again shown the land, the right of way, and the three memorial parks and 1 public cemetery

Unusual design of gate and fence of a memorial park

Every generation needs a revolution - an entrepreneurial revolution

On the way to a tourist town, we saw in Sta Ignacia an unusual desgin of a memorial park with  slats of horizonal  flatbar, skylights to an overhead acrylic roof, plenty of solo shrubs of different color and fences with unusual graphic lines and shapes:    black white, brown, grey.

It will surely attract attention.    Answers one of the criteria of  good business -  being unusual and extra ordinary.  

What happened to GE, formerly one of top companies in US, what Jack Welch has wrought?

Every generation needs a revolution - an entrepreneurial revolution

GE used to be darling of Wall St.   It was tops of the top 20 companies 20 years ago.

What caused its decline:

1.  Investing too much in non core business:   lending, health care.  The GE capital was badly hurt by 2008 crisis.   They had to be bailed out to the tune of $100 billion   It stood against the management principle of focus, on core business.  What was GEs core business:    Jet Engines, power generation.   They could have been growth more.  The acquistions distracted them from core businesses

2.  They engaged in too much acquisition .  However they financed this by cutting off employee payroll.

They destroyed their human capital.  The staff worried too much in being laid off.

Jack Welch was an idol before in management.  It seems it was a misplaced adulation.  

 

Turning around a failing business - look at the numbers

Every generation needs a revolution - an entrepreneurial revolution

Business restructuring, turn around, transformation

Every generation needs a revolution - an entrepreneurial revolution

How to save a failing business

Every generation needs a revolution - an entrepreneurial revolution

Its a  must knowledge for somebody who want to save a failing business.  Find the signs and how to turn around.

The Malolos Diocese takes over pastoral duties at Guanzon owned Grotto

Every generation needs a revolution - an entrepreneurial revolution

There was the recent news that the heirs of late Anita Guanzon who was cured on her trip to Lourdes Grotto in France, recently signed an agreement to take over pastoral  duties at the said church.

I remember that I pledged that if we would get a certain high visibility project, we will help build/finish the church of the grotto.  - the upper Basilica.  For us at the time our donation was huge compared to our revenues.  But help we did.

Lately though as we tried to contact the recipients of our donation, they never answered our calls/emails.

Malolos takes over pastoral care of Lourdes Grotto in San Jose 

Be unique, be you, be a franchise - in choosing a product. Do not be a copy cat - a product, a business like any other

Every generation needs a revolution - an entrepreneurial revolution

It is a common complaint in the Philippines that other businessmen are gaya gaya.   Poor imitators, copy cats.  It is the easiest way to enter into business:   to observe and mangopya -  to copy.  But this is the best way to court failure.  As a commodity, your margins are low because of stiff competition.

Thus we see trending or uso:   dozen copy cats:   pandesalan, kapehan, pares, ramen car wash, grab that blossom overnight and in a couple of months disappear.  

If you must choose a business it must be:

    1.  Unique  - a business like no other walang kaparis

    2.  A franchise -  they will go to you only because you are the only one offering this

    3.  A  physical  feature that is not available to every one  - like a distant location, sea of clouds, waterfall, hot spring, sea, lake view

It could be a unique decor:   lights, fountains, plants.  

Thus in Makati Avenue, they change menu and themes, set up bands every ninety days.  Otherwise, only flies will crowd your establishment

Seith Godin calls this the "Purple Cow"  This is unique marketing and product development. Os there such a purple cow.   

Rather than rely on military strategy for plans, or Michael Porter, or other gurus, just concentrate on being a better product, unique to others.   Like a taxi driver who knows your first name, and who invests in radio, in fragrance, and seat covers to make your riding experience enjoyable.  Or a hotel in a cave, or ice castles or restaurant under an ocean park. 

Sometimes the best businesses are made by nuts/By crazy guys

Strategizing on Kotler's 4ps of marketing

Every generation needs a revolution - an entrepreneurial revolution

No its not the Phil govt program vs poverty  -  Pantawid sa poverty program.  

Philip Kotler popularized the 4ps of marketing:

     Product

     Price

     Promotion

     Placement

Of course, marketing must remember that you sell in order to have margins for future costs.  It is no brainer if you give away your products

A good marketing program is an interplay of these elements, not equal but one or two greater emphasized than others

They used to say that build a better mousetrap, and the buyers will come to your door.  Product strategy rarely works by itself alone  It is true that when you have a quality and durable product people will buy your product.  

But you need this to be affordable also (price)  You cant price yourself out of the market.  

You need to promote -  advertise, give discount, conduct events to make your product to be known to many.

And lastly you have to have a channel:

      .1.  Brick and mortar store

       2  DM

       3.  Facebook

       4.  Affiliate marketing

       5.   Sales force

Again you cant be all to every buyer at the same time.  You cant make a nice product, sell this cheap, advertise this heavily, pay tops in commission to agens Just choose one or two and pour your resources into this.   

Strategy is a choice of resources to employ to achieve your objectives.  

Heightening customer experience

Every generation needs a revolution - an entrepreneurial revolution

This used to be customer service.  Then evolved into customer delight.  A step towards this was popularized by Sofitel with Plaisir  -  doing things that please the five senses -  smell, taste, hearing, touch, sight.  Total experience

Now this has evolved into upping customer experience.   All phases of customer experience with the company must be upped:    phone call, messenger, Gmail  (are they  being answered promptly and courteously)   at the bricks and mortar office.   

In a supermarket or cafe:  you are surrounded by music, well dressed employee, well arranged merchandised goods,  and an assault to your senses by newly baked bread and roasted coffee.  Who can resist that   

Malls have:   gorgeous landscaping, nice architecture,  air conditioned rooms and offices.   Art work and decor.  

Truly this must be given attention because Peter Drucker has defined business as an entity " that creates customer"   Customer care is paramount.  If you neglect customers, then very soon you can be a history.   

Mastery of opportunity

Every generation needs a revolution - an entrepreneurial revolution

An entrepreneur must master opportunity.  What is an opportunity?   It is time space where you can make:

     

      CASH

      ANDA

      PERA

      PHP

      AREP

This is now what they call as monetizing your hobbies, interest, your parssion

An entrepreneur must not be shy to make money, to desire money, to make lots of it.  If you listen to 

the saying that money is the root of evil, what does it profit a man.... Then you cant make it.

We need money to survive, to pay for our food shelter and clothing.  That is why we look for a job.  That is the ultimate goal of our studies.

While in high school, I had a hobby, and it was a losing hobby.  I took pictures of school events of weddings Of course I spent on film and developing.  I gave away most of the pictures.   My class mate urged me to collect and ask for payment and do not be shy.   When you are a mature entrepreneur, you must not be shy to raise your prices, or ask for more in a negotiation.   The one who survives on this earth is someone who can tell others what he wants.

To address OPPORTUNITY  you must:

    

      1.  Seek  -  doing a serendipity walk, look at franchies -  ie business that is dissimilar to others

      2.  Scan/screen  -  evaluating what fits your skills and interest

      3.  Seize  - writing your business plan and starting it.  Seizing the day

Its like writing:

      1.  You scan what is trending

      2.  You select articles that interest you or are related to your themes

      3.  Then you write about it.

I all ready lost my power point presentation on this topic.  I shared this with Slideshare/Linked it.  But they monetized this.

Three masteries needed to be an entrepreneur

Every generation needs a revolution - an entrepreneurial revolution

In the GSB, we were in agreement that there are three masteries that an entrepreneur to be truly one must master:

     1.  Self

     2.  Opportunities

     3.  Enterprise

It could not be pure technology mastery, or learning a trade or yema making or durian farming.   It has to start from the self.  Self improvement:   education, emotional, physical, spiritual are all part of mastery of self.  It involves development of leadership skills oral and written communication

There has to be mastery of self.  Thus Ii believe that a graduation skill of an entrepreneurship  student is the ability to write a comprehensive business plan that contains executive summary, organization, objectives,  marketing plan,  financial plan, operating plan, compliance with govt regulations, and exit strategy.  When this was no longer allowed,  I all ready wandered off to other pursuits.  

The entrepreneur must be able to spot opportunities around him.  What are the source of opportunities:   hobbies,  trends, changing customer wants and needs, and most commonly:  WHAT PISSES YOU OFF. ?

 According to Jack Ma, it is what the customer complains about.   (In your company or others.  The former head of Marriott makes sure that all complaints reaches him.   (That is what Ii try to do.  I read the FB messenger which are usually used as channels for complaints)

Not everybody can be entrepreneurs.  Not everybody can be online sellers without buyers.  Thus being entrepreneur is reserved for a selected few.  Many will try but only a few will succeed.

What do you think?

Financial expertise coming from engineering graduate

Every generation needs a revolution - an entrepreneurial revolution

This post encountered a finance manager of car manufacturing near our area.  He had a background in mechanical engineering.  But I would say he was a finance genius.   We were discussing a deal how he could maximize his cash flow for a 9 number sales tax that he was paying through the bank we were managing (as agent bank for tax collection)

It does not mean that if you graduated with an x major, you will forever be doomed to be in that x discipline.  What we learn in college is how to learn and think not to be a specialist.  You could be an expert elsewhere if you desire to learn.   

He prided himself for his department having more income than manufacturing -  through his adroit investment strategies especially at money market.

He said that to insulate the local car company from shocks of currency fluctuation.  This is what he did:

      1,  He borrowed from head office in Yen.  He had it deposited in foreign currency account

      2.  He borrowed against the FCD, back to back in Pesos.

      3.  Thus when the loan matured, he had to pay in pesos much easier to manage during fluctuation.

Brilliant eh.   

Funny (somewhat green) label for du Pont formula

Every generation needs a revolution - an entrepreneurial revolution

The du Pont formula is used for detailed financial analysis of ROI  (Return of Investment)    (We failed a candidate in  a panel examination when the candidate can not explain what ROI is)

Thus du Pont formula (which SEC also requires in financial reporting is:

            Income  Margin                 x        Turn Over                x Leverage    =    ROI

            Patong                                          Paikot                        Laway

            DI BA GREEN?!

            Net income/sales                   Sales/Total Assets            Total Assets/Stockholders equity

                           Cancelling out common terms, sales and total assets  =  Net Income/Stockholders equity

Thus to increase your ROI you have to do any of the following:

1.  Increase margin (raise prices or reduce cost)

2.  Reduce total assets (via outsourcing, reducing receivables and inventory)

     Thus BPO and outsourcing is simply following this formula

3.  Increase borrowing to reduce your Stockholders Equity

You do not need consultants or high caliber Auditing firms to improve your financial performance.  

Thus a milk company narrated that during a financial crisis in the 1980s survived by doing these things:

     1   Sale with leaseback of their plant and equipment;

     2.  Floor financing of their receivables

     3.  Discounting of receivables

Remembering this formula opens up innovation for financial management.   

The tyranny of one page report, analysis or recommendation.

Every generation needs a revolution - an entrepreneurial revolution

When this post was taking up MBA, he often encountered the tyranny of one page analysis//recommendation.  You do this after reading a 50 - 100 pages of case.  Its rather challenging:

     1.  You do not have much time to read well, much less comprehend the case;

     2.  You really have to dig deep into your brain to come up with a brilliant insight

     3.  You are trained to simplify your thinking, if not clarifying the issues.

     4.  You are trained to look at both the forest and the trees;

     5.  You are trained to "BLINK"   (reference to book by Malcolm Gladwell)

As you manage the business, you look up to your subordinates to be able to do this task.  Oftentimes, they clutter their thinking by coming up with more problems, and complicating issues.  

What rigorous training we had with our MBA

Financial analysis - likened to evaluation of suitor by a lady

Every generation needs a revolution - an entrepreneurial revolution

This post is reminded of the comparison made by a finance professor of financial analysis with a lady being wooed by many suitors.  The lady has to ask this question:

      1.  Does he have plenty of money (checking liquidity)

      2.  Is he stable (DE)

      3.  Does he have plenty of assets?

      4.  Is he indebted?

The professor I understand now heads an insurance company which sponsors many champion cyclists.

Using OPM to expand business

Every generation needs a revolution - an entrepreneurial revolution

Most businesses expand, or operate business doing the OPM -  others people money, Not their own money.  They call this leveraging  What are the methods/or application of this method?:

      1.  Bank loans;

      2.  IPO -  partial sale of equity

      3.  Suppliers credit

      4.  Down payment

      5.  Accelerated payment from customers (offering discounts for cash payment)

So instead of making it appear that the company needs the money, the perception is changed by saying:

      1.  Bond sale

      2   IPO

 What they mean really is they are taking your money, in exchange for higher interest or dividends to finance their growth.

Expanding the business and obtaining finance thereto is not a black art or rocket science

It really needs boldness and courage to go on leverage.  And have uncanny sense of the future that your product or service will sell, and that you can sustain the cash flow to repay the loan, pay the interest, or in the case of equity, to pay back dividends and or the principal (in case this is a private placement -  not listed at the bourse)

Thus a smart businessman does not have to fork out all his savings to finance his business expansion.  He leverages!   He uses other people's money.   Capital here means CAPITO.  Using ones head to obtain more funds for the business.

Thus its a poor excuse that one can not start business because one lacks capital.  There are many ways by which start up can take off.   It takes imagination, hard work and persistence

Why this post blogs?

Every generation needs a revolution - an entrepreneurial revolution

This post has been blogging for more than a decade.  Not  the typical blogger who does this for money

This post blogs because:

    1.  This serves as a log/memoir of thoughts and experience;

    2.  To share especially techniques and strategies for being better.

    3.  To be part of the net, even in tiny microscopic way.

Thus the blogs have to be insightful and deep.  Many now vlog, blog for popularity, for the sake of number of views, clicks and ads.   I dont mind if I get zero on ads and clicks.

To influence, to advertise.   (Maybe at times)