New business models and opportunities - farm lots with high income potential with high value crops

Every generation needs a revolution - an entrepreneurial revolution

Our initial response to the Laguna agri properties were no deal.   (As we have focussed on memorial business and subdivision.  We thought of farm lots which are currently  selling between P2,000 to 3,000.

Our attention was caught by the high value tree farming espoused by Ben Mead an Australian who established Iba Botanicals, and UAP (United Agar Philippines ) and Dr. Ephraim  Cercado of San Joe DelMonte.  -  mostly videos at YT.   A top grade Agar wood in the wild can be sold for as high as $100,000 (P5 to 6m)  Dr. Ephraim claims a 1 hectare of Agar plantation (plenty of caveats of course)

can earn as much as P40.000,000 after 5 years.  

Why  not incorporate the high value tree and crop farming to the farm plots business concept:

        Thus:

         Business concept:    Farm lots cum high value tree farming

         MVP -   earn both on your lot purchase and income from high value crops    agar, ylang ylang,

                        vanilla.   Doble kita

Product:      farm lots

    Features:

    1.  Commercial for rent in front:   coffee shops, pasalubong, fruit stands in front, (even beer house)

    2.  Resort (upgrade what is there)

    3.  HIgh end residential at summit

   4.  Farm lots with cuts of 500 and 1,000 sm

        P2,500 without trees    P3,000 with high value trees

   5.  Tree farming:

        1 tree @  10 sm   thus 500 =   50 trees,   1,000 sm =  1,000 trees

       Income potential   50 trees x 40.    200M, 100 trees =  400 m

       We tie up with Iba Botanicals and Dr. Ephraim for Makreting on Plantation partnership;

                Baka libre planters kung plantation partnership,  or we buy our own seeds and have

                our own nursery. 

       We charge:

              15% for farm management; on the 5th year  (0 if you grow cultivate your own tree)

              10% for marketing

Pricing:     2,500 sm, without trees,  P3,000/sm if planted with trees

Promotion:

        Cash discount, free trees on x number of first buyers;   emphasize mvp

Placement:

        DENR, DA  Dr. Cercado, Ben Mead,  FB

Nation Building

This post visited his uncle who was reported to have 200 hectares taken over by illegal settlers.  He was not able to meddle in this because he has mangkin who is a Board Member.   We can connect throught his Mangkin with Ben Mead,   And lift up living conditions of the illegal settlers by having a growing contract with the settlers.   

We can tie up with Ben Mead and Dr Cercado for marketing tie ups

Why market leaders lose out to innovators?

From Josiah Go article at Inquirer Market Pulse

From Business Inquirer

Why as Cebu Pacific wrested the market share from PAL, Asias first  airline when it had the resources to launch such service, segment the market?  Or why has The Generic Pharmacy now outnumbered Mercury Drug outlets 2:1

Some answers:

1.  Company needs to protect financials.  Many see PHP spent on innovation as potential loss rather than potential profits;  (in gestation period, the new business can experience losses:

2.  Culture of complacency Success is the greatest enemy;  it breeds complacency

3.  Limited knowledge and methodology;   lack of understanding  of business model and see anything new as innovation

4.  Arrogance and pride (Pride goeth before the fall (hubris)

5.  Lack of strategic thinking

6.  Slow response to technological changes (lack of speed)

7.  Lack of idea channel (suggestion system bottoms up communication

8.  Internal inefficiency;  not process oriented lack of quality, or even squabbles that hinders the growth

9.  Lack of marketing talent in the team

10.  Inability to be a visionary to see the big picture.  While focusing now and operational efficiency, the future, the direction of the company is forgotten

Our Spentrep Class last night November 11, at H de la Costa campus

                                    Emmanuel and his Business Model, BMI presentation

We held the semi penultimate entrep class last night at H de la Costa.  The most significant events were the Business Model and Business Model Innovation by Emmanuel.

I initially started the class with the review of Business Planning, a major class requirement.  I touched on the business concept, business model, and business objective (VMOKRAPI)  Well my review and the SR jived.  As for the assignment on food trip, they had to practice doing the business concept and MVP.

We had two case analyses last night:  Pranav and MICO .  The Pranav Case took almost two hours, for me to call everybody.  There was one who was absent.  He will get 0 for today.  Two were not prepared and that was too bad because this exercise is worth 10 points and there are just two cases remaining:  Entrep Families of Asia and Victoria Court.

Pranav was about the business concept and business objective.   Mico was about PTM and business processes being directed by PTM.  It is very interesting to note that case analyses dynamics differ in every class, and sometimes the class goes into a debate and dilemna.  Same facts are viewed differently by individuals, or some see the facts differently.  Common defects are:   students do not appreciate the situation and the limitation of the situation and argue disregarding the constraints presented by the case;  some are very disciplined and stick to the facts and one of them is Elmer.  Some are really strategic seeing the case in terms of the business concept, coming to grips with the business reality. Martin was sagacious last night

Reality, would you stick to your guns if the situation that you initially hypothesized is not there.

The importance of meticulous planning before the event here cannot be over emphasized.  The  proponents, according to the case discussants were rather foolhardy, doing the planning and data gathering when they started to experience losses

"Fail to plan and plan to fail" by Benjamin Franklin holds water here

We only managed to do the PTM drawing for MICO

                                         Jaimes PTM had funny hair

                                       Gio putting the final touch for his lady PTM

                                  Group 4s lady could qualify for Ms. PHL

                                   Group 4 trying to figure out how their PTM would look like